[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12623-12625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04476]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-119]


Certain Large Vertical Shaft Engines Between 225cc and 999cc, and 
Parts Thereof, From the People's Republic of China: Amended Final 
Antidumping Duty Determination and Antidumping Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing an antidumping duty (AD) order on certain large 
vertical shaft engines between 225cc and 999cc, and parts thereof 
(large vertical shaft engines) from the People's Republic of China 
(China). In addition, Commerce is amending its final determination to 
correct a ministerial error with respect to the final dumping rate 
determination for Loncin Motor Co., Ltd. (Loncin) and, therefore, is 
also amending its final determination as to the rate applicable to the 
separate rate companies.

DATES: Applicable March 4, 2021.

FOR FURTHER INFORMATION CONTACT: Leo Ayala AD/CVD Operations, Office 
VII, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-3945.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 735(d) and 777(i)(1) of the Tariff Act, 
as amended (the Act), on January 11, 2021, Commerce published its Final 
Determination in the less-than-fair-value (LTFV) investigation of 
imports of large vertical shaft engines from China.\1\ On January 12, 
2021, Commerce received ministerial error allegations with respect to 
Loncin in the Final Determination.\2\ No other party made an allegation 
of ministerial errors. See the ``Analysis of Ministerial Error 
Allegations'' section of this notice for further discussion. After 
reviewing the allegations, we determine that the Final Determination 
included a ministerial error with respect to Loncin's final rate 
determination. Therefore, we made certain changes, as described below, 
to the Final Determination.
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    \1\ See Certain Large Vertical Shaft Engines Between 225cc and 
999cc, and Parts Thereof, from the People's Republic of China: Final 
Affirmative Determination of Sales at Less Than Fair Value and Final 
Affirmative Critical Circumstances Determination, 86 FR 1936 
(January 11, 2021) (Final Determination), and accompanying Issues 
and Decision Memorandum (IDM).
    \2\ Id.
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    On February 24, 2021, the ITC notified Commerce of its final 
determination, pursuant to section 735(d) of the Act, that an industry 
in the United States is materially injured within the meaning of 
section 735(b)(1)(A)(i) of the Act by reason of LTFV imports of large 
vertical shaft engines from China.\3\
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    \3\ See ITC Notification Letter, Investigation No. 701-TA-637 
and 731-TA-1471 (Final), dated February 24, 2021 (ITC Notification 
Letter).
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Scope of the Order

    The products covered by this order are large vertical shaft engines 
from China. For a complete description of the scope of this order, see 
the appendix to this notice.

Amendment to Final Determination

    A ministerial error is defined in 19 CFR 351.224(f) as ``an error 
in addition, subtraction, or other arithmetic function, clerical error 
resulting from inaccurate copying, duplication, or the like, and any 
other similar type of unintentional error which the Secretary considers 
ministerial.'' \4\ Pursuant to 19 CFR 351.224(e), and as explained 
further in the Ministerial Error Memorandum \5\ issued concurrently 
with this notice, Commerce is amending the Final Determination to 
reflect the correction of a ministerial error in the final estimated 
weighted-average dumping margin calculated for Loncin.\6\ Correction of 
this error changes the final rate determined for Loncin, and also 
changes the rate applicable to the separate rate companies.
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    \4\ See section 735(e) of the Act; see also 19 CFR 351.224(f).
    \5\ See Memorandum, ``Antidumping Duty Investigation of Certain 
Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, 
from China: Allegation of Ministerial Errors in Final Determination 
of AD Investigation,'' dated concurrently with, and hereby adopted 
by, this notice (Ministerial Error Memorandum).
    \6\ Id.
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AD Order

