Notice2022-19310
Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts Thereof, From the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders
Primary source
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Published
September 7, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that vertical shaft engines with displacements between 60cc and up to 99cc produced in the People's Republic of China (China) and exported to the United States, are circumventing the antidumping duty (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. Interested parties are invited to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 87 Issue 172 (Wednesday, September 7, 2022)</title>
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[Federal Register Volume 87, Number 172 (Wednesday, September 7, 2022)]
[Notices]
[Pages 54672-54674]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19310]
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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: Affirmative
Preliminary Determination of Circumvention of the Antidumping and
Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that vertical shaft engines with displacements between 60cc
and up to 99cc produced in the People's Republic of China (China) and
exported to the United States, are circumventing the antidumping duty
(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. Interested parties are invited to comment on
these preliminary results.
DATES: Applicable September 7, 2022.
FOR FURTHER INFORMATION CONTACT: Benjamin A. Luberda, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2185.
SUPPLEMENTARY INFORMATION:
Background
On May 4, 2021, the Department of Commerce (Commerce) published AD
and CVD orders on small vertical engines from China.\1\ On September
17, 2021, in response to a request from Briggs & Stratton, LLC (the
petitioner),\2\ Commerce initiated a circumvention inquiry to determine
whether imports of engines with displacements between 60cc and up to
99cc produced in China and exported to the United States are ``altered
in form or appearance in minor respects'' from in-scope merchandise
such that they should be considered subject to the Orders.\3\ For a
complete
[[Page 54673]]
description of events that followed initiation of this inquiry, see the
Preliminary Decision Memorandum.\4\
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\1\ 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).
\2\ 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 July 30, 2021.
\3\ See Certain Vertical Shaft Engines Between 99cc and up to
225cc, and Parts Thereof, from the People's Republic of China:
Initiation of Anti-Circumvention Inquiry of Antidumping and
Countervailing Duty Orders--60cc up to 99cc Engines; 86 FR 51866
(September 17, 2021) (Initiation Notice), and accompanying Issues
and Decision Memorandum.
\4\ See Memorandum, ``Preliminary Decision Memorandum for the
Circumvention Inquiry,'' dated concurrently with, and hereby adopted
by, this notice (Preliminary Decision Memorandum).
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Scope of the Orders
The merchandise subject to the Orders is small vertical engines
from China. For a complete description of the scope of the Orders, see
the Preliminary Decision Memorandum.
Scope of the Circumvention Inquiry
This circumvention inquiry covers small vertical engines with
displacements between 60cc and up to 99cc produced in China and
exported to the United States.
Statutory and Regulatory Framework
Section 781(c) of the Tariff Act of 1930, as amended (the Act),
provides that Commerce may find circumvention of an AD or CVD order
when merchandise of the same class or kind as subject merchandise has
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 ``{p{time} aragraph 1 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} .''
While the Act is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors that should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \5\ Concerning the allegation
of minor alteration under section 781(c) of the Act and 19 CFR
351.225(i), Commerce examines such factors as: (1) overall physical
characteristics; (2) expectations of ultimate users; (3) use of
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.\6\ Each
inquiry is highly dependent on the facts on the record and must be
analyzed in light of those specific facts.\7\ Thus, along with the five
factors enumerated above, Commerce may also consider the circumstances
under which the products enter the United States, including, but not
limited to, the timing of the entries and the quantity of merchandise
entered during the circumvention review period.\8\
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\5\ See Carbon and Certain Alloy Steel Wire Rod from Mexico:
Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order,
83 FR 5405 (February 7, 2018) (citing S. Rep. No. 71, 100th Cong.,
1st Sess. 100 (1987)).
\6\ Id.; see also Deacero S.A. de C.V. v. United States, 817
F.3d 1332 (Fed. Cir. 2016).
\7\ See, e.g., Certain Uncoated Paper from Australia, Brazil,
the People's Republic of China, Indonesia, and Portugal: Affirmative
Preliminary Determination of Circumvention of the Antidumping and
Countervailing Duty Orders, 82 FR 26778 (June 9, 2017), and
accompanying Preliminary Decision Memorandum, at ``IV. Statutory and
Regulatory Framework.''
\8\ Id.; see also, e.g., Affirmative Preliminary Determination
of Circumvention of the Antidumping Duty Order on Certain Cut-to-
Length Steel Plate from the People's Republic of China, 74 FR 33991,
33992-93 (July 14, 2009); Brass Sheet and Strip from West Germany;
Negative Preliminary Determination of Circumvention of Antidumping
Duty Order, 55 FR 32655 (August 10, 1990), unchanged in Brass Sheet
and Strip from Germany; Negative Final Determination of
Circumvention of Antidumping Duty Order, 56 FR 65884 (December 19,
1991); and Small Diameter Graphite Electrodes from the People's
Republic of China: Initiation of Anticircumvention Inquiry, 77 FR
37873 (June 25, 2012).
