Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 37061-37063 [2020-13270]

Download as PDF Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices Expansion Act of 1962 (Section 232) or Section 301 of the Trade Act of 1974 (Section 301), depending on the country of origin. The applicable Section 232 and Section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign status (19 CFR 146.41). Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary and sent to: ftz@trade.gov. The closing period for their receipt is July 29, 2020. A copy of the notification will be available for public inspection in the ‘‘Reading Room’’ section of the Board’s website, which is accessible via www.trade.gov/ftz. For further information, contact Juanita Chen at juanita.chen@trade.gov or 202–482–1378. Dated: June 15, 2020. Andrew McGilvray, Executive Secretary. [FR Doc. 2020–13268 Filed 6–18–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–120] Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that producers and/or exporters subject to this investigation received countervailable subsidies. Interested parties are invited to comment on this preliminary determination. DATES: Applicable June 19, 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: khammond on DSKJM1Z7X2PROD with NOTICES AGENCY: Background This preliminary determination is made in accordance with section 703(b) VerDate Sep<11>2014 17:17 Jun 18, 2020 Jkt 250001 of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on February 18, 2020.1 On March 26, 2020, Commerce postponed the preliminary determination of this investigation and reset the deadline to June 15, 2020.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II 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 http:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The products covered by this investigation are certain large vertical shaft engines. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the Preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. For a summary of the product coverage comments submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments 1 See Certain Vertical Shaft Engines Between 223cc and 999cc, and Parts Thereof from the People’s Republic of China: Initiation of Countervailing Duty Investigation, 83 FR 8835 (February 18, 2020) (Initiation Notice). 2 See Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation, 85 FR 17042 (March 26, 2020). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Affirmative Determination and Preliminary Negative Critical Circumstances Determination in the Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice. PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 37061 timely received, see the Preliminary Decision Memorandum. Commerce has not modified the scope language as it appeared in the Initiation Notice. See Appendix I. Period of Investigation The period of investigation is January 1, 2019 through December 31, 2019. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that confers a benefit on the recipient, and that the subsidy is specific.6 For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memorandum. In making these findings, Commerce relied, in part, on facts available. For further information, see ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the Preliminary Decision Memorandum. Alignment In accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), and based on the petitioners’ 7 request,8 we are aligning the final countervailing duty (CVD) determination in this investigation with the final determination in the companion antidumping duty (AD) investigation of certain large vertical shaft engines from China. Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than October 26, 2020, unless postponed. Preliminary Negative Determination of Critical Circumstances The Petition 9 included an allegation that critical circumstances exist with 6 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 7 The petitioners are the Coalition of American Vertical Engine Producers and its individual members. 8 See Petitioners’ Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Request to Align Countervailing Duty Investigation Final Determination with Antidumping Duty Investigation Final Determination,’’ dated June 5, 2020. 9 See Petitioners’ Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the E:\FR\FM\19JNN1.SGM Continued 19JNN1 37062 Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices respect to imports of the subject merchandise. The petitioners alleged, based on trade statistics, that there is a reasonable basis to believe or suspect that critical circumstances exist with regard to imports of large vertical shaft engines 10 Based on monthly shipment information requested from the mandatory respondents as well as publicly available trade statistics, Commerce is preliminarily determining that critical circumstances do not exist within the meaning of section 703(e)(1) of the Act. For further information, see the Preliminary Decision Memorandum. All-Others Rate khammond on DSKJM1Z7X2PROD with NOTICES Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any rates that are zero, de minimis, or based entirely under section 776 of the Act. In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Loncin Motor Co. (Loncin) and Chongqing Zongshen General Power Machine Co., Ltd. (Zhongshen) that are not zero, de minimis, or based entirely on the facts otherwise available. Commerce calculated the all-others rate using a weighted average of the individual estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged values for the merchandise under consideration.11 People’s Republic of China,’’ dated January 15, 2020 (the Petition). 10 See Volume IV of the Petition at 3–6. 11 With two respondents under examination, Commerce normally calculates (A) a weightedaverage of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010). As complete publicly ranged sales data was available, Commerce based the allothers rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, see the All-Others Rate Calculation Memorandum, dated concurrently with this Federal Register notice. VerDate Sep<11>2014 17:17 Jun 18, 2020 Jkt 250001 hearing, limited to issues raised in the case and rebuttal briefs, must submit a Commerce preliminarily determines written request to the Assistant that the following estimated Secretary for Enforcement and countervailable subsidy rates exist: Compliance, U.S. Department of Commerce within 30 days after the date Subsidy of publication of this notice. Requests Producers/exporters rate (percent) should contain the party’s name, address, and telephone number; the Loncin Motor Co ....................... 19.61 number of participants; whether any Chongqing Zongshen General participant is a foreign national; and a Power Machine Co ............... 37.75 list of the issues to be discussed. If a All Others .................................. 