Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts Thereof From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 20670-20675 [2020-07864]
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Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices
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/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.34
Parties must use the certification
formats provided in 19 CFR
351.303(g).35 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
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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 E&C’s 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)). Note that Commerce has
temporarily modified certain of its
requirements for serving documents
containing business proprietary
34 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.
35 See
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information, until May 19, 2020, unless
extended.36
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
Dated: April 7, 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, whether mounted or
unmounted, primarily for walk-behind lawn
mowers. Engines meeting this physical
description may also be for other non-handheld outdoor power equipment, including
but not limited to, pressure washers. The
subject engines are spark ignition, singlecylinder, air cooled, internal combustion
engines with vertical power take off shafts
with a minimum displacement of 99 cubic
centimeters (cc) and a maximum
displacement of up to, but not including,
225cc. Typically, engines with displacements
of this size generate gross power of between
1.95 kilowatts (kw) to 4.75 kw.
Engines covered by 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.
Certain small vertical shaft engines,
whether or not mounted on non-hand-held
outdoor power equipment, including but not
limited to walk-behind lawn mowers and
pressure washers, are included in the scope.
However, if a subject engine is imported
mounted on such equipment, only the engine
is covered by the scope. Subject merchandise
includes certain small vertical shaft engines
produced in the subject country whether
mounted on outdoor power equipment in the
subject country or in a third country. Subject
engines are covered whether or not they are
accompanied by other parts.
For purposes of 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 a sump, carburetor spacer, cylinder
head(s), valve train, or valve cover(s),
36 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19, 85 FR
17006 (March 26, 2020).
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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 coils) for synchronizing with the
engine to supply tension current does not
remove the product from the scope. The
inclusion of any other components not
identified as comprising the unfinished
engine subassembly in a third country does
not remove the engine from the scope.
The engines subject to this investigation
are predominantly classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) at subheading 8407.90.1010.
The engine subassemblies that are subject to
this investigation enter under HTSUS
8409.91.9990. The mounted engines that are
subject to this investigation enter under
HTSUS 8433.11.0050, 8433.11.0060, and
8424.30.9000. Engines subject to this
investigation may also enter under HTSUS
8407.90.1020, 8407.90.9040, and
8407.90.9060. The HTSUS subheadings are
provided for convenience and customs
purposes only, and the written description of
the merchandise under investigation is
dispositive.
[FR Doc. 2020–07863 Filed 4–13–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–124]
Certain Vertical Shaft Engines Between
99cc and Up to 225cc, and Parts
Thereof From the People’s Republic of
China: Initiation of Less-Than-FairValue Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable April 7, 2020.
FOR FURTHER INFORMATION CONTACT:
Manuel Rey or Whitley Herndon, 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) 482–5518 or (202) 482–6274,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On March 18, 2020, the U.S.
Department of Commerce (Commerce)
received an antidumping duty (AD)
petition concerning imports of certain
vertical shaft engines between 99cc and
up to 225cc, and parts thereof (small
vertical engines) from the People’s
Republic of China (China), filed in
proper form on behalf of the Briggs and
Stratton Corporation (the petitioner).1
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
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The Petition was accompanied by a
countervailing duty (CVD) petition
concerning imports of small vertical
engines from China.
On March 20, 2020, Commerce
requested supplemental information
pertaining to certain aspects of the
Petitions,2 to which the petitioner filed
responses on March 24, 2020.3
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of small vertical engines from China are
being, or are likely to be, sold in the
United States at less than fair value
(LTFV) within the meaning of section
731 of the Act, and that such imports
are materially injuring, or threatening
material injury to, the domestic industry
producing small vertical engines in the
United States. Consistent with section
732(b)(1) of the Act, the Petition is
accompanied 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 section 771(9)(C) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the requested AD investigation.4
Period of Investigation
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Because China is a non-market
economy (NME) country, pursuant to 19
CFR 351.204(b)(1), and because the
Petition was filed on March 18, 2020,
the period of investigation (POI) is July
1, 2019 through December 31, 2019.
Duties on Certain Vertical Shaft Engines between
99cc and up to 225cc, and Parts Thereof from the
People’s Republic of China,’’ dated March 18, 2020
(the Petition).
2 See Commerce’s Letters, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Certain Vertical Shaft Engines
between 99cc and up to 225cc, and Parts Thereof
from the People’s Republic of China: Supplemental
Questions Concerning Volume I,’’ dated March 20,
2020; see also ‘‘Petition for the Imposition of
Antidumping Duties on imports of Certain Vertical
Shaft Engines between 99cc and up to 225cc, and
Parts Thereof from the People’s Republic of China:
Supplemental Questions Concerning Volume II,’’
dated March 20, 2020.
