Notice2022-06558
Certain Walk-Behind Snow Throwers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination
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
March 29, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) 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 is January 1, 2020, through December 31, 2020.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 60 (Tuesday, March 29, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 60 (Tuesday, March 29, 2022)]
[Notices]
[Pages 17987-17989]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06558]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-142]
Certain Walk-Behind Snow Throwers and Parts Thereof From the
People's Republic of China: Final Affirmative Countervailing Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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 is January 1, 2020, through December 31, 2020.
DATES: Applicable March 29, 2022.
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
On September 10, 2021, Commerce published the Preliminary
Determination in the Federal Register.\1\ A summary of the events that
occurred since Commerce published the Preliminary Determination may be
found in the Issues and Decision Memorandum.\2\ The Issues and 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>. A list of topics
discussed in the Issues and Decision Memorandum is included at Appendix
II. In addition, a complete version of the Issues and Decision
Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
---------------------------------------------------------------------------
\1\ 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
(September 10, 2021) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
\2\ See Memorandum, ``Certain Walk-Behind Snow Throwers and
Parts Thereof from the People's Republic of China: Final Affirmative
Countervailing Duty Determination,'' dated concurrently with, and
hereby adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
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
There have been no scope comments since the Preliminary
Determination. As a result, Commerce has made no changes to the scope
of this investigation since the Preliminary Determination.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties, and to which we responded in the Issue and Decision
Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce 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.\3\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\3\ 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.
---------------------------------------------------------------------------
In making this final determination, Commerce is relying on facts
otherwise available, including adverse facts available (AFA), pursuant
to sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the Preliminary Determination and the section
``Use of Facts Otherwise Available and Adverse Inferences'' in the
accompanying Issues and Decision Memorandum.\4\
---------------------------------------------------------------------------
\4\ See Preliminary Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences;'' see also Issues and
Decision Memorandum at ``Use of Facts Otherwise Available and
Adverse Inferences.''
---------------------------------------------------------------------------
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\5\
---------------------------------------------------------------------------
\5\ See Commerce's Letter, ``Certain Walk-Behind Snow Throwers
and Parts Thereof from the People's Republic of China: Zhejiang
Zhouli Industrial Co. Ltd.: In Lieu of Verification Questionnaire,''
dated October 11, 2021.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected subsequent to the
Preliminary Determination, we made certain changes to Zhejiang Zhouli
Industrial Co., Ltd. (Zhejiang Zhouli)'s subsidy rate calculations, the
rate for non-cooperating respondents, and the all-others rate. For a
discussion of these changes, see the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(5)(A) of the Act, 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.
Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual
estimated countervailable subsidy rates established for all exporters
and producers individually examined are zero, de minimis or determined
based entirely on facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all
other producers or exporters. All three companies selected
[[Page 17988]]
as mandatory respondents \6\ in this investigation are receiving
individual estimated subsidy rates based entirely on facts available
under section 776 of the Act. Consequently, pursuant to section
705(c)(5)(A)(ii) of the Act, we established the all-others rate by
applying the countervailable subsidy rate assigned to the three
mandatory respondents.
---------------------------------------------------------------------------
\6\ The mandatory respondents in this investigation are TIYA
International (TIYA), Ningbo Scojet Import & Export Co., Ltd.
(Ningbo Scojet), and Zhejiang Zhouli. Commerce originally selected
TIYA as a mandatory respondent. On May 28, 2021, TIYA notified
Commerce that it did not intend to participate as a mandatory
respondent. Commerce then selected Ningbo Scojet as a mandatory
respondent. However, Ningbo Scojet did not respond to our initial
questionnaire.
---------------------------------------------------------------------------
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
---------------------------------------------------------------------------
\7\ See Preliminary Decision Memorandum at section ``Application
of AFA: Non-Responsive Companies.''
\8\ Id.; see also Issues and Decision Memorandum at Comment 6.
\9\ See Preliminary Decision Memorandum at section ``Application
of AFA: Non-Responsive Companies.''
\10\ Id.
\11\ Id.
------------------------------------------------------------------------
Subsidy
Company rate
(percent)
------------------------------------------------------------------------
Zhejiang Zhouli Industrial Co................................ 203.06
All Others................................................... 203.06
Changzhou Globe Tools Co., Ltd \7\........................... 203.06
Nanjing Chervon Industry Co., Ltd \8\........................ 203.06
Ningbo Daye Garden Machinery Co., Ltd \9\.................... 203.06
Ningbo Joyo Garden Tools Co., Ltd \10\....................... 203.06
Ningbo Scojet Import & Export Trading \11\................... 203.06
TIYA International Co., Ltd.................................. 203.06
Weima Agricultural Machinery Co., Ltd........................ 203.06
Zhejiang Yat Electrical Appliance Co......................... 203.06
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of the publication of this notice in accordance
with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise from China that were entered, or withdrawn from
warehouse, for consumption, effective September 10, 2021, which is the
date of publication of the Preliminary Determination in the Federal
Register. In accordance with section 703(d) of the Act, effective
January 9, 2022, we instructed CBP to discontinue the suspension of
liquidation of all entries on or after January 9, 2022, but to continue
the suspension of liquidation of all entries between September 10,
2021, and January 8, 2022.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, and
continue to require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. If the ITC determines
that material injury, or threat of material injury, does not exist,
this proceeding will be terminated, and all estimated duties deposited
or securities posted as a result of the suspension of liquidation will
be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of snow
throwers from China. Because the final determination in this proceeding
is affirmative, in accordance with section 705(b) of the Act, the ITC
will make its final determination as to whether the domestic industry
in the United States is materially injured, or threatened with material
injury, by reason of imports of snow throwers from China no later than
45 days after our final determination. In addition, we are making
available to the ITC all non-privileged and nonproprietary information
related to this investigation. If the ITC determines that material
injury or threat of material injury does not exist, this proceeding
will be terminated and all cash deposits will be refunded. If the ITC
determines that such injury does exist, Commerce will issue a
countervailing duty order directing CBP to assess, upon further
instruction by Commerce, countervailing duties on all imports of the
subject merchandise that are entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section. We will allow the ITC access to all privileged
and business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: March 21, 2022.
Lisa W. Wang,
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
[[Page 17989]]
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 Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Comments
Comment 1: Whether Commerce Should Accept Zhejiang Zhouli's
Response
Comment 2: Export Buyer's Credit Program
Comment 3: Whether Commerce Should Continue To Apply Adverse
Facts Available to the Provision of Electricity for Less Than
Adequate Remuneration
Comment 4: Countervailability of Other Subsidies
Comment 5: Currency Undervaluation
Comment 6: Nanjing Chervon Industry Co., Ltd.'s Request
VI. Recommendation
Appendix: AFA Rate Calculation
[FR Doc. 2022-06558 Filed 3-28-22; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on March 29, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.