Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination, 1933-1935 [2021-00212]

Download as PDF jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Notices the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments may be sent through the Federal eRulemaking Portal: Go to https://www.regulations.gov and, in the ‘‘Search’’ box, enter the Docket ID No ‘‘RUS–20–ELECTRIC–0049’’ to submit or view public comments and to view supporting and related materials available electronically. Information on using Regulations.gov, including instructions for accessing documents, submitting comments, and viewing the docket after the close of the comment period, is available through the site’s ‘‘Help’’ button at the top of the page. Title: Assistance to High Energy Cost Rural Communities. OMB Number: 0572–0136. Expiration Date of Approval: June 30, 2021. Type of Request: Extension of a currently approved information collection. Abstract: The Rural Electrification Act of 1936 (RE Act) (7 U.S.C. 901 et seq.) was mended in November 2000 to create a new program to help rural communities with extremely high energy costs (Pub. L. 106–472). Under the new section 19 of the RE Act (7 U.S.C. 918a), the Secretary of Agriculture through RUS, is authorized to provide financial assistance. Estimate of Burden: Public reporting burden for this collection of information is estimated to average 3.4 hours per response. Respondents: Business or other forprofit, not-for-profit institutions, State, Local, or Tribal Government. Estimated Number of Respondents: 60. Estimated Number of Responses: 344 Estimated Number of Responses per Respondent: 5.73. Estimated Total Annual Burden on Respondents: 1,172. Copies of this information collection can be obtained from Kimble Brown, Management Analyst, Innovation Center, Regulations Management Division, at (202) 720–6780. All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record. Chad Rupe, Administrator, Rural Utilities Service. [FR Doc. 2021–00291 Filed 1–8–21; 8:45 am] BILLING CODE P VerDate Sep<11>2014 22:36 Jan 08, 2021 Jkt 253001 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: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and/or exporters of certain vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People’s Republic of China (China). DATES: Applicable January 11, 2021. FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4261. SUPPLEMENTARY INFORMATION: AGENCY: Background The petitioners in this investigation are the Coalition of American Vertical Engine Producers and its individual members.1 In addition to the Government of China, the mandatory respondents in this investigation are Loncin Motor Co. (Loncin) and Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen). On June 19, 2020, Commerce published in the Federal Register the Preliminary Determination of this investigation.2 On November 4, 2020, Commerce issued a Post-Preliminary Analysis.3 For a complete description of the events that followed the Preliminary Determination of this investigation, see 1 Individual members are Kohler Co. and Briggs & Stratton Corporation. 2 See 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, 85 FR 37061 (June 19, 2020) (Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM). 3 See Memorandum, ‘‘Post-Preliminary Analysis of Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China,’’ dated June 4, 2020. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 1933 the Issues and Decision Memorandum.4 The Issues and 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 Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Scope of the Investigation The products covered by this investigation are certain vertical shaft engines from China. For a complete description of the scope of this investigation, see Appendix I. Period of Investigation The period of investigation is January 1, 2019 through December 31, 2019. Use of Adverse Facts Available In making this final determination, Commerce is relying on facts otherwise available, including adverse facts available (AFA), pursuant to section 776(a) and (b) of the Tariff Act of 1930, as amended (the Act). For a full discussion of our application of AFA, see the Preliminary Determination.5 Analysis of Comments Received In the Issues and Decision Memorandum, we address all issues raised in parties’ case and rebuttal briefs. A list of the issues that parties raised, and to which we responded, is attached to this notice as Appendix II. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, we made changes to Loncin and Zongshen’s subsidy rate calculations. For a discussion of the changes, see the Issues and Decision Memorandum.6 4 See Memorandum, ‘‘Decision Memorandum for the Final Affirmative Determination and Final 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 (Issues and Decision Memorandum). 5 We are making no changes to our application of AFA, and thus incorporate by reference our discussion from the Preliminary Determination. See PDM at ‘‘Use of Facts Otherwise Available and Adverse Inferences.’’ 6 See Issues and Decision Memorandum at ‘‘Analysis of Programs.’’ E:\FR\FM\11JAN1.SGM 11JAN1 1934 Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Notices All-Others Rate In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce calculated a countervailable subsidy rate for the individually investigated exporters/producers of the subject merchandise. Consistent with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, Commerce also calculated an estimated all-others rate for exporters and producers not individually investigated. Section 705(c)(5)(A)(i) of the Act provides that the all-others rate shall be an amount equal to the weighted-average of the countervailable subsidy rates established for individually investigated exporters and producers, excluding any rates that are zero or de minimis or any rates determined entirely under section 776 of the Act. In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Loncin and Zongshen that are not zero, de minimis, or based entirely on facts otherwise available. Therefore, 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.7 Final Negative Determination of Critical Circumstances Commerce determines that critical circumstances do not exist within the meaning of 703(e)(1) of the Act. For further information, see Issues and Decision Memorandum. jbell on DSKJLSW7X2PROD with NOTICES Final Determination In accordance with section 705(c)(1)(B)(i)(I) of the Act, we established individual estimated countervailable subsidy rates for 7 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 were available, Commerce based the allothers rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, please see the All-Others Rate Calculation Memorandum dated concurrently with this determination. VerDate Sep<11>2014 22:36 Jan 08, 2021 Jkt 253001 final determination in this proceeding is affirmative, in accordance with section 705(b) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States Subsidy rate is materially injured, or threatened with Producers/exporters (percent) material injury, by reason of imports of certain vertical shaft engines from China Loncin Motor Co. .................. 17.75 no later than 45 days after our final Chongqing Zongshen General Power Machine Co. ... 19.29 determination. If the ITC determines All Others .............................. 18.72 that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits Disclosure will be refunded. If the ITC determines We intend to disclose to parties in that such injury does exist, Commerce this proceeding the calculations will issue a CVD order directing CBP to performed for this final determination assess, upon further instruction by within five days of the date of public Commerce, countervailing duties on all announcement of our final imports of the subject merchandise determination, in accordance with 19 entered, or withdrawn from warehouse, CFR 351.224(b). for consumption on or after the effective date of the suspension of liquidation, as Continuation of Suspension of discussed above in the ‘‘Continuation of Liquidation Suspension of Liquidation’’ section. As a result of our Preliminary Determination, and pursuant to sections Notification Regarding Administrative 703(d)(1)(B) and (2) of the Act, we Protective Orders instructed U.S. Customs and Border This notice will serve as a reminder Protection (CBP) to suspend liquidation to the parties subject to administrative of all entries of merchandise under protective order (APO) of their consideration from China that were responsibility concerning the entered or withdrawn from warehouse, disposition of propriety information for consumption, on or after June 19, disclosed under APO in accordance 2020, the date of publication of the with 19 CFR 351.305(a)(3). Timely Preliminary Determination in the written notification of return or Federal Register. In accordance with destruction of APO materials or section 703(d) of the Act, we issued conversion to judicial protective order is instructions to CBP to discontinue the hereby requested. Failure to comply suspension of liquidation for CVD with the regulations and terms of an purposes for subject merchandise APO is a sanctionable violation. entered, or withdrawn from warehouse, Notification to Interested Parties on or after October 17, 2020, but to continue the suspension of liquidation This determination is issued and of all entries from June 19, 2020 through published in accordance with sections October 16, 2020. 735(d) and 777(i)(1) of the Act and 19 If the U.S. International Trade CFR 351.210(c). Commission (the ITC) issues a final Dated: January 4, 2021. affirmative injury determination, we Jeffrey I. Kessler, will issue a CVD order and will reinstate Assistant Secretary for Enforcement and the suspension of liquidation under Compliance. section 706(a) of the Act and will require a cash deposit of estimated Appendix I CVDs for such entries of subject Scope of the Investigation merchandise in the amounts indicated The merchandise covered by this above. If the ITC determines that investigation consists of spark-ignited, nonmaterial injury, or threat of material road, vertical shaft engines, whether finished injury, does not exist, this proceeding or unfinished, whether assembled or will be terminated and all estimated unassembled, primarily for riding lawn duties deposited or securities posted as mowers and zero-turn radius lawn mowers. a result of the suspension of liquidation Engines meeting this physical description may also be for other non-hand-held outdoor will be refunded or canceled. Loncin, and Zongshen. Commerce determines the total estimated net countervailable subsidy rates to be the following: International Trade Commission Notification In accordance with section 705(d) of the Act, we will notify the U.S. International Trade Commission (ITC) of the final affirmative determination of countervailable subsidies. Because the PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 power equipment such as, including but not