3 See Petitioner’s Letter, ‘‘Certain Vertical Shaft
Engines Between 99cc and Up To 225cc, and Parts
Thereof, from The People’s Republic of China/
Responses of Briggs & Stratton Corporation to
Volume II Supplemental Questionnaire,’’ dated
March 24, 2020 (AD Supplement); see also
Petitioner’s letter to Commerce, ‘‘Certain Vertical
Shaft Engines between 99cc and up to 225cc, and
Parts Thereof, from the People’s Republic of China/
Response of Briggs and Stratton Corporation to
Volume I Supplemental Questionnaire,’’ dated
March 24, 2020 (General Issues Supplement).
4 See ‘‘Determination of Industry Support for the
Petition’’ section, infra.
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Scope of the Investigation
The merchandise covered by this
investigation is small vertical 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).5 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,6 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 April 27,
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 May 7, 2020, which is
10 calendar days from the initial
comment deadline.7
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 CVD investigation.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s (E&C’s) Antidumping
Duty and Countervailing Duty
Centralized Electronic Service System
(ACCESS), unless an exception applies.8
An electronically filed document must
5 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
6 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
7 See 19 CFR 351.303(b).
8 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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be received successfully in its entirety
by the time and date it is due.
Comments on Product Characteristics
for AD Questionnaires
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of small vertical engines to be reported
in response to Commerce’s AD
questionnaire. This information will be
used to identify the key physical
characteristics of the subject
merchandise in order to report the
relevant factors of production (FOPs)
accurately, as well as to develop
appropriate product-comparison
criteria.
Interested parties may provide any
information or comments that they
believe are relevant to the development
of an accurate list of physical
characteristics. In order to consider the
suggestions of interested parties in
developing and issuing the AD
questionnaire, all comments must be
filed by 5:00 p.m. ET on April 27, 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 May 7, 2020, which is
10 calendar days from the initial
comment deadline.9 All comments and
submissions to Commerce must be filed
electronically using ACCESS, as
explained above, on the record of this
AD investigation.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(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 732(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.’’
9 See
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19 CFR 351.303(b).
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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,10 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.11
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
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.12 Based on our analysis of
the information submitted on the
record, we have determined that small
vertical 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.13
In determining whether the petitioner
has standing under section 732(c)(4)(A)
10 See
section 771(10) of the Act.
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)).
12 See Volume I of the Petition at 13–15; see also
General Issues Supplement at 2–4 and Exhibit
Supp-I–2.
13 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Antidumping Duty
Investigation Initiation Checklist: Certain Vertical
Shaft Engines between 99cc and up to 225cc, 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 99cc and up to
225cc, and Parts Thereof from the People’s Republic
of China’’ (Attachment II), dated concurrently with
this notice and on file electronically via ACCESS.
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11 See
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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 its 2019
production of the domestic like
product.14 The petitioner estimated the
production of the domestic like product
for the entire domestic industry based
on its own knowledge of the industry.15
The petitioner compared its 2019
production of domestic like product to
the estimated total production of the
domestic like product for the entire
domestic industry.16 We relied on data
provided by the petitioner for purposes
of measuring industry support.17
Our review of the data provided in the
Petition, the General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.18 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).19 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(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.20 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(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.21 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
14 See Volume I of the Petition at 3 and Exhibits
I–1 and I–2.
15 Id. at 3–4 and Exhibits I–1–I–6.
16 Id. at 3–4 and Exhibits I–1 and I–2.
17 Id. at 3–4 and Exhibits I–1–I–6. For further
discussion, see China AD Initiation Checklist at
Attachment II.
18 See China AD Initiation Checklist at
Attachment II.
19 See section 732(c)(4)(D) of the Act; see also
China AD Initiation Checklist at Attachment II; and
Volume I of the Petition at 3–4 and Exhibits I–1–
I–6.
20 See China AD Initiation Checklist at
Attachment II; see also Volume I of the Petition at
3–4 and Exhibits I–1–I–6.
21 Id.
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the meaning of section 732(b)(1) of the
Act.22
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at LTFV. In addition,
the petitioner alleges that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.23
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; impacts on the
domestic industry’s financial condition;
and a shuttered manufacturing
facility.24 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, as well as
negligibility, and we have determined
that these allegations are properly
supported by adequate evidence, and
meet the statutory requirements for
initiation.25
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegation of sales at LTFV upon which
Commerce based its decision to initiate
an AD investigation of small vertical
engines from China. The sources of data
for the deductions and adjustments
relating to U.S. price and normal value
(NV) are discussed in greater detail in
the AD Initiation Checklist.
Export Price
The petitioner based export price (EP)
on sales offers to a U.S. customer in the
United States for the sale of small
vertical engines produced in and
exported from China.26 In order to
calculate ex-factory U.S. prices, where
appropriate, the petitioner made
22 Id.
23 See Volume I of the Petition at 18 and Exhibit
I–15.