    On February 24, 2021, in accordance with section 735(d) of the Act, 
the ITC notified Commerce of its final determination in this 
investigation, in which it found that an industry in the United States 
is materially injured by reason of imports of large vertical shaft 
engines from China.\7\ Therefore, in accordance with section 735(c)(2) 
of the Act, Commerce is issuing this AD order. Because the ITC 
determined that large vertical shaft engines from China are materially 
injuring a U.S. industry, unliquidated entries of such merchandise from 
China, entered or withdrawn from warehouse for consumption, are subject 
to the assessment of antidumping duties. Therefore, in accordance with 
section 736(a)(1) of the Act, Commerce will direct U.S. Customs and 
Border Protection (CBP) to assess, upon further instruction by 
Commerce, antidumping duties equal to the amount by which the normal 
value of the merchandise exceeds the export price (or constructed 
export price) of the merchandise, for all relevant entries of large 
vertical shaft engines from China. In addition, the ITC made a negative 
finding concerning critical circumstances with regard to imports of 
large vertical engines from China that are sold in the United States at 
LTFV. As a result, these imports will not be subject to retroactive 
antidumping duties.\8\ With the exception of entries occurring after 
the expiration of the provisional measures period and before 
publication of the ITC's final affirmative injury determinations, as 
further described below, antidumping duties will be assessed on 
unliquidated entries of large vertical shaft engines entered, or 
withdrawn from warehouse, for consumption, on or after August 19, 2020, 
the date of publication of the Preliminary Determination.\9\
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    \7\ See ITC Notification Letter.
    \8\ Id.
    \9\ See Certain Vertical Shaft Engines Between 225cc and 999cc, 
and Parts Thereof, From the People's Republic of China: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Affirmative Determination of Critical Circumstances, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 85 FR 51015 (August 19, 2020) (Preliminary Determination).
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Suspension of Liquidation

    Except as noted in the ``Provisional Measures'' section of this 
notice, in accordance with section 735(c)(1)(B) of the Act, Commerce 
will instruct CBP to continue to suspend liquidation on all relevant 
entries of large vertical shaft engines from China. These instructions

[[Page 12624]]

suspending liquidation will remain in effect until further notice.
    Commerce will also instruct CBP to require cash deposits equal to 
the estimated weighted-average dumping margin indicated in the tables 
below. Accordingly, effective on the date of publication in the Federal 
Register of the notice of the ITC's final affirmative injury 
determination, CBP will require, at the same time as importers would 
normally deposit estimated duties on subject merchandise, a cash 
deposit equal to the rates listed below.

Provisional Measures

    Section 733(d) of the Act states that suspension of liquidation 
pursuant to an affirmative preliminary determination may not remain in 
effect for more than four months, except where exporters representing a 
significant proportion of exports of the subject merchandise request 
that Commerce extend the four-month period to no more than six months. 
At the request of exporters that account for a significant proportion 
of large vertical shaft engines from China, Commerce extended the four-
month period to six months in this investigation. Commerce published 
the Preliminary Determination in this investigation on August 19, 
2020.\10\
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    \10\ See Preliminary Determination.
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    The extended provisional measures period, beginning on the date of 
publication of the preliminary determination, ended on January 4, 2021. 
Therefore, in accordance with section 733(d) of the Act and our 
practice,\11\ Commerce will instruct CBP to terminate the suspension of 
liquidation and to liquidate, without regard to antidumping duties, 
unliquidated entries of large vertical shaft engines from China 
entered, or withdrawn from warehouse, for consumption after January 4, 
2021, the final day on which the provisional measures were in effect, 
until and through the day preceding the date of publication of the 
ITC's final affirmative injury determination in the Federal Register. 
Suspension of liquidation and the collection of cash deposits will 
resume on the date of publication of the ITC's final determination in 
the Federal Register.
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    \11\ See, e.g., Certain Corrosion-Resistant Steel Products from 
India, the People's Republic of China, the Republic of Korea and 
Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390, 48392 
(July 25, 2016).
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Estimated Weighted-Average Dumping Margins

    The estimated weighted-average dumping margins are as follows:

