Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 14071-14074 [2021-05185]
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Federal Register / Vol. 86, No. 47 / Friday, March 12, 2021 / Notices
addressed to the FTZ Board’s Executive
Secretary and sent to: ftz@trade.gov. The
closing period for their receipt is April
21, 2021. Rebuttal comments in
response to material submitted during
the foregoing period may be submitted
during the subsequent 15-day period to
May 6, 2021.
A copy of the application will be
available for public inspection in the
‘‘Reading Room’’ section of the FTZ
Board’s website, which is accessible via
www.trade.gov/ftz.
For further information, contact
Camille Evans at Camille.Evans@
trade.gov or (202) 482–2350.
Dated: March 8, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021–05193 Filed 3–11–21; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–897, A–557–821]
Utility Scale Wind Towers From India
and Malaysia: Postponement of
Preliminary Determinations in the
Less-Than-Fair-Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable March 12, 2021.
FOR FURTHER INFORMATION CONTACT:
Terre Keaton Stefanova at (202) 482–
1280 (India) and Jerry Huang at (202)
482–4047 (Malaysia), AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
DEPARTMENT OF COMMERCE
Background
Foreign-Trade Zones Board
On November 9, 2020, the Department
of Commerce (Commerce) initiated lessthan-fair-value (LTFV) investigations of
imports of utility scale wind towers
from India and Malaysia.1 Currently, the
preliminary determinations are due no
later than March 29, 2021.
[S–221–2020]
Approval of Subzone Status; CMC
Steel Fabricators, Inc., d/b/a CMC Steel
Arizona, Mesa, Arizona
On December 10, 2020, the Executive
Secretary of the Foreign-Trade Zones
(FTZ) Board docketed an application
submitted by the City of Mesa, grantee
of FTZ 221, requesting subzone status
subject to the existing activation limit of
FTZ 221, on behalf of CMC Steel
Fabricators, Inc., d/b/a CMC Steel
Arizona, in Mesa, Arizona.
The application was processed in
accordance with the FTZ Act and
Regulations, including notice in the
Federal Register inviting public
comment (85 FR 81449, December 16,
2020). The FTZ staff examiner reviewed
the application and determined that it
meets the criteria for approval. Pursuant
to the authority delegated to the FTZ
Board Executive Secretary (15 CFR Sec.
400.36(f)), the application to establish
Subzone 221B was approved on March
5, 2021, subject to the FTZ Act and the
Board’s regulations, including Section
400.13, and further subject to FTZ 221’s
2,000-acre activation limit.
Dated: March 5, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021–05191 Filed 3–11–21; 8:45 am]
BILLING CODE 3510–DS–P
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Postponement of Preliminary
Determinations
Section 733(b)(1)(A) of the Tariff Act
of 1930, as amended (the Act), requires
Commerce to issue the preliminary
determination in an LTFV investigation
within 140 days after the date on which
Commerce initiated the investigation.
However, section 733(c)(1) of the Act
permits Commerce to postpone the
preliminary determination until no later
than 190 days after the date on which
Commerce initiated the investigation if:
(A) the petitioner makes a timely
request for a postponement; or (B)
Commerce concludes that the parties
concerned are cooperating, that the
investigation is extraordinarily
complicated, and that additional time is
necessary to make a preliminary
determination. Under 19 CFR
351.205(e), the petitioner must submit a
request for postponement 25 days or
more before the scheduled date of the
preliminary determination and must
state the reasons for the request.
Commerce will grant the request unless
it finds compelling reasons to deny the
request.
1 See Utility Scale Wind Towers from India,
Malaysia, and Spain: Initiation of Less-Than-FairValue Investigations, 85 FR 73023 (November 16,
2020).
