[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Notices]
[Pages 68848-68851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24050]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-130]
Certain Walk-Behind Lawn Mowers and Parts Thereof From the
People's Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain walk-behind lawn mowers and parts thereof (lawn
mowers), from the People's Republic of China (China). The period of
investigation is January 1, 2019 through December 31, 2019. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable October 30, 2020.
FOR FURTHER INFORMATION CONTACT: Moses Song or Tyler Weinhold, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-7885 or (202) 482-1121,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on June 22,
2020.\1\ On August 3, 2020, Commerce postponed the preliminary
determination of this investigation to October 23, 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
[[Page 68849]]
discussed 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
http://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 electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\1\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from
the People's Republic of China: Initiation of Countervailing Duty
Investigation, 85 FR 37426 (June 22, 2020) (Initiation Notice).
\2\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from
the People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 85 FR 46587
(August 3, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Walk-Behind Lawn Mowers and Parts Thereof from the People's Republic
of China,'' 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 lawn mowers from
China. For a complete description of the scope of this investigation,
see Appendix I.
At the time of the filing of the petition, there were ongoing
antidumping (AD) and countervailing duty (CVD) investigations on
certain vertical shaft engines between 99cc and up to 225cc, and parts
thereof (small vertical engines), from China.\4\ The scope of the small
vertical engines from China investigations covers engines ``whether
mounted or unmounted, primarily for walk-behind lawn mowers. Engines
meeting this physical description may also be for other non-handheld
outdoor power equipment, including but not limited to, pressure
washers.'' The small vertical engines scope also provides that ``if a
subject engine is imported mounted on such equipment, only the engine
is covered by the scope. Subject merchandise includes certain small
vertical shaft engines produced in the subject country whether mounted
on outdoor power equipment in the subject country or in a third
country.'' \5\ This creates an overlap between the scopes of these
proceedings.
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\4\ See Certain Vertical Shaft Engines Between 99cc and up to
225cc, and Parts Thereof, from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 85 FR 52086 (August 24, 2020); see also Certain
Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts
Thereof, from the People's Republic of China: Preliminary
Affirmative Determination of Sales at Less Than Fair Value, and
Preliminary Affirmative Determination of Critical Circumstances, in
Part, 85 FR 66932 (October 21, 2020).
\5\ Id.
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Therefore, for the purpose of Customs and Border Protection (CBP)'s
administration, where the engine of a lawn mower is also covered by the
scope of the small vertical engines from China CVD proceeding, parties
are instructed to enter their merchandise under the CVD case number
associated with the small vertical engines proceedings (C-570-125) and
post CVDs in accordance with the cash deposit rates applicable in that
case. Specifically, at this time, the CVDs will be applicable to the
value of the small vertical engine, not the residual value of the
mower. We are making no change to the scope of this proceeding at this
time. As discussed below, we will be setting aside a separate period of
time for parties to comment on this issue.
Scope Comments
In accordance with the preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\7\ No interested
parties timely commented on the scope of the investigation and thus
Commerce is not changing the scope language as it appeared in the
Initiation Notice.\8\
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Initiation Notice.
\8\ On September 23, 2020, Ningbo Daye requested permission to
file comments on the scope language in the Initiation Notice.
Commerce rejected this request because it was submitted after the
deadline.
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Commerce will be setting aside a separate period of time for
parties to comment on the issue of the overlap in the scopes of the
lawn mowers and small vertical engines AD and CVD proceedings.
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\9\
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making these findings, Commerce is relying, in part, on facts
available. Because we find that one or more respondents failed to
cooperate by not acting to the best of their ability to respond to
Commerce's requests for information, Commerce drew an adverse inference
where appropriate in selecting from among the facts otherwise
available.\10\ For further information, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Decision
Memorandum.
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\10\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of lawn mowers
from China based on a request made by the petitioner.\11\ Consequently,
the final CVD determination will be issued on the same date as the
final AD determination, which is currently scheduled to be issued no
later than March 8, 2021, unless postponed.