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                                                                                Estimated      Cash deposit rate
                                                                             weighted-average    (adjusted for
                  Producer                              Exporter              dumping margin     export subsidy
                                                                                (percent)      offset) (percent)
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Loncin Motor Co., Ltd......................  Loncin Motor Co. Ltd.........             185.65             173.42
Chongqing Zongshen General Power Machine     Chongqing Zongshen General                336.26             323.91
 Co., Ltd.                                    Power Machine Co., Ltd.
Chongqing Rato Technology Co., Ltd.........  Chongqing Rato Technology                 274.24             261.93
                                              Co., Ltd.
Jialing-Honda Motors Co., Ltd..............  Jialing-Honda Motors Co., Ltd             274.24             261.93
Yamaha Motor Powered Products Jiangsu Co.,   Yamaha Motor Powered Products             274.24             261.93
 Ltd.                                         Jiangsu Co., Ltd.
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China-Wide Entity.........................................................             468.33              456.1
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Notification to Interested Parties

    This notice constitutes the AD order with respect to large vertical 
shaft engines from China pursuant to section 736(a) of the Act. 
Interested parties can find a list of AD orders currently in effect at 
http://enforcement.trade.gov/stats/iastats1.html.
    This amended final determination and AD order is published in 
accordance with sections 735(e) and 736(a) of the Act, and 19 CFR 
351.224(e) and 19 CFR 351.211(b).

    Dated: February 26, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Order

    The merchandise covered by this order consists of spark-ignited, 
non-road, vertical shaft engines, whether finished or unfinished, 
whether assembled or unassembled, primarily for riding lawn mowers 
and zero-turn radius lawn mowers. Engines meeting this physical 
description may also be for other non-hand-held outdoor power 
equipment such as, including but not limited to, tow-behind brush 
mowers, grinders, and vertical shaft generators. The subject engines 
are spark ignition, single or multiple cylinder, air cooled, 
internal combustion engines with vertical power take off shafts with 
a minimum displacement of 225 cubic centimeters (cc) and a maximum 
displacement of 999cc. Typically, engines with displacements of this 
size generate gross power of between 6.7 kilowatts (kw) to 42 kw.
    Engines covered by this scope normally must comply with and be 
certified under Environmental Protection Agency (EPA) air pollution 
controls title 40, chapter I, subchapter U, part 1054 of the Code of 
Federal Regulations standards for small non-road spark-ignition 
engines and equipment. Engines that otherwise meet the physical 
description of the scope but are not certified under 40 CFR part 
1054 and are not certified under other parts of subchapter U of the 
EPA air pollution controls are not excluded from the scope of this 
proceeding. Engines that may be certified under both 40 CFR part 
1054 as well as other parts of subchapter U remain subject to the 
scope of this proceeding.
    For purposes of this order, an unfinished engine covers at a 
minimum a sub-assembly comprised of, but not limited to, the 
following components: Crankcase, crankshaft, camshaft, piston(s), 
and connecting rod(s). Importation of these components together, 
whether assembled or unassembled, and whether or not accompanied by 
additional components such as an oil pan, manifold, cylinder 
head(s), valve train, or valve cover(s), constitutes an unfinished 
engine for purposes of this order. The inclusion of other products 
such as spark plugs fitted into the cylinder head or electrical 
devices (e.g., ignition modules, ignition coils) for synchronizing 
with the motor to supply tension current does not remove the product 
from the scope. The inclusion of any other components not identified 
as comprising the unfinished engine subassembly in a third country 
does not remove the engine from the scope.
    The engines subject to this order are typically classified in 
the Harmonized Tariff Schedule of the United States (HTSUS) at 
subheadings: 8407.90.1020, 8407.90.1060, and 8407.90.1080. The 
engine subassemblies that are subject to this order enter under 
HTSUS 8409.91.9990. Engines subject to this order may also enter 
under HTSUS 8407.90.9060 and 8407.90.9080. The HTSUS subheadings are 
provided for convenience and customs purposes only, and the written

[[Page 12625]]

description of the merchandise subject to this order is dispositive.

[FR Doc. 2021-04476 Filed 3-3-21; 8:45 am]
BILLING CODE 3510-DS-P