Notice2022-03659
Initiation of Antidumping Duty Changed Circumstances Review: Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 22, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
Based on a request from Honda Power Products (China) Co., Ltd. (Honda), the Department of Commerce (Commerce) is initiating a changed circumstances review (CCR) of the antidumping duty (AD) order on certain vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People's Republic of China (China).
Full Text
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<title>Federal Register, Volume 87 Issue 35 (Tuesday, February 22, 2022)</title>
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[Federal Register Volume 87, Number 35 (Tuesday, February 22, 2022)]
[Notices]
[Pages 9573-9575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03659]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-119]
Initiation of Antidumping Duty Changed Circumstances Review:
Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts
Thereof From the People's Republic of China
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on a request from Honda Power Products (China) Co., Ltd.
(Honda), the Department of Commerce (Commerce) is initiating a changed
circumstances review (CCR) of the antidumping duty (AD) order on
certain vertical shaft engines between 225cc and 999cc, and parts
thereof (vertical shaft engines) from the People's Republic of China
(China).
DATES: Applicable February 22, 2022.
FOR FURTHER INFORMATION CONTACT: Leo Ayala, 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.
SUPPLEMENTARY INFORMATION:
Background
On March 4, 2021, Commerce published in the Federal Register an
amended final AD determination and order on vertical shaft engines from
China.\1\ In the Amended Final Determination, Commerce determined an AD
cash deposit rate for Jialing-Honda Motors Co., Ltd. (Jialing) of
261.93 percent.\2\
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\1\ 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) (Amended Final Determination and Order); see
also Certain Large Vertical Shaft Engines Between 225cc and 999cc,
and Parts Thereof, from the People's Republic of China: Notice of
Correction to the Amended Final Antidumping Duty Determination and
Antidumping Duty Order, 86 FR 13694 (March 10, 2021).
\2\ Id., 86 FR at 12624.
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On September 20, 2021, Honda informed Commerce that, as of July 1,
2020, Jialing changed its name to Honda Power Products (China) Co.,
Ltd.\3\ Honda stated the change was in name only and that its business
operations remain substantially unchanged.\4\ Honda requested that
Commerce conduct a CCR and find that Honda is the successor-in-interest
to Jialing and assign Jialing's AD cash deposit rate for vertical shaft
engines from China to Honda, pursuant to section 751(b) of the Tariff
Act of 1930, as amended (the Act), and 19 CFR 351.216(b).\5\ Honda made
arguments as to why good cause exists for initiating a CCR pursuant to
19 CFR 351.216(c) \6\ and also requested that Commerce combine the
notice of initiation with a preliminary results of the CCR pursuant to
19 CFR 351.221(c)(3)(ii).
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\3\ See Honda's Letter, ``Certain Vertical Shaft Engines Between
225cc and 999cc, and Parts Thereof from the People's Republic of
China: Request for Changed Circumstances Review,'' dated September
20, 2021 (Honda's CCR Request).
\4\ Id. at 2.
\5\ Id.
\6\ Id. at 6.
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On November 21, 2021, Commerce deemed Honda's request deficient and
issued a supplemental questionnaire to Honda requesting additional
information.\7\ On December 31, 2021,
[[Page 9574]]
Honda submitted its response to the supplemental questionnaire.\8\ We
received no comments from interested parties regarding Honda's CCR
Request.
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\7\ See Commerce's Letter, ``Certain Vertical Shaft Engines
Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China: Changed Circumstances Review; Supplemental
Questionnaire,'' dated November 1, 2021.
\8\ See Honda's Letter, ``Certain Vertical Shaft Engines Between
225cc and 999cc, and Parts Thereof from the People's Republic of
China: Changed Circumstances Review; Supplemental Questionnaire,''
dated December 31, 2021.
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Scope of the Order
The merchandise covered by the Order is vertical shaft engines. For
a complete description of the scope, see the appendix.
