Notice2022-08698
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and Parts Thereof, From the People's Republic of China: Initiation of Circumvention Inquiry of the Antidumping and Countervailing Duty Orders-Dual-Piston Engines
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
April 25, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a circumvention inquiry request from Briggs & Stratton, LLC, the Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether dual-piston engines exported from the People's Republic of China (China) will circumvent the antidumping (AD) and countervailing duty (CVD) orders on certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical engines) from China.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 79 (Monday, April 25, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 79 (Monday, April 25, 2022)]
[Notices]
[Pages 24280-24282]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-08698]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-124, C-570-125]
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and
Parts Thereof, From the People's Republic of China: Initiation of
Circumvention Inquiry of the Antidumping and Countervailing Duty
Orders--Dual-Piston Engines
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a circumvention inquiry request from Briggs &
Stratton, LLC, the Department of Commerce (Commerce) is initiating a
country-wide circumvention inquiry to determine whether dual-piston
engines exported from the People's Republic of China (China) will
circumvent the antidumping (AD) and countervailing duty (CVD) orders on
certain vertical shaft engines between 99cc and up to 225cc, and parts
thereof (small vertical engines) from China.
DATES: Applicable April 25, 2022.
FOR FURTHER INFORMATION CONTACT: Paul Gill, AD/CVD Operations, Office
II, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-5673.
SUPPLEMENTARY INFORMATION:
Background
On March 4, 2022, Briggs & Stratton, LLC, the petitioner in the
less-than-fair-value (LTFV) and CVD investigations, requested that
Commerce initiate a circumvention inquiry with respect to dual-piston
engines produced in and exported from China.\1\ The petitioner alleges
that dual-piston engines constitute merchandise altered in form or
appearance in such minor respects that they should be included within
the scope of the Orders,\2\ pursuant to section 781(c) of the Tariff
Act of 1930, as amended (the Act), and 19 CFR 351.226(j). In addition,
the petitioner alleges that dual-piston engines are later-developed
merchandise and should be included within the scope of the Orders,
pursuant to section 781(d) of the Act and 19 CFR 351.226(k).
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Request for Anti-Circumvention
Inquiry Pursuant to Section 781(c) and/or Section 781(d) of the
Tariff Act of 1930,'' dated March 4, 2022.
\2\ 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 23675 (May 4,
2021) (Orders).
---------------------------------------------------------------------------
On March 28, 2022, we extended the deadline to initiate this
circumvention inquiry by 15 days, in accordance with the 19 CFR
351.226(d)(1), to April 18, 2022.\3\ On April 7, 2022, FNA Group, Inc.
(FNA) submitted comments asking that Commerce reject the petitioner's
request that Commerce initiate a country-wide circumvention inquiry.\4\
---------------------------------------------------------------------------
\3\ See Memorandum, ``Correction to Extended Date to Determine
Whether to Initiate Circumvention Inquiry,'' dated April 7, 2022.
Commerce initially submitted a memorandum on March 28, 2022 to
extend the initiation deadline, but the extended deadline was
incorrectly listed as April 19, 2022. See Memorandum, ``Extension of
Time to Determine Whether to Initiate Circumvention Inquiry,'' dated
March 28, 2022.
\4\ See FNA's Letter, ``Request to Reject Anti-Circumvention
Inquiry Request,'' dated April 7, 2022. FNA initially submitted
comments on March 29, 2022, but Commerce rejected these comments
because they contained untimely new factual information. See
Commerce's Letter, ``Rejection Letter,'' dated April 6, 2022. We
intend to address FNA's comments from its April 7, 2022 letter post-
initiation because they relate to the substance of the petitioner's
allegation.
---------------------------------------------------------------------------
[[Page 24281]]
Scope of the Orders
The products subject to the Orders are small vertical engines from
China. For a complete description of the scope of the Orders, see the
appendix to this notice.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers dual-piston engines produced in
China and exported to the United States.
