Certain Vertical Shaft Engines Between 223cc and 999cc, and Parts Thereof From the People's Republic of China: Initiation of Countervailing Duty Investigation, 8835-8840 [2020-03104]
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Federal Register / Vol. 85, No. 32 / Tuesday, February 18, 2020 / Notices
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of return or
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 sanctionable violation.
Notification to Interested Parties
This determination is issued and
published in accordance with sections
705(d) and 77(i)(1) of the Act, and 19
CFR 351.210(c).
Dated: February 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
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Appendix I
Scope of the Investigation
The merchandise covered by the scope of
this investigation is carbon and alloy steel
threaded rod. Steel threaded rod is certain
threaded rod, bar, or studs, of carbon or alloy
steel, having a solid, circular cross section of
any diameter, in any straight length. Steel
threaded rod is normally drawn, cold-rolled,
threaded, and straightened, or it may be hotrolled. In addition, the steel threaded rod,
bar, or studs subject to this investigation are
non-headed and threaded along greater than
25 percent of their total actual length. A
variety of finishes or coatings, such as plain
oil finish as a temporary rust protectant, zinc
coating (i.e., galvanized, whether by
electroplating or hot-dipping), paint, and
other similar finishes and coatings, may be
applied to the merchandise.
Steel threaded rod is normally produced to
American Society for Testing and Materials
(ASTM) specifications ASTM A36, ASTM
A193 B7/B7m, ASTM A193 B16, ASTM
A307, ASTM A320 L7/L7M, ASTM A320
L43, ASTM A354 BC and BD, ASTM A449,
ASTM F1554–36, ASTM F1554–55, ASTM
F1554 Grade 105, American Society of
Mechanical Engineers (ASME) specification
ASME B18.31.3, and American Petroleum
Institute (API) specification API 20E. All
steel threaded rod meeting the physical
description set forth above is covered by the
scope of this investigation, whether or not
produced according to a particular standard.
Subject merchandise includes material
matching the above description that has been
finished, assembled, or packaged in a third
country, including by cutting, chamfering,
coating, or painting the threaded rod, by
attaching the threaded rod to, or packaging it
with, another product, or any other finishing,
assembly, or packaging operation that would
not otherwise remove the merchandise from
the scope of the investigation if performed in
the country of manufacture of the threaded
rod.
Carbon and alloy steel threaded rod are
also included in the scope of this
investigation whether or not imported
attached to, or in conjunction with, other
parts and accessories such as nuts and
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washers. If carbon and alloy steel threaded
rod are imported attached to, or in
conjunction with, such non-subject
merchandise, only the threaded rod is
included in the scope.
Excluded from the scope of this
investigation are: (1) Threaded rod, bar, or
studs which are threaded only on one or both
ends and the threading covers 25 percent or
less of the total actual length; and (2)
stainless steel threaded rod, defined as steel
threaded rod containing, by weight, 1.2
percent or less of carbon and 10.5 percent or
more of chromium, with our without other
elements.
Excluded from the scope of the
antidumping investigation on steel threaded
rod from the People’s Republic of China is
any merchandise covered by the existing
antidumping order on Certain Steel Threaded
Rod from the People’s Republic of China. See
Certain Steel Threaded Rod from the People’s
Republic of China: Notice of Antidumping
Duty Order, 74 FR 17154 (April 14, 2009).
Specifically excluded from the scope of
this investigation is threaded rod that is
imported as part of a package of hardware in
conjunction with a ready-to-assemble piece
of furniture. Steel threaded rod is currently
classifiable under subheadings 7318.15.5051,
7318.15.5056, and 7318.15.5090 of the
Harmonized Tariff Schedule of the United
States (HTSUS). Subject merchandise may
also enter under subheading 7318.15.2095
and 7318.19.0000 of the HTSUS. The HTSUS
subheadings are provided for convenience
and U.S. Customs purposes only. The written
description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Final
Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and
Adverse Inferences
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Whether the Provision of Steel
Bar and Wire Rod at Less Than Adequate
Remuneration (LTAR) Is Specific
Comment 2: Whether the Chinese Market
for Steel Bar and Wire Rod Is Distorted
Comment 3: Whether Certain Chinese
Producers of Steel Bar and Wire Rod Are
Authorities
Comment 4: Whether To Revise the Steel
Bar and Wire Rod Benchmarks
Comment 5: Whether To Revise the Ocean
Freight Benchmark
Comment 6: Whether To Countervail
Export Buyer’s Credit
Comment 7: Whether To Apply Adverse
Facts Available (AFA) to Junyue
Comment 8: Whether To Countervail
Electricity Junyue Purchased from a
Private Supplier
Comment 9: Whether To Treat One of
Zhongjiang Bolt’s Self-Reported
Subsidies as an Export Subsidy.
VIII. Recommendation
[FR Doc. 2020–03047 Filed 2–14–20; 8:45 am]
BILLING CODE 3510–DS–P
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8835
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–120]
Certain Vertical Shaft Engines Between
223cc and 999cc, and Parts Thereof
From the People’s Republic of China:
Initiation of Countervailing Duty
Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable February 4, 2020.
FOR FURTHER INFORMATION CONTACT:
Andrew Huston, AD/CVD Operations,
Office VII, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–4261.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On January 15, 2020, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
petition concerning imports of certain
vertical shaft engines between 223cc
and 999cc, and parts thereof (vertical
shaft engines) from the People’s
Republic of China (China) filed in
proper form on behalf of the Coalition
of American Vertical Engine Producers
and its individual members (the
petitioner or the Coalition).1 The
Petition was accompanied by an
antidumping duty (AD) petition
concerning imports of vertical shaft
engines from China.
On January 17, 2020, Commerce
requested supplemental information
pertaining to certain aspects of the
Petition,2 to which the petitioner filed
its response on January 22, 2020.3 On
January 27, 2020, Commerce had a
phone conversation with the petitioner
requesting that it address certain
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Certain Vertical Shaft Engines Between
225cc and 999cc, and Parts Thereof from the
People’s Republic of China,’’ dated January 15, 2020
(the Petition).