24 Id. at 18–29 and Exhibits I–2, I–7, and I–11–
I–21.
25 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 99cc and
up to 225cc, and Parts thereof from the People’s
Republic of China’’ (Attachment III).
26 See Volume II of the Petition at 4–5 and Exhibit
II–5.
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deductions from U.S. prices for foreign
inland freight.27
Normal Value
Commerce considers China to be an
NME country.28 In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by Commerce. Therefore,
we continue to treat China as an NME
country for purposes of the initiation of
this investigation. Accordingly, NV in
China is appropriately based on FOPs
valued in a surrogate market economy
country, in accordance with section
773(c) of the Act.29
The petitioner claims that Turkey is
an appropriate surrogate country for
China, because it is a market economy
country that is at a level of economic
development comparable to that of
China and it is a significant producer of
comparable merchandise.30 The
petitioner valued direct material inputs
and packing materials using the Global
Trade Atlas, data from the International
Energy Agency to value electricity and
natural gas, and data from the
International Labor Organization to
value labor.31 Based on the information
provided by the petitioner, we
determine that it is appropriate to use
Turkey as a surrogate country for
purposes of initiation.32
Interested parties will have the
opportunity to submit comments
regarding surrogate country selection
and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs, within 30
days before the scheduled date of the
preliminary determination.
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Factors of Production
Because information regarding the
volume of inputs consumed by Chinese
producers/exporters was not reasonably
available, the petitioner used its own
product-specific consumption rates as a
27 Id. at 4–8 and Exhibits II–4, II–5A, II–5B, II–
6, II–7, II–8, and II–13.
28 See Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017), and accompanying Preliminary
Decision Memorandum at ‘‘China’s Status as a NonMarket Economy,’’ unchanged in Certain
Aluminum Foil from the People’s Republic of
China: Final Determination of Sales at Less Than
Fair Value, 83 FR 9282 (March 5, 2018).
29 See China AD Initiation Checklist.
30 See Volume II of the Petition at 2–4 and
Exhibits II–2 and II–3.
31 Id. at 5–8 and Exhibit II–7–Exhibit II–16; see
also AD Supplement at 3–4 and Exhibit Supp-II–3
and Supp-II–4.
32 See China AD Initiation Checklist.
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surrogate to estimate a Chinese
manufacturer’s FOPs.33 The petitioner
valued the estimated FOPs using
surrogate values from Turkey.34 The
petitioner calculated factory overhead,
selling, general and administrative
expenses, and profit based on the
experience of a Turkish producer of
comparable merchandise (i.e., radiators,
boilers, heat pumps, motors, and other
products).35
Fair Value Comparisons
Based on the data provided in the
Petition, there is reason to believe that
imports of small vertical engines from
China are being, or are likely to be, sold
in the United States at LTFV. Based on
comparisons of EP to NV, in accordance
with sections 772 and 773 of the Act,
the estimated dumping margins for
small vertical engines from China range
from 457.52 percent to 541.75 percent.36
Initiation of LTFV Investigation
We find that the Petition on small
vertical engines from China meets the
requirements of section 732 of the Act.
Therefore, we are initiating an AD
investigation to determine whether
imports of small vertical engines from
China are being, or are likely to be, sold
in the United States at LTFV. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
Respondent Selection
The petitioner named 43 companies
in China as producers/exporters of small
vertical engines.37 In accordance with
our standard practice for respondent
selection in AD investigations involving
NME countries, Commerce selects
respondents based on quantity and
value (Q&V) questionnaires in cases
where it has determined that the
number of companies is large and it
cannot individually examine each
company based upon its resources.
Therefore, considering the number of
producers and exporters identified in
the Petition, Commerce will solicit Q&V
information that can serve as a basis for
selecting exporters for individual
examination in the event that Commerce
33 Id. at 9; see also Volume II of the Petition at
Exhibit II–9.
34 See China AD Initiation Checklist at 9; see also
Volume II of the Petition at Exhibit II–7–Exhibit II–
16.
35 See Volume II of the Petition at 4 and Exhibits
II–16a and II–16b.
36 See AD Supplement at 2–4 and Exhibit SuppII–5; see also China AD Initiation Checklist.
37 See Volume I of the Petition at Exhibit I–9; and
General Issues Supplement at 1 and Revised Exhibit
I–9.
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20673
decides to limit the number of
respondents individually examined
pursuant to section 777A(c)(2) of the
Act. Furthermore, Commerce has
determined to limit the number of Q&V
questionnaires that it will send out to
exporters and producers based on U.S.
Customs and Border Protection (CBP)
data for U.S. imports of small vertical
engines during the POI under the
appropriate Harmonized Tariff Schedule
of the United States numbers listed in
the ‘‘Scope of the Investigation,’’ in the
appendix. Accordingly, Commerce will
send Q&V questionnaires to the largest
producers and exporters that are
identified in the CBP data for which
there is address information on the
record.
