Notice2023-28137

Gas Powered Pressure Washers From the People's Republic of China: Final Affirmative Determination of Sales at Less-Than-Fair Value, and Final Affirmative Critical Circumstances Determinations, in Part

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Published
December 21, 2023

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) 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 is April 1, 2022, though September 30, 2022.

Full Text

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<title>Federal Register, Volume 88 Issue 244 (Thursday, December 21, 2023)</title>
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[Federal Register Volume 88, Number 244 (Thursday, December 21, 2023)]
[Notices]
[Pages 88365-88367]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28137]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-148]


Gas Powered Pressure Washers From the People's Republic of China: 
Final Affirmative Determination of Sales at Less-Than-Fair Value, and 
Final Affirmative Critical Circumstances Determinations, in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) 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 is 
April 1, 2022, though September 30, 2022.

DATES: Applicable December 21, 2023.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla, AD/CVD Operations, 
Office I, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230; telephone: (202) 482-3477.

SUPPLEMENTARY INFORMATION:

Background

    On August 3, 2023, Commerce published in the Federal Register the 
Preliminary Determination in this LTFV investigation.\1\ Commerce 
invited parties to comment on the Preliminary Determination.\2\
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    \1\ See 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, 88 FR 51279 (August 3, 2023) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ Id.
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    For a complete description of the events that occurred since the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and Decision Memorandum is a public document and is made 
available to the public 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>. 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>.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of Sales at Less-Than-Fair-Value and 
Final Affirmative Critical Circumstances Determinations, in Part: 
Gas Powered Pressure Washers from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and 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

    During this LTFV investigation, Commerce received scope comments 
from interested parties. Commerce issued a Preliminary Scope Memorandum 
to address the comments and set aside a period of time for parties to 
address scope issues in scope-specific case and rebuttal briefs.\4\ We 
received comments from interested parties on the Preliminary Scope 
Memorandum, which we addressed in the Final Scope Memorandum.\5\ We did 
not make any changes to the scope of the investigation from the scope 
published in the Preliminary Determination, as provided in Appendix I.
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    \4\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated June 8, 2023 (Preliminary Scope Memorandum).
    \5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
August 22, 2023.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum 
and are listed in Appendix II of this notice.

Final Affirmative Determination of Critical Circumstances

    For the Preliminary Determination, in accordance with section 
733(e)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.206(c)(1), Commerce preliminarily found that critical circumstances 
exist with respect to imports of pressure washers exported by Jiangu 
Jianghuai Engine Co., Ltd. (JD Power) and the China-wide entity.\6\
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    \6\ See Preliminary Determination.
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    No parties submitted comments regarding this finding. Thus, our 
determination of critical circumstances is unchanged for the final 
determination. Accordingly, pursuant to section 735(a)(3)(B) of the Act 
and 19 CFR 351.206, we continue to find that critical circumstances 
exist for JD Power and the China-wide entity.
    Regarding the companies receiving a separate rate, we preliminarily 
found that critical circumstances do not exist.\7\ For the final 
determination, we continue to find that the variance of shipments 
between the base and comparison period is explained by seasonal trends 
and, therefore, consistent with our practice,\8\ we continue to find 
that critical circumstances do not exist regarding the separate rate 
companies.
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    \7\ Id.
    \8\ See Pentaflouroethane (R-125) 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, 87 FR 1117 (January 10, 2022), and accompanying IDM at 
Comment 1.
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Verification

    Commerce was unable to conduct an on-site verification of the 
information relied upon in making its final determination. However, 
from August 20 through 22, 2023, we took additional steps, in lieu of 
an on-site verification to verify the information relied upon in

[[Page 88366]]

making this final determination, in accordance with section 782(i) of 
the Act,\9\ by conducting virtual verification of JP Power.
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    \9\ See Memorandum, ``Verification of Jiangu Jianghuai Engine 
Co., Ltd,'' dated September 13, 2023.
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Separate Rates

    For the final determination, we continue to find that JD Power, 
Sumec Hardware and Tools Co., Ltd., and Zhejiang Danau Machine Co., 
Ltd., are eligible for separate rates. Generally, Commerce looks to 
section 735(c)(5)(A) of the Act, which provides instructions for 
calculating the all-others rate in an investigation, for guidance when 
calculating the rate for separate rate respondents which we did not 
individually examine. The statute further provides that, where all 
margins are zero, de minimis, or based entirely on facts available 
under section 776 of the Act, Commerce may use ``any reasonable 
method'' for assigning the rate to non-selected respondents.\10\ As 
explained further below, for the final determination, we based JD 
Power's dumping margin on total adverse facts available (AFA). Because 
there is only one dumping margin, and it is based entirely on facts 
available, Commerce has assigned, as any reasonable method, an average 
of the range of dumping margins in the Petition to the separate rate 
companies for this final determination.\11\ This approach is consistent 
with our practice.\12\
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    \10\ See section 735(c)(5)(B) of the Act.
    \11\ See Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated December 29, 2022 
(the Petition); see also Initiation Checklist, ``Gas Powered 
Pressure Washers from the People's Republic of China,'' dated 
January 19, 2023, at 8.
    \12\ See Polyester Textured Yarn from the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Postponement of Final Determination and Extension of 
Provisional Measures, 84 FR 31297 (July 1, 2019), and accompanying 
PDM at 12, unchanged in Polyester Textured Yarn from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, and Final Affirmative Determination of Critical 
Circumstances, 84 FR 63850 (November 19, 2019).
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Combination Rates