2 See Commerce’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Certain Vertical Shaft Engines
Between 223cc and 999cc, and Parts Thereof from
the People’s Republic of China: Supplemental
Questions,’’ dated January 17, 2020.
3 See Petitioner’s Letter, ‘‘Response to
Supplemental Questions Concerning Volume I of
the Petitions for the Imposition of Antidumping and
Countervailing Duties Pursuant to Sections 701 and
731 of the Tariff Act of 1930, As Amended on
Certain Vertical Shaft Engines Between 223cc and
999cc, and Parts Thereof from the People’s Republic
of China,’’ dated January 22, 2020 (General Issues
Supplement).
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issues.4 The petitioner filed responses to
these requests on January 29, 2020.5
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of
vertical shaft engines in China, and that
such imports are materially injuring, or
threatening material injury to, the
domestic industry producing vertical
shaft engines in the United States.
Consistent with section 702(b)(1) of the
Act and 19 CFR 351.202(b), for those
alleged programs on which we are
initiating a CVD investigation, the
Petition is supported by information
reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because the
petitioner is an interested party as
defined in sections 771(9)(C) and (E) of
the Act. Commerce also finds that the
petitioner demonstrated sufficient
industry support with respect to the
initiation of the requested CVD
investigation.6
Period of Investigation
Because the Petition was filed on
January 15, 2020, the period of
investigation (POI) is January 1, 2019
through December 31, 2019.7
Scope of the Investigation
The merchandise covered by this
investigation is vertical shaft engines
from China. For a full description of the
scope of this investigation, see the
appendix to this notice.
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Comments on Scope of the Investigation
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(i.e., scope).8 Commerce will consider
all comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
4 See Memorandum, ‘‘Certain Vertical Shaft
Engines Between 223cc and 999cc, and Parts
Thereof from the People’s Republic of China: Call
to Counsel,’’ dated January 27, 2020.
5 See Petitioner’s Letter, ‘‘Certain Vertical Shaft
Engines Between 225cc and 999cc, and Parts
Thereof from the People’s Republic of China:
Responses to Second Supplemental Questions
Concerning Volume I of the Petitions,’’ dated
January 29, 2020 (Second General Issues
Supplement).
6 See ‘‘Information Relating to the Degree of
Industry Support for the Petition’’ section, infra.
7 See 19 CFR 351.204(b)(2).
8 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
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determination. If scope comments
include factual information,9 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit scope comments by 5:00
p.m. Eastern Time (ET) on February 24,
2020, which is 20 calendar days from
the signature date of this notice. Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on March 5, 2020, which
is 10 calendar days from the initial
comment deadline.10
Commerce requests that any factual
information the parties consider
relevant to the scope of the investigation
be submitted during this time period.
However, if a party subsequently finds
that additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such comments must
also be filed on the record of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).11
An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
Consultations
Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
the GOC of the receipt of the Petition
and provided it the opportunity for
consultations with respect to the CVD
9 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
10 See 19 CFR 351.303(b).
11 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook%20on%20
Electronic%20Filling%20Procedures.pdf.
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Petition.12 The GOC did not request
consultations.
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,13 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.14
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
12 See Commerce’s Letter, ‘‘Certain Vertical Shaft
Engines Between 225cc and 999cc, and Parts
Thereof from the People’s Republic of China:
Invitation for Consultation to Discuss the
Countervailing Duty Petition,’’ dated January 15,
2020.
13 See section 771(10) of the Act.
14 See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F. 2d 240 (Fed. Cir. 1989)).
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most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigation.15 Based on our analysis of
the information submitted on the
record, we have determined that vertical
shaft engines, as defined in the scope,
constitute a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.16
In determining whether the petitioner
has standing under section 702(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigation,’’ in the appendix to this
notice. To establish industry support,
the petitioner provided 2019 shipments
of the domestic like product for
members of the Coalition.17 The
petitioner estimated the production of
the domestic like product for the entire
domestic industry based on U.S.
shipment data, export data, and its own
knowledge of the industry, because
shipments and production of vertical
shaft engines correlate with one another
and shipments are a reasonable proxy
for production in the vertical shaft
engines industry.18 The petitioner
compared the 2019 shipments of the
Coalition to the estimated total
shipments of the domestic like product
15 See Volume I of the Petition, at 16–17; see also
General Issues Supplement at 3–5.
16 For a discussion of the domestic like product
analysis as applied to these cases and information
regarding industry support, see Antidumping Duty
Investigation Initiation Checklist: Certain Vertical
Shaft Engines Between 225cc and 999cc, and Parts
Thereof from the People’s Republic of China (China
AD Initiation Checklist) at Attachment II, ‘‘Analysis
of Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Certain
Vertical Shaft Engines Between 225cc and 999cc,
and Parts Thereof from the People’s Republic of
China’’ (Attachment II), dated concurrently with
this notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also
available in the Central Records Unit, Room B8024
of the main Commerce building.
17 See Volume I of the Petition, at 2–3 and
Exhibits I–5 and I–6; see also General Issues
Supplement at 6–9 and Exhibits Supp–I–2 and
Supp–I–3; and Second General Issues Supplement,
at Exhibit 2Supp–I–2.
18 See Volume I of the Petition, at Exhibit I–6; see
also General Issues Supplement, at 6–9 and Exhibits
Supp–I–2 and Supp–I–3; and Second General Issues
Supplement, at Exhibit 2Supp–I–2.
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for the entire domestic industry.19 We
relied on data provided by the petitioner
for purposes of measuring industry
support.20
Our review of the data provided in the
Petition, the General Issues Supplement,
the Second General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.21 First, the
Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).22 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.23 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.24 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act.25
Injury Test
Because China is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
these investigations. Accordingly, the
ITC must determine whether imports of
the subject merchandise from China
materially injure, or threaten material
injury to, a U.S. industry.
