Notice2023-11875
Gas Powered Pressure Washers From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, in Part, and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 5, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of gas-powered pressure washers (pressure washers) from the People's Republic of China (China) during the period of investigation, January 1, 2021, through December 31, 2021. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 88 Issue 107 (Monday, June 5, 2023)</title>
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[Federal Register Volume 88, Number 107 (Monday, June 5, 2023)]
[Notices]
[Pages 36531-36534]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11875]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-149]
Gas Powered Pressure Washers From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Critical Circumstances Determination, in Part, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of gas-powered pressure washers (pressure
washers) from the People's Republic of China (China) during the period
of investigation, January 1, 2021, through December 31, 2021.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable June 5, 2023.
FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2631.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On January 25,
2023, Commerce published in the Federal Register the notice of
initiation of this investigation.\1\ On March 14, 2023, Commerce
postponed the preliminary determination of this investigation until May
30, 2023.\2\
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\1\ Gas Powered Pressure Washers from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 88 FR 4812
(January 25, 2023) (Initiation Notice).
\2\ See Gas Powered Pressure Washers from the People's Republic
of China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 88 FR 15672 (March 14, 2023).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II 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>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Gas
Powered Pressure Washers from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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[[Page 36532]]
Scope of the Investigation
The products covered by this investigation are gas powered pressure
washers from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ We received
comments from several parties concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigations of pressure
washers as it appeared in the Initiation Notice.\6\ We are currently
evaluating the scope comments filed by the interested parties and
intend to issue our preliminary decision regarding the scope of the AD
and CVD investigations shortly. We will incorporate the scope decisions
from the AD investigations into the scope of the final CVD
determination for this investigation, after considering any relevant
comments submitted in scope case and rebuttal briefs.
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\4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\5\ See Initiation Notice, 88 FR 4812.
\6\ See Preliminary Decision Memorandum at ``IV. Scope
Comments.''
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Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances exist with respect
to imports of pressure washers from China for Jiangsu Jianghuai Engine
Co., Ltd. (JD Power), Chongqing Dajiang Power Equipment Co., Ltd.
(CDPE), and companies that were not responsive to Commerce's quantity
and value questionnaire,\7\ but do not exist with respect to all other
producers or exporters not individually examined. For a full
description of the methodology and results of Commerce's analysis, see
the Preliminary Decision Memorandum.
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\7\ See Commerce's Letter, ``Quantity and Value Questionnaire,''
dated January 20, 2023.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\8\
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied on facts
available and, because Commerce finds that necessary information was
missing from the record and because respondents did not act to the best
of their ability to respond to Commerce's requests for information,
Commerce drew an adverse inference in selecting from among the facts
otherwise available.\9\ For further information, see the ``Use of Facts
Otherwise Available and Adverse Inferences'' section in the Preliminary
Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of pressure
washers from China based on a request made by the FNA Group, Inc. (the
petitioner).\10\ Consequently, the final CVD determination will be
issued on the same date as the final AD determination, which is
currently scheduled to be issued no later than October 11, 2023, unless
postponed.
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\10\ See Petitioner's Letter, ``Request to Align Countervailing
Duty Investigation Final Determination with Antidumping Duty
Investigation Final Determination,'' dated April 24, 2023.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, as discussed in the Preliminary Decision
Memorandum, Commerce calculated an individual estimated countervailable
subsidy rate for JD Power that is not zero, de minimis, or based
entirely under section 776 of the Act. As further discussed in the
Preliminary Decision Memorandum, the individual estimated
countervailable subsidy rate for CDPE is based entirely upon section
776 of the Act. Therefore, Commerce is using the individual estimated
subsidy rate calculated for JD Power as the all-others rate.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds the following company to be cross-owned
with JD Power: Jiangsu Nonghua Intelligent Agriculture Technology
Co., Ltd.
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Subsidy rate (percent
Company ad valorem)
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Jiangsu Jianghuai Engine Co., Ltd 11........... 11.19
Chongqing Dajiang Power Equipment Co., Ltd..... 206.57
China GTL Tools Group, Ltd..................... 206.57
Loncin Motor Co., Ltd.......................... 206.57
Maxworld Home Co., Ltd......................... 206.57
Ningbo Jugang Machinery Manufacturing Co., Ltd. 206.57
Powerful Machinery & Electronics Technology 206.57
Developing Co., Ltd...........................
