Certain Walk-Behind Lawn Mowers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 27379-27382 [2021-10673]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 86, Number 96 (Thursday, May 20, 2021)]
[Notices]
[Pages 27379-27382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10673]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-130]


Certain Walk-Behind Lawn Mowers 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 exporters 
of certain walk-behind lawn mowers and parts thereof (lawn mowers) from 
the People's Republic of China (China).

DATES: Applicable May 20, 2021.

FOR FURTHER INFORMATION CONTACT: Moses Song or Tyler Weinhold, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7885 or (202) 482-1121, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is MTD Products, Inc. In 
addition to the Government of China (GOC), the mandatory respondents in 
this investigation are Zhejiang Amerisun Technology Co., Ltd. (Zhejiang 
Amerisun) and Ningbo Daye Garden Machinery Co., Ltd. (Ningbo Daye).
    On October 30, 2020, Commerce published in the Federal Register the 
Preliminary Determination and aligned this final determination with the 
final antidumping duty (AD) determination, in accordance with section 
705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.210(b)(4)(i).\1\ On

[[Page 27380]]

March 5, 2021, Commerce issued a Post-Preliminary Determination 
regarding the petitioner's creditworthiness allegations.\2\ A summary 
of the events that occurred since Commerce published the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the Issues and 
Decision Memorandum, which is hereby adopted by this notice.\3\ 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/.
---------------------------------------------------------------------------

    \1\ See Certain Walk-Behind Lawn Mowers 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 68848 
(October 30, 2020) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Analysis of Uncreditworthiness 
Allegations,'' dated March 5, 2021 (Post-Preliminary Determination).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of Certain Walk-Behind Lawn Mowers and Parts Thereof 
from the People's Republic of China,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Period of Investigation

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

Scope of the Investigation

    The products covered by this investigation are lawn mowers from 
China. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    During the course of this and the concurrent AD investigation, 
Commerce received scope comments from interested parties. On December 
22, 2020, Commerce issued a Preliminary Scope Decision Memorandum to 
address these comments, and modified the scope language as it appeared 
in the Preliminary Determination to address the scope overlap issue 
between the lawn mowers proceedings and the antidumping and 
countervailing duty investigations of certain vertical shaft engines 
between 99cc and up to 225cc, and parts thereof from China.\4\ We 
received comments from interested parties on the Preliminary Scope 
Decision Memorandum, which we address in the Final Scope Decision 
Memorandum.\5\ In the Final Scope Decision Memorandum, Commerce is not 
modifying the scope language as it appeared in the Preliminary Scope 
Decision Memorandum. See Appendix I for the final scope of this 
investigation.
---------------------------------------------------------------------------

    \4\ 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 (Preliminary Scope Decision 
Memorandum).
    \5\ See Memorandum, ``Antidumping and Countervailing Duty 
Investigations of Certain Walk-Behind Lawn Mowers and Parts Thereof 
from the People's Republic of China and the Socialist Republic of 
Vietnam: Scope Comments Decision Memorandum for the Final 
Determinations'' dated concurrently with, and hereby adopted by, 
this notice (Final Scope Decision Memorandum).
---------------------------------------------------------------------------

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 
raised by parties raised is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of 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.\6\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
---------------------------------------------------------------------------

    \6\ 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.
---------------------------------------------------------------------------

    In making this final determination, Commerce is relying, in part, 
on facts otherwise available, including adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of AFA, see the Preliminary Determination and the 
section ``Use of Facts Otherwise Available and Adverse Inference'' in 
the accompanying Issues and Decision Memorandum.\7\
---------------------------------------------------------------------------

    \7\ See Preliminary Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences''; see also Issues and 
Decision Memorandum at ``Use of Facts Otherwise Available and 
Adverse Inferences.''
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, as well as additional information collected in questionnaires 
issued subsequent to the Preliminary Determination, and our Post-
Preliminary Determination,\8\ we made certain changes to subsidy rate 
calculations for Zhejiang Amerisun and Ningbo Daye. For a discussion of 
these changes, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \8\ See Post-Preliminary Determination.
---------------------------------------------------------------------------

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.\9\
---------------------------------------------------------------------------

    \9\ See Commerce's Letters, ``Countervailing Duty Investigation 
of Certain Walk-Behind Lawn Mowers and Parts Thereof from the 
People's Republic of China: In Lieu of On-Site Verification 
Questionnaire,'' dated February 27, 2021; and ``Countervailing Duty 
Investigation of Certain Walk-Behind Lawn Mowers and Parts Thereof 
from the People's Republic of China: In Lieu of On-Site Verification 
Questionnaire--Ningbo Daye Garden Machinery Co., Ltd.,'' dated March 
5, 2021.
---------------------------------------------------------------------------

All-Others Rate

    We continue to calculate the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for the 
examined respondents (Zhejiang Amerisun and Ningbo Daye) using each 
company's publicly-ranged data for the value of their exports to the 
United States of subject merchandise.\10\
---------------------------------------------------------------------------

    \10\ See Preliminary Determination, 85 FR at 68849; see also 
Memorandum, ``Countervailing Duty Investigation of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of 
China; Revised All-Others Calculation for the Final Determination,'' 
dated concurrently with this memorandum.
---------------------------------------------------------------------------

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Zhejiang Amerisun Technology Co., Ltd.......................       20.98
Ningbo Daye Garden Machinery Co., Ltd.\11\..................       14.17
All Others..................................................       16.29
------------------------------------------------------------------------

Disclosure
---------------------------------------------------------------------------

    \11\ Commerce has found that the following company is cross-
owned with Ningbo Daye Garden Machinery Co., Ltd.: Zhejiang Jindaye 
Holdings Limited. This rate applies to all cross-owned companies.
---------------------------------------------------------------------------

