[Federal Register Volume 85, Number 161 (Wednesday, August 19, 2020)]
[Notices]
[Pages 51015-51018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18157]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-119]
Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts
Thereof, From the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Preliminary Affirmative
Determination of Critical Circumstances, Postponement of Final
Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that certain vertical shaft engines between 225cc and 999cc, and parts
thereof (vertical shaft engines) from the People's Republic of China
(China) are being, or are likely to be, sold in the United States at
less than fair value (LTFV). The period of investigation is July 1,
2019 through December 31, 2019. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable August 19, 2020.
FOR FURTHER INFORMATION CONTACT: Leo Ayala or Alex Cipolla, AD/CVD
Operations, Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3945 or (202) 482-4956,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February
18, 2020.\1\ On June 2, 2020, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
August 12, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Certain Vertical Shaft Engines Between 223cc and 999cc,
and Parts Thereof from the People's Republic of China: Initiation of
Antidumping Duty Investigation, 85 FR 8809 (February 18, 2020)
(Initiation Notice), and accompanying AD Initiation Checklist.
\2\ See Certain Vertical Shaft Engines Between 225cc and 999cc,
and Parts Thereof from the People's Republic of China: Postponement
of Preliminary Determination in the Antidumping Duty Investigation,
85 FR 33622 (June 2, 2020).
\3\ See Memorandum, ``Certain Vertical Shaft Engines Between
225cc and 999cc, and Parts Thereof from the People's Republic of
China: Decision Memorandum for the Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Critical Circumstances Determination,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are vertical shaft
engines from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ Commerce is
not preliminarily modifying the scope language as it appeared in the
Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Certain Vertical Shaft Engines Between
223cc and 999cc, and Parts Thereof from the People's Republic of
China: Scope Comments Decision Memorandum for the Preliminary
Determination'' dated June 4, 2020 (Preliminary Scope Decision
Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. In addition, Commerce has
calculated constructed export prices in accordance with section 772(b)
of the Act. Because China is a non-market economy, within the meaning
of section 771(18) of the Act, Commerce has calculated normal value in
accordance with section 773(c) of the Act. Furthermore, pursuant to
section 776(a) and (b) of the Act, Commerce has preliminarily relied
upon facts otherwise available, with adverse inferences, with respect
to the China-wide entity. For a full description of the methodology
underlying Commerce's preliminary determination, see the Preliminary
Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances exist
with respect to imports of vertical shaft engines from China for:
Loncin Motor Co., Ltd. (Loncin); Chongqing Zongshen General Power
Machine Co., Ltd. (Zongshen); the separate rate companies, and the
China-wide entity. For a full description of the methodology and
results of Commerce's critical circumstances analysis, see the
Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\7\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\8\
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\7\ See Initiation Notice, 85 FR at 8813.
\8\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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[[Page 51016]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated Cash deposit
weighted- rate (adjusted
average for export
Producer Exporter dumping subsidy
margin offset)
(percent) (percent)
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Loncin Motor Co., Ltd......................... Loncin Motor Co., Ltd........... 219.07 206.82
Chongqing Zongshen General Power Machine Co., Chongqing Zongshen General Power 401.14 380.46
Ltd. Machine Co., Ltd.
Chongqing Rato Technology Co., Ltd............ Chongqing Rato Technology Co., 326.17 308.64
Ltd.
Jialing-Honda Motors Co., Ltd................. Jialing-Honda Motors Co., Ltd... 326.17 308.64
Yamaha Motor Powered Products Jiangsu Co., Ltd Yamaha Motor Powered Products 326.17 308.64
Jiangsu Co., Ltd.
China-Wide Entity............................. ................................ 543.18 530.93
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
Chinese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Chinese producer/exporter combination (or China-wide entity)
that supplied that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
The date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for Loncin, Zongshen, all
separate rate companies, and the China-wide entity. In accordance with
section 733(e)(2)(A) of the Act, the suspension of liquidation shall
apply to all unliquidated entries of merchandise from Loncin, Zongshen,
all separate rate companies, and the China-wide entity that were
entered, or withdrawn from warehouse, for consumption on or after the
date which is 90 days before the publication of this notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. As explained in
the Preliminary Decision Memorandum, Commerce has made a preliminary
affirmative determination not to grant a domestic subsidy pass-through.
However, we have granted export subsidy offsets. Specifically, Commerce
has offset the calculated estimated weighted-average dumping margin by
the appropriate export subsidy rate(s). Any such, adjusted rates may be
found in the Preliminary Determination section's chart of estimated
weighted-average dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
export subsidies at the time the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments for all non-scope issues may
be submitted to Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS) no
later than seven days after the date on which the final verification
report is issued in this proceeding, and rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than seven days
after the deadline date for case briefs.\9\ Case briefs or other
written comments on scope issues may be submitted no later than 30 days
after the publication of this preliminary determination in the Federal
Register, and rebuttal briefs, limited to issues raised in the case
briefs, may be
[[Page 51017]]
submitted no later than seven days after the deadline for the case
briefs. For any briefs filed on scope issues, parties must file
separate and identical documents on the record for the concurrent CVD
investigations. Parties who submit case briefs or rebuttal briefs in
this proceeding are encouraged to submit with each argument: (1) A
statement of the issue; (2) a brief summary of the argument; and (3) a
table of authorities.\10\ This summary should be limited to five pages
total, including footnotes.
