Notice2023-16594
Gas Powered Pressure Washers From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, Preliminary Affirmative Critical Circumstances Determination, in Part, Postponement of Final Determination, and Extension of Provisional Measures
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Published
August 3, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that gas powered pressure washers (pressure washers) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2022, through September 30, 2022. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 88 Issue 148 (Thursday, August 3, 2023)</title>
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[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Pages 51279-51282]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16594]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-148]
Gas Powered Pressure Washers From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value,
Preliminary Affirmative Critical Circumstances Determination, in Part,
Postponement of Final Determination, and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that gas powered pressure washers (pressure washers) from
the People's Republic of China (China) are being, or are likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation (POI) is April 1, 2022, through September 30, 2022.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable August 3, 2023.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla and Dusten Hom, 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) 482-3477, and (202) 482-
5075, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 25,
2023.\1\ On May 18, 2023, Commerce postponed the preliminary
determination of this investigation to July 28, 2023.\2\ For a complete
description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\3\ A list of
topics included 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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\1\ See Gas Powered Pressure Washers from the People's Republic
of China and the Socialist Republic of Vietnam: Initiation of Less-
Than-Fair-Value Investigations, 88 FR 4807 (January 25, 2023)
(Initiation Notice).
\2\ See Gas Powered Pressure Washers from the People's Republic
of China: Postponement of Preliminary Determination in the Less-
Than-Fair Value Investigation, 88 FR 31677 (May 18, 2023).
\3\ See Memorandum, ``Decision Memorandum for Preliminary
Determination of Sales in the Less-Than-Fair-Value 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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Scope of the Investigation
The products covered by this investigation are 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\ On
[[Page 51280]]
June 8, 2023, we issued the preliminary scope decision memorandum.\7\
For a summary of the product coverage comments and rebuttal responses
submitted to the record for this investigation, and accompanying
discussion and analysis of all comments timely received, see the
Preliminary Scope Decision Memorandum.\8\ As discussed in the
Preliminary Scope Decision Memorandum, Commerce did not modify the
scope language as it appeared in the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 88 FR at 4812.
\6\ See Preliminary Decision Memorandum at ``IV. Scope
Comments.''
\7\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated June 8, 2023.
\8\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act,
Commerce has calculated normal value in accordance with section 773(c)
of the Act.
In addition, pursuant to sections 776(a) and (b) of the Act because
the China-wide entity did not cooperate to the best of its ability in
responding to Commerce's request for data, Commerce preliminarily has
relied upon facts otherwise available, with adverse inferences, for the
China-wide entity. For a full description of the methodology underlying
Commerce's preliminary determination, see the Preliminary Decision
Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e)(1) of the Act and 19 CFR
351.206(c), Commerce preliminarily determines that critical
circumstances exist with respect to imports of pressure washers from
China for Jiangsu Jianghuai Engine Co., Ltd. (JD Power) and the China-
wide entity, but do not exist with respect to the non-selected
companies receiving a separate rate. For a full description of the
methodology and results of Commerce's analysis, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\9\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Commerce's
Policy Bulletin 05.1 describes this practice.\10\
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\9\ See Initiation Notice, 88 FR at 4811.
\10\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Separate Rates
In addition to JD Power, we have preliminarily granted certain non-
individually examined respondents a separate rate. Also, because Rato
requested a separate rate but did not respond to Commerce's
questionnaire as a mandatory respondent in this investigation, we have
preliminarily denied a separate rate to Rato and are treating it as
part of the China-wide entity.\11\ See the Preliminary Decision
Memorandum for details.
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\11\ See Rato's Letter, ``Notice of Intent Not to Participate,''
dated April 17, 2023 (Rato Declination Letter).
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In calculating the rate for non-individually examined separate rate
respondents in a non-market economy AD investigation, Commerce normally
looks to section 735(c)(5)(A) of the Act, which pertains to the
calculation of the all-others rate in a market economy AD
investigation, for guidance. Pursuant to section 735(c)(5)(A) of the
Act, normally this rate shall be an amount equal to the weighted
average of the estimated AD rate established for those companies
individually examined, excluding zero and de minimis and any rates
based entirely under section 776 of the Act. Commerce calculated an
individual estimated weighted-average dumping margin for JD Power that
is not zero, de minimis, or based entirely on facts otherwise
available. Thus, the weighted-average dumping margin calculated for JD
Power is the basis to determine the weighted-average dumping margin for
the non-examined, separate rate companies, using section 735(c)(5)(A)
of the Act for guidance, which provides for the determination of the
estimated weighted-average dumping for all other producers and
exporters in a market economy investigation. See the below table in the
``Preliminary Determination of the Investigation'' section of this
notice.
