Notice2021-19627
Certain Walk-Behind Snow Throwers 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
Primary source
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Published
September 10, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain walk-behind snow throwers and parts thereof (snow throwers) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2020, through December 31, 2020.
Full Text
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<title>Federal Register, Volume 86 Issue 173 (Friday, September 10, 2021)</title>
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[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Notices]
[Pages 50696-50698]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19627]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-142]
Certain Walk-Behind Snow Throwers 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 snow throwers and parts thereof (snow
throwers) from the People's Republic of China (China). The period of
investigation (POI) is January 1, 2020, through December 31, 2020.
DATES: Applicable September 10, 2021.
FOR FURTHER INFORMATION CONTACT: Alex Cipolla or Joy Zhang, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4956 or (202) 482-1168,
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 April 26,
2021.\1\ On June 8, 2021, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
August 27, 2021.\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 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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\1\ See Certain Walk-Behind Snow Throwers and Parts Thereof from
the People's Republic of China: Initiation of Countervailing Duty
Investigation, 86 FR 22022 (April 26, 2021) (Initiation Notice).
\2\ See Certain Walk-Behind Snow Throwers and Parts Thereof from
the People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 86 FR 30405
(June 8, 2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Walk-Behind Snow Throwers 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 snow throwers 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, the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\4\ MTD Products Inc
(the petitioner) commented on the scope of the investigation,
requesting the addition of exclusion language to the scope as it
appeared in the Initiation Notice.\5\ Commerce is preliminarily
modifying the scope language as it appeared in the Initiation Notice to
include the requested language. See the revised scope in Appendix I to
this notice and accompanying Preliminary Decision Memorandum for
further discussion.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Petitioner's Letter, ``Antidumping and Countervailing
Duty Investigations of Certain Walk-Behind Snow Throwers from the
People's Republic of China: Scope Comments,'' dated May 10, 2021.
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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
[[Page 50697]]
gives rise to a benefit to the recipient, and that the subsidy is
specific.\6\
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\7\ 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 snow throwers
from China based on a request made by the petitioner.\8\ 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 January 10, 2022, unless postponed.
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\8\ See Petitioner's Letter, ``Countervailing Duty Investigation
of Certain Walk-Behind Snow Throwers and Parts Thereof from the
People's Republic of China: Request to Align Final Countervailing
Duty Determination with Final Antidumping Duty Determination,''
dated August 6, 2021.
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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 an individual estimated
countervailable subsidy rate for Zhejiang Zhouli Industrial Co., Ltd.
(Zhejiang Zhouli), the only individually examined exporter/producer,
that was not zero, de minimis, or based entirely under section 776 of
the Act. As a result, the estimated weighted-average rate calculated
for Zhejiang Zhouli is the rate assigned to all other producers and
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.
Rate for Non-Responsive Companies
Eight potential producers and/or exporters of snow throwers from
China received but did not respond to, or refused delivery of,
Commerce's Quantity and Value (Q&V) Questionnaire or Commerce's Initial
Countervailing Duty Questionnaire. We find that, by not responding to
the Q&V Questionnaire or Initial Questionnaire, these companies
withheld requested information and significantly impeded this
proceeding.\9\ Thus, in reaching our preliminary determination,
pursuant to sections 776(a)(2)(A) and (C) of the Act, we are basing the
CVD rate for these eight companies on facts otherwise available.
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\9\ These companies are Changzhou Globe Tools Co., Ltd., Ningbo
Joyo Garden Tools Co., Ltd., Nanjing Chervon Industry Co., Ltd.,
Ningbo Daye Garden Machinery Co., Ltd., Ningbo Scojet Import &
Export Trading Co., Ltd., TIYA International Co., Ltd., Weima
Agricultural Machinery Co., Ltd., and Zhejiang Yat Electrical
Appliance Co.