limited to, tow-behind brush mowers, grinders, and vertical shaft generators. The subject engines are spark ignition, single or multiple cylinder, air cooled, internal combustion engines with vertical power take off shafts with a minimum displacement of 225 cubic centimeters (cc) and a maximum displacement of 999cc. Typically, engines E:\FR\FM\11JAN1.SGM 11JAN1 Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Notices 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. jbell on DSKJLSW7X2PROD with NOTICES Appendix II List of Topics Discussed in the Decision Memorandum I. Summary II. Background III. Final Negative Determination of Critical Circumstances IV. Scope Comments V. Scope of the Investigation VI. Subsidies Valuation VII. Analysis of Programs General Issues Comment 1: Export Buyer’s Credit Program Comment 2: Policy Loans to the VSE Industry Comment 3: Electricity for LTAR Program Comment 4: Whether Input Suppliers are Authorities Comment 5: Income Tax Deduction for R&D Expenses VerDate Sep<11>2014 22:36 Jan 08, 2021 Jkt 253001 Comment 6: Uncreditworthiness Findings Comment 7: Benchmark for Unwrought Aluminum Comment 8: Inland Freight Rates for the Unwrought Aluminum Benchmark Comment 9: Critical Circumstances Issues Related to Zongshen Comment 10: Denominators and Attribution of Subsidies for Zongshen Affiliates Comment 11: Alleged Error in Zongshen’s Policy Lending Calculations Comment 12: Zongshen Power’s Electricity Calculations Comment 13: Minor Corrections for Export Seller’s Credits and Policy Loans to the VSE Industry Programs Comment 14: Alleged Error in Zongshen’s Export Seller’s Credits Program Calculations Comment 15: Zongshen’s Land-Use Rights for LTAR Comment 16: Zongshen’s Consolidated Sales Denominators Issues Related to Loncin Comment 17: Income Tax Deduction for R&D Expenses Program Comment 18: Whether Loans Received by Loncin Group and Loncin Holdings are Policy Loans to the VSE Industry Comment 19: Loncin’s Loan Calculations Comment 20: Loncin’s Unwrought Aluminum Calculations Comment 21: Loncin’s Other Subsidies Comment 22: Loncin’s Policy Loans Comment 23: Loans from DBS Bank China Comment 24: Alleged Errors in Loncin’s Electricity for LTAR Calculations Comment 25: Loncin’s Sales Denominators Comment 26: Loncin’s Land-Use Rights for LTAR Calculations VIII. Analysis of Comments IX. Recommendation [FR Doc. 2021–00212 Filed 1–8–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–351–844] Cold-Rolled Steel Flat Products From Brazil: Rescission of Countervailing Duty Administrative Review; 2019 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) is rescinding its administrative review of the countervailing duty (CVD) order on cold-rolled steel flat products (CRS flat products) from Brazil for the period of review (POR) January 1, 2019, through December 31, 2019. DATES: Applicable January 11, 2021. FOR FURTHER INFORMATION CONTACT: Alex Wood, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, AGENCY: PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 1935 U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1959. SUPPLEMENTARY INFORMATION: Background On September 1, 2020, Commerce published in the Federal Register a notice of opportunity to request an administrative review of the CVD order on CRS flat products from Brazil for the POR.1 Commerce received a timely request from Nucor Corporation and United States Steel Corporation (the petitioners), in accordance with section 751(a) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.213(b) to conduct an administrative review of this CVD order with respect to ten companies.2 On October 30, 2020, Commerce published in the Federal Register a notice of initiation with respect to these companies.3 On December 17, 2020, the petitioners timely withdrew their request for an administrative review with respect to all ten companies.4 Rescission of Administrative Review Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an administrative review, in whole or in part, if the parties that requested a review withdraw the request within 90 days of the date of publication of the notice of initiation of the requested review. The petitioners withdrew their request for review before the 90-day deadline, and no other party requested an administrative review of this order. Therefore, we are rescinding the administrative review of the CVD order on CRS flat products from Brazil covering the period January 1, 2019, through December 31, 2019, in its entirety. 1 See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 85 FR 54350 (September 1, 2020). 2 See Petitioners’ Letter, ‘‘Cold-Rolled Steel Flat Products from Brazil: Errata to September 30, 2020 Request for Administrative Review of Countervailing Duty Order to Correct Case Number Typographical Error,’’ dated October 1, 2020 (requesting for review of Aperam Inox America do Sul S.A.; ArcelorMittal Brasil S.A.; Armco do Brasil S.A.; Arvedi Metalfer do Brasil; Companhia Siderurgica Nacional; NVent do Brasil Eletrometalurgica; Signode Brasileira Ltda.; Usinas Siderurgicas de Minas Gerais (Usiminas); Villares Metals S.A.; Waelzholz Brasmetal Laminacao Ltda.); and Memorandum, ‘‘Acceptance of Review Request as Timely Filed,’’ dated October 2, 2020. 3 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 85 FR 68845 (October 30, 2020). 4 See Petitioners’ Letter, ‘‘Cold-Rolled Steel Flat Products from Brazil: Withdrawal of Request for Administrative Review of Countervailing Duty Order,’’ dated December 17, 2020. E:\FR\FM\11JAN1.SGM 11JAN1

