Certain Walk-Behind Lawn Mowers and Parts Thereof From the People's Republic of China and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations, 37417-37422 [2020-13385]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 85, Number 120 (Monday, June 22, 2020)]
[Notices]
[Pages 37417-37422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13385]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-129; A-552-830]


Certain Walk-Behind Lawn Mowers and Parts Thereof From the 
People's Republic of China and the Socialist Republic of Vietnam: 
Initiation of Less-Than-Fair-Value Investigations

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

DATES: Applicable June 15, 2020.

FOR FURTHER INFORMATION CONTACT: Erin Kearney at (202) 482-0167; AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On May 26, 2020, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of certain 
walk-behind lawn mowers (lawn mowers) from the People's Republic of 
China (China) and the Socialist Republic of Vietnam (Vietnam) filed in 
proper form on behalf of the petitioner,\1\ a domestic producer of lawn 
mowers.\2\

[[Page 37418]]

The Petitions were accompanied by a countervailing duty (CVD) petition 
concerning imports of lawn mowers from China.\3\
---------------------------------------------------------------------------

    \1\ The petitioner is MTD Products Inc.
    \2\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping Duties on Certain Walk-Behind Lawn Mowers from the 
People's Republic of China and the Socialist Republic of Vietnam and 
Countervailing Duties on Certain Walk-Behind Lawn Mowers from the 
People's Republic of China,'' dated May 26, 2020 (the Petitions).
    \3\ Id.
---------------------------------------------------------------------------

    On May 29, 2020, Commerce requested supplemental information 
pertaining to certain aspects of the Petitions in separate supplemental 
questionnaires.\4\ On June 2, 2020, the petitioner filed responses to 
the supplemental questionnaires.\5\
---------------------------------------------------------------------------

    \4\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of 
China and the Socialist Republic of Vietnam: General Issues 
Supplemental Questions'' (General Issues Supplemental); ``Petition 
for the Imposition of Antidumping Duties on Imports of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of 
China: Supplemental Questions''; and ``Petition for the Imposition 
of Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers 
and Parts Thereof from the Socialist Republic of Vietnam: 
Supplemental Questions,'' all dated May 29, 2020.
    \5\ See Petitioner's Letters, ``Petitions for the Imposition of 
Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers 
from the People's Republic of China and the Socialist Republic of 
Vietnam, and Countervailing Duties from the People's Republic of 
China: General Issues Supplemental Questions Response Volume I'' 
(General Issues Supplement); ``Petitions for the Imposition of 
Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers 
from the People's Republic of China: Supplemental Questionnaire 
Response Volume III'' (China AD Supplement); and ``Petitions for the 
Imposition of Antidumping Duties on Imports of Certain Walk-Behind 
Lawn Mowers from the Socialist Republic of Vietnam: Supplemental 
Questionnaire Response Volume III'' (Vietnam AD Supplement), all 
dated June 2, 2020.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of lawn mowers 
from China and Vietnam 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 imports of such products are 
materially injuring, or threatening material injury to, the domestic 
lawn mower industry in the United States. Consistent with section 
732(b)(1) of the Act, the Petitions are accompanied by information 
reasonably available to the petitioner supporting the allegations.
    Commerce finds that the petitioner filed the Petitions 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 for the 
initiation of the requested AD investigations.\6\
---------------------------------------------------------------------------

    \6\ See the Petitions at section on ``Determination of Industry 
Support for the Petitions.''
---------------------------------------------------------------------------

Period of Investigation

    Because China and Vietnam are non-market economy (NME) countries, 
pursuant to 19 CFR 351.204(b)(1), the period of investigation (POI) for 
the investigations is October 1, 2019 through March 31, 2020.