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\9\ See 19 CFR 351.309(c)-(d); see also 19 CFR 351.303 (for
general filing requirements).
\10\ See 19 CFR 351.309(c)(2) and (d)(2).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Parties must file their case and rebuttal briefs, and any requests
for a hearing, electronically using Commerce's electronic records
system, ACCESS.\11\ Electronically filed documents must be received
successfully in their entirety by 5:00 p.m. Eastern Time,\12\ on the
due dates established above. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\13\
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\11\ See 19 CFR 351.303(b)(2)(i).
\12\ See 19 CFR 351.303(b)(1).
\13\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
Pursuant to 19 CFR 351.210(e), Loncin requested that Commerce
postpone the final determination and extend provisional measures to a
period not more than six months in duration.\14\ In accordance with
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because:
(1) The preliminary determination is affirmative; (2) the requesting
exporter accounts for a significant proportion of exports of the
subject merchandise; and (3) no compelling reasons for denial exist,
Commerce is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, Commerce's final determination will be
issued no later than 135 days after the date of publication of this
preliminary determination.
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\14\ See Loncin's Letter, ``Loncin Request for Postponement of
Final Determination and Extension of Provisional Measures Period:
Antidumping Duty Investigation on Certain Vertical Shaft Engines
from the People's Republic of China (A-570-119),'' dated August 10,
2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: August 12, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of spark-
ignited, non-road, vertical shaft engines, whether finished or
unfinished, whether assembled or unassembled, primarily for riding
lawn mowers and zero-tum radius lawn mowers. Engines meeting this
physical description may also be for other non-hand-held outdoor
power equipment such as, including but not limited to, tow-behind
brush mowers, grinders, and vertical shaft generators. The subject
engines are spark ignition, single or multiple cylinder, air cooled,
internal combustion engines with vertical power take off shafts with
a minimum displacement of 225 cubic centimeters (cc) and a maximum
displacement of 999cc. Typically, engines with displacements of this
size generate gross power of between 6.7 kilowatts (kw) to 42 kw.
Engines covered by this scope normally must comply with and be
certified under Environmental Protection Agency (EPA) air pollution
controls title 40, chapter I, subchapter U, part 1054 of the Code of
Federal Regulations standards for small non-road spark-ignition
engines and equipment. Engines that otherwise meet the physical
description of the scope but are not certified under 40 CFR part
1054 and are not certified under other parts of subchapter U of the
EPA air pollution controls are not excluded from the scope of this
proceeding. Engines that may be certified under both 40 CFR part
1054 as well as other parts of subchapter U remain subject to the
scope of this proceeding.
For purposes of this investigation, an unfinished engine covers
at a minimum a sub-assembly comprised of, but not limited to, the
following components: Crankcase, crankshaft, camshaft, piston(s),
and connecting rod(s). Importation of these components together,
whether assembled or unassembled, and whether or not accompanied by
additional components such as an oil pan, manifold, cylinder
head(s), valve train, or valve cover(s), constitutes an unfinished
engine for purposes of this investigation. The inclusion of other
products such as spark plugs fitted into the cylinder head or
electrical devices (e.g., ignition modules, ignition coils) for
synchronizing with the motor to supply tension current does not
remove the product from the scope. The inclusion of any other
components not identified as comprising the unfinished engine
subassembly in a third country does not remove the engine from the
scope.
The engines subject to this investigation are typically
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheadings: 8407.90.1020, 8407.90.1060, and
8407.90.1080. The engine subassemblies that are subject to this
investigation enter under HTSUS 8409.91.9990. Engines subject to
this investigation may also enter under HTSUS 8407.90.9060 and
8407.90.9080. The HTSUS subheadings are provided for convenience and
customs purposes only, and the written description of the
merchandise under investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
A. Initiation and Case History
[[Page 51018]]
B. Postponement of Preliminary Determination
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Discussion of the Methodology
A. Non-Market Economy
B. Surrogate Country
C. Separate Rates
D. Separate Rate Recipients
E. Companies Not Receiving Separate Rates
F. Margin for the Separate Rate Companies
G. Combination Rates
H. The China-wide Entity
I. Date of Sale
J. Fair Value Comparisons
K. U.S. Prices
L. Value Added Tax (VAT)
M. Normal Value
VII. Currency Conversion
VIII. Adjustments Adjustments Under Section 777A(f) of the Act
IX. Adjustments to Cash Deposit Rates for Export Subsidies
X. Preliminary Affirmative Determination of Critical Circumstances
XI. ITC Notification
XII. Recommendation
[FR Doc. 2020-18157 Filed 8-18-20; 8:45 am]
BILLING CODE 3510-DS-P