30.98 request for a hearing is made, Commerce intends to hold the hearing at the U.S. Suspension of Liquidation Department of Commerce, 1401 In accordance with section Constitution Avenue NW, Washington, 703(d)(1)(B) and (d)(2) of the Act, DC 20230, at a time and date to be Commerce will direct U.S. Customs and determined. Parties should confirm by Border Protection (CBP) to suspend telephone the date, time, and location of liquidation of entries of subject the hearing two days prior to the merchandise as described in the scope scheduled date. Parties are reminded that briefs and of the investigation section entered, or hearing requests are to be filed withdrawn from warehouse, for electronically using ACCESS and that consumption on or after the date of publication of this notice in the Federal electronically filed documents must be received successfully in their entirety by Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP 5 p.m. Eastern Time on the due date. Note that Commerce has temporarily to require a cash deposit equal to the modified certain of its requirements for rates indicated above. serving documents containing business Disclosure proprietary information, until July 17, 2020, unless extended.13 Commerce intends to disclose its calculations and analysis performed to International Trade Commission interested parties in this preliminary Notification determination within five days of its In accordance with section 703(f) of public announcement, or if there is no the Act, Commerce will notify the public announcement, within five days International Trade Commission (ITC) of of the date of this notice in accordance its determination. If Commerce’s final with 19 CFR 351.224(b). determination is affirmative, the ITC Verification will make its final determination before As provided in section 782(i)(1) of the the later of 120 days after the date of this preliminary determination or 45 days Act, Commerce intends to verify the after Commerce’s final determination. information relied upon in making its final determination. Notification to Interested Parties Preliminary Determination Public Comment 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 last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.12 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation 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 12 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). Dated: June 15, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I 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-turn radius lawn mowers. Engines meeting this physical description may also be for other non-hand-held outdoor power equipment such as, including but not 13 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 29615 (May 18, 2020). E:\FR\FM\19JNN1.SGM 19JNN1 Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices 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 HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise under investigation is dispositive. khammond on DSKJM1Z7X2PROD with NOTICES Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Injury Test VI. Preliminary Negative Determination of Critical Circumstances VII. New Subsidy Allegation VIII. Alignment VerDate Sep<11>2014 17:17 Jun 18, 2020 Jkt 250001 IX. Diversification of China’s Economy X. Subsidies Valuation XI. Benchmarks and Interest Rates XII. Use of Facts Otherwise Available and Adverse Inferences XIII. Analysis of Programs XIV. Calculation of the All-Others Rate XV. ITC Notification XVI. Verification XVII. Disclosure and Public Comment XVIII. Recommendation [FR Doc. 2020–13270 Filed 6–18–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–913] Certain New Pneumatic Off-the-Road Tires From the People’s Republic of China: Notice of Court Decision Not in Harmony With Final Results of Administrative Review and Notice of Amended Final Results Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: On June 5, 2020, the United States Court of International Trade (the Court) sustained the Department of Commerce’s (Commerce) remand redetermination pertaining to the 2015 administrative review of the countervailing duty (CVD) order on certain new pneumatic off-the-road tires (OTR Tires) from the People’s Republic of China (China). Commerce is notifying the public that the Court has made a final judgment that is not in harmony with the final results of the 2015 administrative review, and that Commerce is amending the final results of the 2015 administrative review with respect to Guizhou Tyre Co., Ltd. (Guizhou Tyre) and non-selected companies. DATES: Applicable June 15, 2020. FOR FURTHER INFORMATION CONTACT: Chien-Min Yang, 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) 482–5484. SUPPLEMENTARY INFORMATION: AGENCY: Background On April 13, 2018, Commerce published its Final Results pertaining to mandatory respondents Guizhou Tyre and Xuzhou Xugong Tyres Co., Ltd. (Xuzhou Xugong), along with other exporters.1 The period of review (POR) 1 See Certain New Pneumatic Off-the-Road Tires from the People’s Republic of China: Final Results PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 37063 is January 1, 2015 through December 31, 2015. In the Final Results, Commerce found that the use of adverse facts available (AFA) was warranted in determining the countervailability of the Export Buyer’s Credit Program (EBCP) because the Government of China (GOC) did not provide the requested information needed to allow Commerce to fully analyze this program and, thus, had not cooperated to the best of its ability in response to our information requests.2 Guizhou Tyre challenged Commerce’s determination to apply AFA with respect to this program, and Commerce’s finding that the synthetic rubber market was not distorted during the POR, as well as other aspects of the Final Results. On May 15, 2019, the Court remanded the Final Results to Commerce to: (1) Reconsider our decision to apply AFA with respect to the EBCP; and (2) reconsider or further explain our market distortion decision with respect to the synthetic rubber market in China.3 On August 27, 2019, Commerce reconsidered its decision to apply AFA with respect to the EBCP and provided additional explanation in support of its treatment of the program. Commerce also reexamined its synthetic rubber market distortion finding, providing a more detailed analysis of market conditions, and continued to find that the synthetic rubber market was not distorted in China during the POR. On December 10, 2019, the Court affirmed Commerce’s additional explanation and finding of market distortion in the Chinese synthetic rubber market.4 However, the Court ordered that Commerce reconsider its decision to apply AFA with respect to the EBCP, holding that Commerce had not established that a gap in the record existed such that the agency needed to rely on facts otherwise available.5 On March 5, 2020, Commerce reconsidered its decision to apply AFA in evaluating use of the EBCP and determined, under protest, that the EBCP program was not used by the of Countervailing Duty Administrative Review; 2015, 83 FR 16055 (April 13, 2018) (Final Results), and accompanying Issues and Decision Memorandum (IDM), as amended, Certain New Pneumatic Off-the-Road Tires from the People’s Republic of China: Amended Final Results of Countervailing Duty Administrative Review, 2015, 83 FR 32078 (July 11, 2018). 2 See IDM at 13–14. 3 See Guizhou Tyre Co., Ltd. et al. v. United States, 389 F. Supp. 3d 1315, 1329 (May 15, 2019). 4 See Guizhou Tyre Co., Ltd. et al. v. United States, 415 F. Supp. 3d 1335, 1339–40 (December 10, 2019) (Second Remand Order). 5 See Second Remand Order, 415 F. Supp. 3d 1335, 1340–44 (December 10, 2019). E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

