Gas Powered Pressure Washers From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part, 88578-88581 [2023-28282]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 88, Number 245 (Friday, December 22, 2023)]
[Notices]
[Pages 88578-88581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28282]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-149]


Gas Powered Pressure Washers From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances Determination, in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of gas powered pressure washers (pressure washers) from the People's 
Republic of China (China). The period of investigation is January 1, 
2021, through December 31, 2021.

DATES: Applicable December 22, 2023.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson, 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) 482-2631.

SUPPLEMENTARY INFORMATION:

Background

    On June 5, 2023, Commerce published its Preliminary Determination 
\1\ in the Federal Register. Commerce invited parties to comment on the 
Preliminary Determination.\2\
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    \1\ See Gas Powered Pressure Washers from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Affirmative Critical Circumstances Determination, in 
Part, and Alignment of Final Determination with Final Antidumping 
Duty Determination, 88 FR 36531 (June 5, 2023) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ Id.
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and Decision Memorandum is a public document and is made 
available to the public 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://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Final 
Affirmative Determination in the Countervailing Duty Investigation 
of Gas Powered Pressure Washers 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 products covered by this investigation are pressure washers 
from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    During the investigation, Commerce received scope comments from 
interested parties. Commerce issued a Preliminary Scope Memorandum to 
address these comments and set aside a period of time for parties to 
address scope issues in scope-specific case and rebuttal briefs.\4\ We 
received comments from interested parties on the Preliminary Scope 
Memorandum, which we address in the Final Scope Memorandum.\5\ We did 
not make any changes to the scope of this investigation from the scope 
published in the Preliminary Determination, as noted in Appendix I.
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    \4\ See Memorandum, ``Preliminary Scope Decision,'' dated June 
8, 2023 (Preliminary Scope Memorandum).
    \5\ See Memorandum, ``Final Scope Decision,'' dated August 22, 
2023 (Final Scope Memorandum).
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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 that were submitted by parties in this 
investigation, are discussed in the Issues and Decision Memorandum. For 
a list of the issues raised by interested parties and addressed in the 
Issues and Decision Memorandum, see Appendix II to this notice.

[[Page 88579]]

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 to be 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.
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also section 771(5)(E) of the Act 
regarding benefit; and section 771(5A) of the Act regarding 
specificity.
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    In making this final determination, Commerce relied, in part, on 
facts otherwise available, including with an adverse inference, 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of adverse facts available (AFA), see the 
Preliminary Determination and the section ``Use of Facts Otherwise 
Available and Application of Adverse Inferences'' in the accompanying 
Issues and Decision Memorandum.\7\
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    \7\ See Preliminary Determination PDM at 7-30; see also Issues 
and Decision Memorandum at the section entitled ``Use of Facts 
Otherwise Available and Adverse Inferences.''
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Verification

    Commerce was unable to conduct on-site verification of the 
information relied on in making its final determination in this 
investigation. However, in July 2023, we took additional steps in lieu 
of on-site verifications to verify the information relied upon in 
making this final determination, in accordance with section 782(i) of 
the Act by conducting virtual verification of Jiangsu Jianghuai Engine 
Co., Ltd. (JD Power).

Final Affirmative Determination of Critical Circumstances, in Part

    In accordance with sections 703(e)(1) and 776(a) and (b) of the Act 
and 19 CFR 351.206, as well as our analysis of comments received 
regarding our affirmative preliminary determination of critical 
circumstances,\8\ Commerce continues to find that critical 
circumstances exist with respect to imports of pressure washers from 
China for JD Power and the non-responsive companies. In addition, we 
continue to find that critical circumstances do not exist with respect 
to imports of pressure washers from companies not individually 
examined. For a full description of the methodology and results of 
Commerce's critical circumstances analysis, see the Issues and Decision 
Memorandum.
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    \8\ See Issues and Decision Memorandum at Comment 5.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the information at verification 
and comments received from interested parties, we made no changes to 
the subsidy rate calculations for JD Power. For a discussion of the 
comments received, see the Issues and Decision Memorandum.

All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, 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. In this investigation, Commerce calculated a 
total subsidy rate for Chongqing Dajiang Power Equipment Co., Ltd. 
determined entirely under section 776 of the Act. Therefore, the only 
rate that is not zero, de minimis, or based entirely on facts otherwise 
available is the rate calculated for JD Power. Consequently, the rate 
calculated for JD Power is also assigned as the rate for all other 
producers and exporters.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \9\ Commerce finds the following company to be cross-owned with 
JD Power: Jiangsu Nonghua Intelligent Agriculture Technology Co., 
Ltd.

