Notice2025-12964
Certain Vertical Shaft Engines Between 99cc and 225cc, and Parts Thereof, From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
July 11, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a circumvention inquiry request from Briggs & Stratton, LLC (Briggs & Stratton), the U.S. Department of Commerce (Commerce) is initiating a circumvention inquiry to determine whether certain models of vertical shaft engines exported from the People's Republic of China (China) are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on vertical shaft engines between 99cc and 225cc, and parts thereof (small vertical engines) from China.
Full Text
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<title>Federal Register, Volume 90 Issue 131 (Friday, July 11, 2025)</title>
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[Federal Register Volume 90, Number 131 (Friday, July 11, 2025)]
[Notices]
[Pages 30874-30876]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12964]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-124, C-570-125]
Certain Vertical Shaft Engines Between 99cc and 225cc, and Parts
Thereof, From the People's Republic of China: Initiation of
Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a circumvention inquiry request from Briggs &
Stratton, LLC (Briggs & Stratton), the U.S. Department of Commerce
(Commerce) is initiating a circumvention inquiry to determine whether
certain models of vertical shaft engines exported from the People's
Republic of China (China) are circumventing the antidumping duty (AD)
and countervailing duty (CVD) orders on vertical shaft engines between
99cc and 225cc, and parts thereof (small vertical engines) from China.
DATES: Applicable July 11, 2025.
FOR FURTHER INFORMATION CONTACT: Mark Hoadley, AD/CVD Operations,
Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3148.
SUPPLEMENTARY INFORMATION:
Background
On June 18, 2025, Briggs & Stratton, a domestic interested party,
requested that Commerce initiate a circumvention inquiry to determine
whether two models of vertical shaft engines produced in China by
Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) are
circumventing the AD and CVD orders \1\ on small vertical engines from
China.\2\ Briggs & Stratton alleges that these two models were
developed after the initiation of the original AD/CVD investigations of
small vertical engines from China specifically to fall outside the
scope of the Orders and, as such, constitute later-developed
merchandise. Thus, they argue, these two models should be included
within the scope of the Orders, pursuant to section 781(d) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.226(k).
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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 Briggs & Stratton's Letter, ``Request for Anti-
Circumvention Inquiry Pursuant to Section 781(d) of the Tariff Act
of 1930,'' dated June 18, 2025.
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Scope of the Orders
The merchandise subject to the Orders are small vertical engines
from China. For a complete description of the scope of the Orders, see
Appendix II of this notice.
Merchandise Subject to the Circumvention Inquiry
The two models that Briggs & Stratton alleges are circumventing the
order are engine models 5C65M0 and BC70M0 produced by Zongshen. Briggs
& Stratton acknowledges that these two models are currently excluded
from the scope of the Orders as falling under the ``Commercial'' or
``Heavy Commercial'' scope exclusion. Commerce intends to consider
whether the inquiry should
[[Page 30875]]
apply to all imports of small commercial vertical shaft engines,
lacking certain commercial engine features or including certain
residential engine features, regardless of producer, exporter, or
importer, from China.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' Briggs & Stratton
alleges circumvention pursuant to section 781(d) of the Act
(merchandise developed after an investigation is initiated).
Section 351.226(m)(2) of Commerce's regulations states, for
companion AD and CVD duty proceedings, that ``the Secretary will
initiate and conduct a single inquiry with respect to the product at
issue for both orders only on the record of the antidumping duty
proceeding.'' Further, once ``the Secretary issues a final
circumvention determination on the record of the antidumping duty
proceeding, the Secretary will include on the record of the
countervailing duty proceeding copies of the final circumvention
determination memoranda, the final circumvention determination Federal
Register notice, the preliminary circumvention determination memoranda,
the preliminary circumvention determination Federal Register notice,
and all relevant instructions to U.S. Customs and Border Protection.''
Accordingly, once Commerce concludes this circumvention inquiry,
Commerce intends to place its final circumvention determination on the
record of the companion CVD proceeding.
Section 781(d) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise is developed after
an investigation is initiated. In conducting a later-developed
merchandise inquiry under section 781(d)(1) of the Act and 19 CFR
351.226(k), Commerce will consider whether: (1) The later-developed
merchandise has the same general physical characteristics as the
merchandise with respect to which the order was originally issued; (2)
the expectations of the ultimate purchasers of the later-developed
merchandise are the same as for the earlier product; (3) the ultimate
use of the earlier product and the later-developed merchandise are the
same; (4) the later-developed merchandise is sold through the same
channels of trade as the earlier product; and (5) the later-developed
merchandise is advertised and displayed in a manner similar to the
earlier product.\3\ First, however, Commerce determines whether the
merchandise subject to the inquiry was commercially available at the
time of the initiation of the underlying AD or CVD investigation (i.e.,
the product was present in the commercial market or the product was
tested and ready for commercial production).\4\
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\3\ See section 781(d)(1) of the Act.
\4\ See 19 CFR 351.226(k).
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Analysis
After analyzing the record evidence and Briggs & Stratton's
allegation, we determine that there is sufficient information to
warrant initiation of a circumvention inquiry based on the allegation:
Later-developed merchandise, pursuant to section 781(d) of the Act and
19 CFR 351.226(k). For a full discussion of the basis for our decision
to initiate a circumvention inquiry regarding the later-developed
merchandise allegations, see the Initiation Decision Memorandum.\5\ The
Initiation 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 Initiation Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>. A list of topics discussed in the Initiation
Decision Memorandum is included as Appendix I of this notice.