8837
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefitting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.26 In
CVD petitions, section 771(24)(B) of the
Act provides that imports of subject
merchandise from developing and least
developed countries must exceed the
negligibility threshold of four percent.
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression or suppression; lost
sales and revenues; and a decline in the
domestic industry’s financial
performance and profitability.27 We
have assessed the allegations and
supporting evidence regarding material
injury, threat of material injury,
causation, as well as cumulation, and
we have determined that these
allegations are properly supported by
adequate evidence, and meet the
statutory requirements for initiation.28
Initiation of CVD Investigation
Based upon the examination of the
Petition on vertical shaft engines from
China, we find that the Petition meets
the requirements of section 702 of the
Act. Therefore, we are initiating a CVD
investigation to determine whether
imports of vertical shaft engines from
China benefit from countervailable
subsidies conferred by the GOC. Based
on our review of the Petition, we find
that there is sufficient information to
initiate a CVD investigation on each of
the alleged programs. For a full
discussion of the basis for our decision
to initiate on each program, see China
CVD Initiation Checklist.29 A public
26 See
19 See
General Issues Supplement, at 6–9 and
Exhibits Supp–I–2 and Supp–I–3.
20 See Volume I of the Petition, at 2–3 and
Exhibits I–5 and I–6; see also General Issues
Supplement at 6–9 and Exhibits Supp–I–2 and
Supp–I–3; and Second General Issues Supplement,
at Exhibit 2Supp–I–2. For further discussion, see
China AD Initiation Checklist, at Attachment II.
21 See China AD Initiation Checklist, at
Attachment II.
22 See section 702(c)(4)(D) of the Act; see also
China AD Initiation Checklist, at Attachment II.
23 See China AD Initiation Checklist, at
Attachment II.
24 Id.
25 Id.
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Volume I of the Petition, at 23–24.
at 13–15, 22–35, and Exhibits I–5 and I–11
through I–24.
28 See China AD Initiation Checklist, at
Attachment III, ‘‘Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions
Covering Vertical Shaft Engines Between 225cc and
999cc, and Parts thereof from the People’s Republic
of China’’ (Attachment III).
29 See Countervailing Duty Investigation
Initiation Checklist: Certain Vertical Shaft Engines
Between 225cc and 999cc, and Parts Thereof from
the People’s Republic of China (China CVD
Initiation Checklist), dated concurrently with this
notice and on file electronically via ACCESS, at 7.
Access to documents filed via ACCESS is also
27 Id.
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version of the initiation checklist for
this investigation is available on
ACCESS. In accordance with section
703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will
make our preliminary determination no
later than 65 days after the date of this
initiation.
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Critical Circumstances
The petitioner alleges, based on trade
statistics, that there is a reasonable basis
to believe or suspect that critical
circumstances exist with regard to
imports of vertical shaft engines from
China.30
Section 703(e)(1) of the Act provides
that if a petitioner alleges critical
circumstances, Commerce will find that
such circumstances exist, at any time
after the date of initiation, when there
is a reasonable basis to believe or
suspect: (A) That ‘‘the alleged
countervailable subsidy’’ is inconsistent
with the Agreement on Subsidies and
Countervailing Measures (SCM
Agreement) of the World Trade
Organization, and (B) that ‘‘there have
been massive imports of the subject
merchandise over a relatively short
period.’’ Section 351.206(h)(2) of the
Commerce’s regulations provides that,
generally, imports must increase by at
least 15 percent during the ‘‘relatively
short period’’ to be considered
‘‘massive,’’ and section 351.206(i)
defines a ‘‘relatively short period’’ as
normally being the period beginning on
the date the proceeding begins (i.e., the
date the petition is filed) 31 and ending
at least three months later.32 The
regulations also provide, however, that,
if Commerce ‘‘finds that importers, or
exporters or producers, had reason to
believe, at some time prior to the
beginning of the proceeding, that a
proceeding was likely,’’ Commerce
‘‘may consider a period of not less than
three months from that earlier time.’’ 33
The petitioner alleges that Chinese
vertical shaft engine producers benefit
from numerous Chinese government
subsidies, which include subsidies that
are contingent upon export
performance, subsidies for inputs
provided for less than adequate
remuneration (LTAR), tax benefits, and
export incentives.34 Specifically, the
GOC supported vertical shaft engines
producers and exporters through the
available in the Central Records Unit, Room B8024
of the main Commerce building.
30 See Volume IV of the Petition, at 3–6.
31 See 19 CFR 351.102(b)(40) (providing that a
proceeding begins on the date of the filing of a
petition).
32 See 19 CFR 351.206(i).
33 Id.
34 See Volume III of the Petition, at 11–59.
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provision of aluminum and pig iron for
LTAR, GOC subsidies for the
development of famous export brands
and China world top brands, export
credits granted under the catalogue of
Chinese high-tech products for export,
and the provision of land at LTAR.35
The petitioner also asserts that there
have been massive imports of vertical
shaft engines over a relatively short
period. Based on the petitioner’s
calculation, the imports of engines in
the classification that most closely
approximates vertical shaft engines
surged 35.7 percent between June 2019
through November 2019 against the
same period in calendar year 2018.36
The petitioner chose these base and
comparison periods in order to account
for seasonality and the unusual
circumstances caused by the imposition
of 25 percent Section 301 duties, in
accordance with 19 CFR
351.206(h)(1)(ii). The petitioner asserts
that, because the surge in imports
constituted more than a 15 percent
change, import volumes of vertical shaft
engines are massive, as defined in
Commerce’s regulations.
The petitioner requests that the
Commerce make a preliminary finding
of critical circumstances within 45 days
of the filing of the Petition.37 Section
702(e) of the Act states that if ‘‘at any
time after the initiation of an
investigation under this subtitle, the
administering authority finds a
reasonable basis to suspect that the
alleged countervailable subsidy is
inconsistent with the {SCM}
Agreement, the administering authority
may request the Commissioner of
Customs to compile information on an
expedited basis regarding entries of the
subject merchandise.’’