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this final determination within five days of 
its public announcement, or if there is no public announcement, within 
five days

[[Page 27381]]

of the date of publication of this notice in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from China that were entered, or withdrawn from 
warehouse, for consumption, effective October 30, 2020, which is the 
date of publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 703(d) of the Act, effective February 
27, 2021, we instructed CBP to discontinue the suspension of 
liquidation of all entries at that time, but to continue the suspension 
of liquidation of all entries between October 30, 2020, and February 
26, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, and continue to require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above, in accordance with section 706(a) of the Act. 
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 the final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of lawn mowers 
from China. Because the final determination in this proceeding is 
affirmative, in accordance with section 705(b) of the Act, the ITC will 
determine, within 45 days, whether the domestic industry in the United 
States is materially injured or threatened with material injury. In 
addition, we are making available to the ITC all non-privileged and 
nonproprietary information related to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order (APO), without the written consent of the Assistant Secretary for 
Enforcement and Compliance.

Notification Regarding 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 destruction 
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 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: May 14, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain rotary walk-behind lawn mowers, which are grass-cutting 
machines that are powered by internal combustion engines. The scope 
of this investigation covers certain walk-behind lawn mowers, 
whether self-propelled or non-self-propelled, whether finished or 
unfinished, whether assembled or unassembled, and whether containing 
any additional features that provide for functions in addition to 
mowing.
    Walk-behind lawn mowers within the scope of this investigation 
are only those powered by an internal combustion engine with a power 
rating of less than 3.7 kilowatts. These internal combustion engines 
are typically spark ignition, single or multiple cylinder, air 
cooled, internal combustion engines with vertical power take off 
shafts with a maximum displacement of 196cc. Walk-behind lawn mowers 
covered by this scope typically must be certified and comply with 
the Consumer Products Safety Commission Safety Standard For Walk-
Behind Power Lawn Mowers under 16 CFR part 1205. However, lawn 
mowers that meet the physical descriptions above, but are not 
certified under 16 CFR part 1205 remain subject to the scope of this 
proceeding.
    The internal combustion engines of the lawn mowers covered by 
this scope typically must comply with and be certified under 
Environmental Protection Agency 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. However, lawn mowers that meet the physical descriptions 
above but that do not have engines certified under 40 CFR part 1054 
or other parts of subchapter U remain subject to the scope of this 
proceeding.
    For purposes of this investigation, an unfinished and/or 
unassembled lawn mower means, at a minimum, a sub-assembly comprised 
of an engine and a cutting deck shell attached to one another. A 
cutting deck shell is the portion of the lawn mower--typically of 
aluminum or steel--that houses and protects a user from a rotating 
blade. Importation of the subassembly whether or not accompanied by, 
or attached to, additional components such as a handle, blade(s), 
grass catching bag, or wheel(s) constitute an unfinished lawn mower 
for purposes of this investigation. The inclusion in a third country 
of any components other than the mower subassembly does not remove 
the lawn mower from the scope. Lawn mowers that meet the physical 
description above are covered by the scope of this investigation 
regardless of the origin of its engine, unless such lawn mowers 
contain an engine that is covered by the scope of the ongoing 
proceedings on certain vertical shaft engines between 99cc and up to 
225cc, and parts thereof (small vertical engines) from China. If the 
proceedings on small vertical engines from China are terminated, the 
lawn mowers containing small vertical engines from China will be 
covered by the scope of this proceeding.
    The lawn mowers subject to this investigation are typically at 
subheading: 8433.11.0050. Lawn mowers subject to this investigation 
may also enter under Harmonized Tariff Schedule of the United States 
(HTSUS) 8407.90.1010 and 8433.90.1090. 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 Final Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Whether Individually-Owned Cold-Rolled Steel Input 
Suppliers are ``Authorities''
    Comment 2: Whether the Application of Facts Available is 
Warranted in Constructing Benchmark Inland Freight Charges Used for 
the Benefit Calculation for Zhejiang Amerisun under the Provision of 
Cold-Rolled Steel for Less Than Adequate Remuneration Program
    Comment 3: Whether Commerce Committed a Ministerial Error in the 
Benefit Calculation for a Certain Subsidy Reported by Zhejiang 
Amerisun
    Comment 4: Whether Commerce Should Remove Inland Freight and 
Value Added Tax from the Cold-Rolled Steel Benchmark under the 
Provision of Cold-Rolled Steel for Less Than Adequate Remuneration 
Program
    Comment 5: Whether Commerce Improperly Found that Zhejiang 
Dobest was Uncreditworthy in 2017 and 2018
    Comment 6: Whether Commerce Should Find the Export Buyers Credit 
Program

[[Page 27382]]

to be Countervailable Based on Adverse Facts Available
    Comment 7: Whether Certain Parties did not Receive Due Process 
and Whether Commerce Should Modify the Cash Deposit Rates for 
Certain Parties
    Comment 8: Whether the Provision of Electricity for Less Than 
Adequate Remuneration Program is Specific
    Comment 9: Whether Commerce's Selection of Inland Freight 
Benchmarks for Ningbo Daye Under the Cold-Rolled Steel for Less Than 
Adequate Remuneration Program Is Correct
    Comment 10: Whether Commerce Should Include Negative Transaction 
Benefit Values in the Calculation of Benefits Under the Cold-Rolled 
Steel for Less Than Adequate Remuneration and Policy Loans Programs
IX. Calculation of the All-Others Rate
X. Recommendation

[FR Doc. 2021-10673 Filed 5-19-21; 8:45 am]
BILLING CODE 3510-DS-P