Certain Vertical Shaft Engines Between 99cc and up to 225cc, and Parts Thereof, From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 52086-52089 [2020-18529]
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52086
Federal Register / Vol. 85, No. 164 / Monday, August 24, 2020 / Notices
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SUMMARY:
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work of this Committee are directed to
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Agenda
I. Welcome
II. Review Statement of Concern
III. Vote on Topic of Study
IV. Public Comment
V. Adjournment
Dated: August 19, 2020.
David Mussatt,
Supervisory Chief, Regional Programs Unit.
[FR Doc. 2020–18550 Filed 8–21–20; 8:45 am]
BILLING CODE P
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Agenda
I. Welcome and roll call
II. Discussion: Civil Rights in
Mississippi
III. Public comment
IV. Next steps
V. Adjournment
Dated: August 19, 2020.
David Mussatt,
Supervisory Chief, Regional Programs Unit.
[FR Doc. 2020–18551 Filed 8–21–20; 8:45 am]
BILLING CODE P
SUPPLEMENTARY INFORMATION:
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–125]
Certain Vertical Shaft Engines Between
99cc and up to 225cc, and Parts
Thereof, From the People’s Republic of
China: Preliminary Affirmative
Countervailing Duty 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
AGENCY:
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Federal Register / Vol. 85, No. 164 / Monday, August 24, 2020 / Notices
that countervailable subsidies are being
provided to producers and exporters 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). The
period of investigation is January 1,
2019 through December 31, 2019.
Interested parties are invited to
comment on this preliminary
determination.
DATES: Applicable August 24, 2020.
FOR FURTHER INFORMATION CONTACT: Ajay
Menon or Adam Simons, 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) 482–1993 or (202) 482–6172,
respectively.
SUPPLEMENTARY INFORMATION:
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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 April 14, 2020.1 On May 20, 2020,
Commerce postponed the preliminary
determination of this investigation to
August 17, 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 https://
access.trade.gov. In addition, a complete
version of the Preliminary Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed and electronic versions of
1 See Certain Vertical Shaft Engines between 99cc
and up to 225cc, and Parts Thereof from the
People’s Republic of China: Initiation of
Countervailing Duty Investigation, 85 FR 20667
(April 14, 2020) (Initiation Notice).
2 See Certain Vertical Shaft Engines between 99cc
and up to 225cc, and Parts Thereof, from the
People’s Republic of China: Postponement of
Preliminary Determination in the Countervailing
Duty Investigation, 85 FR 30683 (May 20, 2020).
3 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination of the
Countervailing Duty Investigation of Certain
Vertical Shaft Engines Between 99cc and up to
225cc, and Parts Thereof, from the People’s
Republic of China,’’ dated concurrently with, and
hereby adopted by, this notice (Preliminary
Decision Memorandum).
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16:31 Aug 21, 2020
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the Preliminary Decision Memorandum
are identical in content.
Scope of the Investigation
The products covered by this
investigation are small vertical engines
between 99cc and up to 225cc, and parts
thereof, from China. 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 scope comments submitted on the
record of this preliminary
determination, and accompanying
discussion and analysis of all comments
timely received, see the Preliminary
Scope Memorandum.6 Commerce is
preliminarily modifying the scope
language as it appeared in the Initiation
Notice to exclude commercial engines.
See revised scope in Appendix I.
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
gives rise to a benefit to the recipient,
and that the subsidy is specific.7
Commerce notes that, in making these
findings, it relied, in part, on facts
available and, because it finds that one
or more respondents did not act to the
best of their ability to respond to
Commerce’s requests for information, it
drew an adverse inference where
appropriate in selecting from among the
facts otherwise available.8 For further
information, see ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ in the Preliminary Decision
Memorandum.
4 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
5 See Initiation Notice.
6See Memorandum, ‘‘Antidumping and
Countervailing Duty Investigations of Certain
Vertical Shaft Engines Between 99cc and Up To
225cc, and Parts Thereof from the People’s Republic
of China: Scope Comments Decision Memorandum
for the Preliminary Determination,’’ dated August
17, 2020.