[Federal Register Volume 85, Number 119 (Friday, June 19, 2020)]
[Notices]
[Pages 37061-37063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13270]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-120]


Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts 
Thereof From the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Negative Critical 
Circumstances Determination, and Alignment of Final Determination With 
Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that producers and/or exporters subject to this investigation received 
countervailable subsidies. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable June 19, 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:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 
18, 2020.\1\ On March 26, 2020, Commerce postponed the preliminary 
determination of this investigation and reset the deadline to June 15, 
2020.\2\
---------------------------------------------------------------------------

    \1\ See Certain Vertical Shaft Engines Between 223cc and 999cc, 
and Parts Thereof from the People's Republic of China: Initiation of 
Countervailing Duty Investigation, 83 FR 8835 (February 18, 2020) 
(Initiation Notice).
    \2\ See Certain Vertical Shaft Engines Between 225cc and 999cc, 
and Parts Thereof from the People's Republic of China: Postponement 
of Preliminary Determination in the Countervailing Duty 
Investigation, 85 FR 17042 (March 26, 2020).
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II 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 http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination and Preliminary Negative Critical 
Circumstances Determination in the Countervailing Duty Investigation 
of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts 
Thereof from the People's Republic of China,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are certain large 
vertical shaft engines. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
submitted to the record for this preliminary determination, and 
accompanying discussion and analysis of all comments timely received, 
see the Preliminary Decision Memorandum. Commerce has not modified the 
scope language as it appeared in the Initiation Notice. See Appendix I.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation is January 1, 2019 through December 31, 
2019.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that 
confers a benefit on the recipient, and that the subsidy is 
specific.\6\ For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

    In making these findings, Commerce relied, in part, on facts 
available. For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.

Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), and based on the petitioners' \7\ request,\8\ we are 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of certain large vertical shaft engines from 
China. Consequently, the final CVD determination will be issued on the 
same date as the final AD determination, which is currently scheduled 
to be issued no later than October 26, 2020, unless postponed.
---------------------------------------------------------------------------

    \7\ The petitioners are the Coalition of American Vertical 
Engine Producers and its individual members.
    \8\ See Petitioners' Letter, ``Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof from the People's 
Republic of China: Request to Align Countervailing Duty 
Investigation Final Determination with Antidumping Duty 
Investigation Final Determination,'' dated June 5, 2020.
---------------------------------------------------------------------------

Preliminary Negative Determination of Critical Circumstances

    The Petition \9\ included an allegation that critical circumstances 
exist with

[[Page 37062]]

respect to imports of the subject merchandise. The petitioners alleged, 
based on trade statistics, that there is a reasonable basis to believe 
or suspect that critical circumstances exist with regard to imports of 
large vertical shaft engines \10\ Based on monthly shipment information 
requested from the mandatory respondents as well as publicly available 
trade statistics, Commerce is preliminarily determining that critical 
circumstances do not exist within the meaning of section 703(e)(1) of 
the Act. For further information, see the Preliminary Decision 
Memorandum.
---------------------------------------------------------------------------

    \9\ See Petitioners' 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).
    \10\ See Volume IV of the Petition at 3-6.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any rates that are zero, de minimis, or based entirely under 
section 776 of the Act.
    In this investigation, Commerce calculated individual estimated 
countervailable subsidy rates for Loncin Motor Co. (Loncin) and 
Chongqing Zongshen General Power Machine Co., Ltd. (Zhongshen) that are 
not zero, de minimis, or based entirely on the facts otherwise 
available. Commerce calculated the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for the 
examined respondents using each company's publicly-ranged values for 
the merchandise under consideration.\11\
---------------------------------------------------------------------------

    \11\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, see the All-Others Rate Calculation Memorandum, dated 
concurrently with this Federal Register notice.
---------------------------------------------------------------------------

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                    Producers/exporters                          rate
                                                              (percent)
------------------------------------------------------------------------
Loncin Motor Co............................................        19.61
Chongqing Zongshen General Power Machine Co................        37.75
All Others.................................................        30.98
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    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 last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than seven days after the deadline 
date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    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 of publication of this notice. Requests should contain 
the party's name, address, and telephone number; the number of 
participants; whether any participant is a foreign national; and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days prior to the scheduled 
date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until July 17, 2020, unless 
extended.\13\
---------------------------------------------------------------------------

    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020).
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final determination before the later of 120 days after the date of this 
preliminary determination or 45 days after Commerce's final 
determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

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-turn radius lawn mowers. Engines meeting this 
physical description may also be for other non-hand-held outdoor 
power equipment such as, including but not

[[Page 37063]]

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 HTSUS subheadings are provided for convenience and 
customs purposes only, and the written description of the 
merchandise under investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Preliminary Negative Determination of Critical Circumstances
VII. New Subsidy Allegation
VIII. Alignment
IX. Diversification of China's Economy
X. Subsidies Valuation
XI. Benchmarks and Interest Rates
XII. Use of Facts Otherwise Available and Adverse Inferences
XIII. Analysis of Programs
XIV. Calculation of the All-Others Rate
XV. ITC Notification
XVI. Verification
XVII. Disclosure and Public Comment
XVIII. Recommendation

[FR Doc. 2020-13270 Filed 6-18-20; 8:45 am]
BILLING CODE 3510-DS-P