Taking into consideration the
foregoing, we will analyze this matter
further. We will monitor imports of
vertical shaft engines from China and
may request that U.S. Customs and
Border Protection (CBP) compile
information on an expedited basis
regarding entries of subject
merchandise.38 If, at any time, the
criteria for a finding of critical
circumstances are established, we will
issue a critical circumstances
determination at the earliest possible
date.39
35 Id
at 15, 22, 39 and 56–57.
Volume IV of the Petition, at 6.
37 Id. at 11.
38 See section 702(e) of the Act.
39 See Change in Policy Regarding Timing of
Issuance of Critical Circumstances Determinations,
63 FR 55364 (October 15, 1998).
36 See
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Respondent Selection
The petitioner named 35 companies
in China as producers/exporters of
vertical shaft engines.40 Commerce
intends to follow its standard practice in
CVD investigations and calculate
company-specific subsidy rates in this
investigation. In the event Commerce
determines that the number of
companies is large and it cannot
individually examine each company
based upon Commerce’s resources,
where appropriate, Commerce intends
to select mandatory respondents based
on CBP data for U.S. imports of vertical
shaft engines from China during the POI
under the appropriate Harmonized
Tariff Schedule of the United States
numbers listed in the ‘‘Scope of the
Investigation,’’ in the appendix.
On February 3, 2020, Commerce
released CBP data on imports of vertical
shaft engines from China under
administrative protective order (APO) to
all parties with access to information
protected by APO and indicated that
interested parties wishing to comment
on the CBP data must do so within three
business days of the publication date of
the notice of initiation of this
investigation.41 We further stated that
we will not accept rebuttal comments.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on the Commerce website
at https://enforcement.trade.gov/apo.
Comments must be filed
electronically using ACCESS. An
electronically filed document must be
received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the date noted above. Commerce intends
to finalize its decisions regarding
respondent selection within 20 days of
publication of this notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
GOC via ACCESS.
Furthermore, to the extent practicable,
Commerce will attempt to provide a
copy of the public version of the
Petition to each exporter named in the
Petition, as provided under 19 CFR
351.203(c)(2).
40 See
Volume I of the Petition, at Exhibit I–10.
Memorandum, ‘‘Certain Vertical Shaft
Engines between 225cc and 999cc, and Parts
Thereof from the People’s Republic of China
Countervailing Duty Petition: Release of U.S.
Customs and Border Protection Data,’’ dated
February 3, 2020.
41 See
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Federal Register / Vol. 85, No. 32 / Tuesday, February 18, 2020 / Notices
ITC Notification
Commerce will notify the ITC of its
initiation, as required by section 702(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
vertical shaft engines from China are
materially injuring or threatening
material injury to a U.S. industry.42 A
negative ITC determination will result
in the investigation being terminated.43
Otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
lotter on DSKBCFDHB2PROD with NOTICES
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). Any party, when
submitting factual information, must
specify under which subsection of 19
CFR 351.102(b)(21) the information is
being submitted 44 and, if the
information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.45 Time limits for the
submission of factual information are
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Please review the regulations
prior to submitting factual information
in this investigation.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by
Commerce. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
42 See
section 733(a) of the Act.
43 Id.
44 See
45 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
VerDate Sep<11>2014
17:48 Feb 14, 2020
Jkt 250001
on the due date. Under certain
circumstances, Commerce may elect to
specify a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, Commerce will inform
parties in a letter or memorandum of the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. An extension
request must be made in a separate,
standalone submission; under limited
circumstances Commerce will grant
untimely filed requests for the extension
of time limits. Parties should review
Extension of Time Limits; Final Rule, 78
FR 57790 (September 20, 2013),
available at https://www.gpo.gov/fdsys/
pkg/FR-2013-09-20/html/201322853.htm, prior to submitting
extension requests or factual
information in this investigation.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.46
Parties must use the certification
formats provided in 19 CFR
351.303(g).47 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on the Commerce website
at https://enforcement.trade.gov/apo.
On January 22, 2008, Commerce
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate
in this investigation should ensure that
they meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
46 See
section 782(b) of the Act.
Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
47 See
PO 00000
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Fmt 4703
Sfmt 4703
8839
Dated: February 4, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix
Scope of the Investigation
The merchandise covered by this
investigation consists of spark-ignited, nonroad, vertical shaft engines, whether finished
or unfinished, whether assembled or
unassembled, primarily for riding lawn
mowers and zero-tum radius lawn mowers.
Engines meeting this physical description
may also be for other non-hand-held outdoor
power equipment such as, including but not
limited to, tow-behind brush mowers,
grinders, and vertical shaft generators. The
subject engines are spark ignition, single or
multiple cylinder, air cooled, internal
combustion engines with vertical power take
off shafts with a minimum displacement of
225 cubic centimeters (cc) and a maximum
displacement of 999cc. Typically, engines
with displacements of this size generate gross
power of between 6.7 kilowatts (kw) to 42
kw.
Engines covered by this scope 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 nonroad 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 this proceeding. 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 this proceeding.
For purposes of this investigation, 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 an oil pan, manifold, cylinder head(s),
valve train, or valve cover(s), constitutes an
unfinished engine for purposes of this
investigation. The inclusion of other
products such as spark plugs fitted into the
cylinder head or electrical devices (e.g.,
ignition modules, ignition coils) for
synchronizing with the motor 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 thirdcountry does not remove the engine from the
scope.
The engines subject to this investigation
are typically classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
at subheadings: 8407.90.1020, 8407.90.1060,
and 8407.90.1080. The engine subassemblies
that are subject to this investigation enter
under HTSUS 8409.91.9990. Engines subject
to this investigation may also enter under
HTSUS 8407.90.9060 and 8407.90.9080. The
E:\FR\FM\18FEN1.SGM
18FEN1
8840
Federal Register / Vol. 85, No. 32 / Tuesday, February 18, 2020 / Notices
HTSUS subheadings are provided for
convenience and customs purposes only, and
the written description of the merchandise
under investigation is dispositive.