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\5\ See Memorandum, ``Decision Memorandum for Initiation of
Circumvention Inquiry,'' dated concurrently with, and hereby adopted
by, this notice (Initiation Decision Memorandum).
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Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs
and Border Protection (CBP) of the initiation of this circumvention
inquiry and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiry that were
already subject to the suspension of liquidation under the Orders and
to apply the cash deposit rate that would be applicable if the product
was determined to be covered by the scope of the Orders. Should
Commerce issue preliminary or final circumvention determinations,
Commerce will follow the suspension of liquidation rules under 19 CFR
351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(d) of the Act,
Commerce determines that Briggs & Stratton's request for a
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c).
Accordingly, Commerce is notifying all interested parties of the
initiation of this circumvention inquiry to determine whether certain
vertical shaft engines between 99cc and 225cc, such as Zongshen's
engine models 5C65M0 and BC70M0, currently excluded from the scope of
the Orders as falling under the ``Commercial'' or ``Heavy Commercial''
scope exclusion, produced in and exported from China circumvent the
Orders. In addition, we have included a description of the products
that are the subject to this inquiry and an explanation of Commerce's
decision to initiate this inquiry in the accompanying Initiation
Decision Memorandum. In accordance with 19 CFR 351.226(e)(1), Commerce
intends to issue its preliminary circumvention determination no later
than 150 days from the date of publication of the notice of initiation
of this circumvention inquiry in the Federal Register.
This notice is issued and published in accordance with section
781(d) of the Act, and 19 CFR 351.226(d)(1)(ii).
Dated: July 7, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Initiation Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Legal Framework
VI. Allegation
VII. Analysis
VIII. Recommendation
Appendix II
Scope of the Orders
The merchandise covered by these Orders consists of spark-
ignited, non-road, vertical shaft engines, whether finished or
unfinished, whether assembled or unassembled, whether mounted or
unmounted, primarily for walk-behind lawn mowers. Engines meeting
this physical
[[Page 30876]]
description may also be for other non-hand-held outdoor power
equipment, including but not limited to, pressure washers. The
subject engines are spark ignition, single-cylinder, air cooled,
internal combustion engines with vertical power take off shafts with
a minimum displacement of 99 cubic centimeters (cc) and a maximum
displacement of up to, but not including, 225cc. Typically, engines
with displacements of this size generate gross power of between 1.95
kilowatts (kw) to 4.75 kw.
Engines covered by these Orders normally must comply with and be
certified under Environmental Protection Agency (EPA) air pollution
controls title 40, chapter I, subchapter U, part 1054 of the Code of
Federal Regulations standards for small non-road spark-ignition
engines and equipment. Engines that otherwise meet the physical
description of the scope but are not certified under 40 CFR part
1054 and are not certified under other parts of subchapter U of the
EPA air pollution controls are not excluded from the scope of the
orders. Engines that may be certified under both 40 CFR part 1054 as
well as other parts of subchapter U remain subject to the scope of
the orders.
Certain small vertical shaft engines, whether or not mounted on
non-hand-held outdoor power equipment, including but not limited to
walk-behind lawn mowers and pressure washers, are included in the
scope. However, if a subject engine is imported mounted on such
equipment, only the engine is covered by the scope. Subject
merchandise includes certain small vertical shaft engines produced
in the subject country whether mounted on outdoor power equipment in
the subject country or in a third country. Subject engines are
covered whether or not they are accompanied by other parts.
For purposes of these Orders, an unfinished engine covers at a
minimum a sub-assembly comprised of, but not limited to, the
following components: Crankcase, crankshaft, camshaft, piston(s),
and connecting rod(s). Importation of these components together,
whether assembled or unassembled, and whether or not accompanied by
additional components such as a sump, carburetor spacer, cylinder
head(s), valve train, or valve cover(s), constitutes an unfinished
engine for purposes of these orders. The inclusion of other products
such as spark plugs fitted into the cylinder head or electrical
devices (e.g., ignition coils) for synchronizing with the engine to
supply tension current does not remove the product from the scope.
The inclusion of any other components not identified as comprising
the unfinished engine subassembly in a third country does not remove
the engine from the scope.
Specifically excluded from the scope of these orders are
``Commercial'' or ``Heavy Commercial'' engines under 40 CFR 1054.107
and 1054.135 that have (1) a displacement of 160 cc or greater, (2)
a cast iron cylinder liner, (3) an automatic compression release,
and (4) a muffler with at least three chambers and volume greater
than 400 cc.
The engines subject to these Orders are predominantly classified
under the Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8407.90.1010. The engine subassemblies that are subject
to these Orders are classified under HTSUS subheading 8409.91.9990.
The mounted engines that are subject to these Orders are classified
under HTSUS subheadings 8433.11.0050, 8433.11.0060, and
8424.30.9000. Engines subject to these Orders may also be classified
under HTSUS subheadings 8407.90.1020, 8407.90.9040, and
8407.90.9060. The HTSUS subheadings are provided for convenience and
customs purposes only, and the written description of the
merchandise is dispositive.
[FR Doc. 2025-12964 Filed 7-10-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on July 11, 2025.
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