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14071
On February 26, 2021, the Wind
Tower Trade Coalition (the petitioner)
submitted a timely request that
Commerce postpone the preliminary
determinations in these LTFV
investigations.2 The petitioner stated
that it requested postponement to allow
Commerce to fully analyze comments
recently filed by the petitioner and to
continue to collect and analyze
necessary information so that the
preliminary determinations will reflect
the most accurate results possible.3
For the reasons stated above and
because there are no compelling reasons
to deny the requests, Commerce, in
accordance with section 733(c)(1)(A) of
the Act, is postponing the deadline for
the preliminary determinations for India
and Malaysia by 50 days (i.e., 190 days
after the date on which these
investigations were initiated). As a
result, Commerce will issue its
preliminary determinations no later
than May 18, 2021. In accordance with
section 735(a)(1) of the Act and 19 CFR
351.210(b)(1), the deadline for the final
determinations of these investigations
will continue to be 75 days after the
date of the preliminary determinations,
unless postponed at a later date.
This notice is issued and published
pursuant to section 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
Dated: March 5, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement
and Compliance.
[FR Doc. 2021–05187 Filed 3–11–21; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–125]
Certain Vertical Shaft Engines Between
99cc and Up To 225cc, and Parts
Thereof From the People’s Republic of
China: Final Affirmative Countervailing
Duty 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
AGENCY:
2 See Petitioner’s Letter, ‘‘Utility Scale Wind
Towers from India: Request for Postponement of
Preliminary Determination,’’ dated February 26,
2021; see also Petitioner’s Letter, ‘‘Utility Scale
Wind Towers from Malaysia: Request for
Postponement of Preliminary Determination,’’ dated
February 26, 2021.
3 Id.
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Federal Register / Vol. 86, No. 47 / Friday, March 12, 2021 / Notices
99cc and up to 225cc, and parts thereof
(small vertical engines) from the
People’s Republic of China (China). The
period of investigation is January 1,
2019, through December 31, 2019.
DATES: Applicable March 12, 2021.
FOR FURTHER INFORMATION CONTACT: Ajay
Menon or Adam Simons, AD/CVD
Operations, Office II, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1993 or (202) 482–6172,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 24, 2020, Commerce
published the Preliminary
Determination.1 The petitioner in this
investigation is Briggs & Stratton,
Corporation. In addition to the
Government of China (GOC), the
mandatory respondents in this
investigation are Chongqing Kohler
Engines Ltd. (Chongqing Kohler) and
Chongqing Zongshen General Power
Machine Co. (Chongqing Zongshen).
A summary of the events that
occurred since Commerce published the
Preliminary Determination and a full
discussion of the issues raised by parties
for this final determination are provided
in the Issues and Decision
Memorandum.2 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 product covered by this
investigation is small vertical engines
1 See Certain Vertical Shaft Engines Between 99cc
and up to 225cc, and Parts Thereof, from the
People’s Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping
Duty Determination, 85 FR 52086 (August 24, 2020)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Certain
Vertical Shaft Engines Between 99cc and Up To
225cc, and Parts Thereof from the People’s Republic
of China,’’ dated concurrently with, and hereby
adopted by, this notice (Issues and Decision
Memorandum).
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17:04 Mar 11, 2021
Jkt 253001
from China. For a complete description
of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to
Commerce’s regulations,3 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (i.e., scope).4 Certain interested
parties commented on the scope of the
investigation as it appeared in the
Initiation Notice and we addressed
these comments in the Preliminary
Determination, preliminarily modifying
the scope of this and the companion
antidumping duty (AD) investigation to
exclude commercial engines.5 We
established a period of time for parties
to address scope issues in scope case
and rebuttal briefs,6 and we received
such comments, which we addressed in
the Final Scope Decision
Memorandum.7
On November 6, 2020, we issued a
memorandum providing parties an
opportunity to comment on the overlap
in the scopes of this and the concurrent
AD investigation on small vertical
engines and that of the AD and
countervailing duty (CVD)
investigations on certain walk-behind
lawn mowers and parts thereof (lawn
mowers).8 After analyzing interested
parties’ comments, we modified the
scope of the lawn mowers investigations
to address the overlap.9 We have not
3 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
4 See Certain Vertical Shaft Engines between 99cc
and up to 225cc, and Parts Thereof from the
People’s Republic of China: Initiation of
Countervailing Duty Investigation, 85 FR 20667
(April 14, 2020) (Initiation Notice).