[FR Doc. 2020–03104 Filed 2–14–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–026; C–570–027]
Certain Corrosion-Resistant Steel
Products From the People’s Republic
of China: Negative Preliminary
Determination of Circumvention
Involving Guatemala
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminarily determines
that imports of certain corrosionresistant steel products (CORE)
completed in Guatemala are not
circumventing the antidumping duty
(AD) and countervailing duty (CVD)
orders on CORE from the People’s
Republic of China (China) at this time.
DATES: Applicable February 18, 2020.
FOR FURTHER INFORMATION CONTACT:
Drew Jackson, AD/CVD Operations,
Office IV, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–4406.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
lotter on DSKBCFDHB2PROD with NOTICES
On August 12, 2019, Commerce selfinitiated country-wide anticircumvention inquiries of the China
CORE Orders 1 covering Chinese-origin
hot-rolled steel (HRS) and/or cold-rolled
steel (CRS) exported to various
countries, including Guatemala, for
completion into CORE and subsequently
exported to the United States.2 In the
1 See Certain Corrosion-Resistant Steel Flat
Products from India, Italy, the People’s Republic of
China, the Republic of Korea, and Taiwan:
Amended Final Affirmative Antidumping Duty
Determination for India and Taiwan, and
Antidumping Duty Orders, 81 FR 48390 (July 25,
2016); see also Certain Corrosion-Resistant Steel
Products from India, Italy, Republic of Korea, and
the People’s Republic of China: Countervailing Duty
Order, 81 FR 48387 (July 25, 2016) (collectively,
China CORE Orders).
2 The notice of initiation subsequently published
in the Federal Register on August 21, 2019. See
Corrosion-Resistant Steel Products from the
People’s Republic of China: Initiation of AntiCircumvention Inquiries on the Antidumping Duty
and Countervailing Duty Orders, 84 FR 43585
(August 21, 2019) (Initiation Notice) and
accompanying Memorandum, ‘‘Certain CorrosionResistant Steel Products from the People’s Republic
VerDate Sep<11>2014
17:48 Feb 14, 2020
Jkt 250001
Initiation Notice, Commerce initiated
the instant anti-circumvention inquiries
based on available information and an
analysis pursuant to section 781(b) of
the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.225(h), to
determine whether the importation of
the Chinese-origin HRS or CRS substrate
for completion into CORE in Guatemala
and subsequent exportation of that
CORE to the United States constitutes
circumvention of the China CORE
Orders.
For a complete description of the
record developed since the initiation of
these inquiries, see the Preliminary
Decision Memorandum.3 A list of topics
included in the Preliminary Decision
Memorandum is included as Appendix
I to this notice. The Preliminary
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 https://
access.trade.gov, and to all parties in the
Central Records Unit, Room B8024 of
the main Commerce building. In
addition, a complete version of the
Preliminary Decision Memorandum can
be accessed directly at https://
enforcement.trade.gov/frn/. The signed
and the electronic versions of the
Preliminary Decision Memorandum are
identical in content.
subsequently exported from Guatemala
to the United States.
Scope of the Orders
The products covered by these orders
are certain flat-rolled steel products,
either clad, plated, or coated with
corrosion-resistant metals such as zinc,
aluminum, or zinc-, aluminum-, nickelor iron-based alloys, whether or not
corrugated or painted, varnished,
laminated, or coated with plastics or
other non-metallic substances in
addition to the metallic coating. For a
complete description of the scope of the
orders, see the Preliminary Decision
Memorandum.
Public Comment
Scope of the Anti-Circumvention
Inquiries
These anti-circumvention inquiries
cover CORE completed in Guatemala
from HRS or CRS substrate input
manufactured in China and
of China: Initiation of Anti-Circumvention Inquiries
on the Antidumping Duty and Countervailing Duty
Orders,’’ dated August 12, 2019.
3 See Memorandum, ‘‘Preliminary Decision
Memorandum for the Anti-Circumvention Inquiries
Involving Guatemala of the Antidumping and
Countervailing Duty Orders on Certain CorrosionResistant Steel Products from the People’s Republic
of China,’’ dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision
Memorandum).
PO 00000
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Methodology
Commerce is conducting these anticircumvention inquiries in accordance
with section 781(b) of the Act and 19
CFR 351.225(h). For a full description of
the methodology underlying
Commerce’s preliminary determination,
see the Preliminary Decision
Memorandum.
Preliminary Finding
As detailed in the Preliminary
Decision Memorandum, we
preliminarily determine that Ternium
Internacional Guatemala S.A. is neither
producing CORE from Chinese substrate
in Guatemala nor exporting CORE
incorporating Chinese substrate to the
United States at present, or at any point
recent enough to support the concerns
which served as the basis for the
initiation of these inquiries, and thus
action is not appropriate to address
circumvention of the China CORE
Orders, at this time. Accordingly,
Commerce is making a preliminary
negative finding of circumvention of the
China CORE Orders.
Verification
As provided in 19 CFR 351.307,
Commerce intends to verify information
relied upon in making its final
determination.
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Enforcement and
Compliance no later than seven days
after the date on which the final
verification report is issued in these
anti-circumvention inquiries, unless the
Secretary alters the time limit. Rebuttal
briefs, limited to issues raised in case
briefs, may be submitted no later than
five days after the deadline date for case
briefs.4 Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in
these anti-circumvention inquiries 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.
Pursuant to 19 CFR 351.310(c),
interested parties who wish to request a
hearing, limited to issues raised in the
case and rebuttal briefs, must submit a
written request to the Assistant
Secretary for Enforcement and
Compliance, U.S. Department of
Commerce, within 30 days after the date
4 See 19 CFR 351.309; see also 19 CFR 351.303
(for general filing requirements).