7See 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.
8See sections 776(a) and (b) of the Act.
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52087
Alignment
As noted in the Preliminary Decision
Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the
final countervailing duty (CVD)
determination in this investigation with
the final determination in the
companion antidumping duty (AD)
investigation of small vertical engines
from China based on a request made by
the petitioner.9 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
December 28, 2020, unless postponed.
All-Others Rate
Sections 703(d) 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 zero and de
minimis rates and any rates based
entirely under section 776 of the Act.
In this investigation, Commerce
calculated individual estimated
countervailable subsidy rates for
Chongqing Kohler Engines Ltd.
(Chongqing Kohler) and Chongqing
Zongshen General Power Machine Co.
Ltd. (Chongqing Zongshen) that are not
zero, de minimis , or based entirely on
facts otherwise available. Commerce
calculated the all-others rate using a
simple average of the individual
estimated subsidy rates calculated for
the examined respondents.10
Preliminary Determination
Commerce preliminarily determines
that the following estimated
countervailable subsidy rates exist:
9 See Petitioner’s Letter, ‘‘Certain Vertical Shaft
Engines Between 99cc and Up To 225cc, and Parts
Thereof, From the People’s Republic of China:
Petitioner’s Request for Alignment of the Final
Countervailing Duty and Antidumping Duty Final
Determinations,’’ dated August 4, 2020.
10 We calculated the all-others rate using the
simple average of Chongqing Kohler and Chongqing
Zongshen’s subsidy rates.
11 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
company to be cross-owned with Chongqing
Kohler: Kohler (China) Investment Company.
12 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
companies to be cross-owned with Chongqing
Zongshen: Chongqing Zongshen Power Machinery
Co., Ltd.; Zong Shen Industrial Group; Chongqing
Zongshen Automobile Air Intake System
Manufacturing Co., Ltd.; Chongqing Zongshen High
Speed Boat Development Co., Ltd.; Chongqing Zong
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Continued
24AUN1
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Federal Register / Vol. 85, No. 164 / Monday, August 24, 2020 / Notices
Compliance, U.S. Department of
Commerce within 30 days after the date
of publication of this notice. Requests
Chongqing Kohler Engines
should contain the party’s name,
Ltd.11 .................................
13.45 address, and telephone number, the
Chongqing Zongshen General Power Machine Co.12
21.29 number of participants, whether any
All Others ..............................
17.37 participant is a foreign national, and a
list of the issues to be discussed. If a
request for a hearing is made, Commerce
Suspension of Liquidation
intends to hold the hearing at a date and
In accordance with section
time to be determined. Parties should
703(d)(1)(B) and (d)(2) of the Act,
confirm by telephone the date, time, and
Commerce will direct U.S. Customs and location of the hearing two days before
Border Protection (CBP) to suspend
the scheduled date.
liquidation of entries of subject
Parties are reminded that briefs and
merchandise as described in the scope
hearing requests are to be filed
of the investigation section entered, or
electronically using ACCESS and that
withdrawn from warehouse, for
electronically filed documents must be
consumption on or after the date of
received successfully in their entirety by
publication of this notice in the Federal 5 p.m. Eastern Time on the due date.
Register. Further, pursuant to 19 CFR
Note that Commerce has temporarily
351.205(d), Commerce will instruct CBP modified certain of its requirements for
to require a cash deposit equal to the
serving documents containing business
rates indicated above.
proprietary information, until further
notice.14
Disclosure
Commerce intends to disclose its
International Trade Commission
calculations and analysis performed to
Notification
interested parties in this preliminary
In accordance with section 703(f) of
determination within five days of its
the Act, Commerce will notify the
public announcement, or if there is no
International Trade Commission (ITC) of
public announcement, within five days
its determination. If the final
of the date of this notice in accordance
determination is affirmative, the ITC
with 19 CFR 351.224(b).
will determine before the later of 120
Verification
days after the date of this preliminary
As provided in section 782(i)(1) of the determination or 45 days after the final
determination.
