[Federal Register Volume 85, Number 250 (Wednesday, December 30, 2020)]
[Notices]
[Pages 86534-86536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28853]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-830]
Certain Walk-Behind Lawn Mowers and Parts Thereof From the
Socialist Republic of Vietnam: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, 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 walk-behind lawn mowers and parts thereof (lawn mowers)
from the Socialist Republic of Vietnam (Vietnam) are being, or are
likely to be, sold in the United States at less than fair value (LTFV).
The period of investigation (POI) is October 1, 2019 through March 31,
2020. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable December 30, 2020.
FOR FURTHER INFORMATION CONTACT: Frank Schmitt or Mark Flessner, 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) 482-4880 or (202) 482-6312,
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 June 22,
2020.\1\ We selected Ducar Technology Co., Ltd. (Ducar) as the
mandatory respondent.\2\ On August 11, 2020, Commerce postponed the
preliminary determination of this investigation, and the revised
deadline is now December 22, 2020.\3\ For a complete description of the
events that followed the initiation of this investigation, see the
Preliminary Decision Memorandum.\4\ 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 Walk-Behind Lawn Mowers and Parts Thereof from
the People's Republic of China and the Socialist Republic of
Vietnam: Initiation of Less-Than-Fair Value Investigations, 85 FR
37426 (June 22, 2020) (Initiation Notice).
\2\ See Memorandum, ``Antidumping Investigation of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the Socialist Republic of
Vietnam: Identification of Mandatory Respondent,'' dated July 29,
2020.
\3\ See Certain Walk-Behind Lawn Mowers and Parts Thereof from
the People's Republic of China and the Socialist Republic of
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 48506 (August 11, 2020).
\4\ See Memorandum, ``Certain Walk-Behind Lawn Mowers from the
Socialist Republic of Vietnam: Decision Memorandum for Preliminary
Affirmative Determination of Sales at Less Than Fair Value,'' 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 certain walk-behind
lawn mowers and parts thereof from Vietnam. For a complete description
of the scope of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\6\ No interested party
commented on the scope of the investigation within the allotted time
period. However, on November 6, 2020, Commerce solicited comments from
interested parties regarding the overlap in the scope of the
antidumping (AD) and countervailing duty (CVD) investigations of lawn
mowers and the scope of the AD and CVD investigations of certain
vertical shaft engines and parts thereof from China, and certain
interested parties submitted comments and rebuttal comments.\7\ 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 Determination Memorandum.\8\ As a result of our
analysis of comments received, we have preliminarily revised the scope
of the investigation. See Appendix I.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See Memorandum, ``Request for Comments Regarding Scope
Overlap,'' dated November 6, 2020.
\8\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Lawn Mowers from the People's Republic of China
and the Socialist Republic of Vietnam: Preliminary Scope Decision
Memorandum,'' dated concurrently with this notice.
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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 and constructed export prices
in accordance with section 772(b) of the Act. Because Vietnam 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.
In addition, Commerce has relied on facts available under section
776(a) of the Act to determine the cash deposit rate assigned to the
Vietnam-wide entity. Furthermore, pursuant to sections 776(a) and (b)
of the Act, because the Vietnam-wide entity did not cooperate to the
best of its ability in responding to Commerce's request for data,
Commerce has preliminarily relied upon facts otherwise available, with
adverse inferences, for the Vietnam-wide entity. For a full description
of the methodology underlying Commerce's preliminary determination, see
the Preliminary Decision Memorandum.
[[Page 86535]]
Combination Rates
In the Initiation Notice,\9\ 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.\10\
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\9\ See Initiation Notice at 85 FR 12506.
\10\ 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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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated
weighted-
Producer Exporter average
dumping margin
(percent)
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Ducar Technology Co., Ltd......... Ducar Technology 183.87
Co., Ltd.
Vietnam-Wide Entity \11\.......... .................... 221.34
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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 Vietnam producers/exporters of subject merchandise 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 Vietnam-wide entity; and (3) for all third-
county exporters of subject merchandise not listed in the table above,
the cash deposit rate is the cash deposit rate applicable to the
Vietnam producer/exporter combination (or Vietnam-wide entity) that
supplied that third-country exporter.
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\11\ The Vietnam-wide entity includes Techtronic Cordless GP, a
producer or exporter of merchandise under consideration that was
issued, but did not respond to, Commerce's Q&V Questionnaire.
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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.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. A timeline for the
submission of case briefs and written comments on non-scope issues will
be announced on a later date. Rebuttal briefs, limited to issues raised
in case briefs, may be submitted no later than seven days after the
deadline date for case briefs.\12\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information until further notice.\13\ 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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\12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\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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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 the date and time of the hearing two
days before the scheduled date.
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.
On November 30, 2020, and December 7, 2020, pursuant to 19 CFR
351.210(e),
[[Page 86536]]
the respondent Ducar \14\ and MTD Products, Inc. (the petitioner),\15\
respectively, requested that Commerce postpone the final determination
and that provisional measures be extended to a period not to exceed 6
months. 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 exporters account 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
will make its final determination no later than 135 days after the date
of publication of this preliminary determination, pursuant to section
735(a)(2) of the Act.
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\14\ See Ducar's Letter, ``Certain Walk-Behind Lawn Mowers from
Vietnam: Conditional Request for Extension of Final Determination,''
dated November 30, 2020.
\15\ See Petitioner's Letter, ``Walk-Behind Lawn Mowers and
Parts Thereof from the Socialist Republic of Vietnam: Request for
Postponement of Final Determination,'' dated December 7, 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 these 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: December 22, 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 this investigation covers certain walk-behind lawn mowers,
whether selfpropelled 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 subassembly does not remove
the lawn mower from the scope. Lawn mowers that meet the physical
description above are covered by the scope of this investigation
regardless of the origin of its engine, unless such lawn mowers
contain an engine that is covered by the scope of the ongoing
proceedings on certain vertical shaft engines between 99cc and up to
225cc, and parts thereof (small vertical engines) from China. If the
proceedings on small vertical engines from China are terminated, the
lawn mowers containing small vertical engines from China will be
covered by the scope of this proceeding.
The lawn mowers subject to this investigation are typically at
subheading: 8433.11.0050. Lawn mowers subject to these
investigations 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. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Product Characteristics
VII. Affiliation
VIII. Discussion of the Methodology
IX. Currency Conversion
X. ITC Notification
XI. Recommendation
[FR Doc. 2020-28853 Filed 12-29-20; 8:45 am]
BILLING CODE 3510-DS-P