Scope of the Investigations

    The products covered by these investigations are lawn mowers from 
China and Vietnam. For a full description of the scope of these 
investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    On May 29, 2020, Commerce requested further information from the 
petitioner regarding the proposed scope to ensure that the scope 
language in the Petitions is an accurate reflection of the products for 
which the domestic industry is seeking relief.\7\ On June 2, 2020, the 
petitioner revised the scope.\8\ The description of the merchandise 
covered by these investigations, as described in the appendix to this 
notice, reflects these clarifications.
---------------------------------------------------------------------------

    \7\ See General Issues Supplemental at 3-4.
    \8\ See General Issues Supplemental at Exhibit S-I-3.
---------------------------------------------------------------------------

    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).\9\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information, all such 
factual information should be limited to public information.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on July 6, 2020, which is the next business day after 20 calendar 
days from the signature date of this notice.\11\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
July 16, 2020, which is 10 calendar days from the initial comment 
deadline.\12\
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ Commerce's practice dictates that where a deadline falls on 
a weekend or Federal holiday, the appropriate deadline is the next 
business day (in this instance, May 11, 2020). See Notice of 
Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, As Amended, 70 FR 24533 (May 10, 2005) (Next Business Day 
Rule).
    \12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's (E&C's) Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS), 
unless an exception applies.\13\ An electronically filed document must 
be received successfully in its entirety by the time and date it is 
due.
---------------------------------------------------------------------------

    \13\ 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 help 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

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of lawn mowers to be 
reported in response to Commerce's AD questionnaires. 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 feel 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 questionnaires, all 
product characteristics comments must be filed by 5:00 p.m. ET on July 
6, 2020, which is the next business day after 20 calendar days from the 
signature date of this notice.\14\ Any rebuttal comments

[[Page 37419]]

must be filed by 5:00 p.m. ET on July 16, 2020. All comments and 
submissions to Commerce must be filed electronically using ACCESS, as 
explained above, on the record of both of the AD investigations.
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.303(b). Commerce practice dictates that 
where a deadline falls on a weekend or Federal holiday (in this 
instance, July 5, 2020), the appropriate deadline is the next 
business day. See Next Business Day Rule, 70 FR at 24533.
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    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.''
    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,\15\ 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.\16\
---------------------------------------------------------------------------

    \15\ See section 771(10) of the Act.
    \16\ 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), 
cert. denied 492 U.S. 919 (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 investigations.\17\ Based on our analysis of the information 
submitted on the record, we have determined that lawn mowers, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\18\
---------------------------------------------------------------------------

    \17\ See Volume I of the Petitions at 18-24.
    \18\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see the China and Vietnam AD Initiation Checklists at Attachment II, 
Analysis of Industry Support for the Antidumping and Countervailing 
Duty Petitions Covering Certain Walk-Behind Lawn Mowers from the 
People's Republic of China and the Socialist Republic of Vietnam 
(Attachment II). These checklists are dated concurrently with, and 
hereby adopted by, this notice and on file electronically via 
ACCESS.
---------------------------------------------------------------------------

    On June 10, 2020, we received comments on industry support from 
Sumec Hardware & Tools Co., Ltd. (Sumec), a Chinese producer of subject 
merchandise, and Merotec Inc (Merotec), an importer of subject 
merchandise.\19\ The petitioner responded to the industry support 
comments on June 11, 2020.\20\ On June 12, 2020, we received 
surrebuttal comments from Sumec and Merotec with regard to the 
petitioner's June 11, 2020 comments.\21\ The petitioner responded to 
these surrebuttal industry support comments on June 15, 2020.\22\
---------------------------------------------------------------------------

    \19\ See Sumec and Merotec's Letter, ``Walk-Behind Lawn Mowers 
and Parts Thereof from the People's Republic of China, Request to 
the Department to Poll the Industry,'' dated June 10, 2020.
    \20\ See Petitioner's Letter, ``Investigations on Certain Walk-
Behind Lawn Mowers from the People's Republic of China and the 
Socialist Republic of Vietnam, and Countervailing Duties from the 
People's Republic of China, Inv. Nos. 731-1521-1522 and 701-TA-648 
(Preliminary): Response to Sumec Hardware & Tools Co., Ltd.'s 
Request to the Department to Poll the Industry,'' dated June 11, 
2019.
    \21\ See Sumec and Merotec's Letter, ``Walk-Behind Lawn Mowers 
and Parts Thereof from the People's Republic of China, Reply to 
Petitioner's Response to the Request to Poll the Industry,'' dated 
June 12, 2020.
    \22\ See Petitioner's Letter, ``Investigations on Certain Walk-
Behind Lawn Mowers from the People's Republic of China and the 
Socialist Republic of Vietnam, and Countervailing Duties from the 
People's Republic of China, Inv. Nos. 731-1521-1522 and 701-TA-648 
(Preliminary): Response to Sumec Hardware & Tools Co., Ltd.'s Reply 
to Petitioner's Response to the Request to Poll the Industry,'' 
dated June 15, 2019.
---------------------------------------------------------------------------