Act, Commerce intends to verify the
information relied upon in making its
Notification to Interested Parties
final determination.
This determination is issued and
Public Comment
published pursuant to sections 703(f)
Case briefs or other written comments and 777(i) of the Act and 19 CFR
351.205(c).
may be submitted to the Assistant
Secretary for Enforcement and
Dated: August 17, 2020.
Compliance no later than seven days
Jeffrey I. Kessler,
after the date on which the last
Assistant Secretary for Enforcement and
verification report is issued in this
Compliance.
investigation. Rebuttal briefs, limited to
Appendix I
issues raised in case briefs, may be
submitted no later than seven days after Scope of the Investigation
the deadline date for case briefs.13
The merchandise covered by this
Pursuant to 19 CFR 351.309(c)(2) and
investigation consists of spark-ignited, non(d)(2), parties who submit case briefs or
road, vertical shaft engines, whether finished
rebuttal briefs in this investigation are
or unfinished, whether assembled or
unassembled, whether mounted or
encouraged to submit with each
unmounted, primarily for walk-behind lawn
argument: (1) A statement of the issue;
mowers. Engines meeting this physical
(2) a brief summary of the argument;
description may also be for other non-handand (3) a table of authorities.
held outdoor power equipment, including
Pursuant to 19 CFR 351.310(c),
but not limited to, pressure washers. The
interested parties who wish to request a subject engines are spark ignition, singlehearing, limited to issues raised in the
cylinder, air cooled, internal combustion
case and rebuttal briefs, must submit a
engines with vertical power take off shafts
written request to the Assistant
with a minimum displacement of 99 cubic
Secretary for Enforcement and
centimeters (cc) and a maximum
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Company
Subsidy rate
(percent)
displacement of up to, but not including,
Shen Electrical Appliance Co., Ltd.; and Chongqing
Dajiang Power Equipment Co., Ltd.
13 See 19 CFR 351.309; see also 19 CFR 351.303
(for general filing requirements).
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16:31 Aug 21, 2020
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14 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19; Extension
of Effective Period, 85 FR 41363 (July 10, 2020).
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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),
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.
Specifically excluded from the scope of the
investigation are ‘‘Commercial’’ or ‘‘Heavy
Commercial’’ engines under 40 CFR 1054.107
and 1054.135 that have (1) a displacement of
160 cc or greater, (2) a cast iron cylinder
liner, (3) an automatic compression release,
and (4) a muffler with at least three chambers
and volume greater than 400 cc.
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
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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 of the Investigation
IV. Injury Test
V. Diversification of China’s Economy
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2020–18529 Filed 8–21–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Institute of Standards and
Technology
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Agency Information Collection
Activities; Submission to the Office of
Management and Budget (OMB) for
Review and Approval; Comment
Request; Manufacturing Extension
Partnership (MEP) Client Impact
Survey
The Department of Commerce will
submit the following information
collection request to the Office of
Management and Budget (OMB) for
review and clearance in accordance
with the Paperwork Reduction Act of
1995, on or after the date of publication
of this notice. We invite the general
public and other Federal agencies to
comment on proposed, and continuing
information collections, which helps us
assess the impact of our information
collection requirements and minimize
the public’s reporting burden. Public
comments were previously requested
via the Federal Register on May 27,
2020 during a 60-day comment period.
This notice allows for an additional 30
days for public comments.
Agency: National Institute of
Standards and Technology (NIST).
Title: Manufacturing Extension
Partnership (MEP) Client Impact
Survey.
OMB Control Number 0693–0021.
Form Number(s): None.
Type of Request: Revision and
extension of current information
collection.
Number of Respondents: 13,000.
Average Hours per Response: 12
minutes.
Burden Hours: 2,600.
Needs and Uses: The objective of the
NIST Manufacturing Extension
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16:31 Aug 21, 2020
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Partnership Program (MEP) is to
enhance productivity, technological
performance, and strengthen the global
competitiveness of small-and mediumsized U.S.-based manufacturing firms.
