Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination, 12619-12621 [2021-04477]

Download as PDF Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices Subject merchandise also includes chassis, whether finished or unfinished, entered with or for further assembly with components such as, but not limited to: Hub and drum assemblies, brake assemblies (either drum or disc), axles, brake chambers, suspensions and suspension components, wheel end components, landing gear legs, spoke or disc wheels, tires, brake control systems, electrical harnesses and lighting systems. Processing of finished and unfinished chassis and components such as trimming, cutting, grinding, notching, punching, drilling, painting, coating, staining, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third country does not remove the product from the scope. Inclusion of other components not identified as comprising the finished or unfinished chassis does not remove the product from the scope. Individual components entered and sold by themselves are not subject to the investigation, but components entered with or for further assembly with a finished or unfinished chassis are subject merchandise. A finished chassis is ultimately comprised of several different types of subassemblies. Within each subassembly there are numerous components that comprise a given subassembly. This scope excludes dry van trailers, refrigerated van trailers and flatbed trailers. Dry van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer itself. Refrigerated van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer and being insulated, possessing specific thermal properties intended for use with selfcontained refrigeration systems. Flatbed (or platform) trailers consist of load-carrying main frames and a solid, flat or stepped loading deck or floor permanently incorporated with and supported by frame rails and cross members. The finished and unfinished chassis subject to this investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. Imports of finished and unfinished chassis may also enter under HTSUS subheading 8716.90.5010. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. jbell on DSKJLSW7X2PROD with NOTICES Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Scope Comments V. Respondent Selection VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 VI. Discussion of the Methodology VII. Adjustment Under Section 777A(f) of the Act VIII. Adjustment to Cash Deposit Rate for Export Subsidies IX. ITC Notification X. Recommendation [FR Doc. 2021–04409 Filed 3–3–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–120] Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People’s Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing a countervailing duty order on certain vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People’s Republic of China (China). In addition, Commerce is amending its final determination with respect to vertical shaft engines from China to correct ministerial errors. DATES: Applicable March 4, 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 In accordance with sections 705(a), 705(d), and 777(i)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on January 11, 2021, Commerce published its affirmative final determination that countervailable subsidies are being provided to producers and exporters of vertical shaft engines from China.1 In the investigation of vertical shaft engines 1 See 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, 86 FR 1933 (January 11, 2021) (Final Determination), and accompanying Issues and Decision Memorandum. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 12619 from China, the petitioners and a mandatory respondent submitted timely allegations on the record that Commerce made certain ministerial errors in the final countervailing duty determination on vertical shaft engines from China. Section 705(e) of the Act and 19 CFR 351.224(f) define ministerial errors as errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which Commerce considers ministerial. We reviewed the allegations and determined that we made certain ministerial errors in the final countervailing duty determination on vertical shaft engines from China. See ‘‘Amendment to the Final Determination’’ section below for further discussion. On February 24, 2021, the ITC notified Commerce of its affirmative final determination that pursuant to sections 705(b)(1)(A)(i) and 705(d) of the Act, that an industry in the United States is materially injured by reason of subsidized imports of subject merchandise from China.2 Scope of the Order The products covered by this order are certain large vertical shaft engines from China. For a complete description of the scope of the order, see the appendix to this notice. Amendment to the Final Determination of Vertical Shaft Engines From China On January 21, 2021, co-petitioner Kohler Co. (Kohler) and mandatory respondent Loncin Motor Co., Ltd. (Loncin) submitted timely ministerial error allegations regarding the Final Determination.3 On January 29, 2012, Kohler, mandatory respondent Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) and interested party MTD Products Inc. (MTD) submitted timely responses to the ministerial allegations.4 2 See ITC Letter, ‘‘Notification of ITC Final Determination,’’ dated February 24, 2021 (ITC Notification Letter). 