    In the Initiation Notice,\13\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. For the list of 
respondents that established eligibility for separate rates and the 
exporter/producer combination rates applicable to these respondents, 
see the Final Determination section.
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    \13\ 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, 4811 (January 25, 2023) 
(Initiation Notice).
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China-Wide Entity and Use of AFA

    For the purposes of this final determination, consistent with the 
Preliminary Determination,\14\ we relied solely on the application of 
AFA for the China-wide entity, pursuant to sections 776(a) and (b) of 
the Act. In selecting the AFA rate for the China-wide entity, 
Commerce's practice is to select a rate that is sufficiently adverse to 
ensure that the uncooperative party does not obtain a more favorable 
result by failing to cooperate than if it had fully cooperated.\15\ A 
detailed discussion of our application of AFA is provided in the 
Preliminary Determination.\16\
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    \14\ See Preliminary Determination PDM at 18.
    \15\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December 
27, 2004), unchanged in Notice of Final Determination of Sales at 
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland, 
70 FR 28279 (May 17, 2005).
    \16\ See Preliminary Determination PDM at 18-19.
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    As discussed in the Issues and Decision Memorandum, we determined 
that total AFA is warranted regarding JD Power, and thus, for purposes 
of this final determination, we have applied a dumping margin rate of 
274.37, which represents the highest individual dumping margin 
calculated for a mandatory respondent in this investigation and is the 
same rate applied to the China-wide entity. Because this constitutes 
primary information from the normal course of the investigation, the 
statutory corroboration requirement in section 776(c) of the Act does 
not apply.

Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist for the period April 1, 2022, through September 
30, 2022:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
            Exporter                     Producer             dumping
                                                              >margin
                                                             (percent)
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Jiangsu Jianghuai Engine Co.,    Jiangsu Jianghuai                274.37
 Ltd.                             Engine Co., Ltd.
Sumec Hardware and Tools Co.,    Sumec Hardware and               189.52
 Ltd.                             Tools Co., Ltd.
Zhejiang Danau Machine Co., Ltd  Zhejiang Danau Machine           189.52
                                  Co., Ltd.
                                                         ---------------
China-Wide Entity..............  .......................          274.37
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Disclosure

    Normally, Commerce will disclose to the parties in a proceeding the 
calculations performed in connection with a final determination within 
five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of the notice 
of final determination in the Federal Register, in accordance with 19 
CFR 351.224(b). Because we applied total AFA to JD Power and the China-
wide entity in accordance with 776 of the Act, which was based on our 
antidumping duty calculation from the Preliminary Determination, there 
are no calculations to disclose for this final determination. However, 
we intend to disclose to interested parties the calculations and 
analysis performed in this final determination for critical 
circumstances within five days of any public announcement or, if there 
is no public announcement, within five days of the date of the 
publication of this notice in the Federal Register.

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and in accordance with 
section 735(c)(1)(B) of the Act, for JD Power and the China-wide 
entity, Commerce will instruct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of subject merchandise, as described 
in Appendix I, entered, or withdrawn from warehouse, for consumption, 
on or after May 5, 2023, which is 90 days prior to the date of the date 
of publication of the

[[Page 88367]]

affirmative Preliminary Determination in the Federal Register, at the 
cash deposit rate indicated above.
    For the separate rate companies, we will instruct CBP to continue 
to suspend liquidation of subject merchandise, entered, or withdrawn 
from warehouse, for consumption, on or after August 3, 2023, which is 
the date of publication of the affirmative Preliminary Determination in 
the Federal Register, at the cash deposit rate indicated in the above 
table.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the amount by which the normal value 
exceeds the U.S. price as follows: (1) the cash deposit rate for the 
exporter/producer combination listed in the table above will be the 
rate identified 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 will be 
the rate established for the China-wide entity; and (3) for all third 
country exporters of subject merchandise, the cash deposit rate will be 
the cash deposit rate applicable to the Chinese producer/exporter that 
supplied that third country exporter.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of our affirmative determination of sales at LTFV. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order (APO), without consent of the Assistant Secretary for Enforcement 
and Compliance.
    Because the final determination in this proceeding is affirmative, 
in accordance with section 735(b) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of gas pressure washers from China no later than 45 
days after our final determination. If the ITC determines that material 
injury or threat of material injury does not exist, the proceeding will 
be terminated, and all cash deposits will be refunded or canceled, as 
Commerce determines to be appropriate.
    If the ITC determines that such injury does exist, Commerce intends 
to issue an antidumping duty order, in accordance with section 736(a) 
of the Act, directing CBP to assess, upon further instruction by 
Commerce, antidumping duties on all imports of the subject merchandise 
that are entered, or withdrawn from warehouse, for consumption on or 
after the effective date of suspension of liquidation, as discussed 
above in the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the disposition of 
proprietary disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanctions.

Notification to Interested Parties

    This determination is issued and published in pursuant with 
sections 735(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: December 18, 2023.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

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 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Affirmative Determination of Critical Circumstances
IV. Changes Since the Preliminary Determination
V. Application of Facts Available and Adverse Inferences
VI. Discussion of the Issues
    Comment 1: Whether Commerce Incorrectly Ended Its Verification 
of JD Power
    Comment 2: Arguments Regarding Calculations
VII. Recommendation

[FR Doc. 2023-28137 Filed 12-20-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on December 21, 2023.

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.