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Preliminary Determination
We preliminarily determine that small vertical engines with
displacements between 60cc and up to 99cc and engines with
displacements of 99cc up to 225cc are not dissimilar in terms of
overall physical characteristics of the merchandise, the expectations
of the ultimate users, the use of the merchandise, channels of
marketing, and the timing and circumstances under which the Zongshen
Companies exported the engines with displacements between 60cc and up
to 99cc.\9\ Because we find that the merchandise subject to this
inquiry is not dissimilar to subject merchandise, we preliminarily
determine that the engines at issue constitute merchandise ``altered in
form or appearance in minor respects'' from in-scope merchandise,
within the meaning of section 781(c)(1) of the Act. Also, we
preliminarily determine that the affirmative circumvention finding
should be applied on a countrywide basis.
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\9\ In the less-than-fair-value investigation, Commerce found
that Chongqing Zongshen General Power Machine Co., Ltd.; Chongqing
Dajiang Power Equipment Co., Ltd.; and Chongqing Zongshen Power
Machinery Co., Ltd. (collectively, the Zongshen Companies) should be
treated as a single entity. See Certain Vertical Shaft Engines
Between 99cc and Up to 225cc, and Parts Thereof, from the People's
Republic of China: Preliminary Affirmative Determination of Sales at
Less Than Fair Value, and Preliminary Affirmative Determination of
Critical Circumstances, in Part, 85 FR 66932 (October 21, 2020),
unchanged in Certain Vertical Shaft Engines Between 99cc and Up To
225cc, and Parts Thereof, from the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value and Final
Affirmative Determination of Critical Circumstances in Part, 86 FR
14077 (March 12, 2021). Absent information to the contrary, we
continue to treat the Zongshen Companies as a single entity for the
purposes of this inquiry.
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For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. 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="http://access.trade.gov">http://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>. A list of
the topics discussed in the Preliminary Decision Memorandum is attached
at the appendix to this notice.
Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(2), we will direct U.S.
Customs and Border Protection (CBP) to suspend liquidation of small
vertical engines between 60cc and up to 99cc produced in China and
exported to the United States that are entered, or withdrawn from
warehouse, for consumption on or after September 17, 2021 (i.e., the
date of the initiation of this inquiry).\10\ Pursuant to 19 CFR
351.225(l)(2), we will also instruct CBP to require cash deposits of
estimated duties equal to the AD and CVD rates in effect for small
vertical engines for each unliquidated entry of small vertical engines
between 60cc and up to 99cc produced in China and exported to the
United States that are entered, or withdrawn from warehouse, for
consumption on or after September 17, 2021. The suspension of
liquidation instructions will remain in effect until further notice.
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\10\ See Initiation Notice.
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Public Comment
Interested parties are invited to comment on this preliminary
determination of circumvention and may submit case briefs and/or
written comments within 14 days of the
[[Page 54674]]
publication of this notice.\11\ Rebuttal briefs, limited to issues
raised in the case briefs, may be filed no later than seven days after
the date on which the case briefs are due.\12\ Parties who submit case
briefs of rebuttal briefs in this inquiry 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.\13\ Case and rebuttal briefs
should be filed electronically via ACCESS.\14\ Note that Commerce has
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\15\
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\11\ Commerce is exercising its discretion, under 19 CFR
351.309(c)(1)(ii), to alter the time limit for filing of case
briefs.
\12\ Commerce is exercising its discretion, under 19 CFR
351.309(d)(1), to alter the time limit for filing of rebuttal
briefs.
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
\14\ See 19 CFR 351.303.
\15\ See 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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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically and
received successfully in its entirety via ACCESS by 5:00 p.m. Eastern
Time within 14 days after the date of publication of this notice.\16\
Hearing requests should contain: (1) the party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. Issues raised in the hearing will be limited to
issues raised in the briefs. If a request for a hearing is made,
parties will be notified of the date and time for the hearing at a
later date.
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\16\ See 19 CFR 351.310(c).
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Postponement of Final Determination
Section 781(f) of the Act provides that, to the maximum extent
practicable, Commerce shall make its circumvention determinations
within 300 days from the date of initiation of the inquiry. On July 14,
2022, we extended the final determination until August 25, 2022.\17\ We
determine that it is not practicable to make a final determination in
this circumvention inquiry by the current deadline of August 25, 2022,
because Commerce will require additional time to review and analyze
case and rebuttal briefs. Therefore, we are extending the time period
for issuing the final determination in this inquiry by 103 days, to
December 6, 2022.
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\17\ See Memorandum, ``Extension of Anti-Circumvention Final
Determination,'' dated July 14, 2022.
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Notification to Interested Parties
This affirmative preliminary circumvention determination is in
accordance with section 781(c) of the Act and 19 CFR 351.225(i).
Dated: August 25, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework
VI. Use of Facts Available With an Adverse Inference
VII. Allegation of Circumvention
VIII. Analysis
IX. Preliminary Affirmative Determination of Circumvention
X. Country-Wide Circumvention Finding
XI. Recommendation
[FR Doc. 2022-19310 Filed 9-6-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 7, 2022.
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