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CSMS #43085058 - Initiation of ADCVD Investigations: Lawn Mowers and Parts Thereof from China and Vietnam

On June 15, 2020, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Certain Walk-Behind Lawn Mowers and Parts Thereof from the People’s Republic of China (China) and the Socialist Republic of Vietnam (Vietnam)” (Initiation Notices). These investigations have been assigned the following case numbers: A-552-830 (Vietnam) and A-570-129 and C-570-130 (China).

The Scope of Merchandise covered by these investigations reads as follows:

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 the investigation cover 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 the 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 sub-assembly does not remove the lawn mower from the scope. A lawn mower is within the scope of this investigation regardless of the origin of its engine.

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.

Requirements For Submitting Comments On The Scope Of The Investigations: Please be sure to comply with all three requirements established below.

Deadline for Submitting Comments:
As announced in the Initiation Notices, Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope). The period for scope comments is intended to provide Commerce with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations, as appropriate. If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information. Commerce requests that all such comments be filed by 5:00 p.m. Eastern Time (ET) on July 6, 2020, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on July 16, 2020, which is 10 calendar days after the initial comments deadline. Commerce requests that any factual information the parties consider relevant to the scope of the investigations be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information. All such comments must be filed on the records of each of the concurrent AD and CVD investigations identified above.

Required Entry of Appearance:
Parties wishing to participate in this segment and be included on the public service list must file a letter of appearance. Section 351.103(d)(1) of Commerce’s regulations states that “with the exception of a petitioner filing a petition in an investigation, to be included on the public service list for a particular segment, each interested party must file a letter of appearance.” The letter of appearance must be filed separately from any other document (with the exception of an application for APO access). Note, the letter of appearance must state how the party qualifies as an interested party (e.g., an exporter, producer, importer of the subject merchandise) and must include a point of contact, including address, telephone/fax number and email address.

All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). An electronically-filed document must be received successfully in its entirety by the time, typically 5 p.m., and date when it is due. Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until July 17, 2020, unless extended.

For your convenience, Commerce has the following resources available online to assist you in complying with these electronic filing procedures:

ACCESS: Help Link
https://access.trade.gov/help.aspx

ACCESS: External User Guide https://access.trade.gov/help/ACCESS_User_Guide.pdf

ACCESS: Handbook on Electronic Filing Procedures
https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf

Federal Register notice: Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011)
http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf

Enforcement and Compliance: Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014)
http://www.gpo.gov/fdsys/pkg/FR-2014-11-20/pdf/2014-27530.pdf

Enforcement and Compliance: General Filing Requirements http://enforcement.trade.gov/filing/index.html

Required Certifications

Please note that certification requirements are in effect for company / government officials as well as their representatives. In all segments of antidumping duty or countervailing duty proceedings, parties submitting factual information must adhere to 19 CFR 351.303(g) regarding the requirement to certify submissions of factual information.

Understanding Critical Circumstances for Antidumping and Countervailing Duties
Critical circumstances is a provision in both the antidumping and countervailing
Duty (AD/CVD) laws that allows for the limited retroactive imposition of duties if certain conditions are met. Importers should be aware that entries of subject merchandise made after the initiation of an AD/CVD investigation may retroactively be subject to AD/CVD.

A finding of critical circumstances is an important tool for Commerce and the U.S. International Trade Commission (ITC) to offset possible import surges during the early period of an AD/CVD investigation. The petitioner in an AD/CVD investigation may allege critical circumstances during an investigation up to 21 days before the date of Commerce’s final determination. If Commerce makes a determination that critical circumstances exist, it has the statutory authority to order the retroactive suspension of liquidation and posting of a cash deposit for entries made before the issuance of a Preliminary and/or Final AD/CVD determination.

Commerce’s authority to suspend entries retroactively for AD/CVD is limited to those entries made on or after the later of: (1) 90 days before the effective date the suspension of liquidation was first ordered, or (2) the date on which the determination to initiate the investigation is published in the Federal Register. In either case, AD/CVD cash deposits are due on entries subject to critical circumstances determinations.

If, following a preliminary determination by Commerce that critical circumstances exist, both Commerce and the ITC reach a final affirmative determination of dumping or subsidization, but either agency makes a negative final determination of critical circumstances, Commerce will instruct U.S. Customs and Border Protection (CBP) to lift suspension from the entries made during the 90-day critical circumstances period and refund cash deposits made with respect to those entries. Interest is not payable on refunds of cash deposits at this stage in the AD/CVD case.

For Further Information Contact:
AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230:

Erin Kearney at (202) 482-0167 (Antidumping Investigations from China and Vietnam); and
Moses Song at (202)-482-7885 (Countervailing Investigation from China).

Determinations related to these proceedings, issued by Commerce and the ITC, will be published in the Federal Register. Parties may also view Commerce’s public AD/CVD instructions to CBP in ACE and “ADD CVD Search” at https://aceservices.cbp.dhs.gov/adcvdweb.