3 See Kohler’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, from the People’s Republic of China: Ministerial Error Allegations,’’ dated January 21, 2021 (Kohler Allegations); Loncin’s Letter, ‘‘Loncin Comments on Ministerial Errors in the Final Determination and the Disclosed Calculations for Loncin: Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225CC and 999CC, and Parts Thereof From the People’s Republic of China (C–570–120),’’ dated January 21, 2021 (Loncin Allegations). 4 See Kohler’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, from the People’s Republic of China: E:\FR\FM\04MRN1.SGM Continued 04MRN1 12620 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices Commerce reviewed the record and agreed that certain errors referenced in Kohler and Loncin’s allegations constituted ministerial errors within the meaning of section 705(e) of the Act and 19 CFR 351.224(f).5 Pursuant to 19 CFR 351.224(e), Commerce is amending the Final Determination to reflect the corrections of the ministerial errors described in the Ministerial Error Memorandum. Based on these corrections, the subsidy rate for Loncin changed from 17.75 to 18.96 percent, and the subsidy rate for Zongshen changed from 19.29 percent to 20.38 percent. Because we based the all-others rate on Loncin’s and Zongshen’s ad valorem subsidy rates, the all-others rate has also changed from 18.72 percent to 19.85 percent. Countervailing Duty (CVD) Order jbell on DSKJLSW7X2PROD with NOTICES On February 24, 2021, in accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, the ITC notified Commerce of its final determination in this investigation, in which it found that an industry in the United States is materially injured by reason of subsidized imports of vertical shaft engines from China.6 Therefore, in accordance with section 705(c)(2) of the Act, Commerce is issuing this countervailing duty order. Because the ITC determined that imports of vertical shaft engines from China are materially injuring a U.S. industry, unliquidated entries of such merchandise from China, entered or withdrawn from warehouse for consumption, are subject to the assessment of countervailing duties. Therefore, in accordance with section 706(a) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to assess, upon further instruction by Commerce, countervailing duties for all relevant entries of vertical shaft engines from China which are entered, or withdrawn from warehouse, for consumption on or after June 19, 2020, the date of publication of the Response to Ministerial Error Comments,’’ dated January 29, 2021 (Kohler Response); Zongshen’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, from China; CVD Investigation; Chongqing Zongshen Response to Petitioner Ministerial Error Comments,’’ dated January 29, 2021 (Zongshen Response); and MTD’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof (VSEs) from the People’s Republic of China: MTD’s Response to Kohler Ministerial Error Comments,’’ dated January 29, 2021 (MTD Response). 5 See Memorandum, ‘‘Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Ministerial Error Allegations in the Final Determination,’’ dated concurrently with, and hereby adopted by, this notice (Ministerial Error Memorandum), at 2–6. 6 See ITC Notification Letter. VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 Preliminary Determination,7 but will not include entries occurring after the expiration of the provisional measures period and before the publication of the ITC’s final injury determinations under section 705(b) of the Act, as further described below. Suspension of Liquidation and Cash Deposits In accordance with section 706 of the Act, Commerce will instruct CBP to reinstitute the suspension of liquidation of vertical shaft engines from China, as described in the appendix to this notice, effective on the date of publication of the ITC’s notice of final determinations in the Federal Register, and to assess, upon further instruction by Commerce, pursuant to section 706(a)(1) of the Act, countervailing duties for each entry of the subject