Through this client impact survey, the
MEP will collect data necessary for
program accountability; analysis and
research into the effectiveness of the
MEP program; reports to stakeholders;
GPRA; continuous improvement efforts;
knowledge sharing across the MEP
system; and identification of best
practices. Collection of this data is
needed in order to comply with the
MEP charter, as mandated by Congress.
Affected Public: Private sector.
Frequency: Annually.
Respondent’s Obligation: Voluntary.
Legal Authority: Not applicable.
This information collection request
may be viewed at www.reginfo.gov.
Follow the instructions to view the
Department of Commerce collections
currently under review by OMB.
Written comments and
recommendations for the proposed
information collection should be
submitted within 30 days of the
publication of this notice on the
following website www.reginfo.gov/
public/do/PRAMain. Find this
particular information collection by
selecting ‘‘Currently under 30-day
Review—Open for Public Comments’’ or
by using the search function and
entering either the title of the collection
or the OMB Control Number 0693–0021.
Sheleen Dumas,
Department PRA Clearance Officer, Office of
the Chief Information Officer, Commerce
Department.
[FR Doc. 2020–18495 Filed 8–21–20; 8:45 am]
BILLING CODE 3510–13–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XA400]
Mid-Atlantic Fishery Management
Council (MAFMC); Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; public meeting.
AGENCY:
The Mid-Atlantic Fishery
Management Council’s (Council)
Scientific and Statistical Committee
(SSC) will hold a meeting.
DATES: The meeting will be held on
Tuesday, September 8, 2020, from 12:30
p.m. through 5:30 p.m., and Wednesday,
SUMMARY:
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52089
September 9, 2020, from 8:30 a.m.
through 1 p.m. See SUPPLEMENTARY
INFORMATION for agenda details.
The meeting will take place
over webinar with a telephone-only
connection option. Details on how to
connect to the webinar by computer and
by telephone will be available at: https://
www.mafmc.org/ssc.
Council address: Mid-Atlantic Fishery
Management Council, 800 N. State
Street, Suite 201, Dover, DE 19901;
telephone: (302) 674–2331; website:
www.mafmc.org.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Christopher M. Moore, Ph.D., Executive
Director, Mid-Atlantic Fishery
Management Council, telephone: (302)
526–5255.
The
purpose of this meeting is to review the
most recent survey and fishery data and
the previously recommended 2021 ABC
for spiny dogfish. The SSC will consider
revising the 2021 ABC recommendation
and recommend an ABC for the 2022
fishing year utilizing the Council’s new
risk policy. The SSC will also review
the most recent survey and fishery data
and the previously recommended 2021
ABC for chub mackerel. The SSC will
discuss the possible scientific
uncertainty considerations due to
missing catch and survey data in 2020
due to COVID–19 restrictions. The SSC
will also discuss the science
implications and fishery interactions
associated with offshore wind
development. The SSC will also provide
feedback and direction for increased
application of the Mid-Atlantic State of
the Ecosystem report by the SSC. The
SSC will also receive updates on a
number of topics, including: The
development of a new SSC
socioeconomic workgroup, future stock
assessment schedule, possible topics for
the joint Council/SSC meeting, and
research priorities. In addition, the SSC
may take up any other business as
necessary.
A detailed agenda and background
documents will be made available on
the Council’s website (www.mafmc.org)
prior to the meeting.
SUPPLEMENTARY INFORMATION:
Special Accommodations
These meetings are physically
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E:\FR\FM\24AUN1.SGM
24AUN1
Agencies
[Federal Register Volume 85, Number 164 (Monday, August 24, 2020)]
[Notices]
[Pages 52086-52089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18529]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-125]
Certain Vertical Shaft Engines Between 99cc and up to 225cc, and
Parts Thereof, From the People's Republic of China: Preliminary
Affirmative Countervailing Duty 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
[[Page 52087]]
that countervailable subsidies are being provided to producers and
exporters 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). The period of investigation is January 1,
2019 through December 31, 2019. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable August 24, 2020.
