Certain Vertical Shaft Engines Between 99cc and 225cc, and Parts Thereof, From the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that imports of models 5C65M0 and BC70M0 vertical shaft engines produced by Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) in, and exported from, the People's Republic of China (China) constitute later-developed merchandise that circumvent the antidumping duty (AD) and countervailing duty (CVD) orders on certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical shaft engines), from China.
Full Text
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<title>Federal Register, Volume 91 Issue 95 (Monday, May 18, 2026)</title>
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[Federal Register Volume 91, Number 95 (Monday, May 18, 2026)]
[Notices]
[Pages 28555-28557]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09911]
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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: Affirmative Preliminary
Determination of Circumvention of the Antidumping and Countervailing
Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that imports of models 5C65M0 and BC70M0 vertical shaft
engines produced by Chongqing Zongshen General Power Machine Co., Ltd.
(Zongshen) in, and exported from, the People's Republic of China
(China) constitute later-developed merchandise that circumvent the
antidumping duty (AD) and countervailing duty (CVD) orders on certain
vertical shaft engines between 99cc and up to 225cc, and parts thereof
(small vertical shaft engines), from China.
DATES: Applicable May 12, 2026.
FOR FURTHER INFORMATION CONTACT: Zachary Shaykin, 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) 482-2638.
SUPPLEMENTARY INFORMATION:
[[Page 28556]]
Background
On May 4, 2021, Commerce published the AD and CVD Orders on small
vertical shaft engines from China.\1\ On June 18, 2025, in response to
a request from Briggs & Stratton, LLC (Briggs & Stratton, a domestic
interested party), Commerce initiated a circumvention inquiry to
determine if models 5C65M0 and BC70M0 of vertical shaft engines
produced by Zongshen in, and exported from, China are ``later-developed
merchandise,'' and whether these two models are circumventing the
Orders, such that they should be considered subject to the Orders.\2\
Briggs & Stratton alleges that such merchandise produced in, and
exported from, China, and imported into the United States may
circumvent the Orders. The period of the circumvention inquiry is
January 1, 2018, through July 11, 2025.
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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 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, 90 FR 30874 (July 11, 2025) (Initiation Notice); see also
Petitioner'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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Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
proceeding by 47 days,\3\ and, due to a backlog of documents that were
electronically filed via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS)
during the Federal Government shutdown, on November 24, 2025, Commerce
tolled all deadlines in administrative proceedings by an additional 21
days.\4\ On January 9, 2026, we extended the deadline for the
preliminary determination of this inquiry by 83 days.\5\ On May 8,
2026, we extended the deadline for the preliminary determination of
this inquiry by 4 days.\6\
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\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
\5\ See Memorandum, ``Extension of Deadline for the Preliminary
Determination,'' dated January 9, 2026.
\6\ See Memorandum, ``Extension of Deadline for the Preliminary
Determination,'' dated May 8, 2026.
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For a complete description of the events that followed the
initiation of this inquiry, see the Preliminary Decision Memorandum.\7\
The Preliminary Decision Memorandum is a public document and is on file
electronically via 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/frnotices">https://access.trade.gov/frnotices</a>.
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\7\ See Memorandum, ``Certain Vertical Shaft Engines Between
99cc and 225cc from the People's Republic of China: Preliminary
Decision Memorandum in the Circumvention Inquiry--5C65M0 and BC70M0
Engines,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope of the Orders
The products subject to the Orders are small vertical shaft engines
from China. For a complete description of the scope of the Orders, see
the Preliminary Decision Memorandum.\8\
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\8\ Id. at 3-4.
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Merchandise Subject to the Circumvention Inquiry
The merchandise subject to this circumvention inquiry are the
vertical shaft engine models 5C65M0 and BC70M0 produced by Zongshen.
Methodology
Commerce is conducting this circumvention inquiry pursuant to
section 781(d) of the Tariff Act of 1930, as amended (the Act), and 19
CFR 351.226(k). A list of topics discussed in the Preliminary Decision
Memorandum is included as an appendix to this notice.