    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 Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
2019 shipments of the domestic like product.\23\ To estimate the 2019 
shipments for the entire U.S. lawn mowers industry, the petitioner 
relied on 2019 shipment data reported by the Outdoor Power Equipment 
Institute and made certain adjustments to reflect total shipments by 
U.S. producers of lawn mowers.\24\ The petitioner estimated the 
production of the domestic like product for the entire domestic 
industry based on shipment data, because production data for the entire 
domestic industry were not available to the petitioner, and shipments 
are a close approximation of production in the lawn mowers 
industry.\25\ We relied on data provided by the petitioner for purposes 
of measuring industry support.\26\ Accordingly, Commerce determines 
that the Petitions were filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act.\27\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petitions at 4-5 and Exhibit I-2; see 
also General Issues Supplement at 7 and Exhibit S-I-5.
    \24\ See Volume I of the Petitions at 4-5 and Exhibits I-1, I-2, 
and I-23; see also General Issues Supplement at 7 and Exhibit S-I-5.
    \25\ See Volume I of the Petitions at 4-5 and Exhibit I-23.
    \26\ See Volume I of the Petitions at 4-5 and Exhibit I-2; see 
also General Issues Supplement at 7 and Exhibit S-I-5. For further 
discussion, see Attachment II of the China and Vietnam AD Initiation 
Checklists.
    \27\ Id.
---------------------------------------------------------------------------

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.\28\
---------------------------------------------------------------------------

    \28\ See Volume I of the Petitions at 24-25 and Exhibit I-8.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
declining market share; underselling and price depression and 
suppression;

[[Page 37420]]

lost sales and revenues; declines in shipments, capacity utilization, 
and capital expenditures; plant closures and declines in employment 
variables; declining profitability; and the magnitude of dumping.\29\ 
We 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.\30\
---------------------------------------------------------------------------

    \29\ See Volume I of the Petitions at 27-40 and Exhibits I-8 
through I-11 and I-20 through I-22, and I-24; see also General 
Issues Supplement at 2 and Exhibit S-I-1.
    \30\ See the China and Vietnam AD Initiation Checklists at 
Attachment III, Analysis of Allegations and Evidence of Material 
Injury and Causation for the Antidumping and Countervailing Duty 
Petitions Covering Certain Walk-Behind Lawn Mowers and Parts Thereof 
from the People's Republic of China and the Socialist Republic of 
Vietnam (Attachment III).
---------------------------------------------------------------------------

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of lawn mowers from China and Vietnam. 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 China and Vietnam AD 
Initiation Checklists.

U.S. Price

    For both China and Vietnam, the petitioner based export price (EP) 
on two methodologies: (1) The average unit values (AUVs) of publicly-
available import data adjusted to deduct foreign inland freight 
expenses; and (2) a transaction-specific AUV derived from official 
import data and tied to ship manifest data obtained from Datamyne.\31\
---------------------------------------------------------------------------

    \31\ See the China and Vietnam AD Initiation Checklists.
---------------------------------------------------------------------------

Normal Value

    Commerce considers China and Vietnam to be NME countries.\32\ 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 and Vietnam 
as NME countries for purposes of the initiation of these 
investigations. Accordingly, NVs in China and Vietnam are appropriately 
based on FOPs valued in surrogate market economy countries, in 
accordance with section 773(c) of the Act.
---------------------------------------------------------------------------

    \32\ See, e.g., 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); and Certain Frozen 
Fish Fillets from the Socialist Republic of Vietnam: Final Results, 
and Final Results of No Shipments of the Antidumping Duty 
Administrative Review; 2016-2017, 84 FR 18007 (April 29, 2019).
---------------------------------------------------------------------------

