Notice2022-26946

Certain Large Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China: Preliminary Results and Rescission, in Part, of the Antidumping Duty Administrative Review; 2020-2022

Primary source

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Published
December 13, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S Department of Commerce (Commerce) is conducting the administrative review of the antidumping duty order on certain large vertical shaft engines between 225cc and 999cc, and parts thereof (large vertical shaft engines) from the People's Republic of China (China). The period of review (POR) is August 19, 2020, through February 28, 2022. Commerce preliminarily determines that Honda Power Products (China) Co., Ltd. (Honda) failed to establish its eligibility for a separate rate and, therefore, is part of the China-wide entity. We are also rescinding this review with respect to Chongqing Rato Technology Co., Ltd. (Chongqing Rato) and Loncin Motor Co., Ltd (Loncin). We invite interested parties to comment on these preliminary results.

Full Text

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<title>Federal Register, Volume 87 Issue 238 (Tuesday, December 13, 2022)</title>
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[Federal Register Volume 87, Number 238 (Tuesday, December 13, 2022)]
[Notices]
[Pages 76178-76181]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26946]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-119]


Certain Large Vertical Shaft Engines Between 225cc and 999cc, and 
Parts Thereof From the People's Republic of China: Preliminary Results 
and Rescission, in Part, of the Antidumping Duty Administrative Review; 
2020-2022

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S Department of Commerce (Commerce) is conducting the 
administrative review of the antidumping duty order on certain large 
vertical shaft engines between 225cc and 999cc, and parts thereof 
(large vertical shaft engines) from the People's Republic of China 
(China). The period of review (POR) is August 19, 2020, through 
February 28, 2022. Commerce preliminarily determines that Honda Power 
Products (China) Co., Ltd. (Honda) failed to establish its eligibility 
for a separate rate and, therefore, is part of the China-wide entity. 
We are also rescinding this review with respect to Chongqing Rato 
Technology Co., Ltd. (Chongqing Rato) and Loncin Motor Co., Ltd 
(Loncin). We invite interested parties to comment on these preliminary 
results.

DATES: Applicable December 13, 2022.

FOR FURTHER INFORMATION CONTACT: Leo Ayala or Jacob Saude, 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 or (202) 482-0981, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 3, 2022, Commerce published in the Federal Register a 
notice of opportunity to request an administrative review of the 
antidumping duty order on large vertical shaft engines from China \1\ 
for

[[Page 76179]]

the POR.\2\ On March 30, 2022, Honda and American Honda Motor Co., Inc. 
self-requested a review of Honda's imports of subject merchandise 
during the POR.\3\ On March 31, 2022, Chongqing Rato self-requested a 
review of its sales of subject merchandise during the POR.\4\ Also on 
March 31, 2022, the Toro Company (Toro), a U.S. importer of large 
vertical shaft engines from China, requested a review of Loncin, a 
producer and exporter of subject merchandise.\5\ Subsequently, we 
initiated an administrative review of the Order with respect to 
Chongqing Rato,\6\ Loncin,\7\ and Honda.\8\ On June 7, 2022, Toro 
timely withdrew its review request of Loncin.\9\
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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) (Order).
    \2\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review and Join Annual Inquiry Service List, 87 FR 12086 (March 3, 
2022).
    \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 Administrative Review,'' dated March 30, 2022.
    \4\ See Chongqing Rato's Letter, ``Certain Vertical Shaft 
Engines Between 225CC and 999CC, and Parts Thereof, from the 
People's Republic of China: Request for Administrative Review,'' 
dated March 31, 2022.
    \5\ See Toro's Letter, ``Vertical Shaft Engines between 225cc 
and 999cc, and Parts Thereof, from the People's Republic of China: 
Request for Review--2020-2022 Review Period,'' dated March 31, 2022.
    \6\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 29280 (May 13, 2022).
    \7\ Id.
    \8\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 35165 (June 9, 2022) (Honda Initiation 
Notice).
    \9\ See Toro's Letter, ``Vertical Shaft Engines between 225cc 
and 999cc, and Parts Thereof, from the People's Republic of China: 
Withdrawal of Request for Review--2020-2022 Review Period,'' dated 
June 7, 2022.
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    On June 17, 2022, we placed on the record U.S. Customs and Border 
Protection (CBP) entry data under administrative protective order (APO) 
for all interested parties having APO access and provided interested 
parties the opportunity to comment on the CBP data and respondent 
selection.\10\ No party commented on the CBP data or respondent 
selection.
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    \10\ See Memorandum, ``Customs Entries from August 19, 2020 
through February 28, 2022,'' dated June 17, 2022.
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    On July 18, 2022, Chonqqing Rato timely withdrew its request for an 
administrative review.\11\
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    \11\ See Chongqing Rato's Letter, ``Certain Vertical Shaft 
Engines Between 225CC and 999CC, and Parts Thereof, from the 
People's Republic of China: Withdrawal of Request for Administrative 
Review,'' dated July 18, 2022.
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Scope of the Order