E:\FR\FM\18FEN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8835-8840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03104]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-120]
Certain Vertical Shaft Engines Between 223cc and 999cc, and Parts
Thereof From the People's Republic of China: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable February 4, 2020.
FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4261.
SUPPLEMENTARY INFORMATION:
The Petition
On January 15, 2020, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
certain vertical shaft engines between 223cc and 999cc, and parts
thereof (vertical shaft engines) from the People's Republic of China
(China) filed in proper form on behalf of the Coalition of American
Vertical Engine Producers and its individual members (the petitioner or
the Coalition).\1\ The Petition was accompanied by an antidumping duty
(AD) petition concerning imports of vertical shaft engines from China.
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Certain Vertical Shaft
Engines Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China,'' dated January 15, 2020 (the Petition).
---------------------------------------------------------------------------
On January 17, 2020, Commerce requested supplemental information
pertaining to certain aspects of the Petition,\2\ to which the
petitioner filed its response on January 22, 2020.\3\ On January 27,
2020, Commerce had a phone conversation with the petitioner requesting
that it address certain
[[Page 8836]]
issues.\4\ The petitioner filed responses to these requests on January
29, 2020.\5\
---------------------------------------------------------------------------
\2\ See Commerce's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Vertical
Shaft Engines Between 223cc and 999cc, and Parts Thereof from the
People's Republic of China: Supplemental Questions,'' dated January
17, 2020.
\3\ See Petitioner's Letter, ``Response to Supplemental
Questions Concerning Volume I of the Petitions for the Imposition of
Antidumping and Countervailing Duties Pursuant to Sections 701 and
731 of the Tariff Act of 1930, As Amended on Certain Vertical Shaft
Engines Between 223cc and 999cc, and Parts Thereof from the People's
Republic of China,'' dated January 22, 2020 (General Issues
Supplement).
\4\ See Memorandum, ``Certain Vertical Shaft Engines Between
223cc and 999cc, and Parts Thereof from the People's Republic of
China: Call to Counsel,'' dated January 27, 2020.
\5\ See Petitioner's Letter, ``Certain Vertical Shaft Engines
Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China: Responses to Second Supplemental Questions
Concerning Volume I of the Petitions,'' dated January 29, 2020
(Second General Issues Supplement).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of vertical shaft
engines in China, and that such imports are materially injuring, or
threatening material injury to, the domestic industry producing
vertical shaft engines in the United States. Consistent with section
702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs
on which we are initiating a CVD investigation, the Petition is
supported by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in sections 771(9)(C) and (E) of the Act. Commerce also finds
that the petitioner demonstrated sufficient industry support with
respect to the initiation of the requested CVD investigation.\6\
---------------------------------------------------------------------------
\6\ See ``Information Relating to the Degree of Industry Support
for the Petition'' section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on January 15, 2020, the period of
investigation (POI) is January 1, 2019 through December 31, 2019.\7\
---------------------------------------------------------------------------
\7\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------
Scope of the Investigation
The merchandise covered by this investigation is vertical shaft
engines from China. For a full description of the scope of this
investigation, see the appendix to this notice.
Comments on Scope of the Investigation
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\8\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\9\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit scope comments by 5:00 p.m. Eastern Time
(ET) on February 24, 2020, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on March 5, 2020, which is
10 calendar days from the initial comment deadline.\10\
---------------------------------------------------------------------------
\8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information the parties consider
relevant to the scope of the investigation be submitted during this
time period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such comments must also be filed
on the record of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\11\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
---------------------------------------------------------------------------
\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided it the
opportunity for consultations with respect to the CVD Petition.\12\ The
GOC did not request consultations.
---------------------------------------------------------------------------
\12\ See Commerce's Letter, ``Certain Vertical Shaft Engines
Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China: Invitation for Consultation to Discuss the
Countervailing Duty Petition,'' dated January 15, 2020.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
---------------------------------------------------------------------------
\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like,
[[Page 8837]]
most similar in characteristics and uses with, the article subject to
an investigation under this title.'' Thus, the reference point from
which the domestic like product analysis begins is ``the article
subject to an investigation'' (i.e., the class or kind of merchandise
to be investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that vertical shaft
engines, as defined in the scope, constitute a single domestic like
product, and we have analyzed industry support in terms of that
domestic like product.\16\
---------------------------------------------------------------------------
\15\ See Volume I of the Petition, at 16-17; see also General
Issues Supplement at 3-5.
\16\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Antidumping Duty Investigation Initiation Checklist: Certain
Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof
from the People's Republic of China (China AD Initiation Checklist)
at Attachment II, ``Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Certain Vertical Shaft
Engines Between 225cc and 999cc, and Parts Thereof from the People's
Republic of China'' (Attachment II), dated concurrently with this
notice and on file electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central Records Unit, Room
B8024 of the main Commerce building.
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided
2019 shipments of the domestic like product for members of the
Coalition.\17\ The petitioner estimated the production of the domestic
like product for the entire domestic industry based on U.S. shipment
data, export data, and its own knowledge of the industry, because
shipments and production of vertical shaft engines correlate with one
another and shipments are a reasonable proxy for production in the
vertical shaft engines industry.\18\ The petitioner compared the 2019
shipments of the Coalition to the estimated total shipments of the
domestic like product for the entire domestic industry.\19\ We relied
on data provided by the petitioner for purposes of measuring industry
support.\20\
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\17\ See Volume I of the Petition, at 2-3 and Exhibits I-5 and
I-6; see also General Issues Supplement at 6-9 and Exhibits Supp-I-2
and Supp-I-3; and Second General Issues Supplement, at Exhibit
2Supp-I-2.
\18\ See Volume I of the Petition, at Exhibit I-6; see also
General Issues Supplement, at 6-9 and Exhibits Supp-I-2 and Supp-I-
3; and Second General Issues Supplement, at Exhibit 2Supp-I-2.