    With respect to China, the petitioner argues that the Republic of 
Turkey (Turkey) is an appropriate surrogate country because Turkey is a 
market economy country that is at a level of economic development 
comparable to that of China and is a significant producer of comparable 
merchandise.\33\ The petitioner submitted publicly available 
information from Turkey to value all FOPs.\34\ Based on the information 
provided by the petitioner, we determine that it is appropriate to use 
Turkey as a surrogate country for China for initiation purposes.
---------------------------------------------------------------------------

    \33\ See Volume II of the Petitions at 3 and Exhibit II-2.
    \34\ Id. at Exhibits II-3, II-14--II 16.
---------------------------------------------------------------------------

    For Vietnam, the petitioner claims that India is an appropriate 
surrogate country because India is a market economy country that is at 
a level of economic development comparable to that of Vietnam and is a 
significant producer of comparable merchandise.\35\ The petitioner 
provided publicly available information from India to value all 
FOPs.\36\ Based on the information provided by the petitioner, we 
determine that it is appropriate to use India as a surrogate country 
for Vietnam for initiation purposes.
---------------------------------------------------------------------------

    \35\ See Volume III of the Petitions at 3-4 and Exhibit III-1.
    \36\ Id. at Exhibit III-11.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selections 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

    For China and Vietnam, the petitioner used its own product-specific 
consumption rates as a surrogate to value Chinese and Vietnamese 
manufacturers' FOPs.\37\ Additionally, the petitioner calculated 
factory overhead; selling, general and administrative expenses; and 
profit based on the experience of Turkish and Indian producers of 
comparable merchandise.\38\
---------------------------------------------------------------------------

    \37\ See Volume II of the Petitions at 3 and Exhibits II-9 and 
II-10; and Volume III of the Petitions at 7 and Exhibits III-9 and 
III-10.
    \38\ See Volume II of the Petition at 9 and Exhibits II-3 and 
II-12; Volume III of the Petitions at 4-5 and Exhibit III-18; China 
AD Supplement at Exhibit S-II-3; and Vietnam AD Supplement at 2 and 
Exhibit S-III-3.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of lawn mowers from China and Vietnam 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 lawn mowers from China are 
274.29-313.58 percent, and 289.63-416.00 percent for lawn mowers from 
Vietnam.\39\
---------------------------------------------------------------------------

    \39\ See China AD Supplement at Exhibit S-II-6; and Vietnam AD 
Supplement at Exhibit S-III-4.
---------------------------------------------------------------------------

Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating AD investigations to determine 
whether imports of lawn mowers from China and Vietnam 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 determinations no later than 
140 days after the date of this initiation.

Respondent Selection

    In the Petitions, the petitioner named 46 companies in China and 
three companies in Vietnam as producers/exporters of lawn mowers.\40\
---------------------------------------------------------------------------

    \40\ See Volume I of the Petitions at 2 and Exhibit I-5.
---------------------------------------------------------------------------

    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 Petitions, 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. For 
Vietnam, because there are three producers and exporters identified in 
the Petitions, Commerce has determined

[[Page 37421]]

that it will issue Q&V questionnaires to each potential respondent for 
which the petitioner has provided a complete address. However, because 
there are 46 producers and exporters for China identified in the 
Petitions, 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 lawn mowers from 
China during the POI under the appropriate Harmonized Tariff Schedule 
of the United States number 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 lawn mowers from China and 
Vietnam 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.
    Responses to the Q&V questionnaire must be submitted by the 
relevant Chinese and Vietnamese producers/exporters no later than 5:00 
p.m. ET on July 1, 2020. All Q&V questionnaire responses must be filed 
electronically via ACCESS.
    On June 10, 2020, Commerce released CBP data on imports of lawn 
mowers from China under administrative protective order (APO) to all 
parties with access to information protected by APO, and indicated that 
interested parties wishing to comment on the CBP data must do so within 
three business days of the publication date of the notice of initiation 
of this investigation.\41\ We further stated that we will not accept 
rebuttal comments.
---------------------------------------------------------------------------

    \41\ See Memorandum, ``Certain Walk-Behind Lawn Mowers and Parts 
Thereof from the People's Republic of China: Release of Customs Data 
from U.S. Customs and Border Protection,'' dated June 10, 2020.
---------------------------------------------------------------------------

    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 E&C's website at https://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the 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.\42\ 
The specific requirements for submitting a separate-rate application in 
a China or Vietnam 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.\43\ 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 or Vietnam 
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.
---------------------------------------------------------------------------

    \42\ See Policy Bulletin 05.1: ``Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving NME Countries,'' (April 5, 2005), available at https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
    \43\ 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.
---------------------------------------------------------------------------

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 the {Commerce{time}  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.\44\
---------------------------------------------------------------------------

    \44\ See Policy Bulletin 05.1 at 6 (emphasis added).