5 See Preliminary Determination, 85 FR at 52087;
see also Memorandum, ‘‘Antidumping and
Countervailing Duty Investigations of Certain
Vertical Shaft Engines Between 99cc and Up To
225cc, and Parts Thereof from the People’s Republic
of China: Scope Comments Decision Memorandum
for the Preliminary Determination,’’ dated August
17, 2020 (Preliminary Scope Decision
Memorandum).
6 See Preliminary Scope Decision Memorandum.
7 See Memorandum, ‘‘Certain Vertical Shaft
Engines Between 99cc and Up To 225cc, and Parts
Thereof from the People’s Republic of China: Scope
Comments Decision Memorandum for the Final
Determination,’’ dated concurrently with, and
hereby adopted by, this notice (Final Scope
Decision Memorandum).
8 See Memorandum, ‘‘Antidumping and
Countervailing Duty Investigations of Certain
Vertical Shaft Engines between 99cc and up to
225cc, and Parts Thereof from the People’s Republic
of China; Antidumping and Countervailing Duty
Investigations of Certain Walk-Behind Lawn
Mowers and Parts Thereof from the People’s
Republic of China; and Antidumping Duty
Investigation of Certain Walk-Behind Lawn Mowers
from the Socialist Republic of Vietnam,’’ dated
November 6, 2020.
9 See Memorandum, ‘‘Antidumping and
Countervailing Duty Investigations of Lawn Mowers
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made any changes to the scope of this
and the concurrent AD investigation
from that published in the Preliminary
Determination. See Appendix I to this
notice.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues that parties raised is
attached to this notice as Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.10 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
Verification
Commerce was unable to conduct onsite verification of the information
relied upon in making its final
determination in this investigation.
However, we took additional steps in
lieu of an on-site verification to verify
the information relied upon in making
this final determination, in accordance
with section 782(i) of the Act.11
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties, we
made certain changes to the subsidy rate
calculations for Chongqing Kohler and
Chongqing Zongshen. As a result of
these changes, Commerce also revised
the all-others rate. For a discussion of
these changes, see the Issues and
Decision Memorandum.
from the People’s Republic of China and the
Socialist Republic of Vietnam: Preliminary Scope
Decision Memorandum,’’ dated December 22, 2020.
10 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
11 See Chongqing Kohler’s Letter, ‘‘Certain
Vertical Shaft Engines Between 99cc and up to
225cc, and Parts Thereof, from the People’s
Republic of China: Response of Chongqing Kohler
Engines Ltd. and Kohler (China) Investment Co.
Ltd. to in Lieu of Verification Questionnaire,’’ dated
November 25, 2020; and Chongqing Zongshen’s
Letter, ‘‘Certain Vertical Shaft Engines Between
225cc and 999cc, and Parts Thereof, from China;
CVD Investigation; Zongshen Verification
Questionnaire Response,’’ dated November 25,
2020.
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Federal Register / Vol. 86, No. 47 / Friday, March 12, 2021 / Notices
Final Determination
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated subsidy
rates for Chongqing Kohler and
Chongqing Zongshen. Section
705(c)(5)(A)(i) of the Act states that, for
companies not individually
investigated, Commerce will determine
an all-others rate equal to the weightedaverage countervailable subsidy rates
established for exporters and/or
producers individually investigated,
excluding any zero and de minimis
countervailable subsidy rates, and any
rates determined entirely under section
776 of the Act. Therefore, Commerce
calculated the all-others rate using a
simple average of the individual
estimated subsidy rates calculated for
the examined respondents.12
Commerce determines the total
estimated net countervailable subsidy
rates to be the following:
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
intend to issue a CVD order, reinstate
the suspension of liquidation under
section 706(a) of the Act, and require a
cash deposit of estimated countervailing
duties 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.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. 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
Subsidy rate
is materially injured, or threatened with
Producer/exporter
(percent)
material injury, by reason of imports of
small vertical engines from China no
Chongqing Kohler Engines
Ltd .....................................
2.84 later than 45 days after our final
determination. If the ITC determines
Chongqing Zongshen General Power Machine Co ....
18.13 that material injury or threat of material
All Others ..............................