In addition, Commerce will post the
Q&V questionnaire along with filing
instructions on E&C’s website at https://
www.trade.gov/enforcement/news.asp.
Producers/exporters of small vertical
engines from China that do not receive
Q&V questionnaires may still submit a
response to the Q&V questionnaire and
can obtain a copy of the Q&V
questionnaire from E&C’s website. In
accordance with the standard practice
for respondent selection in AD cases
involving NME countries, in the event
Commerce decides to limit the number
of respondents individually
investigated, Commerce intends to base
respondent selection on the responses to
the Q&V questionnaire that it receives.
The Q&V questionnaire response must
be submitted by the relevant Chinese
exporters/producers no later than April
23, 2020. All Q&V questionnaire
responses must be filed electronically
via ACCESS.
On April 1, 2020, Commerce released
CBP data on imports of small vertical
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.38 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
38 See Memorandum, ‘‘Certain Vertical Shaft
Engines Between 99cc and Up To 225cc, and Parts
Thereof, from China Antidumping Duty Petition:
Release of Customs Data from U.S. Customs and
Border Protection Data,’’ dated April 1, 2020.
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received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the deadline noted above. Commerce
intends to finalize its decisions
regarding respondent selection within
20 days of publication of this notice.
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.41
Separate Rates
In order to obtain separate-rate status
in an NME investigation, exporters and
producers must submit a separate-rate
application.39 The specific requirements
for submitting a separate-rate
application in a China investigation are
outlined in detail in the application
itself, which is available on E&C’s
website at https://enforcement.trade.gov/
nme/nme-sep-rate.html. The separaterate application will be due 30 days
after publication of this initiation
notice.40 Exporters and producers who
submit a separate-rate application and
have been selected as mandatory
respondents will be eligible for
consideration for separate-rate status
only if they respond to all parts of
Commerce’s AD questionnaire as
mandatory respondents. Commerce
requires that companies from China
submit a response to both the Q&V
questionnaire and the separate-rate
application by the respective deadlines
in order to receive consideration for
separate-rate status. Companies not
filing a timely Q&V questionnaire
response will not receive separate rate
consideration.
Distribution of Copies of the Petition
In accordance with section
732(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
Government of China 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).
Use of Combination Rates
Commerce will calculate combination
rates for certain respondents that are
eligible for a separate rate in an NME
investigation. The Separate Rates and
Combination Rates Bulletin states:
jbell on DSKJLSW7X2PROD with NOTICES
{w}hile continuing the practice of
assigning separate rates only to exporters, all
separate rates that Commerce will now assign
in its NME Investigation will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
39 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
40 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
VerDate Sep<11>2014
18:26 Apr 13, 2020
Jkt 250001
ITC Notification
Commerce will notify the ITC of its
initiation, as required by section 732(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
small vertical 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.
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
41 See
42 See
Policy Bulletin 05.1 at 6 (emphasis added).
section 733(a) of the Act.
43 Id.
44 See
45 See
PO 00000
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19 CFR 351.301(b)(2).
Frm 00013
Fmt 4703
Sfmt 4703
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
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
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). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
47 See
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in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on E&C’s 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 in 19 CFR
351.103(d)). Note that Commerce has
temporarily modified certain of its
requirements for serving documents
containing business proprietary
information, until May 19, 2020, unless
extended.48
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: April 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
jbell on DSKJLSW7X2PROD with NOTICES
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, whether mounted or
unmounted, primarily for walk-behind lawn
mowers. Engines meeting this physical
description may also be for other non-handheld outdoor power equipment, including
but not limited to, pressure washers. The
subject engines are spark ignition, singlecylinder, air cooled, internal combustion
engines with vertical power take off shafts
with a minimum displacement of 99 cubic
centimeters (cc) and a maximum
displacement of up to, but not including,
225cc. Typically, engines with displacements
of this size generate gross power of between
1.95 kilowatts (kw) to 4.75 kw.
Engines covered by 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.
Certain small vertical shaft engines,
whether or not mounted on non-hand-held
outdoor power equipment, including but not
limited to walk-behind lawn mowers and
pressure washers, are included in the scope.
48 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19, 85 FR
17006 (March 26, 2020).
VerDate Sep<11>2014
18:26 Apr 13, 2020
Jkt 250001
However, if a subject engine is imported
mounted on such equipment, only the engine
is covered by the scope. Subject merchandise
includes certain small vertical shaft engines
produced in the subject country whether
mounted on outdoor power equipment in the
subject country or in a third country. Subject
engines are covered whether or not they are
accompanied by other parts.