Distribution of Copies of the AD Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China and Vietnam via ACCESS. 
Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petitions to each exporter 
named in the Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our 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 Petitions were filed, whether there is a reasonable 
indication that imports of lawn mowers from China and/or Vietnam are 
materially injuring, or threatening material injury to, a U.S. 
industry.\45\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country.\46\ 
Otherwise, these AD investigations will proceed according to statutory 
and regulatory time limits.
---------------------------------------------------------------------------

    \45\ See section 733(a) of the Act.
    \46\ Id.
---------------------------------------------------------------------------

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). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the

[[Page 37422]]

information is being submitted \47\ 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.\48\ 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. 
Interested parties should review the regulations prior to submitting 
factual information in these investigations.
---------------------------------------------------------------------------

    \47\ See 19 CFR 351.301(b).
    \48\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

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, we 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, stand-alone submission; under limited circumstances we 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 factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\49\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\50\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \49\ See section 782(b) of the Act.
    \50\ 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.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. 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 these investigations 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 information, until 
July 17, 2020, unless extended.\51\
---------------------------------------------------------------------------

    \51\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020).
---------------------------------------------------------------------------

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

Appendix--Scope of the Investigations

    The merchandise covered by these investigations consists of 
certain rotary walk-behind lawn mowers, which are grass-cutting 
machines that are powered by internal combustion engines. The scope 
of these investigations covers certain walk-behind lawn mowers, 
whether self-propelled or non-self-propelled, whether finished or 
unfinished, whether assembled or unassembled, and whether containing 
any additional features that provide for functions in addition to 
mowing.
    Walk-behind lawn mowers within the scope of these investigations 
are only those powered by an internal combustion engine with a power 
rating of less than 3.7 kilowatts. These internal combustion engines 
are typically spark ignition, single or multiple cylinder, air 
cooled, internal combustion engines with vertical power take off 
shafts with a maximum displacement of 196cc. Walk-behind lawn mowers 
covered by this scope typically must be certified and comply with 
the Consumer Products Safety Commission Safety Standard For Walk-
Behind Power Lawn Mowers under the 16 CFR part 1205. However, lawn 
mowers that meet the physical descriptions above, but are not 
certified under 16 CFR part 1205 remain subject to the scope of 
these proceedings.
    The internal combustion engines of the lawn mowers covered by 
this scope typically must comply with and be certified under 
Environmental Protection Agency 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. However, lawn mowers that meet the physical descriptions 
above but that do not have engines certified under 40 CFR part 1054 
or other parts of subchapter U remain subject to the scope of these 
proceedings.
    For purposes of these investigations, an unfinished and/or 
unassembled lawn mower means at a minimum, a sub-assembly comprised 
of an engine and a cutting deck shell attached to one another. A 
cutting deck shell is the portion of the lawn mower--typically of 
aluminum or steel--that houses and protects a user from a rotating 
blade. Importation of the subassembly whether or not accompanied by, 
or attached to, additional components such as a handle, blade(s), 
grass catching bag, or wheel(s) constitute an unfinished lawn mower 
for purposes of these investigations. The inclusion in a third 
country of any components other than the mower sub assembly does not 
remove the lawn mower from the scope. A lawn mower is within the 
scope of these investigations regardless of the origin of its 
engine.
    The lawn mowers subject to these investigations are typically at 
subheading: 8433.11.0050. Lawn mowers subject to these 
investigations may also enter under Harmonized Tariff Schedule of 
the United States (HTSUS) 8407.90.1010 and 8433.90.1090. The HTSUS 
subheadings are provided for convenience and customs purposes only, 
and the written description of the merchandise under investigation 
is dispositive.
[FR Doc. 2020-13385 Filed 6-19-20; 8:45 am]
BILLING CODE 3510-DS-P