Notice2022-21127
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-Dual-Piston Engines; Rescission in Part
Primary source
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Published
September 29, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that imports of dual-piston engines with a single, common combustion chamber, of the type designed by FNA Group, Inc. (FNA), produced in and exported from the People's Republic of China (China) constitute later-developed merchandise that circumvent 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. Commerce also preliminarily determines that this affirmative circumvention finding should be applied on a country-wide basis.
Full Text
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<title>Federal Register, Volume 87 Issue 188 (Thursday, September 29, 2022)</title>
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[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59059-59060]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21127]
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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--Dual-Piston Engines; Rescission in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that imports of dual-piston engines with a single, common
combustion chamber, of the type designed by FNA Group, Inc. (FNA),
produced in and exported from the People's Republic of China (China)
constitute later-developed merchandise that circumvent 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. Commerce also preliminarily determines
that this affirmative circumvention finding should be applied on a
country-wide basis.
DATES: Applicable September 29, 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 May 4, 2021, Commerce published AD and CVD orders on small
vertical engines from China.\1\ On April 25, 2022, in response to a
request from Briggs & Stratton, LLC (the petitioner), Commerce
initiated a circumvention inquiry to determine whether dual-piston
engines with a single, common combustion chamber, of the type designed
by FNA, involve a ``minor alteration'' to subject merchandise or are
``later-developed merchandise,'' such that they should be considered
subject to the AD and CVD orders on small vertical engines from
China.\2\ The petitioner alleges that such merchandise, produced in,
and exported from, China, and imported into the United States may
circumvent the Orders. For a complete description of the events that
followed the initiation of this inquiry, see the Preliminary Decision
Memorandum.\3\
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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 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, 87 FR 24280 (April
25, 2022) (Initiation Notice); see also Petitioner's Letter,
``Request for Anti-Circumvention Inquiry Pursuant to section 781(c)
and/or 781(d) of the Tariff Act of 1930,'' dated March 4, 2022.
\3\ See Memorandum, ``Certain Vertical Shaft Engines Between
99cc and Up To 225cc from the People's Republic of China:
Preliminary Decision Memorandum for Circumvention Inquiry--Dual-
Piston Engines,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
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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
Preliminary Decision Memorandum.\4\
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\4\ Id. at 2-3.
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Merchandise Subject to the Circumvention Inquiry
The merchandise subject to this circumvention inquiry are dual-
piston engines with a single, common
[[Page 59060]]
combustion chamber, of the type designed by FNA, otherwise meeting the
scope of the Orders. In the Initiation Notice, Commerce used the term
``dual-piston engine'' to refer to the engines subject to this inquiry,
such as FNA's dual-piston engine. More specifically, the dual-piston
engines subject to this circumvention inquiry have a common combustion
chamber shared by two cylinders working in unison.\5\ For a complete
description of the inquiry merchandise, see the Preliminary Decision
Memorandum.
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\5\ 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, at 2-3.
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Methodology
Commerce is conducting this circumvention inquiry pursuant to
section 781(d) of the Tariff Act of 1930, as amended (the Act), and 19
CFR 351.226(k). For a complete description of the events that followed
the initiation of this circumvention inquiry, see the Preliminary
Decision Memorandum. A list of topics included in the Preliminary
Decision Memorandum is included as the appendix 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>.
Affirmative Preliminary Determination of Circumvention
As detailed in the Preliminary Decision Memorandum, Commerce
preliminarily determines that imports of dual-piston engines with a
single, common combustion chamber, of the type designed by FNA,
produced in and exported from China constitute later-developed
merchandise that circumvent the Orders, pursuant to section 781(d) of
the Act and 19 CFR 351.226(k). We also preliminarily determine that
this affirmative circumvention finding should be applied on a country-
wide basis.
Partial Rescission
Commerce initiated this inquiry pursuant to sections 781(c) and (d)
of the Act.\6\ However, because we preliminarily determine that dual-
piston engines with a single, common combustion chamber, of the type
designed by FNA, are later-developed merchandise that are circumventing
the Orders, pursuant to section 781(d) of the Act, Commerce is not
evaluating whether the inquiry merchandise was also ``altered in form
or appearance in minor respects'' in an attempt to circumvent the
Orders, pursuant to 19 CFR 351.226(j) and section 781(c) of the Act.
Therefore, we are rescinding the prong of this circumvention inquiry
pertaining to section 781(c) of the Act.
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\6\ See Initiation Notice, 87 FR at 24280-81.
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Suspension of Liquidation
In accordance with 19 CFR 351.226(l)(2), we will direct U.S.
Customs and Border Protection (CBP) to continue the suspension of
liquidation of previously suspended entries and to suspend liquidation
of all entries of dual-piston engines with a single, common combustion
chamber, of the type designed by FNA, produced in and exported from
China that are entered, or withdrawn from warehouse, for consumption on
or after April 25, 2022 (i.e., the date of the publication of the
Initiation Notice).\7\ Pursuant to 19 CFR 351.226(l)(2), we will also
instruct CBP to require cash deposits of estimated ADs and CVDs equal
to the cash deposit rates in effect for small vertical engines for each
unliquidated entry of dual-piston engines with a single, common
combustion chamber, of the type designed by FNA, produced in and
exported from China that have been entered, or withdrawn from
warehouse, for consumption on or after April 25, 2022.\8\ These
suspension of liquidation instructions and cash deposit requirements
will remain in effect until further notice.
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\7\ Id.
\8\ See Orders.
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Public Comments
Interested parties are invited to comment on this preliminary
determination of circumvention and may submit case briefs or other
written comments within 30 days of the date of publication of this
notice.\9\ Rebuttal briefs, limited to issues raised in case briefs,
may be submitted no later than seven days after the deadline for case
briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this circumvention 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.\11\ Case and rebuttal briefs should be filed
electronically via ACCESS.\12\
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\9\ Commerce is exercising its discretion, under 19 CFR
351.309(c)(1)(ii), to alter the time limit for filing of case
briefs.
\10\ Commerce is exercising its discretion, under 19 CFR
351.309(d)(1), to alter the time limit for filing of rebuttal
briefs.
\11\ See 19 CFR 351.309(c)(2) and (d)(2).
\12\ See 19 CFR 351.303.
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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 within 30 days after the date of publication
of this notice. Requests should contain: (1) the party's name, address,
and telephone number; (2) the number of participants; (3) whether any
participant is a foreign national; and (4) a list of the 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.
All submissions must be filed electronically and received
successfully in its entirety via ACCESS by 5:00 p.m. Eastern Time on
the date that they are due. Note that Commerce has temporarily modified
certain of its requirements for serving documents containing business
proprietary information, until further notice.\13\
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\13\ 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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Notification to Interested Parties
This determination is published in accordance with section 781(d)
of the Act and 19 CFR 351.226(f) and (k).
Dated: September 22, 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. Comments and Analysis
VII. Country-Wide Circumvention Finding
VIII. Partial Recission
IX. Recommendation
[FR Doc. 2022-21127 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P
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