10.46 injury does not exist, the proceeding
will be terminated and all cash deposits
Disclosure
will be refunded. If the ITC determines
that such injury does exist, Commerce
Commerce intends to disclose the
will issue a CVD order directing CBP to
calculations performed in connection
with this final determination within five assess, upon further instruction by
Commerce, countervailing duties on all
days of the date of public
imports of the subject merchandise
announcement or, if there is no public
entered, or withdrawn from warehouse,
announcement, within five days of the
for consumption on or after the effective
date of publication of this notice to
parties in this proceeding in accordance date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
with 19 CFR 351.224(b).
Suspension of Liquidation’’ section.
Continuation of Suspension of
Notification Regarding Administrative
Liquidation
Protective Order (APO)
As a result of our Preliminary
In the event that the ITC issues a final
Determination and pursuant to sections
negative injury determination, this
703(d)(1)(B) and (d)(2) of the Act,
Commerce instructed U.S. Customs and notice will serve as the only reminder
to parties subject to the APO of their
Border Protection (CBP) to suspend
responsibility concerning the
liquidation of entries of subject
disposition of proprietary information
merchandise, as described in the scope
disclosed under APO in accordance
of the investigation section, entered, or
with 19 CFR 351.305(a)(3). Timely
withdrawn from warehouse, for
written notification of the return/
consumption on or after August 24,
destruction of APO materials or
2020, the date of publication of the
conversion to judicial protective order is
Preliminary Determination in the
hereby requested. Failure to comply
Federal Register.
with the regulations and terms of an
APO is a violation which is subject to
12 As complete publicly ranged sales data was
sanction.
unavailable, we calculated the all-others rate using
the simple average of Chongqing Kohler and
Chongqing Zongshen’s subsidy rates. See e.g.,
Certain Corrosion Inhibitors from the People’s
Republic of China: Final Affirmative Countervailing
Duty Determination, 86 FR 7537 (January 29, 2021)
(relying on a simple average because complete
publicly ranged sales data was unavailable).
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Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act, and 19 CFR
351.210(c).
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14073
Dated: March 5, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement
and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this
investigation consists of spark-ignited, nonroad, vertical shaft engines, whether finished
or unfinished, whether assembled or
unassembled, whether mounted or
unmounted, primarily for walk-behind lawn
mowers. Engines meeting this physical
description may also be for other non-handheld outdoor power equipment, including
but not limited to, pressure washers. The
subject engines are spark ignition, singlecylinder, air cooled, internal combustion
engines with vertical power take off shafts
with a minimum displacement of 99 cubic
centimeters (cc) and a maximum
displacement of up to, but not including,
225cc. Typically, engines with displacements
of this size generate gross power of between
1.95 kilowatts (kw) to 4.75 kw.
Engines covered by this scope normally
must comply with and be certified under
Environmental Protection Agency (EPA) air
pollution controls title 40, chapter I,
subchapter U, part 1054 of the Code of
Federal Regulations standards for small 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 these proceedings. 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 these proceedings.
Certain small vertical shaft engines,
whether or not mounted on non-hand-held
outdoor power equipment, including but not
limited to walk-behind lawn mowers and
pressure washers, are included in the scope.
However, if a subject engine is imported
mounted on such equipment, only the engine
is covered by the scope. Subject merchandise
includes certain small vertical shaft engines
produced in the subject country whether
mounted on outdoor power equipment in the
subject country or in a third country. Subject
engines are covered whether or not they are
accompanied by other parts.
For purposes of this investigation, an
unfinished engine covers at a minimum a
sub-assembly comprised of, but not limited
to, the following components: crankcase,
crankshaft, camshaft, piston(s), and
connecting rod(s). Importation of these
components together, whether assembled or
unassembled, and whether or not
accompanied by additional components such
as a sump, carburetor spacer, cylinder
head(s), valve train, or valve cover(s),
constitutes an unfinished engine for purposes
of this investigation. The inclusion of other
products such as spark plugs fitted into the
cylinder head or electrical devices (e.g.,
ignition coils) for synchronizing with the
engine to supply tension current does not
remove the product from the scope. The
inclusion of any other components not
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Federal Register / Vol. 86, No. 47 / Friday, March 12, 2021 / Notices
identified as comprising the unfinished
engine subassembly in a third country does
not remove the engine from the scope.