merchandise in an amount based on the net countervailable subsidy rates below. On or after the date of publication of the ITC’s final injury determinations in the Federal Register, CBP must require, at the same time as importers would deposit estimated normal customs duties on this merchandise, a cash deposit equal to the rates noted below. The all-others rate applies to all producers or exporters not specifically listed below. Producers/exporters Loncin Motor Co ......................... Chongqing Zongshen General Power Machine Co ................. All Others .................................... Subsidy rate (percent) 18.96 20.38 19.85 Provisional Measures Section 703(d) of the Act states that instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months. In the underlying investigations, Commerce published the Preliminary Determinations on June 19, 2020. As such, the four-month period beginning on the date of the publication of the Preliminary Determination ended on October 16, 2020. Furthermore, section 707(b) of the Act states that definitive duties are to begin on the date of publication of the ITC’s final injury determination. Therefore, in accordance with section 703(d) of the Act, we instructed CBP to terminate the 7 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. PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of vertical shaft engines from China, entered, or withdrawn from warehouse, for consumption, on or after October 17, 2020, the date on which the provisional measures expired, until and through the day preceding the date of publication of the ITC’s final injury determinations in the Federal Register. Suspension of liquidation will resume on the date of publication of the ITC’s final determinations in the Federal Register. Notification to Interested Parties This notice constitutes the CVD orders with respect to vertical shaft engines from China pursuant to section 706(a) of the Act. Interested parties can find a list of CVD orders currently in effect at http://enforcement.trade.gov/ stats/iastats1.html. This order is issued and published in accordance with section 706(a) of the Act and 19 CFR 351.211(b). Dated: February 26, 2021. Christian Marsh, Acting Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Order The merchandise covered by this order 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 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 order, an unfinished engine covers at a minimum a sub-assembly E:\FR\FM\04MRN1.SGM 04MRN1 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 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 order. The inclusion of other products such as spark plugs fitted into the cylinder head or electrical devices (e.g., ignition modules, ignition coils) for synchronizing with the motor to supply tension current does not remove the product from the scope. The inclusion of any other components not identified as comprising the unfinished engine subassembly in a third country does not remove the engine from the scope. The engines subject to this order 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 order 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 subject to this order is dispositive. [FR Doc. 2021–04477 Filed 3–3–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–896] Magnesium Metal From the People’s Republic of China: Preliminary Results of Antidumping Administrative Review; 2019–20 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) is conducting the administrative review of the antidumping duty (AD) order on magnesium metal from the People’s Republic of China (China). The period of review (POR) is April 1, 2019, through March 31, 2020. Commerce preliminarily determines that Tianjin Magnesium International Co., Ltd. (TMI) and Tianjin Magnesium Metal Co., Ltd. (TMM) did not have reviewable entries during the POR. We invite interested parties to comment on these preliminary results. DATES: Applicable March 4, 2021. FOR FURTHER INFORMATION CONTACT: Kyle Clahane, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 jbell on DSKJLSW7X2PROD with NOTICES AGENCY: VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5449. SUPPLEMENTARY INFORMATION: Background On April 1, 2020, Commerce published in the Federal Register a notice of opportunity to request an administrative review of the AD order on magnesium metal from China for the POR.1 On June 8, 2020, in response to a timely request from the petitioner,2 and in accordance with section 751(a) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.221(c)(1)(i), we initiated an administrative review of the Order with respect to TMI and TMM.3 On April 24, 2020, Commerce tolled all deadlines for administrative reviews by 50 