Notice2023-04046

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-Dual-Piston Engines

Primary source

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Published
February 28, 2023

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) 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 is 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. Commerce is also applying this affirmative circumvention finding on a country-wide basis.

Full Text

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<title>Federal Register, Volume 88 Issue 39 (Tuesday, February 28, 2023)</title>
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[Federal Register Volume 88, Number 39 (Tuesday, February 28, 2023)]
[Notices]
[Pages 12656-12657]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04046]


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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--Dual-Piston Engines

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

SUMMARY: The U.S. Department of Commerce (Commerce) 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 is 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. Commerce is also applying this affirmative 
circumvention finding on a country-wide basis.

DATES: Applicable February 28, 2023.

FOR FURTHER INFORMATION CONTACT: Paul Gill, AD/CVD Operations, Office 
IX, 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 September 29, 2022, Commerce published the Preliminary 
Determination of the circumvention inquiry of the AD and CVD orders on 
small vertical engines from China \1\ with respect to imports of dual-
piston engines with a single, common combustion chamber, of the type 
designed by FNA, produced in, and exported from China.\2\ We invited 
parties to comment on the Preliminary Determination. For a complete 
description of the events that followed the Preliminary Determination, 
see the Issues and 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: 
Affirmative Preliminary Determination of Circumvention of the 
Antidumping and Countervailing Duty Orders-Dual-Piston Engines; 
Rescission in Part, 87 FR 59059 (September 29, 2022) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \3\ See Memorandum, ``Certain Vertical Shaft Engines Between 
99cc and 225cc from the People's Republic of China: Issues and 
Decision Memorandum for Circumvention Inquiry--Dual-Piston 
Engines,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and 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 Issues and Decision Memorandum.

Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers dual-piston engines with a 
single, common combustion chamber, of the type designed by FNA, 
produced in, and exported from China, that otherwise meet the scope of 
the Orders. The dual-piston engines subject to this circumvention 
inquiry have a common combustion chamber shared by two cylinders that 
contain pistons working in unison.\4\
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    \4\ 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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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs 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 filed 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>.

Affirmative Final Determination of Circumvention

    Consistent with the Preliminary Determination,\5\ Commerce 
continues to determine 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 is circumventing the Orders, pursuant to section 
781(d) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.226(k). Commerce also continues to apply this affirmative 
circumvention finding on a country-wide basis.
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    \5\ See Preliminary Determination PDM.
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Liquidation of Entries

    In the Preliminary Determination, Commerce stated it would instruct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of, and 
collect cash deposits on, imports of dual-piston engines with a single, 
common combustion chamber, of the type designed by FNA, produced in, 
and exported from China, that were entered, or withdrawn from 
warehouse, for consumption on or after April 25, 2022 (i.e., the date 
of the initiation of this inquiry).\6\ On October 26, 2022, Commerce 
rescinded the administrative review of the AD order for the period July 
23, 2020, through April 30, 2022.\7\ Accordingly, the administrative 
review covering entries that would have been suspended had they entered 
from April 25, 2022, through April 30, 2022, has been rescinded.
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    \6\ Id., 87 FR at 59060.
    \7\ See Rescission of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 64764 (October 26, 2022).
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    For any unliquidated entries of dual-piston engines with a single, 
common combustion chamber, of the type designed by FNA, produced in, 
and exported from China, 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 April 25, 2022, importers 
should file a Post Summary Correction with CBP, in accordance with 
CBP's regulations regarding the 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 no later than 45 days after the 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 small vertical engines from China (i.e.,

[[Page 12657]]

A-570-124, C-570-125) or appropriate third-country case numbers (i.e., 
A-201-996, C-201-997). The importer must pay case deposits on those 
entries consistent with the regulations governing post summary 
corrections that require the payment of additional duties.
    Commerce intends to instruct CBP to assess ADs and/or CVDs on all 
appropriate entries of dual-piston engines with a single, common 
combustion chamber, of the type designed by FNA, produced in, and 
exported from China, during the periods of review noted above at rates 
equal to the applicable cash deposit of estimated ADs or CVDs in effect 
at the 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

    In accordance with 19 CFR 351.225(l)(3), Commerce will direct CBP 
to continue to suspend liquidation 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 initiation of this inquiry).\8\ Pursuant to 19 CFR 
351.225(l)(3), Commerce 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 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. The 
suspension of liquidation and cash deposit instructions will remain in 
effect until further notice.
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    \8\ Id.
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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 determination is published in accordance with section 781(d) 
of the Act and 19 CFR 351.226(g)(2) and (k).

    Dated: February 21, 2023.
Abdelali Elouaradia,
Deputy 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. Discussion of the Issues
    Comment 1: The Commercial Availability of Dual-Piston Engines
    Comment 2: Whether Dual-Piston Engines are the Same Merchandise 
as In-Scope Engines
VI. Recommendation

[FR Doc. 2023-04046 Filed 2-27-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on February 28, 2023.

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