Notice2022-27276
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and Parts Thereof, From the People's Republic of China: Affirmative Final Determination of Circumvention of the Antidumping and Countervailing Duty Orders-60cc Up To 99cc Engines
Primary source
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Published
December 16, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that vertical shaft engines with displacements between 60 cubic centimeters (cc) 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 by means of being merchandise "altered in form or appearance in minor respects."
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77074-77076]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27276]
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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 Final
Determination of Circumvention of the Antidumping and Countervailing
Duty Orders--60cc Up To 99cc Engines
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
vertical shaft engines with displacements between 60 cubic centimeters
(cc) 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 by means of being merchandise ``altered in
form or appearance in minor respects.''
DATES: Applicable December 16, 2022.
FOR FURTHER INFORMATION CONTACT: Benjamin A. Luberda, AD/CVD
[[Page 77075]]
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 September 7, 2022, Commerce published the preliminary
determination \1\ for the circumvention inquiry of the AD and CVD
Orders on small vertical engines from China with respect to vertical
shaft engines with displacements between 60cc and up to 99cc produced
in China and exported to the United States.\2\ A summary of the events
that occurred since Commerce published the Preliminary Determination
may be found in the Issues and Decision Memorandum.\3\ Commerce
conducted this inquiry in accordance with section 781(c) of the Tariff
Act of 1930, as amended, (the Act) and 19 CFR 351.225(i). This inquiry
was initiated on September 13, 2021,\4\ and it is being conducted under
the prior version of 19 CFR 351.225, not the version promulgated in
AB10.\5\
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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:
Affirmative Preliminary Determination of Circumvention of the
Antidumping and Countervailing Duty Orders, 87 FR 54672 (September
7, 2022) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum (PDM).
\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).
\3\ See Memorandum, ``Final Issues and Decision Memorandum for
Circumvention Inquiry 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: 60cc
Up To 99cc Engines,'' dated concurrently with, and hereby adopted
by, this notice (Issues and Decision Memorandum).
\4\ See 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),
and accompanying Issues and Decision Memorandum.
\5\ See Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20,
2021) (AB10).
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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 Issues and Decision Memorandum.
Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers vertical shaft engines with
displacements between 60cc and up to 99cc produced in China and
exported to the United States.
Analysis of Comments Received
All the issues raised in case and rebuttal briefs that were
submitted by parties in this inquiry are addressed in the Issues and
Decision Memorandum. A list of the issues raised is attached in the
Appendix to this notice. 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>. 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>.
Final Determination
In the Preliminary Determination, we determined that vertical shaft
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 \6\ exported the engines with displacements between 60cc and
up to 99cc. Thus, we preliminarily determined that the merchandise
subject to this inquiry is not dissimilar to subject merchandise and
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) of the Act. We also preliminarily determined
that the affirmative circumvention finding should be applied on a
countrywide basis.\7\
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\6\ 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.
\7\ See Preliminary Determination PDM.
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Our final determination remains unchanged from the Preliminary
Determination. Accordingly, we determine, pursuant to section 781(c) of
the Act and 19 CFR 351.225(i), that imports of vertical shaft engines
with displacements between 60cc and up to 99cc, produced in China and
exported to the United States, are circumventing the Orders. We also
continue to find that the affirmative circumvention finding should be
applied on a countrywide basis.
Liquidation of Entries
In the Preliminary Determination, Commerce stated that it would
instruct United States Customs and Border Protection (CBP) to suspend
liquidation of, and collect cash deposits on, vertical shaft engines
between 60cc and up to 99cc produced in China and exported to the
United States that were entered, or withdrawn from warehouse, for
consumption on or after September 17, 2021 (i.e., the date of the
initiation of this inquiry).\8\ On October 26, 2022, Commerce rescinded
the administrative review of the AD order for the period July 23, 2020,
through April 30, 2022, and the administrative review of the CVD order
for the period May 26, 2020, through December 31, 2021.\9\ Accordingly,
the administrative reviews covering certain entries of inquiry
merchandise for which liquidation is suspended have been rescinded.
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\8\ See Preliminary Determination, 87 FR at 54673.
\9\ See Rescission of Antidumping and Countervailing Duty
Administrative Reviews, 87 FR 64764 (October 26, 2022).
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For any unliquidated entries and entries for which liquidation has
not become final of vertical shaft engines with displacements between
60cc and up to 99cc produced in China and exported to the United States
that entered as non-AD/CVD type entries (e.g., type 01) that were
shipped and/or entered, or withdrawn from warehouse, for consumption in
the United States after September 17, 2021, importers should file a
Post Summary Correction with CBP, in accordance with CBP's regulations,
regarding conversion of such entries from non-AD/CVD case numbers to
AD/CVD type entries (e.g., type 01 to type 03). For such shipments, the
Post Summary Corrections should be completed as soon as practicable,
but not later than 45 days after publication of this notice in the
Federal Register. Importers should report those AD/CVD type entries of
merchandise under the AD/CVD case numbers of the Orders on
[[Page 77076]]
small vertical engines from China (i.e., A-570-124; C-570-125) or
appropriate third-country case numbers (i.e., A-201-996; C-201-997).
The importer must pay cash deposits on those entries consistent with
the regulations governing post summary corrections that require payment
of additional duties.
Commerce intends to instruct CBP to assess AD and/or CVD duties on
all appropriate entries of vertical shaft engines with displacements
between 60cc and up to 90cc during the periods of review noted above at
rates equal to the applicable cash deposit of estimated AD or CVD
duties in effect at time of entry, or withdrawal of merchandise from
warehouse, for consumption, in accordance with 19 CFR 351.212(c)(1)(i).
Commerce intends to issue assessment instructions no earlier than 35
days after the publication of this notice in the Federal Register. 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).
Continuation of Suspension of Liquidation
As a result of this determination, and consistent with 19 CFR
351.225(l)(3), we will instruct CBP to continue to suspend the
liquidation of all entries of merchandise subject to the inquiry
entered, or withdrawn from warehouse, for consumption, under the AD
order after April 30, 2022, and all entries entered, or withdrawn from
warehouse, for consumption, under the CVD order after December 31,
2021, and to require cash deposits of estimated AD and/or CVD duties at
the applicable subject merchandise rates. The suspension of liquidation
and cash deposit instructions will remain in effect until further
notice.
Notification Regarding Administrative Protective Order
This notice serves as the only reminder to all parties subject to
the administrative protective order (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 return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and terms of the APO is a sanctionable violation.
Notification to Interested Parties
This affirmative final determination of circumvention is issued and
published in accordance with section 781(c) of the Act.
Dated: December 9, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Merchandise Subject to the Circumvention Inquiry
IV. Scope of the Orders
V. Use of Facts Available With an Adverse Inference
VI. Discussion of the Issues
Comment 1. Whether Commerce's Preliminary Determination
Improperly Applied the Minor Alterations Provision of the Statute
Comment 2. Physical Characteristics of the Inquiry Merchandise
Comment 3. Modification Cost of the Inquiry Merchandise
VII. Recommendation
[FR Doc. 2022-27276 Filed 12-15-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 16, 2022.
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