Specifically excluded from the scope of
this investigation are ‘‘Commercial’’ or
‘‘Heavy Commercial’’ engines under 40 CFR
1054.107 and 40 CFR 1054.135 that have (1)
a displacement of 160cc or greater, (2) a cast
iron cylinder liner, (3) an automatic
compression release, and (4) and a muffler
with at least three chambers and volume
greater than 400cc.
The engines subject to this investigation
are predominantly classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) at subheading 8407.90.1010.
The engine subassemblies that are subject to
this investigation enter under HTSUS
8409.91.9990. The mounted engines that are
subject to this investigation enter under
HTSUS 8433.11.0050, 8433.11.0060, and
8424.30.9000. Engines subject to this
investigation may also enter under HTSUS
8407.90.1020, 8407.90.9040, and
8407.90.9060. The HTSUS subheadings are
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 Issues and
Decision Memorandum
I. Summary
II. Background
III. Final Affirmative Determination of
Critical Circumstances
IV. Subsidies Valuation Information
V. Use of Facts Otherwise Available and
Adverse Inferences
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Income Tax Deduction for
Research and Development (R&D)
Expenses Under the Enterprise Income
Tax Law
Comment 2: Export Buyer’s Credit Program
Comment 3: Whether the Electricity for
Less-Than-Adequate-Remuneration
(LTAR) Program is Specific
Comment 4: Whether Commerce Should
Revise Its Critical Circumstances
Analysis
Comment 5: Whether Commerce Should
Find Critical Circumstances for
Chongqing Kohler and Companies
Covered by the All-Others Rate
Comment 6: Whether Commerce Should
Countervail Certain of Chongqing
Kohler’s Bank Acceptance Notes
Comment 7: Whether Chongqing
Zongshen’s Input Suppliers are
Government Authorities
Comment 8: Whether Commerce Should
Rely on Consolidated Sales Data in
Attributing Subsidies Received by
Zongshen Group or Zongshen Power
Comment 9: Whether Commerce Should
Adjust Chongqing Zongshen’s Policy
Loans Calculations
Comment 10: Whether Commerce Should
Adjust Chongqing Zongshen’s Land-Use
Rights for LTAR Calculation
Comment 11: Whether Commerce Should
Reverse Its Uncreditworthiness
Determination for Chongqing Zongshen
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VIII. Recommendation
[FR Doc. 2021–05185 Filed 3–11–21; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–421–813]
Certain Hot-Rolled Steel Flat Products
From the Netherlands: Rescission of
Antidumping Duty Administrative
Review; 2019–2020
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) is rescinding the
administrative review of the
antidumping duty order on certain hotrolled steel flat products (HR Steel) from
the Netherlands covering the period of
review (POR) October 1, 2019, through
September 30, 2020, based on the timely
withdrawal of the request for review.
DATES: Applicable March 12, 2021.
FOR FURTHER INFORMATION CONTACT:
Allison Hollander, AD/CVD Operations,
Office I, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2805.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On October 1, 2020, Commerce
published a notice of opportunity to
request an administrative review of the
antidumping duty order on HR Steel
from the Netherlands for the period
October 1, 2019, through September 30,
2020.1 On November 2, 2020, AK Steel
Corporation, Steel Dynamics Inc., SSAB
Enterprises, LLC, Nucor Corporation,
and United States Steel Corporation (the
petitioners) timely requested an
administrative review of the
antidumping duty order with respect to
Tata Steel Ijmuiden BV.2 Commerce
received no other requests for an
administrative review of the
antidumping duty order.
On December 8, 2020, pursuant to
section 751(a) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR
351.221(c)(1)(i), we published in the
Federal Register a notice of initiation of
an administrative review of the
1 See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity
to Request Administrative Review, 85 FR 61926
(October 1, 2020).
2 See Petitioners’ Letter, ‘‘Hot-Rolled Steel Flat
Products from The Netherlands/Request For
Administrative Review,’’ dated November 2, 2020.
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antidumping duty order on HR Steel
from the Netherlands with respect to
Tata Steel Ijmuiden BV.3 On February
19, 2021, the petitioners timely
withdrew their administrative review
request for Tata Steel Ijmuiden BV.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 a party that requested a review
withdraws the request within 90 days of
the date of publication of notice of
initiation of the requested review. The
petitioners withdrew their request for
review within 90 days of the publication
date of the Initiation Notice. No other
parties requested an administrative
review of the antidumping duty order.