For purposes of 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 a sump, carburetor spacer, 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 coils) for synchronizing with the
engine to supply tension current does not
remove the product from the scope. The
inclusion of any other components not
identified as comprising the unfinished
engine subassembly in a third country does
not remove the engine from the scope.
The engines subject to this investigation
are predominantly classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) at subheading 8407.90.1010.
The engine subassemblies that are subject to
this investigation enter under HTSUS
8409.91.9990. The mounted engines that are
subject to this investigation enter under
HTSUS 8433.11.0050, 8433.11.0060, and
8424.30.9000. Engines subject to this
investigation may also enter under HTSUS
8407.90.1020, 8407.90.9040, and
8407.90.9060. The HTSUS subheadings are
provided for convenience and customs
purposes only, and the written description of
the merchandise under investigation is
dispositive.
[FR Doc. 2020–07864 Filed 4–13–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Meeting of the Civil Nuclear Trade
Advisory Committee
International Trade
Administration, U.S. Department of
Commerce.
ACTION: Notice of a partially closed
Federal Advisory Committee meeting.
AGENCY:
This notice sets forth the
schedule and proposed agenda for a
partially closed meeting of the Civil
Nuclear Trade Advisory Committee
(CINTAC).
DATES: The meeting is scheduled for
Thursday, July 23, 2020, from 9:00 a.m.
to 4:00 p.m. Eastern Standard Time
(EST). The deadline for members of the
SUMMARY:
PO 00000
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Fmt 4703
Sfmt 4703
20675
public to register to participate,
including requests to make comments
during the meeting and for auxiliary
aids, or to submit written comments for
dissemination prior to the meeting, is
5:00 p.m. Eastern Standard Time (EST)
on Friday, July 17, 2020.
ADDRESSES: The meeting will be held at
the U.S. Department of Commerce,
Herbert C. Hoover Building, Commerce
Research Library, 1401 Constitution
Ave. NW, Washington, DC 20230.
Requests to register to participate
(including to speak or for auxiliary aids)
and any written comments should be
submitted to: Mr. Jonathan Chesebro,
Office of Energy & Environmental
Industries, International Trade
Administration, Room 28018, 1401
Constitution Ave. NW, Washington, DC
20230. (Fax: 202–482–5665; email:
jonathan.chesebro@trade.gov). Members
of the public are encouraged to submit
registration requests and written
comments via email to ensure timely
receipt.
FOR FURTHER INFORMATION CONTACT: Mr.
Jonathan Chesebro, Office of Energy &
Environmental Industries, International
Trade Administration, Room 28018,
1401 Constitution Ave. NW,
Washington, DC 20230. (Phone: 202–
482–1297; Fax: 202–482–5665; email:
jonathan.chesebro@trade.gov).
SUPPLEMENTARY INFORMATION:
Background: The CINTAC was
established under the discretionary
authority of the Secretary of Commerce
and in accordance with the Federal
Advisory Committee Act (5 U.S.C.
App.), in response to an identified need
for consensus advice from U.S. industry
to the U.S. Government regarding the
development and administration of
programs to expand United States
exports of civil nuclear goods and
services in accordance with applicable
U.S. laws and regulations, including
advice on how U.S. civil nuclear goods
and services export policies, programs,
and activities will affect the U.S. civil
nuclear industry’s competitiveness and
ability to participate in the international
market.
The Department of Commerce
renewed the CINTAC charter on August
10, 2018. This meeting is being
convened under the sixth charter of the
CINTAC.
Topics to be considered: The agenda
for the CINTAC meeting on Thursday,
July 23, 2020, is as follows:
Closed Session (9:00 a.m.–1:00
p.m.)—Discussion of matters
determined to be exempt from the
provisions of the Federal Advisory
Committee Act relating to public
meetings found in 5 U.S.C. App.
E:\FR\FM\14APN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 72 (Tuesday, April 14, 2020)]
[Notices]
[Pages 20670-20675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07864]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-124]
Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and
Parts Thereof From the People's Republic of China: Initiation of Less-
Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable April 7, 2020.
FOR FURTHER INFORMATION CONTACT: Manuel Rey or Whitley Herndon, 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) 482-5518 or (202) 482-6274,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On March 18, 2020, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
certain vertical shaft engines between 99cc and up to 225cc, and parts
thereof (small vertical engines) from the People's Republic of China
(China), filed in proper form on behalf of the Briggs and Stratton
Corporation (the petitioner).\1\
[[Page 20671]]
The Petition was accompanied by a countervailing duty (CVD) petition
concerning imports of small vertical engines from China.
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Certain Vertical Shaft
Engines between 99cc and up to 225cc, and Parts Thereof from the
People's Republic of China,'' dated March 18, 2020 (the Petition).
