[Federal Register Volume 87, Number 35 (Tuesday, February 22, 2022)]
[Notices]
[Pages 9573-9575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03659]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-119]


Initiation of Antidumping Duty Changed Circumstances Review: 
Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts 
Thereof From the People's Republic of China

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

SUMMARY: Based on a request from Honda Power Products (China) Co., Ltd. 
(Honda), the Department of Commerce (Commerce) is initiating a changed 
circumstances review (CCR) of the antidumping duty (AD) order on 
certain vertical shaft engines between 225cc and 999cc, and parts 
thereof (vertical shaft engines) from the People's Republic of China 
(China).

DATES: Applicable February 22, 2022.

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

    On March 4, 2021, Commerce published in the Federal Register an 
amended final AD determination and order on vertical shaft engines from 
China.\1\ In the Amended Final Determination, Commerce determined an AD 
cash deposit rate for Jialing-Honda Motors Co., Ltd. (Jialing) of 
261.93 percent.\2\
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    \1\ See Certain 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, 86 FR 
12623 (March 4, 2021) (Amended Final Determination and Order); see 
also Certain Large Vertical Shaft Engines Between 225cc and 999cc, 
and Parts Thereof, from the People's Republic of China: Notice of 
Correction to the Amended Final Antidumping Duty Determination and 
Antidumping Duty Order, 86 FR 13694 (March 10, 2021).
    \2\ Id., 86 FR at 12624.
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    On September 20, 2021, Honda informed Commerce that, as of July 1, 
2020, Jialing changed its name to Honda Power Products (China) Co., 
Ltd.\3\ Honda stated the change was in name only and that its business 
operations remain substantially unchanged.\4\ Honda requested that 
Commerce conduct a CCR and find that Honda is the successor-in-interest 
to Jialing and assign Jialing's AD cash deposit rate for vertical shaft 
engines from China to Honda, pursuant to section 751(b) of the Tariff 
Act of 1930, as amended (the Act), and 19 CFR 351.216(b).\5\ Honda made 
arguments as to why good cause exists for initiating a CCR pursuant to 
19 CFR 351.216(c) \6\ and also requested that Commerce combine the 
notice of initiation with a preliminary results of the CCR pursuant to 
19 CFR 351.221(c)(3)(ii).
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    \3\ See Honda's Letter, ``Certain Vertical Shaft Engines Between 
225cc and 999cc, and Parts Thereof from the People's Republic of 
China: Request for Changed Circumstances Review,'' dated September 
20, 2021 (Honda's CCR Request).
    \4\ Id. at 2.
    \5\ Id.
    \6\ Id. at 6.
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    On November 21, 2021, Commerce deemed Honda's request deficient and 
issued a supplemental questionnaire to Honda requesting additional 
information.\7\ On December 31, 2021,

[[Page 9574]]

Honda submitted its response to the supplemental questionnaire.\8\ We 
received no comments from interested parties regarding Honda's CCR 
Request.
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    \7\ See Commerce's Letter, ``Certain Vertical Shaft Engines 
Between 225cc and 999cc, and Parts Thereof from the People's 
Republic of China: Changed Circumstances Review; Supplemental 
Questionnaire,'' dated November 1, 2021.
    \8\ See Honda's Letter, ``Certain Vertical Shaft Engines Between 
225cc and 999cc, and Parts Thereof from the People's Republic of 
China: Changed Circumstances Review; Supplemental Questionnaire,'' 
dated December 31, 2021.
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Scope of the Order

    The merchandise covered by the Order is vertical shaft engines. For 
a complete description of the scope, see the appendix.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1)(A) of the Act and 19 CFR 351.216(d), 
Commerce will conduct a CCR upon receipt of a request from an 
interested party for a review of an AD order which shows changed 
circumstances sufficient to warrant a review of the order. In the past, 
Commerce has used CCRs to address the applicability of cash deposit 
rates after there have been changes in the name or structure of a 
respondent, such as a merger or spinoff (i.e., a successor-in-interest 
determination).\9\ The information submitted by Honda supporting its 
claim that it is the successor-in-interest to Jialing demonstrates 
changed circumstances sufficient to warrant the initiation of such a 
review.\10\
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    \9\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606 
(November 7, 2017), unchanged in Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Final Results of Antidumping 
Duty Changed Circumstances Review, 82 FR 60177 (December 19, 2017).
    \10\ See 19 CFR 351.216(d).
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    Section 751(b)(4)(B) of the Act and 19 CFR 351.216(c) state that, 
``in the absence of good cause shown,'' the Secretary of Commerce may 
not review a final determination less than 24 months after the date of 
publication of the notice of final determination or notice of 
suspension of an investigation. The final determination in the less-
than-fair-value investigation of vertical shaft engines from China 
published on January 11, 2021.\11\ Therefore, Commerce must also 
determine whether good cause exists to conduct this review.
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    \11\ See Certain 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).
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    Honda asserts that good cause exists because, aside from the name 
change, it made no changes with respect to ``production, management, 
customer and supplier relationships or any other aspect of 
operations.'' \12\ Honda argues that a CCR is needed to ensure the 
appropriate cash deposit rate applies to Honda's entries and that 
Commerce has previously found in similar situations that a name change, 
with no further changes in the company's operations, constitutes good 
cause pursuant to 19 CFR 351.216(c) to initiate a CCR.\13\ Based on 
this explanation, we find that good cause has been shown pursuant to 19 
CFR 351.216(c) to initiate a CCR, and conducting this review ensures 
that the appropriate cash deposit rate applies to Honda.
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    \12\ See Honda's CCR Request at 4.
    \13\ Id. at 5-6 (citing Notice of Initiation and Preliminary 
Results of Antidumping Duty Changed Circumstances Review: Certain 
Passenger Vehicle and Light Truck Tires from the People's Republic 
of China, 81 FR 44588 (July 8, 2016); and Cast Iron Soil Pipe 
Fittings from the People's Republic of China: Initiation and 
Preliminary Results of Changed Circumstances Reviews, 84 FR 64263 
(November 21, 2019)).
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    Therefore, in accordance with section 751(b)(1)(A) of the Act and 
19 CFR 351.216(d), we are initiating a CCR based on the information 
contained in Honda's submission.

Preliminary Results

    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation and preliminary results of 
a CCR if Commerce concludes that expedited action is warranted. 
However, we are not combining this notice of initiation with the 
preliminary results because Commerce has determined that it is 
necessary to issue an additional supplemental questionnaire to Honda 
regarding Honda's customer base and supplier relationships and to 
provide interested parties with an opportunity to comment. Commerce 
intends to publish in the Federal Register a notice of the preliminary 
results of this CCR in accordance with 19 CFR 351.221(b)(4). Consistent 
with 19 CFR 351.221(c)(3)(i), Commerce will set forth its preliminary 
factual and legal conclusions in that notice.

Final Results

    Unless extended, Commerce intends to issue the final results of 
this CCR within 270 days of the day of initiation of this CCR, in 
accordance with 19 CFR 351.216(e).

Notification to Interested Parties

    This notice is published in accordance with section 751(b)(1) of 
the Act, and 19 CFR 351.216(b) and 19 CFR 351.221(b)(1).

    Dated: February 14, 2022.
Lisa W. Wang,
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 subheading 8409.91.9990. Engines subject to this order may 
also enter under HTSUS subheading 8407.90.9060 and 8407.90.9080. The 
HTSUS subheadings are provided for convenience and customs purposes 
only, and the written description of

[[Page 9575]]

the merchandise subject to this order is dispositive.

[FR Doc. 2022-03659 Filed 2-18-22; 8:45 am]
BILLING CODE 3510-DS-P