Therefore, in accordance with 19 CFR
351.213(d)(1), we are rescinding the
administrative review of the
antidumping order on HR Steel from the
Netherlands for the period October 1,
2019, through September 30, 2020, in its
entirety.
Assessment
Commerce will instruct CBP to assess
antidumping duties on all appropriate
entries of HR Steel from the Netherlands
during the POR at rates equal to the cash
deposit rate of estimated antidumping
duties required at the time of entry, or
withdrawal from warehouse, for
consumption, in accordance with 19
CFR 351.212(c)(1)(i). Commerce intends
to issue appropriate assessment
instructions to CBP no earlier than 35
days after the date of publication of this
notice in the Federal Register.
Notification to Importers
This notice serves as a final reminder
to importers of their responsibility
under 19 CFR 351.402(f)(2) to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries
during this review period. Failure to
comply with this requirement could
result in Commerce’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of doubled antidumping duties.
Notification Regarding Administrative
Protective Order
This notice also serves as a reminder
to parties subject to administrative
protective order (APO) of their
3 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 85 FR
78990 (December 8, 2020) (Initiation Notice).
4 See Petitioners’ Letter, ‘‘Hot-Rolled Steel Flat
Products from The Netherlands/Withdrawal Of
Request For Administrative Review,’’ dated
February 19, 2021.
E:\FR\FM\12MRN1.SGM
12MRN1
]]>Agencies
[Federal Register Volume 86, Number 47 (Friday, March 12, 2021)]
[Notices]
[Pages 14071-14074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05185]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-125]
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and
Parts Thereof From the People's Republic of China: Final Affirmative
Countervailing Duty 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
[[Page 14072]]
99cc and up to 225cc, and parts thereof (small vertical engines) from
the People's Republic of China (China). The period of investigation is
January 1, 2019, through December 31, 2019.
DATES: Applicable March 12, 2021.
FOR FURTHER INFORMATION CONTACT: Ajay Menon or Adam Simons, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1993 or (202) 482-6172,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 24, 2020, Commerce published the Preliminary
Determination.\1\ The petitioner in this investigation is Briggs &
Stratton, Corporation. In addition to the Government of China (GOC),
the mandatory respondents in this investigation are Chongqing Kohler
Engines Ltd. (Chongqing Kohler) and Chongqing Zongshen General Power
Machine Co. (Chongqing Zongshen).
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\1\ See Certain Vertical Shaft Engines Between 99cc and up to
225cc, and Parts Thereof, from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 85 FR 52086 (August 24, 2020) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination and a full discussion of the issues raised by
parties for this final determination are provided in the Issues and
Decision Memorandum.\2\ 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.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and
Parts Thereof from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is small vertical engines
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice and we addressed these comments in the
Preliminary Determination, preliminarily modifying the scope of this
and the companion antidumping duty (AD) investigation to exclude
commercial engines.\5\ We established a period of time for parties to
address scope issues in scope case and rebuttal briefs,\6\ and we
received such comments, which we addressed in the Final Scope Decision
Memorandum.\7\
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Certain Vertical Shaft Engines between 99cc and up to
225cc, and Parts Thereof from the People's Republic of China:
Initiation of Countervailing Duty Investigation, 85 FR 20667 (April
14, 2020) (Initiation Notice).
\5\ See Preliminary Determination, 85 FR at 52087; see also
Memorandum, ``Antidumping and Countervailing Duty Investigations of
Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and
Parts Thereof from the People's Republic of China: Scope Comments
Decision Memorandum for the Preliminary Determination,'' dated
August 17, 2020 (Preliminary Scope Decision Memorandum).
\6\ See Preliminary Scope Decision Memorandum.
\7\ See Memorandum, ``Certain Vertical Shaft Engines Between
99cc and Up To 225cc, and Parts Thereof from the People's Republic
of China: Scope Comments Decision Memorandum for the Final
Determination,'' dated concurrently with, and hereby adopted by,
this notice (Final Scope Decision Memorandum).