Agencies

[Federal Register Volume 86, Number 6 (Monday, January 11, 2021)]
[Notices]
[Pages 1933-1935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00212]


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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: Final Affirmative 
Countervailing Duty Determination and Final Negative Critical 
Circumstances Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and/or 
exporters of certain vertical shaft engines between 225cc and 999cc, 
and parts thereof (vertical shaft engines) from the People's Republic 
of China (China).

DATES: Applicable January 11, 2021.

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

    The petitioners in this investigation are the Coalition of American 
Vertical Engine Producers and its individual members.\1\ In addition to 
the Government of China, the mandatory respondents in this 
investigation are Loncin Motor Co. (Loncin) and Chongqing Zongshen 
General Power Machine Co., Ltd. (Zongshen).
---------------------------------------------------------------------------

    \1\ Individual members are Kohler Co. and Briggs & Stratton 
Corporation.
---------------------------------------------------------------------------

    On June 19, 2020, Commerce published in the Federal Register the 
Preliminary Determination of this investigation.\2\ On November 4, 
2020, Commerce issued a Post-Preliminary Analysis.\3\ For a complete 
description of the events that followed the Preliminary Determination 
of this investigation, see the Issues and Decision Memorandum.\4\ The 
Issues and 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 Issues and Decision Memorandum can 
be accessed directly at https://enforcement.trade.gov/frn/. The signed 
and electronic versions of the Issues and Decision Memorandum are 
identical in content.
---------------------------------------------------------------------------

    \2\ See 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, 85 FR 37061 
(June 19, 2020) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \3\ See Memorandum, ``Post-Preliminary Analysis of 
Countervailing Duty Investigation of Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof from the People's 
Republic of China,'' dated June 4, 2020.
    \4\ See Memorandum, ``Decision Memorandum for the Final 
Affirmative Determination and Final 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 (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

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

Period of Investigation

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

Use of Adverse Facts Available

    In making this final determination, Commerce is relying on facts 
otherwise available, including adverse facts available (AFA), pursuant 
to section 776(a) and (b) of the Tariff Act of 1930, as amended (the 
Act). For a full discussion of our application of AFA, see the 
Preliminary Determination.\5\
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    \5\ We are making no changes to our application of AFA, and thus 
incorporate by reference our discussion from the Preliminary 
Determination. See PDM at ``Use of Facts Otherwise Available and 
Adverse Inferences.''
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Analysis of Comments Received

    In the Issues and Decision Memorandum, we address all issues raised 
in parties' case and rebuttal briefs. A list of the issues that parties 
raised, and to which we responded, is attached to this notice as 
Appendix II.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made changes to Loncin and Zongshen's subsidy rate 
calculations. For a discussion of the changes, see the Issues and 
Decision Memorandum.\6\
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    \6\ See Issues and Decision Memorandum at ``Analysis of 
Programs.''