days.4 On July 21, 2020, Commerce tolled all deadlines in administrative reviews by an additional 60 days.5 The deadline for the preliminary results of this review is now March 1, 2021. Scope of the Order The product covered by the Order is magnesium metal from China, which includes primary and secondary alloy magnesium metal, regardless of chemistry, raw material source, form, shape, or size. Magnesium is a metal or alloy containing by weight primarily the element magnesium. Primary magnesium is produced by decomposing raw materials into magnesium metal. Secondary magnesium is produced by recycling magnesium-based scrap into magnesium metal. The magnesium covered by the Order includes blends of primary and secondary magnesium. The subject merchandise includes the following alloy magnesium metal products made from primary and/or secondary magnesium including, without limitation, magnesium cast into ingots, slabs, rounds, billets, and other shapes; magnesium ground, chipped, crushed, or machined into rasping, 1 See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review, 85 FR 18191 (April 1, 2020); see also Notice of Antidumping Duty Order: Magnesium Metal From the People’s Republic of China, 70 FR 19928 (April 15, 2005) (Order). 2 See U.S. Magnesium LLC’s Letter, ‘‘Magnesium Metal from the People’s Republic of China/Request for Administrative Review,’’ dated April 30, 2020. 3 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 85 FR 35068 (June 8, 2020). 4 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Administrative Reviews in Response to Operational Adjustments Due to COVID–19,’’ dated April 24, 2020. 5 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Administrative Reviews,’’ dated July 21, 2020. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 12621 granules, turnings, chips, powder, briquettes, and other shapes; and products that contain 50 percent or greater, but less than 99.8 percent, magnesium, by weight, and that have been entered into the United States as conforming to an ‘‘ASTM Specification for Magnesium Alloy’’ 6 and are thus outside the scope of the existing antidumping orders on magnesium from China (generally referred to as ‘‘alloy’’ magnesium). The scope of the Order excludes: (1) All forms of pure magnesium, including chemical combinations of magnesium and other material(s) in which the pure magnesium content is 50 percent or greater, but less than 99.8 percent, by weight, that do not conform to an ‘‘ASTM Specification for Magnesium Alloy’’; 7 (2) magnesium that is in liquid or molten form; and (3) mixtures containing 90 percent or less magnesium in granular or powder form by weight and one or more of certain non-magnesium granular materials to make magnesium-based reagent mixtures, including lime, calcium metal, calcium silicon, calcium carbide, calcium carbonate, carbon, slag coagulants, fluorspar, nephaline syenite, feldspar, alumina (Al203), calcium aluminate, soda ash, hydrocarbons, graphite, coke, silicon, rare earth metals/mischmetal, cryolite, silica/fly ash, magnesium oxide, periclase, ferroalloys, dolomite lime, and colemanite.8 The merchandise subject to this order is classifiable under items 8104.19.00, and 8104.30.00 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS items are provided for 6 The meaning of this term is the same as that used by the American Society for Testing and Materials in its Annual Book for ASTM Standards: Volume 01.02 Aluminum and Magnesium Alloys. 7 The material is already covered by existing antidumping orders. See Notice of Antidumping Duty Orders: Pure Magnesium from the People’s Republic of China, the Russian Federation and Ukraine; Notice of Amended Final Determination of Sales at Less Than Fair Value: Antidumping Duty Investigation of Pure Magnesium from the Russian Federation, 60 FR 25691 (May 12, 1995); and Antidumping Duty Order: Pure Magnesium in Granular Form from the People’s Republic of China, 66 FR 57936 (November 19, 2001). 8 This third exclusion for magnesium-based reagent mixtures is based on the exclusion for reagent mixtures in the 2000–2001 investigations of magnesium from China, Israel, and Russia. See Final Determination of Sales at Less Than Fair Value: Pure Magnesium in Granular Form from the People’s Republic of China, 66 FR 49345 (September 27, 2001); see also Final Determination of Sales at Less Than Fair Value: Pure Magnesium from Israel, 66 FR 49349 (September 27, 2001); and, Final Determination of Sales at Not Less Than Fair Value: Pure Magnesium From the Russian Federation, 66 FR 49347 (September 27, 2001). These mixtures are not magnesium alloys, because they are not combined in liquid form and cast into the same ingot. E:\FR\FM\04MRN1.SGM 04MRN1