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
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Jiangsu Jianghuai Engine Co., Ltd \9\..........                    11.19
Chongqing Dajiang Power Equipment Co., Ltd.....                   206.57
China GTL Tools Group, Ltd.....................                   206.57
Loncin Motor Co., Ltd..........................                   206.57
Maxworld Home Co., Ltd.........................                   206.57
Ningbo Jugang Machinery Manufacturing Co., Ltd.                   206.57
Powerful Machinery & Electronics Technology                       206.57
 Developing Co., Ltd...........................
Pinghu Biyi Cleaning Equipment Co., Ltd........                   206.57
Senci Electric Machinery Co., Ltd..............                   206.57
Taizhou Bison Machinery Co., Ltd...............                   206.57
Taizhou Longfa Machinery Co., Ltd..............                   206.57
Taizhou Newland Machinery Co., Ltd.............                   206.57
Zhejiang Anlu Cleaning Machinery Co., Ltd......                   206.57
Zhejiang Constant Power Machinery Co., Ltd.....                   206.57
Zhejiang Lingben Machinery & Electronics Co.,                     206.57
 Ltd...........................................
Zhejiang Xinchang Bigyao Power Tool Co., Ltd...                   206.57
Zhejiang Zhinanche Cleaning Equipment Co., Ltd.                   206.57
All Others.....................................                    11.19
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Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of the publication of this notice in the Federal 
Register, in accordance with 19 CFR 351.224(b).\10\
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    \10\ JD Power submitted certain minor corrections during 
verification that do not affect the ad valorem subsidy rates 
calculated for individual programs or the total ad valorem subsidy 
rate. See Memorandum, ``Final Determination Calculations for Jiangsu 
Jianghuai Engine Co., Ltd.,'' dated concurrently with this 
memorandum.
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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

[[Page 88580]]

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, on or after June 
5, 2023. Because we preliminarily determined that critical 
circumstances existed with respect to JD Power and the non-responsive 
companies, we instructed CBP to suspend such entries on or after March 
7, 2023, which is 90 days prior to the date of the publication of the 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, we instructed CBP to discontinue the 
suspension of liquidation of all entries of subject merchandise entered 
or withdrawn from warehouse, on or after October 3, 2023, but to 
continue the suspension of liquidation of all entries of subject 
merchandise between June 5 and October 2, 2023.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for 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 final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of pressure 
washers from China. 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 pressure washers from China no later 
than 45 days after our final determination. 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. If the ITC determines that material injury or threat of 
material injury does not exist, this proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a countervailing duty order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise that 
are 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.

Administrative Protective Order

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an 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 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: December 18, 2023.

/S/James Maeder
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is cold water gas 
powered pressure washers (also commonly known as power washers), 
which are machines that clean surfaces using water pressure that are 
powered by an internal combustion engine, air-cooled with a power 
take-off shaft, in combination with a positive displacement pump. 
This combination of components (i.e., the internal combustion 
engine, the power take-off shaft, and the positive displacement 
pump) is defined as the ``power unit.'' The scope of this 
investigation covers cold water gas powered pressure washers, 
whether finished or unfinished, whether assembled or unassembled, 
and whether or not containing any additional parts or accessories to 
assist in the function of the ``power unit,'' including, but not 
limited to, spray guns, hoses, lances, and nozzles. The scope of 
this investigation covers cold water gas powered pressure washers, 
whether or not assembled or packaged with a frame, cart, or trolley, 
with or without wheels attached.
    For purposes of this investigation, an unfinished and/or 
unassembled cold water gas powered pressure washer consists of, at a 
minimum, the power unit or components of the power unit, packaged or 
imported together. Importation of the power unit whether or not 
accompanied by, or attached to, additional components including, but 
not limited to a frame, spray guns, hoses, lances, and nozzles 
constitutes an unfinished cold water gas powered pressure washer for 
purposes of this scope. The inclusion in a third country of any 
components other than the power unit does not remove the cold water 
gas powered pressure washer from the scope. A cold water gas powered 
pressure washer is within the scope of this investigation regardless 
of the origin of its engine. Subject merchandise also includes 
finished and unfinished cold water gas powered pressure washers that 
are further processed in a third country or in the United States, 
including, but not limited to, assembly or any other processing that 
would not otherwise remove the merchandise from the scope of this 
investigation if performed in the country of manufacture of the in-
scope cold water gas powered pressure washers.
    The scope excludes hot water gas powered pressure washers, which 
are pressure washers that include a heating element used to heat the 
water sprayed from the machine. Also specifically excluded from the 
scope of this investigation is merchandise covered by the scope of 
the antidumping and countervailing duty orders on certain vertical 
shaft engines between 99cc and up to 225cc, and parts thereof from 
the People's Republic of China. See Certain Vertical Shaft Engines 
Between 99 cc and Up to 225cc, and Parts Thereof from the People's 
Republic of China: Antidumping and Countervailing Duty Orders, 86 FR 
023675 (May 4, 2021).
    The cold water gas powered pressure washers subject to this 
investigation are classified in the Harmonized Tariff Schedule of 
the United States (HTSUS) at subheadings 8424.30.9000 and 
8424.90.9040. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Final Critical Circumstances Determination
IV. Use of Facts Otherwise Available and Application of Adverse 
Inferences
V. Subsidies Valuation Information
VI. Interest Rate, Discount Rate, Hot-Rolled Steel, and Electricity 
Benchmarks
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Export Buyer's Credit (EBC) Program
    Comment 2: Whether the Application of Adverse Facts Available 
(AFA) for the Provision of Hot-Rolled Steel for Less Than Adequate 
Remuneration (LTAR) Is Appropriate

[[Page 88581]]

    Comment 3: Whether the Application of AFA to the Provision of 
Electricity for LTAR Is Appropriate
    Comment 4: Whether the Application of AFA to Other Subsidies Is 
Appropriate
    Comment 5: Whether Critical Circumstances Exist with Regard to 
JD Power
    Comment 6: Whether JD Power Used the Provision of Hot-Rolled 
Steel for LTAR Program
IX. Recommendation

[FR Doc. 2023-28282 Filed 12-21-23; 8:45 am]
BILLING CODE 3510-DS-P