FOR FURTHER INFORMATION CONTACT: Ajay Menon or Adam Simons, 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) 482-1993 or (202) 482-6172,
respectively.
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 April 14,
2020.\1\ On May 20, 2020, Commerce postponed the preliminary
determination of this investigation to August 17, 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
https://access.trade.gov. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\1\ See Certain Vertical Shaft Engines between 99cc and up to
225cc, and Parts Thereof from the People's Republic of China:
Initiation of Countervailing Duty Investigation, 85 FR 20667 (April
14, 2020) (Initiation Notice).
\2\ See Certain Vertical Shaft Engines between 99cc and up to
225cc, and Parts Thereof, from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 85 FR 30683 (May 20, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Vertical Shaft Engines Between 99cc and up to 225cc, and Parts
Thereof, from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation are small vertical
engines between 99cc and up to 225cc, and parts thereof, from China.
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 scope comments
submitted on the record of this preliminary determination, and
accompanying discussion and analysis of all comments timely received,
see the Preliminary Scope Memorandum.\6\ Commerce is preliminarily
modifying the scope language as it appeared in the Initiation Notice to
exclude commercial engines. See revised scope in Appendix I.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Certain Vertical Shaft Engines Between 99cc and Up
To 225cc, and Parts Thereof from the People's Republic of China:
Scope Comments Decision Memorandum for the Preliminary
Determination,'' dated August 17, 2020.
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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 gives
rise to a benefit to the recipient, and that the subsidy is
specific.\7\
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\7\ 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.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\8\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of small vertical engines from China based on a
request made by the petitioner.\9\ 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
December 28, 2020, unless postponed.
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\9\ See Petitioner's Letter, ``Certain Vertical Shaft Engines
Between 99cc and Up To 225cc, and Parts Thereof, From the People's
Republic of China: Petitioner's Request for Alignment of the Final
Countervailing Duty and Antidumping Duty Final Determinations,''
dated August 4, 2020.
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All-Others Rate
Sections 703(d) 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
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Chongqing Kohler Engines Ltd.
(Chongqing Kohler) and Chongqing Zongshen General Power Machine Co.
Ltd. (Chongqing Zongshen) that are not zero, de minimis , or based
entirely on facts otherwise available. Commerce calculated the all-
others rate using a simple average of the individual estimated subsidy
rates calculated for the examined respondents.\10\
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\10\ We calculated the all-others rate using the simple average
of Chongqing Kohler and Chongqing Zongshen's subsidy rates.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with
Chongqing Kohler: Kohler (China) Investment Company.
\12\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Chongqing Zongshen: Chongqing Zongshen Power Machinery Co., Ltd.;
Zong Shen Industrial Group; Chongqing Zongshen Automobile Air Intake
System Manufacturing Co., Ltd.; Chongqing Zongshen High Speed Boat
Development Co., Ltd.; Chongqing Zong Shen Electrical Appliance Co.,
Ltd.; and Chongqing Dajiang Power Equipment Co., Ltd.
[[Page 52088]]
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Subsidy rate
Company (percent)
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Chongqing Kohler Engines Ltd.\11\....................... 13.45
Chongqing Zongshen General Power Machine Co.\12\........ 21.29
All Others.............................................. 17.37
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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.\13\ 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.
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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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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 a date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before 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 further notice.\14\
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\14\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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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 the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the 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: August 17, 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, 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.
Specifically excluded from the scope of the investigation are
``Commercial'' or ``Heavy Commercial'' engines under 40 CFR 1054.107
and 1054.135 that have (1) a displacement of 160 cc or greater, (2)
a cast iron cylinder liner, (3) an automatic compression release,
and (4) a muffler with at least three chambers and volume greater
than 400 cc.
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
[[Page 52089]]
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 of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2020-18529 Filed 8-21-20; 8:45 am]
BILLING CODE 3510-DS-P