\19\ See General Issues Supplement, at 6-9 and Exhibits Supp-I-2
and Supp-I-3.
\20\ See Volume I of the Petition, at 2-3 and Exhibits I-5 and
I-6; see also General Issues Supplement at 6-9 and Exhibits Supp-I-2
and Supp-I-3; and Second General Issues Supplement, at Exhibit
2Supp-I-2. For further discussion, see China AD Initiation
Checklist, at Attachment II.
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Our review of the data provided in the Petition, the General Issues
Supplement, the Second General Issues Supplement, and other information
readily available to Commerce indicates that the petitioner has
established industry support for the Petition.\21\ First, the Petition
established support from domestic producers (or workers) accounting for
more than 50 percent of the total production of the domestic like
product and, as such, Commerce is not required to take further action
in order to evaluate industry support (e.g., polling).\22\ Second, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 702(c)(4)(A)(i) of the Act because the
domestic producers (or workers) who support the Petition account for at
least 25 percent of the total production of the domestic like
product.\23\ Finally, the domestic producers (or workers) have met the
statutory criteria for industry support under section 702(c)(4)(A)(ii)
of the Act because the domestic producers (or workers) who support the
Petition account for more than 50 percent of the production of the
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petition.\24\
Accordingly, Commerce determines that the Petition was filed on behalf
of the domestic industry within the meaning of section 702(b)(1) of the
Act.\25\
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\21\ See China AD Initiation Checklist, at Attachment II.
\22\ See section 702(c)(4)(D) of the Act; see also China AD
Initiation Checklist, at Attachment II.
\23\ See China AD Initiation Checklist, at Attachment II.
\24\ Id.
\25\ Id.
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Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to these investigations. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\26\ In CVD petitions,
section 771(24)(B) of the Act provides that imports of subject
merchandise from developing and least developed countries must exceed
the negligibility threshold of four percent.
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\26\ See Volume I of the Petition, at 23-24.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
lost sales and revenues; and a decline in the domestic industry's
financial performance and profitability.\27\ We have assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, causation, as well as cumulation, and we have
determined that these allegations are properly supported by adequate
evidence, and meet the statutory requirements for initiation.\28\
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\27\ Id. at 13-15, 22-35, and Exhibits I-5 and I-11 through I-
24.
\28\ See China AD Initiation Checklist, at Attachment III,
``Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Vertical Shaft Engines Between 225cc and 999cc, and Parts
thereof from the People's Republic of China'' (Attachment III).
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Initiation of CVD Investigation
Based upon the examination of the Petition on vertical shaft
engines from China, we find that the Petition meets the requirements of
section 702 of the Act. Therefore, we are initiating a CVD
investigation to determine whether imports of vertical shaft engines
from China benefit from countervailable subsidies conferred by the GOC.
Based on our review of the Petition, we find that there is sufficient
information to initiate a CVD investigation on each of the alleged
programs. For a full discussion of the basis for our decision to
initiate on each program, see China CVD Initiation Checklist.\29\ A
public
[[Page 8838]]
version of the initiation checklist for this investigation is available
on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 65 days after the date of this initiation.
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\29\ See Countervailing Duty Investigation Initiation Checklist:
Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts
Thereof from the People's Republic of China (China CVD Initiation
Checklist), dated concurrently with this notice and on file
electronically via ACCESS, at 7. Access to documents filed via
ACCESS is also available in the Central Records Unit, Room B8024 of
the main Commerce building.
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Critical Circumstances
The petitioner alleges, based on trade statistics, that there is a
reasonable basis to believe or suspect that critical circumstances
exist with regard to imports of vertical shaft engines from China.\30\
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\30\ See Volume IV of the Petition, at 3-6.
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Section 703(e)(1) of the Act provides that if a petitioner alleges
critical circumstances, Commerce will find that such circumstances
exist, at any time after the date of initiation, when there is a
reasonable basis to believe or suspect: (A) That ``the alleged
countervailable subsidy'' is inconsistent with the Agreement on
Subsidies and Countervailing Measures (SCM Agreement) of the World
Trade Organization, and (B) that ``there have been massive imports of
the subject merchandise over a relatively short period.'' Section
351.206(h)(2) of the Commerce's regulations provides that, generally,
imports must increase by at least 15 percent during the ``relatively
short period'' to be considered ``massive,'' and section 351.206(i)
defines a ``relatively short period'' as normally being the period
beginning on the date the proceeding begins (i.e., the date the
petition is filed) \31\ and ending at least three months later.\32\ The
regulations also provide, however, that, if Commerce ``finds that
importers, or exporters or producers, had reason to believe, at some
time prior to the beginning of the proceeding, that a proceeding was
likely,'' Commerce ``may consider a period of not less than three
months from that earlier time.'' \33\
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\31\ See 19 CFR 351.102(b)(40) (providing that a proceeding
begins on the date of the filing of a petition).
\32\ See 19 CFR 351.206(i).
\33\ Id.
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The petitioner alleges that Chinese vertical shaft engine producers
benefit from numerous Chinese government subsidies, which include
subsidies that are contingent upon export performance, subsidies for
inputs provided for less than adequate remuneration (LTAR), tax
benefits, and export incentives.\34\ Specifically, the GOC supported
vertical shaft engines producers and exporters through the provision of
aluminum and pig iron for LTAR, GOC subsidies for the development of
famous export brands and China world top brands, export credits granted
under the catalogue of Chinese high-tech products for export, and the
provision of land at LTAR.\35\
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\34\ See Volume III of the Petition, at 11-59.
\35\ Id at 15, 22, 39 and 56-57.