Preliminary Determination of the Investigation
Commerce preliminarily determines that the following weighted-
average dumping margins exist:
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Cash deposit
Estimated rate
weighted- (adjusted for
Exporter Producer average export
dumping subsidy
margin offset(s)
(percent) (percent)
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Jiangsu Jianghuai Engine Co., Ltd............. Jiangsu Jianghuai Engine Co., 263.25 252.71
Ltd.
Sumec Hardware and Tools Co., Ltd............. Sumec Hardware and Tools Co., 263.25 252.71
Ltd.
Zhejiang Danau Machine Co., Ltd............... Zhejiang Danau Machine Co., Ltd. 263.25 252.71
China-Wide Entity............................. 274.37.......................... 263.83
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise, as described in the scope of the investigation
section, entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart above, as follows: (1)
for the producer/exporter combinations listed in the table above, the
cash deposit rate is equal to the estimated weighted-average dumping
margin listed for that combination in the table; (2) for all
combinations of Chinese producers/exporters of subject merchandise that
have not established eligibility for their own separate rates, the cash
deposit rate
[[Page 51281]]
will be equal to the estimated weighted-average dumping margin
established for the China-wide entity; and (3) for all third-county
exporters of subject merchandise not listed in the table above, the
cash deposit rate is the cash deposit rate applicable to the Chinese
producer/exporter combination (or China-wide entity) that supplied that
third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise from JD Power and from the China-wide entity. In accordance
with section 733(e)(2)(A) of the Act, the suspension of liquidation
shall apply to all unliquidated entries of merchandise from JD Power
and the China-wide entity that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice in the Federal Register.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce has made a preliminary affirmative determination for
domestic subsidy pass-through or export subsidies, Commerce offset the
calculated estimated weighted-average dumping margin by the appropriate
rate(s). Any such adjusted rates may be found in the Preliminary
Determination section's chart of estimated weighted-average dumping
margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire. These suspension of liquidation
instructions will remain in effect until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination 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
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the verification report is issued in this
investigation. 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\ Note that Commerce has modified certain of
its requirements for serving documents containing business proprietary
information until further notice.\13\ 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.
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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, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm the date and time of the hearing two
days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On July 10, 2023, pursuant to 19 CFR 351.210(e), JD Power timely
requested that Commerce postpone the final determination and that
provisional measures be extended to a period not to exceed six months,
if the preliminary determination was affirmative.\14\ On July 10, 2023,
the petitioner timely requested that Commerce fully extend the deadline
for the final determination in the event of a negative preliminary
determination.\15\ In accordance with section 735(a)(2)(A) of the Act
and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination, pursuant to
section 735(a)(2) of the Act. Furthermore, as the final CVD
determination has been aligned with the final AD determination,
Commerce will make its final CVD determination no later than 135 days
after the date of publication of this preliminary determination.\16\
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\14\ See JD Power's Letter, ``Request to Postpone Final
Determination,'' dated July 10, 2023.
\15\ See Petitioner's Letter, ``Request to Postpone Final
Determination,'' dated July 10, 2023.
\16\ See 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, 88 FR 36531 (June 5, 2023).
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[[Page 51282]]
International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. 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 these imports of the subject merchandise are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: July 28, 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 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 99cc 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. Period of Investigation
IV. Scope Comments
V. Preliminary Affirmative Determination of Critical Circumstances,
in Part
VI. Discussion of the Methodology
VII. Adjustment Under Section 777A(f) of the Act
VIII. Adjustment to Cash Deposit Rate for Export Subsidies
IX. Currency Conversion
X. Recommendation
[FR Doc. 2023-16594 Filed 8-2-23; 8:45 am]
BILLING CODE 3510-DS-P
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