Initiation of Changed Circumstances Review
Pursuant to section 751(b)(1)(A) of the Act and 19 CFR 351.216(d),
Commerce will conduct a CCR upon receipt of a request from an
interested party for a review of an AD order which shows changed
circumstances sufficient to warrant a review of the order. In the past,
Commerce has used CCRs to address the applicability of cash deposit
rates after there have been changes in the name or structure of a
respondent, such as a merger or spinoff (i.e., a successor-in-interest
determination).\9\ The information submitted by Honda supporting its
claim that it is the successor-in-interest to Jialing demonstrates
changed circumstances sufficient to warrant the initiation of such a
review.\10\
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\9\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606
(November 7, 2017), unchanged in Diamond Sawblades and Parts Thereof
from the People's Republic of China: Final Results of Antidumping
Duty Changed Circumstances Review, 82 FR 60177 (December 19, 2017).
\10\ See 19 CFR 351.216(d).
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Section 751(b)(4)(B) of the Act and 19 CFR 351.216(c) state that,
``in the absence of good cause shown,'' the Secretary of Commerce may
not review a final determination less than 24 months after the date of
publication of the notice of final determination or notice of
suspension of an investigation. The final determination in the less-
than-fair-value investigation of vertical shaft engines from China
published on January 11, 2021.\11\ Therefore, Commerce must also
determine whether good cause exists to conduct this review.
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\11\ See Certain Vertical Shaft Engines Between 225cc and 999cc,
and Parts Thereof from the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value and Final
Affirmative Critical Circumstances Determination, 86 FR 1936
(January 11, 2021).
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Honda asserts that good cause exists because, aside from the name
change, it made no changes with respect to ``production, management,
customer and supplier relationships or any other aspect of
operations.'' \12\ Honda argues that a CCR is needed to ensure the
appropriate cash deposit rate applies to Honda's entries and that
Commerce has previously found in similar situations that a name change,
with no further changes in the company's operations, constitutes good
cause pursuant to 19 CFR 351.216(c) to initiate a CCR.\13\ Based on
this explanation, we find that good cause has been shown pursuant to 19
CFR 351.216(c) to initiate a CCR, and conducting this review ensures
that the appropriate cash deposit rate applies to Honda.
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\12\ See Honda's CCR Request at 4.
\13\ Id. at 5-6 (citing Notice of Initiation and Preliminary
Results of Antidumping Duty Changed Circumstances Review: Certain
Passenger Vehicle and Light Truck Tires from the People's Republic
of China, 81 FR 44588 (July 8, 2016); and Cast Iron Soil Pipe
Fittings from the People's Republic of China: Initiation and
Preliminary Results of Changed Circumstances Reviews, 84 FR 64263
(November 21, 2019)).
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Therefore, in accordance with section 751(b)(1)(A) of the Act and
19 CFR 351.216(d), we are initiating a CCR based on the information
contained in Honda's submission.
Preliminary Results
Section 351.221(c)(3)(ii) of Commerce's regulations permits
Commerce to combine the notice of initiation and preliminary results of
a CCR if Commerce concludes that expedited action is warranted.
However, we are not combining this notice of initiation with the
preliminary results because Commerce has determined that it is
necessary to issue an additional supplemental questionnaire to Honda
regarding Honda's customer base and supplier relationships and to
provide interested parties with an opportunity to comment. Commerce
intends to publish in the Federal Register a notice of the preliminary
results of this CCR in accordance with 19 CFR 351.221(b)(4). Consistent
with 19 CFR 351.221(c)(3)(i), Commerce will set forth its preliminary
factual and legal conclusions in that notice.
Final Results
Unless extended, Commerce intends to issue the final results of
this CCR within 270 days of the day of initiation of this CCR, in
accordance with 19 CFR 351.216(e).
Notification to Interested Parties
This notice is published in accordance with section 751(b)(1) of
the Act, and 19 CFR 351.216(b) and 19 CFR 351.221(b)(1).
Dated: February 14, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Order
The merchandise covered by this order consists of spark-ignited,
non-road, vertical shaft engines, whether finished or unfinished,
whether assembled or unassembled, primarily for riding lawn mowers
and zero-turn 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 order, 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 order. 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 order 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 order enter under
HTSUS subheading 8409.91.9990. Engines subject to this order may
also enter under HTSUS subheading 8407.90.9060 and 8407.90.9080. The
HTSUS subheadings are provided for convenience and customs purposes
only, and the written description of
[[Page 9575]]
the merchandise subject to this order is dispositive.
[FR Doc. 2022-03659 Filed 2-18-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on February 22, 2022.
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