Certain Walk-Behind Snow Throwers and Parts Thereof From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
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Abstract
The Department of Commerce (Commerce) preliminarily determines that certain walk-behind snow throwers and parts thereof (snow throwers) 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 (POI) is July 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 86 Issue 212 (Friday, November 5, 2021)</title>
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[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61135-61138]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24226]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-141]
Certain Walk-Behind Snow Throwers and Parts Thereof From the
People's Republic of China: 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 snow throwers and parts thereof (snow
throwers) 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 (POI) is July 1, 2020, through December 31,
2020. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable November 5, 2021.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Brendan Quinn, 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) 482-4243 or (202)
482-5848, 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 April 26,
2021.\1\ On August 20, 2021, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
October 26, 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 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 <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="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Certain Walk-Behind Snow Throwers and Parts Thereof from
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigation, 86 FR 22026 (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 Less-Than-Fair-Value Investigation, 86 FR 46825
(August 20, 2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ 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.\6\ Thus, Commerce preliminarily
modified the scope language as it appeared in the Initiation Notice to
include the requested language in the companion countervailing duty
(CVD) preliminary determination.\7\ 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 Initiation Notice, 86 FR at 22027.
\6\ 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.
\7\ See 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, 86 FR
50696, 50698 (September 10, 2021).
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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. 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. In addition, pursuant to sections 776(a) and (b) of the
Act,
[[Page 61136]]
Commerce preliminarily has relied upon facts otherwise available, with
adverse inferences, for the China-wide entity. For a full description
of the methodology underlying Commerce's preliminary determination, see
the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice, Commerce stated that it would calculate
producer/exporter combination rates for the respondents that are
eligible for a separate rate in this investigation.\8\ Policy Bulletin
05.1 describes this practice.\9\ In this investigation, we calculated
producer/exporter combination rates for respondents eligible for
separate rates.
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\8\ See Initiation Notice, 86 FR at 22030.
\9\ See 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
<a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated Cash deposit
weighted- rate (adjusted
Exporter Producer average for subsidy
dumping margin offsets)
(percent) (percent)
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Zhejiang Zhouli Industrial Co., Ltd........... Zhejiang Zhouli Industrial Co., 233.41 222.87
Ltd.
Ningbo Scojet Import & Export Trade Co., Ltd.. Ninghai Yiyi Garden Tools Co., 233.41 222.87
Ltd.
Sumec Hardware and Tools Co., Ltd............. Zhejiang KC Mechanical & 233.41 222.87
Electrical Co., Ltd.
Zhejiang Amerisun Technology Co., Ltd......... Zhejiang Dobest Power Tools Co., 233.41 222.87
Ltd.
Zhejiang KC Mechanical & Electrical Co., Ltd.. Zhejiang KC Mechanical & 233.41 222.87
Electrical Co., Ltd.
China-Wide Entity............................. ................................ 325.03 314.49
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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 entries of subject merchandise, as described in Appendix I, 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 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 China-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 Chinese
producer/exporter combination (or the China-wide entity) that supplied
that third-country exporter.
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. Accordingly,
where Commerce has made a preliminary affirmative determination for
domestic subsidy pass-through or export subsidies, Commerce has offset
the calculated estimated weighted-average dumping margin by the
appropriate rate(s). Any such adjusted rates may be found in the chart
of estimated weighted-average dumping margins in the ``Preliminary
Determination'' section.
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
passed-through domestic subsidies or for 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 its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any 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 on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance. A
timeline for the submission of case briefs and written comments will be
provided to interested parties at a later date. Rebuttal briefs,
limited to issues raised in these case briefs, may be submitted no
later than seven days after the deadline date for case briefs.\10\ Note
that Commerce has modified certain of its requirements for serving
documents containing business proprietary information until further
notice.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
[[Page 61137]]
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) (Temporary Rule); and
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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Additionally, interested parties may address the preliminary
modification to the scope in scope case briefs, which may be submitted
no later than 30 days after the publication of this preliminary
determination in the Federal Register. Scope rebuttal briefs, limited
to issues raised in the scope case briefs, may be submitted no later
than seven days after the deadline for the scope case briefs. These
deadlines apply for both the AD and CVD investigations of snow throwers
from China.
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.
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 petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
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 October 7, 2021, pursuant to 19 CFR 351.210(e), Zhejiang Zhouli
Industrial Co., Ltd. requested that Commerce postpone the final
determination and that provisional measures be extended to a period not
to exceed six months.\12\ 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 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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\12\ See Zhejiang Zhouli's Letter, ``Certain Walk-Behind Snow
Throwers and Parts Thereof from the People's Republic China: Request
to Postpone the Final Determination,'' dated October 7, 2021.
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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 snow throwers from China 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: October 26, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, Performing the
Non-Exclusive Functions and Duties of The 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 sub-assembly
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.
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Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
VI. Currency Conversion
VII. Adjustment to Cash Deposit Rate for Export Subsidies
VIII. Recommendation
[FR Doc. 2021-24226 Filed 11-4-21; 8:45 am]
BILLING CODE 3510-DS-P
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