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]
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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.
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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
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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.
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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:
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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
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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.
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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.
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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 https://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
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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
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AGENCY:
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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.
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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.
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]]>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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\2\ See ITC Letter, ``Notification of ITC Final Determination,''
dated February 24, 2021 (ITC Notification Letter).
---------------------------------------------------------------------------
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
------------------------------------------------------------------------
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
https://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
[[Page 12621]]
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