    The scope of the 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 the Order. 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 Order.
    For purposes of the 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 the 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 the Order enter under HTSUS subheading 
8409.91.9990. Engines subject to the Order may also enter under HTSUS 
subheadings 8407.90.9060 and 8407.90.9080. The HTSUS subheadings are 
provided for convenience and customs purposes only, and the written 
description of the merchandise subject to the Order is dispositive.

Partial Rescission of Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if all parties that 
requested a review withdraw their requests within 90 days of the 
publication date of the notice of initiation of the requested review in 
the Federal Register. On June 7, 2022, Toro withdrew its review request 
of Loncin.\12\ On July 18, 2022, Chonqqing Rato withdrew its request 
for an administrative review of its own entries.\13\ Because no other 
party requested a review of Loncin and Chongqing Rato, consistent with 
19 CFR 351.213(d)(1), Commerce is rescinding this review with respect 
to Chongqing Rato and Loncin.
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    \12\ See Toro's Letter, ``Certain Vertical Shaft Engines between 
225cc and 999cc, and Parts Thereof, from the People's Republic of 
China: Withdrawal of Request for Review--2020-2022 Review Period,'' 
dated June 7, 2022.
    \13\ See Chongqing Rato's Letter, ``Certain Vertical Shaft 
Engines Between 225CC and 999CC, and Parts Thereof, from the 
People's Republic of China: Withdrawal of Request for Administrative 
Review,'' dated July 18, 2022.
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Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(B) of the Tariff Act of 1930, as amended (the 
Act), and 19 CFR 351.213.

Preliminary Results of Review

    The deadline for Honda to submit a no-shipment certification, 
separate rate application (SRA), or separate rate certification (SRC) 
was July 11, 2022.\14\

[[Page 76180]]

Honda did not submit an SRA or SRC. Thus, Commerce preliminarily 
determines that Honda has not demonstrated its eligibility for separate 
rate status and, therefore, Honda is part of the China-wide entity.
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    \14\ See Honda Initiation Notice, 87 FR at 35167 (``If a 
producer or exporter named in this notice of initiation had no 
exports, sales, or entries during {POR{time} , it must notify 
Commerce within 30 days of publication of this notice in the Federal 
Register . . . . Separate Rate Applications are due to Commerce no 
later than 30 calendar days after publication of this Federal 
Register notice.''). Thirty calendar days after the Honda Initiation 
Notice published was Saturday, July 9, 2022. Commerce's practice 
dictates that, where a deadline falls on a weekend or federal 
holiday, the appropriate deadline is the next business day. See 
Notice of Clarification: Application of ``Next Business Day'' Rule 
for Administrative Determination Deadlines Pursuant to the Tariff 
Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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China-Wide Entity

    Commerce no longer considers the non-market economy (NME) entity as 
an exporter conditionally subject to an antidumping duty administrative 
review.\15\ Accordingly, the NME entity will not be under review unless 
Commerce specifically receives a request for, or self-initiates, a 
review of the NME entity. In this administrative review, no party 
requested a review of the China-wide entity and we have not self-
initiated a review of the China-wide entity. Because no review of the 
China-wide entity is being conducted, the China-wide entity's entries 
are not subject to the review, and the rate applicable to the NME 
entity is not subject to change as a result of this review. The 
weighted-average dumping margin previously determined for the China-
wide entity is 456.10 percent.\16\
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    \15\ See Antidumping Proceedings: Announcement of Change in 
Department Practice for Respondent Selection in Antidumping Duty 
Proceedings and Conditional Review of the Non-Market Economy Entity 
in NME Antidumping Duty Proceedings, 78 FR 65963, 65970 (November 4, 
2013).
    \16\ See Order, 86 FR at 12624.
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Public Comment