---------------------------------------------------------------------------
On March 20, 2020, Commerce requested supplemental information
pertaining to certain aspects of the Petitions,\2\ to which the
petitioner filed responses on March 24, 2020.\3\
---------------------------------------------------------------------------
\2\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Vertical
Shaft Engines between 99cc and up to 225cc, and Parts Thereof from
the People's Republic of China: Supplemental Questions Concerning
Volume I,'' dated March 20, 2020; see also ``Petition for the
Imposition of Antidumping Duties on imports of Certain Vertical
Shaft Engines between 99cc and up to 225cc, and Parts Thereof from
the People's Republic of China: Supplemental Questions Concerning
Volume II,'' dated March 20, 2020.
\3\ See Petitioner's Letter, ``Certain Vertical Shaft Engines
Between 99cc and Up To 225cc, and Parts Thereof, from The People's
Republic of China/Responses of Briggs & Stratton Corporation to
Volume II Supplemental Questionnaire,'' dated March 24, 2020 (AD
Supplement); see also Petitioner's letter to Commerce, ``Certain
Vertical Shaft Engines between 99cc and up to 225cc, and Parts
Thereof, from the People's Republic of China/Response of Briggs and
Stratton Corporation to Volume I Supplemental Questionnaire,'' dated
March 24, 2020 (General Issues Supplement).
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of small
vertical engines from China are being, or are likely to be, sold in the
United States at less than fair value (LTFV) within the meaning of
section 731 of the Act, and that such imports are materially injuring,
or threatening material injury to, the domestic industry producing
small vertical engines in the United States. Consistent with section
732(b)(1) of the Act, the Petition is accompanied 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 section 771(9)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support with respect to
the initiation of the requested AD investigation.\4\
---------------------------------------------------------------------------
\4\ See ``Determination of Industry Support for the Petition''
section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because China is a non-market economy (NME) country, pursuant to 19
CFR 351.204(b)(1), and because the Petition was filed on March 18,
2020, the period of investigation (POI) is July 1, 2019 through
December 31, 2019.
Scope of the Investigation
The merchandise covered by this investigation is small vertical
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).\5\ 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,\6\ 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 April 27, 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 May 7, 2020, which is 10
calendar days from the initial comment deadline.\7\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\6\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\7\ 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 CVD investigation.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's (E&C's) Antidumping Duty and
Countervailing Duty Centralized Electronic Service System (ACCESS),
unless an exception applies.\8\ An electronically filed document must
be received successfully in its entirety by the time and date it is
due.
---------------------------------------------------------------------------
\8\ 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.
---------------------------------------------------------------------------
Comments on Product Characteristics for AD Questionnaires
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of small vertical engines
to be reported in response to Commerce's AD questionnaire. This
information will be used to identify the key physical characteristics
of the subject merchandise in order to report the relevant factors of
production (FOPs) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they believe are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaire, all
comments must be filed by 5:00 p.m. ET on April 27, 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 May 7, 2020, which is 10 calendar days from the initial
comment deadline.\9\ All comments and submissions to Commerce must be
filed electronically using ACCESS, as explained above, on the record of
this AD investigation.
---------------------------------------------------------------------------
\9\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(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.''
[[Page 20672]]
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,\10\ 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.\11\
---------------------------------------------------------------------------
\10\ See section 771(10) of the Act.
\11\ 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, 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.\12\ Based on our analysis of the information
submitted on the record, we have determined that small vertical
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.\13\
---------------------------------------------------------------------------
\12\ See Volume I of the Petition at 13-15; see also General
Issues Supplement at 2-4 and Exhibit Supp-I-2.
\13\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Antidumping Duty Investigation Initiation Checklist: Certain
Vertical Shaft Engines between 99cc and up to 225cc, 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 99cc and up to 225cc, and Parts
Thereof from the People's Republic of China'' (Attachment II), dated
concurrently with this notice and on file electronically via ACCESS.
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In determining whether the petitioner has standing under section
732(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 its
2019 production of the domestic like product.\14\ The petitioner
estimated the production of the domestic like product for the entire
domestic industry based on its own knowledge of the industry.\15\ The
petitioner compared its 2019 production of domestic like product to the
estimated total production of the domestic like product for the entire
domestic industry.\16\ We relied on data provided by the petitioner for
purposes of measuring industry support.\17\
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\14\ See Volume I of the Petition at 3 and Exhibits I-1 and I-2.
\15\ Id. at 3-4 and Exhibits I-1-I-6.
\16\ Id. at 3-4 and Exhibits I-1 and I-2.
\17\ Id. at 3-4 and Exhibits I-1-I-6. 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, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\18\ 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).\19\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(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.\20\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 732(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.\21\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act.\22\
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\18\ See China AD Initiation Checklist at Attachment II.
\19\ See section 732(c)(4)(D) of the Act; see also China AD
Initiation Checklist at Attachment II; and Volume I of the Petition
at 3-4 and Exhibits I-1-I-6.