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The petitioner also asserts that there have been massive imports of
vertical shaft engines over a relatively short period. Based on the
petitioner's calculation, the imports of engines in the classification
that most closely approximates vertical shaft engines surged 35.7
percent between June 2019 through November 2019 against the same period
in calendar year 2018.\36\ The petitioner chose these base and
comparison periods in order to account for seasonality and the unusual
circumstances caused by the imposition of 25 percent Section 301
duties, in accordance with 19 CFR 351.206(h)(1)(ii). The petitioner
asserts that, because the surge in imports constituted more than a 15
percent change, import volumes of vertical shaft engines are massive,
as defined in Commerce's regulations.
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\36\ See Volume IV of the Petition, at 6.
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The petitioner requests that the Commerce make a preliminary
finding of critical circumstances within 45 days of the filing of the
Petition.\37\ Section 702(e) of the Act states that if ``at any time
after the initiation of an investigation under this subtitle, the
administering authority finds a reasonable basis to suspect that the
alleged countervailable subsidy is inconsistent with the {SCM{time}
Agreement, the administering authority may request the Commissioner of
Customs to compile information on an expedited basis regarding entries
of the subject merchandise.''
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\37\ Id. at 11.
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Taking into consideration the foregoing, we will analyze this
matter further. We will monitor imports of vertical shaft engines from
China and may request that U.S. Customs and Border Protection (CBP)
compile information on an expedited basis regarding entries of subject
merchandise.\38\ If, at any time, the criteria for a finding of
critical circumstances are established, we will issue a critical
circumstances determination at the earliest possible date.\39\
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\38\ See section 702(e) of the Act.
\39\ See Change in Policy Regarding Timing of Issuance of
Critical Circumstances Determinations, 63 FR 55364 (October 15,
1998).
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Respondent Selection
The petitioner named 35 companies in China as producers/exporters
of vertical shaft engines.\40\ Commerce intends to follow its standard
practice in CVD investigations and calculate company-specific subsidy
rates in this investigation. In the event Commerce determines that the
number of companies is large and it cannot individually examine each
company based upon Commerce's resources, where appropriate, Commerce
intends to select mandatory respondents based on CBP data for U.S.
imports of vertical shaft engines from China during the POI under the
appropriate Harmonized Tariff Schedule of the United States numbers
listed in the ``Scope of the Investigation,'' in the appendix.
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\40\ See Volume I of the Petition, at Exhibit I-10.
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On February 3, 2020, Commerce released CBP data on imports of
vertical shaft engines from China under administrative protective order
(APO) to all parties with access to information protected by APO and
indicated that interested parties wishing to comment on the CBP data
must do so within three business days of the publication date of the
notice of initiation of this investigation.\41\ We further stated that
we will not accept rebuttal comments.
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\41\ See Memorandum, ``Certain Vertical Shaft Engines between
225cc and 999cc, and Parts Thereof from the People's Republic of
China Countervailing Duty Petition: Release of U.S. Customs and
Border Protection Data,'' dated February 3, 2020.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Commerce website at https://enforcement.trade.gov/apo.
Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above.
Commerce intends to finalize its decisions regarding respondent
selection within 20 days of publication of this notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOC via ACCESS.
Furthermore, to the extent practicable, Commerce will attempt to
provide a copy of the public version of the Petition to each exporter
named in the Petition, as provided under 19 CFR 351.203(c)(2).
[[Page 8839]]
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of vertical shaft engines from China are
materially injuring or threatening material injury to a U.S.
industry.\42\ A negative ITC determination will result in the
investigation being terminated.\43\ Otherwise, this investigation will
proceed according to statutory and regulatory time limits.
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\42\ See section 733(a) of the Act.
\43\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Any party, when submitting factual
information, must specify under which subsection of 19 CFR
351.102(b)(21) the information is being submitted \44\ and, if the
information is submitted to rebut, clarify, or correct factual
information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\45\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Please review the regulations prior to
submitting factual information in this investigation.
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\44\ See 19 CFR 351.301(b).
\45\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, Commerce may elect to specify a different
time limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, standalone submission; under limited circumstances Commerce
will grant untimely filed requests for the extension of time limits.
Parties should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests
or factual information in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\46\
Parties must use the certification formats provided in 19 CFR
351.303(g).\47\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\46\ See section 782(b) of the Act.
\47\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Commerce website at https://enforcement.trade.gov/apo.
On January 22, 2008, Commerce published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to
participate in this investigation should ensure that they meet the
requirements of these procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: February 4, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise covered by this investigation consists of spark-
ignited, non-road, vertical shaft engines, whether finished or
unfinished, whether assembled or unassembled, primarily for riding
lawn mowers and zero-tum radius lawn mowers. Engines meeting this
physical description may also be for other non-hand-held outdoor
power equipment such as, including but not limited to, tow-behind
brush mowers, grinders, and vertical shaft generators. The subject
engines are spark ignition, single or multiple cylinder, air cooled,
internal combustion engines with vertical power take off shafts with
a minimum displacement of 225 cubic centimeters (cc) and a maximum
displacement of 999cc. Typically, engines with displacements of this
size generate gross power of between 6.7 kilowatts (kw) to 42 kw.
Engines covered by this scope 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 this
proceeding. 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 this proceeding.
For purposes of this investigation, 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 an oil pan, manifold, cylinder
head(s), valve train, or valve cover(s), constitutes an unfinished
engine for purposes of this investigation. The inclusion of other
products such as spark plugs fitted into the cylinder head or
electrical devices (e.g., ignition modules, ignition coils) for
synchronizing with the motor 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.
The engines subject to this investigation are typically
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheadings: 8407.90.1020, 8407.90.1060, and
8407.90.1080. The engine subassemblies that are subject to this
investigation enter under HTSUS 8409.91.9990. Engines subject to
this investigation may also enter under HTSUS 8407.90.9060 and
8407.90.9080. The
[[Page 8840]]
HTSUS subheadings are provided for convenience and customs purposes
only, and the written description of the merchandise under
investigation is dispositive.
[FR Doc. 2020-03104 Filed 2-14-20; 8:45 am]
BILLING CODE 3510-DS-P