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\11\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Walk-Behind Lawn
Mowers from China: Request to Align Final Countervailing Duty
Determination with the Companion Antidumping Duty Final
Determination,'' dated October 15, 2020.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Ningbo Daye Garden Machinery Co.,
Ltd. (Ningbo Daye) and Zhejiang Amerisun Technology Co. (Zhejiang
Amerisun) that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using the
mandatory respondents' publicly ranged U.S. export sales values for the
subject merchandise.\12\
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\12\ We calculated the all-others rate as the weighted average
of the estimated subsidy rates for Ningbo Daye and Zhejiang
Amerisun, using their publicly ranged U.S. export sales value for
the subject merchandise because it is closer to the weighted average
of the estimated subsidy rates calculated for the mandatory using
their business proprietary export sales values than the simple
average of the estimated subsidy rates.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\13\ Commerce preliminarily determines that the following
company is cross-owned with Ningbo Daye Garden Machinery Co., Ltd.:
Zhejiang Jindaye Holdings Limited. See Preliminary Decision
Memorandum at 36. This rate applies to all cross-owned companies.
[[Page 68850]]
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Subsidy rate
Company (percent)
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Zhejiang Amerisun Technology Co., Ltd................... 22.74
Ningbo Daye Garden Machinery Co., Ltd\13\............... 14.68
All Others.............................................. 17.19
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section that are entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
this notice in the Federal Register. Further, pursuant to 19 CFR
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the rates indicated above.
Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis performed in this preliminary determination within five
days of its public announcement, or if there is no public announcement,
within five days of the date of this notice in accordance with 19 CFR
351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Commerce will
notify interested parties of the deadline for the submission of case
briefs. Rebuttal briefs, limited to issues raised in case briefs, may
be submitted no later than seven days after the deadline date for case
briefs.\14\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation 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.
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\14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020)
(Temporary Rule).
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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 date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\15\
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\15\ See Temporary Rule.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. 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.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: October 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of
certain rotary walk-behind lawn mowers, which are grass-cutting
machines that are powered by internal combustion engines. The scope
of the investigation cover certain walk-behind lawn mowers, whether
self-propelled or non-self-propelled, whether finished or
unfinished, whether assembled or unassembled, and whether containing
any additional features that provide for functions in addition to
mowing.
Walk-behind lawn mowers within the scope of this investigation
are only those powered by an internal combustion engine with a power
rating of less than 3.7 kilowatts. These internal combustion engines
are typically spark ignition, single or multiple cylinder, air
cooled, internal combustion engines with vertical power take off
shafts with a maximum displacement of 196cc. Walk-behind lawn mowers
covered by this scope typically must be certified and comply with
the Consumer Products Safety Commission Safety Standard For Walk-
Behind Power Lawn Mowers under the 16 CFR part 1205. However, lawn
mowers that meet the physical descriptions above, but are not
certified under 16 CFR part 1205 remain subject to the scope of this
proceeding.
The internal combustion engines of the lawn mowers covered by
this scope typically must comply with and be certified under
Environmental Protection Agency 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. However, lawn mowers that meet the physical descriptions
above but that do not have engines certified under 40 CFR part 1054
or other parts of subchapter U remain subject to the scope of this
proceeding.
For purposes of this investigation, an unfinished and/or
unassembled lawn mower means at a minimum, a sub-assembly comprised
of an engine and a cutting deck shell attached to one another. A
cutting deck shell is the portion of the lawn mower--typically of
aluminum or steel--that houses and protects a user from a rotating
blade. Importation of the subassembly whether or not accompanied by,
or attached to, additional components such as a handle, blade(s),
grass catching bag, or wheel(s) constitute an unfinished lawn mower
for purposes of this investigation. The inclusion in a third country
of any components other than the mower sub-assembly does not remove
the lawn mower from the scope. A lawn mower is within the scope of
this investigation regardless of the origin of its engine.
The lawn mowers subject to this investigation are typically at
subheading: 8433.11.0050. Lawn mowers subject to this investigation
may also enter under Harmonized Tariff Schedule of the United States
(HTSUS) 8407.90.1010 and 8433.90.1090. 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
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
[[Page 68851]]
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Calculation of the All-Others Rate
XI. Recommendation
[FR Doc. 2020-24050 Filed 10-29-20; 8:45 am]
BILLING CODE 3510-DS-P