Statutory and Regulatory Framework
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' The petitioner
alleges circumvention pursuant to sections 781(c) (merchandise altered
in form or appearance in minor respects) and 781(d) (merchandise
developed after an investigation is initiated) of the Act.
Section 351.226(m)(2) of Commerce's regulations states, for
companion AD and CVD duty proceedings, that ``the Secretary will
initiate and conduct a single inquiry with respect to the product at
issue for both orders only on the record of the antidumping
proceeding.'' Further, once ``the Secretary issues a final
circumvention determination on the record of the antidumping duty
proceeding, the Secretary will include a copy of that determination on
the record of the countervailing duty proceeding.'' Accordingly, once
Commerce concludes this circumvention inquiry, Commerce intends to
place its final circumvention determination on the record of the
companion CVD proceeding.
Section 781(c)(1) of the Act provides that the class or kind of
merchandise subject to an AD or CVD order shall include articles that
have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that section 781(c)(1) of
the Act ``shall not apply with respect to altered merchandise if the
administering authority determines that it would be unnecessary to
consider the altered merchandise within the scope of the
{order{time} .'' Concerning the allegation of minor alteration under
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider
criteria including, but not limited to: (1) Overall physical
characteristics of the merchandise; (2) expectations of ultimate users;
(3) use of the merchandise; (4) channels of marketing; and (5) cost of
any modification relative to the value of the imported products.
Section 781(d) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise is developed after
an investigation is initiated. In conducting a later-developed
merchandise inquiry under section 781(d)(1) of the Act and 19 CFR
351.226(k), Commerce will consider whether: (1) The later-developed
merchandise has the same general physical characteristics as the
merchandise with respect to which the order was originally issued; (2)
the expectations of the ultimate purchasers of the later-developed
merchandise are the same as for the earlier product; (3) the ultimate
use of the earlier product and the later-developed merchandise are the
same; (4) the later-developed merchandise is sold through the same
channels of trade as the earlier product; and (5) the later-developed
merchandise is advertised and displayed in a manner similar to the
earlier product.\5\ First, however, Commerce determines whether the
merchandise subject to the inquiry was commercially available at the
time of the initiation of the underlying LTFV or CVD investigation
(i.e., the product was present in the commercial market or the product
was tested and ready for commercial production).\6\
---------------------------------------------------------------------------
\5\ See section 781(d)(1) of the Act.
\6\ See 19 CFR 351.226(k).
---------------------------------------------------------------------------
Analysis
After analyzing the record evidence and the petitioner's
allegation, we determine that there is sufficient information to
warrant initiation of a circumvention inquiry based on both
allegations: (1) Minor alterations, pursuant to section 781(c) of the
Act and 19 CFR 351.226(j); and (2) later-developed merchandise,
pursuant to section 781(d) of the Act and 19 CFR 351.226(k). For a full
discussion of the basis for our decision to initiate a circumvention
inquiry regarding both the later-developed merchandise and minor
alterations allegations, see the Initiation Decision Memorandum.\7\
---------------------------------------------------------------------------
\7\ See Memorandum, ``Decision Memorandum for Initiation of
Circumvention Inquiry,'' dated concurrently with, and hereby adopted
by, this notice (Initiation Decision Memorandum), available at
<a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
---------------------------------------------------------------------------
As explained in the Initiation Decision Memorandum, the information
provided by the petitioner also warrants initiating this circumvention
inquiry on a country-wide basis. Commerce has taken this approach in
prior circumvention inquiries, when the facts warranted initiation on a
country-wide basis.\8\
---------------------------------------------------------------------------
\8\ See, e.g., Aluminum Extrusions from the People's Republic of
China: Affirmative Final Determination of Circumvention of the
Antidumping and Countervailing Duty Orders and Rescission of Minor
Alterations Anti-Circumvention Inquiry, 82 FR 4630 (July 26, 2017),
and accompanying Issues and Decision Memorandum at Comment 4.
