Certain Vertical Shaft Engines Between 99cc and Up to 225cc and Parts Thereof From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court Decision, 82985-82986 [2024-23695]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 82985-82986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23695]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-124, C-570-125]


Certain Vertical Shaft Engines Between 99cc and Up to 225cc and 
Parts Thereof From the People's Republic of China: Notice of Court 
Decision Not in Harmony With Final Scope Ruling and Notice of Amended 
Final Scope Ruling Pursuant to Court Decision

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

SUMMARY: On October 2, 2024, the U.S. Court of International Trade 
(CIT) issued its final judgment in Zhejiang Amerisun Technology Co., 
Ltd. v. United States, Court No. 23-00011, sustaining the U.S. 
Department of Commerce's (Commerce) remand redetermination pertaining 
to the scope ruling for 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 finding modified 
vertical shaft engines, such as the modified R210-S engine manufactured 
by Chongqing Rato Technology Co., Ltd. (Chongqing Rato) to be excluded 
from the orders. Commerce is notifying the public that the CIT's final 
judgment is not in harmony with Commerce's scope ruling, and that 
Commerce is amending the scope ruling to find that certain engines, 
such as Chongqing Rato's R210-S engine, manufactured by Chongqing Rato 
is excluded from the orders.

DATES: Applicable October 12, 2024.

FOR FURTHER INFORMATION CONTACT: Ajay K. Menon, AD/CVD Operations, 
Office IX, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0208.

SUPPLEMENTARY INFORMATION:

Background

    On December 22, 2022, Commerce found that modified vertical shaft 
engines, such as the R210-S engine manufactured by Chongqing Rato, were 
included in the scope of the orders.\1\
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    \1\ See Memorandum, ``Scope Ruling on Modified Vertical Shaft 
Engines,'' dated December 22, 2022 (Final Scope Ruling).
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    Zhejiang Amerisun Technology, Co., Ltd. appealed Commerce's Final 
Scope Ruling. On February 20, 2024, the CIT remanded the Final Scope 
Ruling to Commerce, holding that: (1) because the scope does not 
specify that a right-angle gearbox connected to the horizontal 
crankshaft may be part of the engine, Commerce's finding that the scope 
did not contain an exhaustive list of components that may comprise an 
engine was unsupported by substantial evidence and not in accordance 
with law; (2) the Wikipedia articles submitted by Briggs & Stratton 
Corporation (the petitioner) on which Commerce relied to support its 
factual conclusions were unreliable and irrelevant; and (3) an academic 
article submitted by the petitioner on which Commerce also relied to 
support its factual conclusions was irrelevant because it did not 
specifically address walk-behind lawn mowers or discuss secondary drive 
shafts.\2\
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    \2\ See Zhejiang Amerisun Technology Co., Ltd. v. United States, 
687 F. Supp. 3d 1282 (CIT 2024).
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    In its final remand redetermination, issued in April 2024, Commerce 
found that certain engines, such as Chongqing Rato's R210-S engine at 
issue in the Final Scope Ruling to be excluded from the scope of the 
orders.\3\ The CIT sustained Commerce's final redetermination.\4\
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    \3\ See Final Results of Redetermination Pursuant to Court 
Remand, Zhejiang Amerisun Technology Co., Ltd. v. United States, 
Consol. Court No. 23-00011, Slip Op. 24-20 (CIT February 20, 2024), 
dated April 11, 2024, available at https://access.trade.gov/public/FinalRemandRedetermination.aspx.
    \4\ See Zhejiang Amerisun Technology Co., Ltd. v. United States, 
Court No. 23-00011, Slip. Op. 24-104 (CIT October 2, 2024).
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Timken Notice

    In its decision in Timken,\5\ as clarified by Diamond Sawblades,\6\ 
the U.S. Court of Appeals for the Federal Circuit held that, pursuant 
to section 516A(c) and (e) of the Tariff Act of 1930, as amended (the 
Act), Commerce must publish a notice of court decision that is not ``in 
harmony'' with a Commerce determination and must suspend liquidation of 
entries pending a

[[Page 82986]]

``conclusive'' court decision. The CIT's October 2, 2024, judgment 
constitutes a final decision of the CIT that is not in harmony with 
Commerce's Final Scope Ruling. Thus, this notice is published in 
fulfillment of the publication requirements of Timken.
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    \5\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \6\ See Diamond Sawblades Manufacturers Coalition v. United 
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Scope Ruling

    In accordance with the CIT's October 2, 2024, final judgment, 
Commerce is amending its Final Scope Ruling and finds that the scope of 
the orders does not cover the products addressed in the Final Scope 
Ruling.

Liquidation of Suspended Entries

    Commerce will instruct U.S. Customs and Border Protection (CBP) 
that, pending any appeals, the cash deposit rate will be zero percent 
for the modified R210-S engine manufactured by Chongqing Rato. In the 
event that the CIT's final judgment is not appealed or is upheld on 
appeal, Commerce will instruct CBP to liquidate entries of the modified 
R210-S engine manufactured by Chongqing Rato without regard to 
antidumping and countervailing duties and to lift suspension of 
liquidation of such entries.
    At this time, Commerce remains enjoined by CIT from liquidating 
entries excluded from the scope of the orders by the Final Scope 
Ruling. These entries will remain enjoined pursuant to the terms of the 
injunction during the pendency of any appeals process.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(c) and (e) and 777(i)(1) of the Act.

    Dated: October 8, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2024-23695 Filed 10-11-24; 8:45 am]
BILLING CODE 3510-DS-P