Notice2023-28282
Gas Powered Pressure Washers From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part
Primary source
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Published
December 22, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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). The period of investigation is January 1, 2021, through December 31, 2021.
Full Text
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<title>Federal Register, Volume 88 Issue 245 (Friday, December 22, 2023)</title>
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[Federal Register Volume 88, Number 245 (Friday, December 22, 2023)]
[Notices]
[Pages 88578-88581]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28282]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-149]
Gas Powered Pressure Washers From the People's Republic of China:
Final Affirmative Countervailing Duty Determination and Final
Affirmative Critical Circumstances Determination, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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). The period of investigation is January 1,
2021, through December 31, 2021.
DATES: Applicable December 22, 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
On June 5, 2023, Commerce published its Preliminary Determination
\1\ in the Federal Register. 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 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) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ Id.
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For a complete description of the events that followed 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 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>.
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\3\ See Memorandum, ``Decision Memorandum for the Final
Affirmative 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
(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 the investigation, Commerce received scope comments from
interested parties. Commerce issued a Preliminary Scope Memorandum to
address these 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 address in the Final Scope Memorandum.\5\ We did
not make any changes to the scope of this investigation from the scope
published in the Preliminary Determination, as noted in Appendix I.
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\4\ See Memorandum, ``Preliminary Scope Decision,'' dated June
8, 2023 (Preliminary Scope Memorandum).
\5\ See Memorandum, ``Final Scope Decision,'' dated August 22,
2023 (Final Scope Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties and addressed in the
Issues and Decision Memorandum, see Appendix II to this notice.
[[Page 88579]]
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce 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.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination and the section ``Use of Facts Otherwise
Available and Application of Adverse Inferences'' in the accompanying
Issues and Decision Memorandum.\7\
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\7\ See Preliminary Determination PDM at 7-30; see also Issues
and Decision Memorandum at the section entitled ``Use of Facts
Otherwise Available and Adverse Inferences.''
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Verification
Commerce was unable to conduct on-site verification of the
information relied on in making its final determination in this
investigation. However, in July 2023, we took additional steps in lieu
of on-site verifications to verify the information relied upon in
making this final determination, in accordance with section 782(i) of
the Act by conducting virtual verification of Jiangsu Jianghuai Engine
Co., Ltd. (JD Power).
Final Affirmative Determination of Critical Circumstances, in Part
In accordance with sections 703(e)(1) and 776(a) and (b) of the Act
and 19 CFR 351.206, as well as our analysis of comments received
regarding our affirmative preliminary determination of critical
circumstances,\8\ Commerce continues to find that critical
circumstances exist with respect to imports of pressure washers from
China for JD Power and the non-responsive companies. In addition, we
continue to find that critical circumstances do not exist with respect
to imports of pressure washers from companies not individually
examined. For a full description of the methodology and results of
Commerce's critical circumstances analysis, see the Issues and Decision
Memorandum.
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\8\ See Issues and Decision Memorandum at Comment 5.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information at verification
and comments received from interested parties, we made no changes to
the subsidy rate calculations for JD Power. For a discussion of the
comments received, see the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. In this investigation, Commerce calculated a
total subsidy rate for Chongqing Dajiang Power Equipment Co., Ltd.
determined entirely under section 776 of the Act. Therefore, the only
rate that is not zero, de minimis, or based entirely on facts otherwise
available is the rate calculated for JD Power. Consequently, the rate
calculated for JD Power is also assigned as the rate for all other
producers and exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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\9\ Commerce 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 \9\.......... 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
All Others..................................... 11.19
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination 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, in accordance with 19 CFR 351.224(b).\10\
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\10\ JD Power submitted certain minor corrections during
verification that do not affect the ad valorem subsidy rates
calculated for individual programs or the total ad valorem subsidy
rate. See Memorandum, ``Final Determination Calculations for Jiangsu
Jianghuai Engine Co., Ltd.,'' dated concurrently with this
memorandum.
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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we
[[Page 88580]]
instructed U.S. Customs and Border Protection (CBP) to suspend
liquidation of entries of subject merchandise from China that were
entered, or withdrawn from warehouse, for consumption, on or after June
5, 2023. Because we preliminarily determined that critical
circumstances existed with respect to JD Power and the non-responsive
companies, we instructed CBP to suspend such entries on or after March
7, 2023, which is 90 days prior to the date of the publication of the
Preliminary Determination in the Federal Register. In accordance with
section 703(d) of the Act, we instructed CBP to discontinue the
suspension of liquidation of all entries of subject merchandise entered
or withdrawn from warehouse, on or after October 3, 2023, but to
continue the suspension of liquidation of all entries of subject
merchandise between June 5 and October 2, 2023.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for entries of subject merchandise in the amounts indicated above. If
the ITC determines that material injury, or threat of material injury,
does not exist, this proceeding will be terminated, and all estimated
duties deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of pressure
washers from China. Because the final determination in this proceeding
is affirmative, in accordance with section 705(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 pressure washers from China no later
than 45 days after our final determination. In addition, we are making
available to the ITC all non-privileged and nonproprietary information
related to this investigation. 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 the
written consent of the Assistant Secretary for Enforcement and
Compliance. If the ITC determines that material injury or threat of
material injury does not exist, this proceeding will be terminated and
all cash deposits will be refunded. If the ITC determines that such
injury does exist, Commerce will issue a countervailing duty order
directing CBP to assess, upon further instruction by Commerce,
countervailing duties on all imports of the subject merchandise that
are entered, or withdrawn from warehouse, for consumption on or after
the effective date of the suspension of liquidation, as discussed above
in the ``Continuation of Suspension of Liquidation'' section.
Administrative Protective Order
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 destruction of
proprietary information 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 sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: December 18, 2023.
/S/James Maeder
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 this
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
this 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. Final Critical Circumstances Determination
IV. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Subsidies Valuation Information
VI. Interest Rate, Discount Rate, Hot-Rolled Steel, and Electricity
Benchmarks
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Export Buyer's Credit (EBC) Program
Comment 2: Whether the Application of Adverse Facts Available
(AFA) for the Provision of Hot-Rolled Steel for Less Than Adequate
Remuneration (LTAR) Is Appropriate
[[Page 88581]]
Comment 3: Whether the Application of AFA to the Provision of
Electricity for LTAR Is Appropriate
Comment 4: Whether the Application of AFA to Other Subsidies Is
Appropriate
Comment 5: Whether Critical Circumstances Exist with Regard to
JD Power
Comment 6: Whether JD Power Used the Provision of Hot-Rolled
Steel for LTAR Program
IX. Recommendation
[FR Doc. 2023-28282 Filed 12-21-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 22, 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.