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On November 6, 2020, we issued a memorandum providing parties an
opportunity to comment on the overlap in the scopes of this and the
concurrent AD investigation on small vertical engines and that of the
AD and countervailing duty (CVD) investigations on certain walk-behind
lawn mowers and parts thereof (lawn mowers).\8\ After analyzing
interested parties' comments, we modified the scope of the lawn mowers
investigations to address the overlap.\9\ We have not made any changes
to the scope of this and the concurrent AD investigation from that
published in the Preliminary Determination. See Appendix I to this
notice.
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\8\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Certain Vertical Shaft Engines between 99cc and up
to 225cc, and Parts Thereof from the People's Republic of China;
Antidumping and Countervailing Duty Investigations of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of
China; and Antidumping Duty Investigation of Certain Walk-Behind
Lawn Mowers from the Socialist Republic of Vietnam,'' dated November
6, 2020.
\9\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Lawn Mowers from the People's Republic of China
and the Socialist Republic of Vietnam: Preliminary Scope Decision
Memorandum,'' dated December 22, 2020.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\10\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\10\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\11\
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\11\ See Chongqing Kohler's Letter, ``Certain Vertical Shaft
Engines Between 99cc and up to 225cc, and Parts Thereof, from the
People's Republic of China: Response of Chongqing Kohler Engines
Ltd. and Kohler (China) Investment Co. Ltd. to in Lieu of
Verification Questionnaire,'' dated November 25, 2020; and Chongqing
Zongshen's Letter, ``Certain Vertical Shaft Engines Between 225cc
and 999cc, and Parts Thereof, from China; CVD Investigation;
Zongshen Verification Questionnaire Response,'' dated November 25,
2020.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to the subsidy rate calculations for
Chongqing Kohler and Chongqing Zongshen. As a result of these changes,
Commerce also revised the all-others rate. For a discussion of these
changes, see the Issues and Decision Memorandum.
[[Page 14073]]
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated subsidy rates for Chongqing Kohler and
Chongqing Zongshen. Section 705(c)(5)(A)(i) of the Act states that, for
companies not individually investigated, Commerce will determine an
all-others rate equal to the weighted-average countervailable subsidy
rates established for exporters and/or producers individually
investigated, excluding any zero and de minimis countervailable subsidy
rates, and any rates determined entirely under section 776 of the Act.
Therefore, Commerce calculated the all-others rate using a simple
average of the individual estimated subsidy rates calculated for the
examined respondents.\12\
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\12\ As complete publicly ranged sales data was unavailable, we
calculated the all-others rate using the simple average of Chongqing
Kohler and Chongqing Zongshen's subsidy rates. See e.g., Certain
Corrosion Inhibitors from the People's Republic of China: Final
Affirmative Countervailing Duty Determination, 86 FR 7537 (January
29, 2021) (relying on a simple average because complete publicly
ranged sales data was unavailable).
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Commerce determines the total estimated net countervailable subsidy
rates to be the following:
------------------------------------------------------------------------
Subsidy rate
Producer/exporter (percent)
------------------------------------------------------------------------
Chongqing Kohler Engines Ltd............................ 2.84
Chongqing Zongshen General Power Machine Co............. 18.13
All Others.............................................. 10.46
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination within five days of the date
of public announcement or, if there is no public announcement, within
five days of the date of publication of this notice to parties in this
proceeding 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 (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise, as described in the scope of the investigation
section, entered, or withdrawn from warehouse, for consumption on or
after August 24, 2020, the date of publication of the Preliminary
Determination in the Federal Register.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue a CVD order,
reinstate the suspension of liquidation under section 706(a) of the
Act, and require a cash deposit of estimated countervailing duties 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.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. 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 small vertical
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 Order (APO)
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the disposition
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
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 violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: March 5, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of spark-
ignited, non-road, vertical shaft engines, whether finished or
unfinished, whether assembled or unassembled, whether mounted or
unmounted, primarily for walk-behind lawn mowers. Engines meeting
this physical description may also be for other non-hand-held
outdoor power equipment, including but not limited to, pressure
washers. The subject engines are spark ignition, single-cylinder,
air cooled, internal combustion engines with vertical power take off
shafts with a minimum displacement of 99 cubic centimeters (cc) and
a maximum displacement of up to, but not including, 225cc.