    Interested parties are invited to comment on the preliminary 
results and may submit case briefs or written comments, filed 
electronically via Enforcement and Compliance's Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS), 
within 30 days after the date of publication of these preliminary 
results of review.\17\ ACCESS is available to registered users at 
<a href="https://access.trade.gov">https://access.trade.gov</a>. Rebuttal briefs, limited to issues raised in 
the case briefs, must be filed within seven days after the time limit 
for filing case briefs.\18\ Parties who submit case or rebuttal briefs 
in this proceeding are requested to submit with each argument a 
statement of the issue, a brief summary of the argument, and a table of 
authorities.\19\ Note that Commerce has temporarily modified certain 
portions of its requirements for serving documents containing business 
proprietary information, until further notice.\20\
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    \17\ See 19 CFR 351.309(c)(1)(ii).
    \18\ See 19 CFR 351.309(d)(1) and (2); see also Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020) (Temporary Rule).
    \19\ See 19 CFR 351.309(c) and (d); see also 19 CFR 351.303 (for 
general filing requirements).
    \20\ See Temporary Rule, 85 FR at 41363.
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    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance within 30 days of the date of 
publication of this notice.\21\ 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 those raised in the respective case 
and rebuttal briefs. If a request for a hearing is made, parties will 
be notified of the time and date for a hearing to be held.\22\ Commerce 
intends to issue the final results of this administrative review, which 
will include the results of our analysis of all issues raised in the 
case briefs, within 120 days of publication of these preliminary 
results in the Federal Register, unless extended, pursuant to section 
751(a)(3)(A) of the Act.
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    \21\ See 19 CFR 351.310(c).
    \22\ See 19 CFR 310(d).
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Assessment Rates

    Upon issuance of the final results of this review, Commerce will 
determine, and CBP will assess, antidumping duties on all appropriate 
entries covered by this review.\23\ We intend to instruct CBP to 
liquidate entries containing subject merchandise exported by Honda, if 
we continue to determine in the final results Honda to be part of the 
China-wide entity, at the China-wide entity rate of 456.1 percent.\24\
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    \23\ See 19 CFR 351.212(b)(1).
    \24\ For a full discussion of this practice, see Non-Market 
Economy Antidumping Proceedings: Assessment of Antidumping Duties, 
76 FR 65694 (October 24, 2011).
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    For Chongqing Rato and Loncin, for which this review is rescinded, 
antidumping duties shall be assessed at rates equal to the cash deposit 
of estimated antidumping duties required at the time of entry, or 
withdrawal from warehouse, for consumption, during the period August 
19, 2020, through February 28, 2022, in accordance with 19 CFR 
351.212(c)(1)(i).
    Commerce intends to issue assessment instructions to CBP no earlier 
than 35 days after the date of publication of the final rescission of 
this review in the Federal Register for Chongching Rato and Loncin, and 
no earlier than 35 days after the date of publication of the final 
results of this review in the Federal Register for Honda. If a timely 
summons is filed at the U.S. Court of International Trade, the 
assessment instructions will direct CBP not to liquidate relevant 
entries until the time for parties to file a request for a statutory 
injunction has expired (i.e., within 90 days of publication).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of review, as provided for by section 751(a)(2)(C) of the 
Act: (1) for Honda, if it is found to not be eligible for a separate 
rate in the final results of review, then its cash deposit rate will be 
the rate applicable for the China-wide entity; (2) for previously 
investigated or reviewed Chinese and non-Chinese exporters who are not 
under review in this segment of the proceeding but who have separate 
rates, the cash deposit rate will continue to be the exporter specific 
rate published for the most recent period; (3) for all Chinese 
exporters of subject merchandise that have not been found to be 
entitled to a separate rate, the cash deposit rate will be the China-
wide rate of 456.10 percent; and (4) for all non-Chinese exporters of 
subject merchandise which have not received their own rate, the cash 
deposit rate will be the rate applicable to Chinese exporter(s) that 
supplied that non-Chinese exporter. These deposit requirements, when 
imposed, shall remain in effect until further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping and/or countervailing duties 
prior to liquidation of the relevant entries during this review period. 
Failure to comply with this requirement could result in Commerce's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties, and/or an increase in the amount of antidumping duties by the 
amount of the countervailing duties.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(d) and 
19 CFR 351.221(b)(4).


[[Page 76181]]


    Dated: December 1, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-26946 Filed 12-12-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on December 13, 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.