Notice2026-19519
Certain Vertical Shaft Engines Between 99cc and 225cc, and Parts Thereof, From the People's Republic of China: Affirmative Final Determinations of Circumvention of the Antidumping and Countervailing Duty Orders-5C65M0 and BC70M0 Engines
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
September 24, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that imports of model numbers 5C65M0 and BC70M0 of small vertical shaft engines produced by Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) in the People's Republic of China (China) constitute later- developed merchandise that, when imported into the United States, 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 engines), from China.
Full Text
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<title>Federal Register, Volume 91 Issue 184 (Thursday, September 24, 2026)</title>
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[Federal Register Volume 91, Number 184 (Thursday, September 24, 2026)]
[Notices]
[Pages 60587-60588]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19519]
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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 Final
Determinations of Circumvention of the Antidumping and Countervailing
Duty Orders-5C65M0 and BC70M0 Engines
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of model numbers 5C65M0 and BC70M0 of small vertical shaft
engines produced by Chongqing Zongshen General Power Machine Co., Ltd.
(Zongshen) in the People's Republic of China (China) constitute later-
developed merchandise that, when imported into the United States,
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 engines), from China.
DATES: Applicable September 24, 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:
Background
On May 4, 2021, Commerce published in the Federal Register the AD
and CVD orders on small vertical shaft engines from China.\1\ On July
7, 2025, Commerce initiated a circumvention inquiry of the Orders
pursuant to section 781(d) of the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.226(k) to determine whether engines with a model
numbers 5C65M0 and BC70M0 produced by Zongshen are later-developed
merchandise that are circumventing the Orders, such that they should be
subject to the Orders.\2\ On May 18, 2026, Commerce published in the
Federal Register its Preliminary Determination \3\ that imports of
model 5C65M0 and BC70M0 engines produced by Zongshen in China
constitute later-developed merchandise that when imported into the
United States circumvent the AD and CVD orders on small vertical
engines from China.\4\ On June 15, 2026, and September 3, 2026,
Commerce extended the final determination of this circumvention
inquiry. The deadline to issue the final determination is September 17,
2026.\5\ For a summary of events that occurred since the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for consideration in the final determination, see the Issues
and Decision Memorandum.\6\
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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), and
accompanying Initiation Decision Memorandum.
\3\ See 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, 91 FR 28555 (May 18, 2026) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\4\ See Orders.
\5\ See Memoranda, ``Extension of Deadline for the Final
Determination,'' dated June 15, 2026; ``Extension of the Deadline
for the Final Determination,'' dated September 3, 2026.
\6\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Circumvention Inquiry--5C65M0
and BC70M0 Engines,'' dated concurrently with, and hereby adopted
by, this notice (Issues and Decision Memorandum).
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The Issues and 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 Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/frnotices">https://access.trade.gov/frnotices</a>.
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 Issues and Decision Memorandum.\7\
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\7\ Id. at 2-3.
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Merchandise Subject to the Circumvention Inquiry
The merchandise subject to this circumvention inquiry are engine
models 5C65M0 and BC70M0 produced by Zongshen in China (inquiry
merchandise).
[[Page 60588]]
Methodology
Commerce is conducting this circumvention inquiry pursuant to
section 781(d) of the Act, and 19 CFR 351.226(k).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
these inquiries are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached as an appendix to this notice.
Based on our analysis of the comments received from interested parties,
we made no changes to the Preliminary Determination.
Affirmative Final Circumvention Determination
Consistent with the Preliminary Determination, Commerce continues
to determine that engine models 5C65M0 and BC70M0 small vertical shaft
engines produced by Zongshen in China, constitute later-developed
merchandise that, when imported into the United States, are
circumventing the Orders, pursuant to section 781(d) of the Act.
Suspension of Liquidation and Cash Deposit Requirements
Based on the affirmative final determination of circumvention, in
accordance with 19 CFR 351.226(l)(3)(i), Commerce will direct U.S.
Customs and Border Protection (CBP) to continue the suspension of
liquidation of previously suspended entries and apply the applicable
cash deposit rate. Further, in accordance with 19 CFR
351.226(l)(3)(ii), Commerce will direct CBP to suspend liquidation and
require a cash deposit of estimated AD and CVD duties for each
unliquidated entry of engine models 5C65M0 and BC70M0 produced by
Zongshen in China not yet suspended, are entered, or withdrawn from
warehouse, for consumption on or after July 11, 2025, the date of
publication of the Initiation Notice of this circumvention inquiry in
the Federal Register.
Administrative Protective Order (APO)
This notice will serve as the only reminder to all 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 or destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a sanctionable violation.
Notification to Interested Parties
This determination is published in accordance with section 781(d)
of the Act and 19 CFR 351.226(g)(2).
Dated: September 17, 2026.
Steven Presing,
Executive Director for Policy and Negotiations.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
Comment 1: Whether Judicial Precedent and Prior Commerce Decisions
Allow Merchandise Meeting the Description of a Scope Exclusion
Comment 2: Whether Merchandise Similar to the Models 5C65M0 and
BC70M0 Engines from Zongshen Was Available at the Time of the
Underlying Less Than Fair Value and CVD Investigations
Comment 3: Whether Merchandise with Previously Available Features
Can Be Found to Be Later-Developed
Comment 4: Commerce's Application of Section 781(d) of the Act in
this Circumvention Finding
VIII. Circumvention Determination
IX. Recommendation
[FR Doc. 2026-19519 Filed 9-23-26; 8:45 am]
BILLING CODE 3510-DS-P
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