Affirmative Preliminary Determination of Circumvention
As detailed in the Preliminary Decision Memorandum, Commerce
preliminarily determines that imports of models 5C65M0 and BC70M0 of
small vertical shaft engines produced by Zongshen in, and exported
from, China constitute later-developed merchandise that circumvent the
Orders, pursuant to section 781(d) of the Act and 19 CFR 351.226(k).
Suspension of Liquidation and Cash Deposit Requirements
In accordance with 19 CFR 351.226(l)(2), we will direct U.S.
Customs and Border Protection (CBP) to continue the suspension of
liquidation of previously suspended entries and to suspend liquidation
of all entries of models 5C65M0 and BC70M0 of vertical shaft engines
produced by Zongshen in, and exported from, China that are entered, or
withdrawn from warehouse, for consumption on or after July 11, 2025
(i.e., the date of the publication of the Initiation Notice).\9\
Pursuant to 19 CFR 351.226(l)(2), we will also instruct CBP to require
cash deposits of estimated ADs and CVDs equal to the cash deposit rates
in effect for Zongshen.
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\9\ See Initiation Notice, 90 FR at 30874-76.
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These suspension of liquidation instructions and cash deposit
requirements will remain in effect until further notice.
Public Comment
Pursuant to 19 CFR 351.226(f)(4), case briefs or other written
comments should be submitted to the Assistant Secretary for Enforcement
and Compliance no later than 14 days after the date of the publication
of this notice.\10\ Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
for case briefs.\11\ Parties who submit case or rebuttal briefs in this
inquiry 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.\12\
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\10\ See 19 CFR 351.309(f)(4).
\11\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\12\ See 19 CFR 351.309(c)(2)(d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), we request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\13\ Further,
we request that interested parties limit their executive summary of
each issue to no more than 450 words, not including citations. We
intend to use the executive summaries as the basis of the comment
summaries included in the issues and decision memorandum that will
accompany the final determination in this inquiry. We request that
interested parties include footnotes for relevant citations in the
executive summary of each issue. Note that Commerce has amended certain
of its requirements pertaining to the service of documents in 19 CFR
351.303(f).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing 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 in the
Federal Register, filed electronically via ACCESS. Hearing requests
should
[[Page 28557]]
contain: (1) the party's name, address, and telephone number; (2) the
number of participants and whether any participant is a foreign
national; and (3) a list of the issues to be discussed. Issues raised
in the hearing will be limited to issues raised in the respective
comments.\15\ If a request for a hearing is made, Commerce intends to
hold the hearing at a date and time to be determined and will notify
the parties through ACCESS.\16\ Parties should confirm the date, time,
and location of the hearing two days before the scheduled date.
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\15\ See 19 CFR 351.310.
\16\ See 19 CFR 351.310(d).
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All submissions, including affirmative and rebuttal comments, as
well as hearing requests, should be filed using ACCESS. An
electronically-filed document must be received successfully in its
entirety by ACCESS by 5:00 p.m. Eastern Time on the established
deadline.
U.S. International Trade Commission Notification
Commerce, consistent with section 871(e) of the Act, will notify
the U.S. International Trade Commission (ITC) of this preliminary
determination to include the merchandise subject to this circumvention
inquiry within the Orders. Pursuant to section 781(e) of the Act, the
ITC may request consultations concerning Commerce's proposed inclusion
of the inquiry merchandise. If, after consultations, the ITC believes
that a significant injury issue is presented by the proposed inclusion,
it will have 60 days from the date of notification by Commerce to
provide written advice.
Notification to Interested Parties
This determination is published in accordance with section 781(d)
of the Act and 19 CFR 351.226(k).
Dated: May 12, 2026.
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
List of Topics in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework
VI. Comments and Analysis
VII. Preliminary Circumvention Determination
VIII. Recommendation
[FR Doc. 2026-09911 Filed 5-15-26; 8:45 am]
BILLING CODE 3510-DS-P
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