Agencies

[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12619-12621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04477]


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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: Countervailing Duty Order 
and Amended Final Affirmative Countervailing Duty Determination

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on certain vertical 
shaft engines between 225cc and 999cc, and parts thereof (vertical 
shaft engines) from the People's Republic of China (China). In 
addition, Commerce is amending its final determination with respect to 
vertical shaft engines from China to correct ministerial errors.

DATES: Applicable March 4, 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

    In accordance with sections 705(a), 705(d), and 777(i)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on 
January 11, 2021, Commerce published its affirmative final 
determination that countervailable subsidies are being provided to 
producers and exporters of vertical shaft engines from China.\1\ In the 
investigation of vertical shaft engines from China, the petitioners and 
a mandatory respondent submitted timely allegations on the record that 
Commerce made certain ministerial errors in the final countervailing 
duty determination on vertical shaft engines from China. Section 705(e) 
of the Act and 19 CFR 351.224(f) define ministerial errors as errors in 
addition, subtraction, or other arithmetic function, clerical errors 
resulting from inaccurate copying, duplication, or the like, and any 
other type of unintentional error which Commerce considers ministerial. 
We reviewed the allegations and determined that we made certain 
ministerial errors in the final countervailing duty determination on 
vertical shaft engines from China. See ``Amendment to the Final 
Determination'' section below for further discussion.
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    \1\ See 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, 86 FR 1933 (January 11, 2021) 
(Final Determination), and accompanying Issues and Decision 
Memorandum.
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    On February 24, 2021, the ITC notified Commerce of its affirmative 
final determination that pursuant to sections 705(b)(1)(A)(i) and 
705(d) of the Act, that an industry in the United States is materially 
injured by reason of subsidized imports of subject merchandise from 
China.\2\
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    \2\ See ITC Letter, ``Notification of ITC Final Determination,'' 
dated February 24, 2021 (ITC Notification Letter).
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Scope of the Order

    The products covered by this order are certain large vertical shaft 
engines from China. For a complete description of the scope of the 
order, see the appendix to this notice.

Amendment to the Final Determination of Vertical Shaft Engines From 
China

    On January 21, 2021, co-petitioner Kohler Co. (Kohler) and 
mandatory respondent Loncin Motor Co., Ltd. (Loncin) submitted timely 
ministerial error allegations regarding the Final Determination.\3\ On 
January 29, 2012, Kohler, mandatory respondent Chongqing Zongshen 
General Power Machine Co., Ltd. (Zongshen) and interested party MTD 
Products Inc. (MTD) submitted timely responses to the ministerial 
allegations.\4\
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    \3\ See Kohler's Letter, ``Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof, from the People's 
Republic of China: Ministerial Error Allegations,'' dated January 
21, 2021 (Kohler Allegations); Loncin's Letter, ``Loncin Comments on 
Ministerial Errors in the Final Determination and the Disclosed 
Calculations for Loncin: Countervailing Duty Investigation of 
Certain Vertical Shaft Engines Between 225CC and 999CC, and Parts 
Thereof From the People's Republic of China (C-570-120),'' dated 
January 21, 2021 (Loncin Allegations).
    \4\ See Kohler's Letter, ``Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof, from the People's 
Republic of China: Response to Ministerial Error Comments,'' dated 
January 29, 2021 (Kohler Response); Zongshen's Letter, ``Certain 
Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, 
from China; CVD Investigation; Chongqing Zongshen Response to 
Petitioner Ministerial Error Comments,'' dated January 29, 2021 
(Zongshen Response); and MTD's Letter, ``Certain Vertical Shaft 
Engines Between 225cc and 999cc, and Parts Thereof (VSEs) from the 
People's Republic of China: MTD's Response to Kohler Ministerial 
Error Comments,'' dated January 29, 2021 (MTD Response).

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[[Page 12620]]

    Commerce reviewed the record and agreed that certain errors 
referenced in Kohler and Loncin's allegations constituted ministerial 
errors within the meaning of section 705(e) of the Act and 19 CFR 
351.224(f).\5\ Pursuant to 19 CFR 351.224(e), Commerce is amending the 
Final Determination to reflect the corrections of the ministerial 
errors described in the Ministerial Error Memorandum. Based on these 
corrections, the subsidy rate for Loncin changed from 17.75 to 18.96 
percent, and the subsidy rate for Zongshen changed from 19.29 percent 
to 20.38 percent. Because we based the all-others rate on Loncin's and 
Zongshen's ad valorem subsidy rates, the all-others rate has also 
changed from 18.72 percent to 19.85 percent.
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    \5\ See Memorandum, ``Countervailing Duty Investigation of 
Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts 
Thereof from the People's Republic of China: Ministerial Error 
Allegations in the Final Determination,'' dated concurrently with, 
and hereby adopted by, this notice (Ministerial Error Memorandum), 
at 2-6.
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Countervailing Duty (CVD) Order