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[[Page 1934]]

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce 
calculated a countervailable subsidy rate for the individually 
investigated exporters/producers of the subject merchandise. Consistent 
with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, Commerce 
also calculated an estimated all-others rate for exporters and 
producers not individually investigated. Section 705(c)(5)(A)(i) of the 
Act provides that the all-others rate shall be an amount equal to the 
weighted-average of the countervailable subsidy rates established for 
individually investigated exporters and producers, excluding any rates 
that are zero or de minimis or any rates determined entirely under 
section 776 of the Act. In this investigation, Commerce calculated 
individual estimated countervailable subsidy rates for Loncin and 
Zongshen that are not zero, de minimis, or based entirely on facts 
otherwise available. Therefore, 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.\7\
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    \7\ 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 were 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, please see the All-Others Rate Calculation Memorandum 
dated concurrently with this determination.
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Final Negative Determination of Critical Circumstances

    Commerce determines that critical circumstances do not exist within 
the meaning of 703(e)(1) of the Act. For further information, see 
Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates for 
Loncin, and Zongshen. Commerce determines the total estimated net 
countervailable subsidy rates to be the following:

------------------------------------------------------------------------
                                                           Subsidy rate
                   Producers/exporters                       (percent)
------------------------------------------------------------------------
Loncin Motor Co.........................................           17.75
Chongqing Zongshen General Power Machine Co.............           19.29
All Others..............................................           18.72
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from China that were entered or 
withdrawn from warehouse, for consumption, on or after June 19, 2020, 
the date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after October 17, 2020, but to continue the suspension 
of liquidation of all entries from June 19, 2020 through October 16, 
2020.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of countervailable subsidies. Because the final 
determination in this proceeding is affirmative, in accordance with 
section 705(b) of the Act, the ITC will make its final determination as 
to whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
certain vertical shaft engines from China no later than 45 days after 
our final determination. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
effective date of the suspension of liquidation, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: January 4, 2021.
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 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

[[Page 1935]]

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 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.

Appendix II

List of Topics Discussed in the Decision Memorandum

I. Summary
II. Background
III. Final Negative Determination of Critical Circumstances
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation
VII. Analysis of Programs
    General Issues
    Comment 1: Export Buyer's Credit Program
    Comment 2: Policy Loans to the VSE Industry
    Comment 3: Electricity for LTAR Program
    Comment 4: Whether Input Suppliers are Authorities
    Comment 5: Income Tax Deduction for R&D Expenses
    Comment 6: Uncreditworthiness Findings
    Comment 7: Benchmark for Unwrought Aluminum
    Comment 8: Inland Freight Rates for the Unwrought Aluminum 
Benchmark
    Comment 9: Critical Circumstances
    Issues Related to Zongshen
    Comment 10: Denominators and Attribution of Subsidies for 
Zongshen Affiliates
    Comment 11: Alleged Error in Zongshen's Policy Lending 
Calculations
    Comment 12: Zongshen Power's Electricity Calculations
    Comment 13: Minor Corrections for Export Seller's Credits and 
Policy Loans to the VSE Industry Programs
    Comment 14: Alleged Error in Zongshen's Export Seller's Credits 
Program Calculations
    Comment 15: Zongshen's Land-Use Rights for LTAR
    Comment 16: Zongshen's Consolidated Sales Denominators
    Issues Related to Loncin
    Comment 17: Income Tax Deduction for R&D Expenses Program
    Comment 18: Whether Loans Received by Loncin Group and Loncin 
Holdings are Policy Loans to the VSE Industry
    Comment 19: Loncin's Loan Calculations
    Comment 20: Loncin's Unwrought Aluminum Calculations
    Comment 21: Loncin's Other Subsidies
    Comment 22: Loncin's Policy Loans
    Comment 23: Loans from DBS Bank China
    Comment 24: Alleged Errors in Loncin's Electricity for LTAR 
Calculations
    Comment 25: Loncin's Sales Denominators
    Comment 26: Loncin's Land-Use Rights for LTAR Calculations
VIII. Analysis of Comments
IX. Recommendation

[FR Doc. 2021-00212 Filed 1-8-21; 8:45 am]
BILLING CODE 3510-DS-P