\20\ See China AD Initiation Checklist at Attachment II; see
also Volume I of the Petition at 3-4 and Exhibits I-1-I-6.
\21\ Id.
\22\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\23\
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\23\ See Volume I of the Petition at 18 and Exhibit I-15.
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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; impacts on the domestic industry's financial
condition; and a shuttered manufacturing facility.\24\ We have assessed
the allegations and supporting evidence regarding material injury,
threat of material injury, causation, as well as negligibility, and we
have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\25\
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\24\ Id. at 18-29 and Exhibits I-2, I-7, and I-11-I-21.
\25\ 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 99cc and up to 225cc, and
Parts thereof from the People's Republic of China'' (Attachment
III).
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegation of sales at LTFV
upon which Commerce based its decision to initiate an AD investigation
of small vertical engines from China. The sources of data for the
deductions and adjustments relating to U.S. price and normal value (NV)
are discussed in greater detail in the AD Initiation Checklist.
Export Price
The petitioner based export price (EP) on sales offers to a U.S.
customer in the United States for the sale of small vertical engines
produced in and exported from China.\26\ In order to calculate ex-
factory U.S. prices, where appropriate, the petitioner made
[[Page 20673]]
deductions from U.S. prices for foreign inland freight.\27\
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\26\ See Volume II of the Petition at 4-5 and Exhibit II-5.
\27\ Id. at 4-8 and Exhibits II-4, II-5A, II-5B, II-6, II-7, II-
8, and II-13.
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Normal Value
Commerce considers China to be an NME country.\28\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of this investigation. Accordingly, NV in
China is appropriately based on FOPs valued in a surrogate market
economy country, in accordance with section 773(c) of the Act.\29\
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\28\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and
accompanying Preliminary Decision Memorandum at ``China's Status as
a Non-Market Economy,'' unchanged in Certain Aluminum Foil from the
People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 83 FR 9282 (March 5, 2018).
\29\ See China AD Initiation Checklist.
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The petitioner claims that Turkey is an appropriate surrogate
country for China, because it is a market economy country that is at a
level of economic development comparable to that of China and it is a
significant producer of comparable merchandise.\30\ The petitioner
valued direct material inputs and packing materials using the Global
Trade Atlas, data from the International Energy Agency to value
electricity and natural gas, and data from the International Labor
Organization to value labor.\31\ Based on the information provided by
the petitioner, we determine that it is appropriate to use Turkey as a
surrogate country for purposes of initiation.\32\
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\30\ See Volume II of the Petition at 2-4 and Exhibits II-2 and
II-3.
\31\ Id. at 5-8 and Exhibit II-7-Exhibit II-16; see also AD
Supplement at 3-4 and Exhibit Supp-II-3 and Supp-II-4.
\32\ See China AD Initiation Checklist.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs, within 30 days before the
scheduled date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used its own product-specific consumption rates as a
surrogate to estimate a Chinese manufacturer's FOPs.\33\ The petitioner
valued the estimated FOPs using surrogate values from Turkey.\34\ The
petitioner calculated factory overhead, selling, general and
administrative expenses, and profit based on the experience of a
Turkish producer of comparable merchandise (i.e., radiators, boilers,
heat pumps, motors, and other products).\35\
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\33\ Id. at 9; see also Volume II of the Petition at Exhibit II-
9.
\34\ See China AD Initiation Checklist at 9; see also Volume II
of the Petition at Exhibit II-7-Exhibit II-16.
\35\ See Volume II of the Petition at 4 and Exhibits II-16a and
II-16b.
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Fair Value Comparisons
Based on the data provided in the Petition, there is reason to
believe that imports of small vertical engines from China are being, or
are likely to be, sold in the United States at LTFV. Based on
comparisons of EP to NV, in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for small vertical engines from
China range from 457.52 percent to 541.75 percent.\36\
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\36\ See AD Supplement at 2-4 and Exhibit Supp-II-5; see also
China AD Initiation Checklist.
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Initiation of LTFV Investigation
We find that the Petition on small vertical engines from China
meets the requirements of section 732 of the Act. Therefore, we are
initiating an AD investigation to determine whether imports of small
vertical engines from China are being, or are likely to be, sold in the
United States at LTFV. In accordance with section 733(b)(1)(A) of the
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 140 days after the date of this
initiation.