    On February 24, 2021, in accordance with sections 705(b)(1)(A)(i) 
and 705(d) of the Act, the ITC notified Commerce of its final 
determination in this investigation, in which it found that an industry 
in the United States is materially injured by reason of subsidized 
imports of vertical shaft engines from China.\6\ Therefore, in 
accordance with section 705(c)(2) of the Act, Commerce is issuing this 
countervailing duty order. Because the ITC determined that imports of 
vertical shaft engines from China are materially injuring a U.S. 
industry, unliquidated entries of such merchandise from China, entered 
or withdrawn from warehouse for consumption, are subject to the 
assessment of countervailing duties.
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    \6\ See ITC Notification Letter.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of vertical shaft engines from China which are entered, or 
withdrawn from warehouse, for consumption on or after June 19, 2020, 
the date of publication of the Preliminary Determination,\7\ but will 
not include entries occurring after the expiration of the provisional 
measures period and before the publication of the ITC's final injury 
determinations under section 705(b) of the Act, as further described 
below.
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    \7\ 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.
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Suspension of Liquidation and Cash Deposits

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation of vertical shaft 
engines from China, as described in the appendix to this notice, 
effective on the date of publication of the ITC's notice of final 
determinations in the Federal Register, and to assess, upon further 
instruction by Commerce, pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates below. On or 
after the date of publication of the ITC's final injury determinations 
in the Federal Register, CBP must require, at the same time as 
importers would deposit estimated normal customs duties on this 
merchandise, a cash deposit equal to the rates noted below. The all-
others rate applies to all producers or exporters not specifically 
listed below.

------------------------------------------------------------------------
                                                                Subsidy
                     Producers/exporters                         rate
                                                               (percent)
------------------------------------------------------------------------
Loncin Motor Co.............................................       18.96
Chongqing Zongshen General Power Machine Co.................       20.38
All Others..................................................       19.85
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Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigations, Commerce 
published the Preliminary Determinations on June 19, 2020. As such, the 
four-month period beginning on the date of the publication of the 
Preliminary Determination ended on October 16, 2020. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination. 
Therefore, in accordance with section 703(d) of the Act, we instructed 
CBP to terminate the suspension of liquidation and to liquidate, 
without regard to countervailing duties, unliquidated entries of 
vertical shaft engines from China, entered, or withdrawn from 
warehouse, for consumption, on or after October 17, 2020, the date on 
which the provisional measures expired, until and through the day 
preceding the date of publication of the ITC's final injury 
determinations in the Federal Register. Suspension of liquidation will 
resume on the date of publication of the ITC's final determinations in 
the Federal Register.

Notification to Interested Parties

    This notice constitutes the CVD orders with respect to vertical 
shaft engines from China pursuant to section 706(a) of the Act. 
Interested parties can find a list of CVD orders currently in effect at 
http://enforcement.trade.gov/stats/iastats1.html. This order is issued 
and published in accordance with section 706(a) of the Act and 19 CFR 
351.211(b).

    Dated: February 26, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The merchandise covered by this order 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 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 order, an unfinished engine covers at a 
minimum a sub-assembly

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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 order. The inclusion of other products such as spark plugs 
fitted into the cylinder head or electrical devices (e.g., ignition 
modules, ignition coils) for synchronizing with the motor to supply 
tension current does not remove the product from the scope. The 
inclusion of any other components not identified as comprising the 
unfinished engine subassembly in a third country does not remove the 
engine from the scope.
    The engines subject to this order 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 order 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 subject to this order 
is dispositive.

[FR Doc. 2021-04477 Filed 3-3-21; 8:45 am]
BILLING CODE 3510-DS-P