---------------------------------------------------------------------------
Commerce intends to establish a schedule for questionnaires and
comments on the issues related to this inquiry. A company's failure to
respond completely to Commerce's requests for information may result in
the application of partial or total facts available, pursuant to
section 776(a) of the Act, which may include adverse inferences,
pursuant to section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify U.S.
Customs and Border Protection (CBP) of this initiation and direct CBP
to continue the suspension of liquidation of entries of products
subject to this circumvention inquiry that were already subject to the
suspension of liquidation under the Orders and to apply the cash
deposit rates that would be applicable if the products were determined
to be covered by the scope of the Orders. Should Commerce issue
preliminary or final circumvention determinations, Commerce will follow
the suspension of liquidation rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and sections 781(c) and (d) of
the Act, Commerce determines that the petitioner's request for a
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c).
Accordingly, Commerce is notifying all interested parties of the
initiation of this circumvention inquiry to determine whether dual-
piston engines produced in and exported from China will circumvent the
Orders. In addition, we have included a description of the products
that are the
[[Page 24282]]
subject to this inquiry and an explanation of Commerce's decision to
initiate this inquiry as provided in the accompanying Initiation
Decision Memorandum. In accordance with 19 CFR 351.226(e)(1), Commerce
intends to issue its preliminary circumvention determination no later
than 150 days from the date of publication of the notice of initiation
of this circumvention inquiry in the Federal Register.
This notice is published in accordance with sections 781(c) and (d)
of the Act, and 19 CFR 351.226(d)(1)(ii).
Dated: April 18, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Orders
The merchandise covered by these Orders consists of spark-
ignited, non-road, vertical shaft engines, whether finished or
unfinished, whether assembled or unassembled, whether mounted or
unmounted, primarily for walk-behind lawn mowers. Engines meeting
this physical description may also be for other non-hand-held
outdoor power equipment, including but not limited to, pressure
washers. The subject engines are spark ignition, single-cylinder,
air cooled, internal combustion engines with vertical power take off
shafts with a minimum displacement of 99 cubic centimeters (cc) and
a maximum displacement of up to, but not including, 225cc.
Typically, engines with displacements of this size generate gross
power of between 1.95 kilowatts (kw) to 4.75 kw.
Engines covered by these Orders 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 the
orders. 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
the orders.
Certain small vertical shaft engines, whether or not mounted on
non-hand-held outdoor power equipment, including but not limited to
walk-behind lawn mowers and pressure washers, are included in the
scope. However, if a subject engine is imported mounted on such
equipment, only the engine is covered by the scope. Subject
merchandise includes certain small vertical shaft engines produced
in the subject country whether mounted on outdoor power equipment in
the subject country or in a third country. Subject engines are
covered whether or not they are accompanied by other parts.
For purposes of these Orders, 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 a sump, carburetor spacer, cylinder
head(s), valve train, or valve cover(s), constitutes an unfinished
engine for purposes of these orders. The inclusion of other products
such as spark plugs fitted into the cylinder head or electrical
devices (e.g., ignition coils) for synchronizing with the engine 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.
Specifically excluded from the scope of these orders are
``Commercial'' or ``Heavy Commercial'' engines under 40 CFR 1054.107
and 1054.135 that have (1) a displacement of 160 cc or greater, (2)
a cast iron cylinder liner, (3) an automatic compression release,
and (4) a muffler with at least three chambers and volume greater
than 400 cc.
The engines subject to these Orders are predominantly classified
under the Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8407.90.1010. The engine subassemblies that are subject
to these Orders are classified under HTSUS subheading 8409.91.9990.
The mounted engines that are subject to these Orders are classified
under HTSUS subheadings 8433.11.0050, 8433.11.0060, and
8424.30.9000. Engines subject to these Orders may also be classified
under HTSUS subheadings 8407.90.1020, 8407.90.9040, and
8407.90.9060. The HTSUS subheadings are provided for convenience and
customs purposes only, and the written description of the
merchandise is dispositive.
[FR Doc. 2022-08698 Filed 4-22-22; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on April 25, 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.