Pinghu Biyi Cleaning Equipment Co., Ltd........ 206.57
Senci Electric Machinery Co., Ltd.............. 206.57
Taizhou Bison Machinery Co., Ltd............... 206.57
Taizhou Longfa Machinery Co., Ltd.............. 206.57
Taizhou Newland Machinery Co., Ltd............. 206.57
Zhejiang Anlu Cleaning Machinery Co., Ltd...... 206.57
Zhejiang Constant Power Machinery Co., Ltd..... 206.57
Zhejiang Lingben Machinery & Electronics Co., 206.57
Ltd...........................................
Zhejiang Xinchang Bigyao Power Tool Co., Ltd... 206.57
Zhejiang Zhinanche Cleaning Equipment Co., Ltd. 206.57
[[Page 36533]]
All Others..................................... 11.19
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, because we find
that critical circumstances exist for JD Power, CDPE, and the non-
responsive companies, therefore, for these companies, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise as described in the scope of the
investigation entered, or withdrawn from warehouse, for consumption on
or after the date 90 days prior to the date of publication of this
notice in the Federal Register. As noted above, we find that critical
circumstances do not exist for all other producers or exporters not
individually examined. Therefore, for all other producers or exporters
not individually examined, Commerce will direct CBP to suspend
liquidation of entries of subject merchandise as described in the scope
of the investigation entered, or withdrawn from warehouse, for
consumption on or after the date of the publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed in connection with this preliminary determination to
interested parties within five days of its public announcement, or if
there is no public announcement, within five days of the date of
publication of this notice in the Federal Register, in accordance with
19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the AD and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing AD and CVD pressure washers investigations. No new factual
information or business proprietary information may be included in
either scope case or rebuttal briefs.
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance.
Commerce will notify interested parties of the deadline for the
submission of case briefs. Rebuttal briefs, limited to issues raised in
case briefs, may be submitted no later than seven days after the
deadline date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or rebuttal briefs in this
investigation 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. Commerce has modified certain of its requirements
for serving documents containing business proprietary information until
further notice.\13\
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\12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\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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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, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. Oral
presentations at 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 time and date for the hearing.\14\
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\14\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of pressure
washers from China are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: May 30, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is cold water gas
powered pressure washers (also commonly known as power washers),
which are machines that clean surfaces using water pressure that are
powered by an internal combustion engine, air-cooled with a power
take-off shaft, in combination with a positive displacement pump.
This combination of components (i.e., the internal combustion
engine, the power take-off shaft, and the positive displacement
pump) is defined as the ``power unit.'' The scope of the
investigation covers cold water gas powered pressure washers,
whether finished or unfinished, whether assembled or unassembled,
and whether or not containing any additional parts or accessories to
assist in the function of the ``power unit,'' including, but not
limited to, spray guns, hoses, lances, and nozzles. The scope of the
investigation covers cold water gas powered pressure washers,
whether or not assembled or packaged with a frame, cart, or trolley,
with or without wheels attached.
For purposes of this investigation, an unfinished and/or
unassembled cold water gas powered pressure washer consists of, at a
minimum, the power unit or components of the power unit, packaged or
imported together. Importation of the power unit whether or not
accompanied by, or attached to, additional components including, but
not limited to a frame, spray guns, hoses, lances, and nozzles
constitutes an unfinished cold water gas powered pressure washer for
purposes of this scope. The inclusion in a third country of any
components other than the power unit does not remove the cold water
gas powered pressure washer from the scope. A cold water gas powered
pressure washer is within the scope of this investigation regardless
of the origin of its engine. Subject merchandise also includes
finished and unfinished cold water gas powered pressure washers that
are further processed in a third country or in the United States,
including, but not limited to, assembly or any other processing that
would not otherwise remove the merchandise from the scope of this
investigation if performed in the country of manufacture of the in-
scope cold water gas powered pressure washers.
The scope excludes hot water gas powered pressure washers, which
are pressure
[[Page 36534]]
washers that include a heating element used to heat the water
sprayed from the machine.
Also specifically excluded from the scope of this investigation
is merchandise covered by the scope 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. See Certain Vertical Shaft Engines Between 99 cc and Up to
225cc, and Parts Thereof from the People's Republic of China:
Antidumping and Countervailing Duty Orders, 86 FR 023675 (May 4,
2021).
The cold water gas powered pressure washers subject to this
investigation are classified in the Harmonized Tariff Schedule of
the United States (HTSUS) at subheadings 8424.30.9000 and
8424.90.9040. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Injury Test
VI. Diversification of China's Economy
VII. Preliminary Affirmative Determination of Critical
Circumstances, in Part
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Subsidies Valuation
X. Interest Rate, Discount Rate, Hot-Rolled Steel, and Electricity
Benchmarks
XI. Analysis of Programs
XII. Recommendation
[FR Doc. 2023-11875 Filed 6-2-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on June 5, 2023.
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