Typically, engines with displacements of this size generate gross
power of between 1.95 kilowatts (kw) to 4.75 kw.
Engines covered by this scope normally must comply with and be
certified under Environmental Protection Agency (EPA) air pollution
controls title 40, chapter I, subchapter U, part 1054 of the Code of
Federal Regulations standards for small non-road spark-ignition
engines and equipment. Engines that otherwise meet the physical
description of the scope but are not certified under 40 CFR part
1054 and are not certified under other parts of subchapter U of the
EPA air pollution controls are not excluded from the scope of these
proceedings. 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 these proceedings.
Certain small vertical shaft engines, whether or not mounted on
non-hand-held outdoor power equipment, including but not limited to
walk-behind lawn mowers and pressure washers, are included in the
scope. However, if a subject engine is imported mounted on such
equipment, only the engine is covered by the scope. Subject
merchandise includes certain small vertical shaft engines produced
in the subject country whether mounted on outdoor power equipment in
the subject country or in a third country. Subject engines are
covered whether or not they are accompanied by other parts.
For purposes of this investigation, an unfinished engine covers
at a minimum a sub-assembly comprised of, but not limited to, the
following components: crankcase, crankshaft, camshaft, piston(s),
and connecting rod(s). Importation of these components together,
whether assembled or unassembled, and whether or not accompanied by
additional components such as a sump, carburetor spacer, cylinder
head(s), valve train, or valve cover(s), constitutes an unfinished
engine for purposes of this investigation. The inclusion of other
products such as spark plugs fitted into the cylinder head or
electrical devices (e.g., ignition coils) for synchronizing with the
engine to supply tension current does not remove the product from
the scope. The inclusion of any other components not
[[Page 14074]]
identified as comprising the unfinished engine subassembly in a
third country does not remove the engine from the scope.
Specifically excluded from the scope of this investigation are
``Commercial'' or ``Heavy Commercial'' engines under 40 CFR 1054.107
and 40 CFR 1054.135 that have (1) a displacement of 160cc or
greater, (2) a cast iron cylinder liner, (3) an automatic
compression release, and (4) and a muffler with at least three
chambers and volume greater than 400cc.
The engines subject to this investigation are predominantly
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheading 8407.90.1010. The engine subassemblies that
are subject to this investigation enter under HTSUS 8409.91.9990.
The mounted engines that are subject to this investigation enter
under HTSUS 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines
subject to this investigation may also enter under HTSUS
8407.90.1020, 8407.90.9040, and 8407.90.9060. The HTSUS subheadings
are 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Final Affirmative Determination of Critical Circumstances
IV. Subsidies Valuation Information
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Income Tax Deduction for Research and Development
(R&D) Expenses Under the Enterprise Income Tax Law
Comment 2: Export Buyer's Credit Program
Comment 3: Whether the Electricity for Less-Than-Adequate-
Remuneration (LTAR) Program is Specific
Comment 4: Whether Commerce Should Revise Its Critical
Circumstances Analysis
Comment 5: Whether Commerce Should Find Critical Circumstances
for Chongqing Kohler and Companies Covered by the All-Others Rate
Comment 6: Whether Commerce Should Countervail Certain of
Chongqing Kohler's Bank Acceptance Notes
Comment 7: Whether Chongqing Zongshen's Input Suppliers are
Government Authorities
Comment 8: Whether Commerce Should Rely on Consolidated Sales
Data in Attributing Subsidies Received by Zongshen Group or Zongshen
Power
Comment 9: Whether Commerce Should Adjust Chongqing Zongshen's
Policy Loans Calculations
Comment 10: Whether Commerce Should Adjust Chongqing Zongshen's
Land-Use Rights for LTAR Calculation
Comment 11: Whether Commerce Should Reverse Its
Uncreditworthiness Determination for Chongqing Zongshen
VIII. Recommendation
[FR Doc. 2021-05185 Filed 3-11-21; 8:45 am]
BILLING CODE 3510-DS-P