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V or initial questionnaire, the eight
companies did not cooperate to the best of their ability in this
investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the eight companies will not obtain a more
favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available to the non-responsive companies, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Determination
Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent)
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Zhejiang Zhouli Industrial Co........................... 12.86
All-Others.............................................. 12.86
Changzhou Globe Tools Co., Ltd. Co., Ltd................ 130.44
Nanjing Chevron Industry Co., Ltd....................... 130.44
Ningbo Daye Garden Machinery Co., Ltd................... 130.44
Ningbo Joyo Garden Tools Co., Ltd....................... 130.44
Ningbo Scojet Import & Export Trading................... 130.44
TIYA International Co., Ltd............................. 130.44
Weima Agricultural Machinery Co., Ltd................... 130.44
Zhejiang Yat Electrical Appliance Co.................... 130.44
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Suspension of Liquidation
In accordance with sections 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 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 its calculations and analysis
performed to interested parties 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
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. Interested parties
will be notified of the timeline for the submission of case briefs and
written comments at 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.\10\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary
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information, until further notice.\11\ The deadlines for submitting
case and rebuttal briefs on scope issues will be established as part of
the preliminary determination in the companion AD investigation.
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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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\11\ See 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) (collectively,
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, and a list of the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, Commerce intends to hold
the hearing at a time and date to be determined.\12\ Parties should
confirm by telephone the date and time of the hearing two days before
the scheduled date.
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\12\ See 19 CFR 351.310(d).
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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 whether these imports are
materially injuring, or threaten material injury to, the U.S. industry.
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: August 27, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of gas-
powered, walk-behind snow throwers (also known as snow blowers),
which are snow moving machines that are powered by internal
combustion engines and primarily pedestrian-controlled. The scope of
the investigation covers certain snow throwers (also known as snow
blowers), 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 snow throwing. Subject merchandise also
includes finished and unfinished snow throwers that are further
processed in a third country or in the United States, including, but
not limited to, assembly or any other processing that would not
otherwise remove the merchandise from the scope of this
investigation if performed in the country of manufacture of the in-
scope snow throwers.
Walk-behind snow throwers subject to the scope of this
investigation are powered by internal combustion engines which are
typically spark ignition, single or multiple cylinder, and air-
cooled with power take off shafts.
For the purposes of this investigation, an unfinished and/or
unassembled snow thrower means at a minimum, a subassembly comprised
of an engine, auger housing (i.e., intake frame), and an auger (or
``auger paddle'') packaged or imported together. An intake frame is
the portion of the snow thrower--typically of aluminum or steel that
houses and protects an operator from a rotating auger and is the
intake point for the snow. Importation of the subassembly whether or
not accompanied by, or attached to, additional components including,
but not limited to, handle(s), impeller(s), chute(s), track
tread(s), or wheel(s) constitutes an unfinished snow thrower for
purposes of this investigation. The inclusion in a third country of
any components other than the snow thrower sub-assembly does not
remove the snow thrower from the scope. A snow thrower is within the
scope of this investigation regardless of the origin of its engine.
Specifically excluded is merchandise covered by the scope of the
antidumping and countervailing duty orders on certain vertical shaft
engines between 225cc and 999cc, and parts thereof from the People's
Republic of China. See Certain Vertical Shaft Engines Between 225cc
and 999cc, and Parts Thereof, from the People's Republic of China:
Amended Final Antidumping Duty Determination and Antidumping Duty
Order, 86 FR 12623 (March 4, 2021) and Certain Vertical Shaft
Engines Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China: Countervailing Duty Order and Amended Final
Affirmative Countervailing Duty Determination, 86 FR 12619 (March 4,
2021).
Also specifically excluded is merchandise covered by the scope
of the antidumping and countervailing duty orders on certain
vertical shaft engines between 99cc and Up to 225cc, and Parts
Thereof From the People's Republic of China. See Certain Vertical
Shaft Engines Between 99cc and Up to 225cc, and Parts Thereof From
the People's Republic of China: Antidumping and Countervailing Duty
Orders, 86 FR 023675 (May 4, 2021).
The snow throwers subject to this investigation are typically
entered under Harmonized Tariff Schedule of the United States
(HTSUS) subheading 8430.20.0060. Certain parts of snow throwers
subject to this investigation may also enter under HTSUS
8431.49.9095. 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 Comments
IV. Scope of the Investigation
V. Injury Test
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2021-19627 Filed 9-9-21; 8:45 am]
BILLING CODE 3510-DS-P
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