Respondent Selection
The petitioner named 43 companies in China as producers/exporters
of small vertical engines.\37\ In accordance with our standard practice
for respondent selection in AD investigations involving NME countries,
Commerce selects respondents based on quantity and value (Q&V)
questionnaires in cases where it has determined that the number of
companies is large and it cannot individually examine each company
based upon its resources. Therefore, considering the number of
producers and exporters identified in the Petition, Commerce will
solicit Q&V information that can serve as a basis for selecting
exporters for individual examination in the event that Commerce decides
to limit the number of respondents individually examined pursuant to
section 777A(c)(2) of the Act. Furthermore, Commerce has determined to
limit the number of Q&V questionnaires that it will send out to
exporters and producers based on U.S. Customs and Border Protection
(CBP) data for U.S. imports of small vertical engines during the POI
under the appropriate Harmonized Tariff Schedule of the United States
numbers listed in the ``Scope of the Investigation,'' in the appendix.
Accordingly, Commerce will send Q&V questionnaires to the largest
producers and exporters that are identified in the CBP data for which
there is address information on the record.
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\37\ See Volume I of the Petition at Exhibit I-9; and General
Issues Supplement at 1 and Revised Exhibit I-9.
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at https://www.trade.gov/enforcement/news.asp. Producers/exporters of small vertical engines
from China that do not receive Q&V questionnaires may still submit a
response to the Q&V questionnaire and can obtain a copy of the Q&V
questionnaire from E&C's website. In accordance with the standard
practice for respondent selection in AD cases involving NME countries,
in the event Commerce decides to limit the number of respondents
individually investigated, Commerce intends to base respondent
selection on the responses to the Q&V questionnaire that it receives.
The Q&V questionnaire response must be submitted by the relevant
Chinese exporters/producers no later than April 23, 2020. All Q&V
questionnaire responses must be filed electronically via ACCESS.
On April 1, 2020, Commerce released CBP data on imports of small
vertical 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.\38\ We further stated that
we will not accept rebuttal comments.
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\38\ See Memorandum, ``Certain Vertical Shaft Engines Between
99cc and Up To 225cc, and Parts Thereof, from China Antidumping Duty
Petition: Release of Customs Data from U.S. Customs and Border
Protection Data,'' dated April 1, 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
[[Page 20674]]
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above. Commerce intends to finalize its
decisions regarding respondent selection within 20 days of publication
of this notice.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\39\
The specific requirements for submitting a separate-rate application in
a China investigation are outlined in detail in the application itself,
which is available on E&C's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30
days after publication of this initiation notice.\40\ Exporters and
producers who submit a separate-rate application and have been selected
as mandatory respondents will be eligible for consideration for
separate-rate status only if they respond to all parts of Commerce's AD
questionnaire as mandatory respondents. Commerce requires that
companies from China submit a response to both the Q&V questionnaire
and the separate-rate application by the respective deadlines in order
to receive consideration for separate-rate status. Companies not filing
a timely Q&V questionnaire response will not receive separate rate
consideration.
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\39\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\40\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that Commerce will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\41\
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\41\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petition
In accordance with section 732(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 Government of China 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).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 732(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 small vertical 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). Answers to
frequently asked questions regarding the Final Rule are 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
[[Page 20675]]
in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on E&C's 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 in 19 CFR 351.103(d)). Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until May 19, 2020, unless
extended.\48\
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\48\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: April 7, 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, whether mounted or
unmounted, primarily for walk-behind lawn mowers. Engines meeting
this physical description may also be for other non-hand-held
outdoor power equipment, including but not limited to, pressure
washers. The subject engines are spark ignition, single-cylinder,
air cooled, internal combustion engines with vertical power take off
shafts with a minimum displacement of 99 cubic centimeters (cc) and
a maximum displacement of up to, but not including, 225cc.
Typically, engines with displacements of this size generate gross
power of between 1.95 kilowatts (kw) to 4.75 kw.
Engines covered by 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.
Certain small vertical shaft engines, whether or not mounted on
non-hand-held outdoor power equipment, including but not limited to
walk-behind lawn mowers and pressure washers, are included in the
scope. However, if a subject engine is imported mounted on such
equipment, only the engine is covered by the scope. Subject
merchandise includes certain small vertical shaft engines produced
in the subject country whether mounted on outdoor power equipment in
the subject country or in a third country. Subject engines are
covered whether or not they are accompanied by other parts.
For purposes of 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 a sump, carburetor spacer, 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 coils) for synchronizing with the
engine to supply tension current does not remove the product from
the scope. The inclusion of any other components not identified as
comprising the unfinished engine subassembly in a third country does
not remove the engine from the scope.
The engines subject to this investigation are predominantly
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheading 8407.90.1010. The engine subassemblies that
are subject to this investigation enter under HTSUS 8409.91.9990.
The mounted engines that are subject to this investigation enter
under HTSUS 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines
subject to this investigation may also enter under HTSUS
8407.90.1020, 8407.90.9040, and 8407.90.9060. The HTSUS subheadings
are provided for convenience and customs purposes only, and the
written description of the merchandise under investigation is
dispositive.
[FR Doc. 2020-07864 Filed 4-13-20; 8:45 am]
BILLING CODE 3510-DS-P
