Preliminary determination of circumvention - antidumping order on certain vertical shaft engines between 99cc and up to 225cc from the People's Republic of China (A-570-124, C-570-125, A-201-996, C-201-997)

1. On 09/07/2022, Commerce published in the Federal Register its notice of affirmative preliminary determination of circumvention of the antidumping duty (AD) and countervailing duty (CVD) orders on certain vertical shaft engines between 99cc and up to 225cc (small vertical engines) from the People's Republic of China (87 FR 54672). 2. Scope of the AD and CVD orders The merchandise covered by the Orders consists of spark-ignited, non-road, vertical shaft engines, whether finished or unfinished, whether assembled or unassembled, whether mounted or unmounted, primarily for walk-behind lawn mowers. Engines meeting this physical description may also be for other non-hand-held outdoor power equipment, including but not limited to, pressure washers. The subject engines are spark ignition, single-cylinder, air cooled, internal combustion engines with vertical power take off shafts with a minimum displacement of 99cc and a maximum displacement of up to, but not including, 225cc. Typically, engines with displacements of this size generate gross power of between 1.95 kilowatts (kw) to 4.75 kw. Engines covered by the 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 the Order. 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 the Order. Certain small vertical shaft engines, whether or not mounted on non-hand-held outdoor power equipment, including but not limited to walk-behind lawn mowers and pressure washers, are included in the scope. However, if a subject engine is imported mounted on such equipment, only the engine is covered by the scope. Subject merchandise includes certain small vertical shaft engines produced in the subject country whether mounted on outdoor power equipment in the subject country or in a third country. Subject engines are covered whether or not they are accompanied by other parts. For purposes of the 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 a sump, carburetor spacer, cylinder head(s), valve train, or valve cover(s), constitutes an unfinished engine for purposes of the Order. The inclusion of other products such as spark plugs fitted into the cylinder head or electrical devices (e.g., ignition coils) for synchronizing with the engine 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. Specifically excluded from the scope of this Order are "Commercial" or "Heavy Commercial" engines under 40 C.F.R. SectionSection 1054.107 and 1054.135 that have (1) a displacement of 160 cc or greater, (2) a cast iron cylinder liner, (3) an automatic compression release, and (4) a muffler with at least three chambers and volume greater than 400cc. The engines subject to the Order are predominantly classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 8407.90.1010. The engine subassemblies that are subject to the Orders enter under HTSUS subheading 8409.91.9990. The mounted engines that are subject to the Orders enter under HTSUS subheadings 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines subject to the Order may also enter under HTSUS subheadings 8407.90.1020, 8407.90.9040, and 8407.90.9060. The HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise is dispositive. 3. Merchandise subject to the circumvention inquiry The merchandise subject to this circumvention inquiry is vertical shaft engines with displacements between 60cc and up to 99cc produced in the People's Republic of China and exported to the United States. 4. Suspension of Liquidation 4a. CBP shall suspend liquidation of all unliquidated entries (and entries for which liquidation has not become final) of vertical shaft engines with displacements between 60cc and up to 99cc produced in the People's Republic of China and entered, or withdrawn from warehouse, for consumption on or after 09/17/2021 (i.e., the date of the initiation of the anti-circumvention inquiry) and shall require for such entries a cash deposit at the applicable rate in effect at the date of entry. 4b. Third-country case numbers A-201-996 and C-201-997 have been created to accommodate entries of non-hand-held outdoor power equipment produced in Mexico using Chinese small vertical engines that are subject to the AD and CVD orders on small vertical engines from the People's Republic of China. Any such entries that are set for liquidation should be unset immediately. 4c. Entries of products covered by subparagraphs 4a and 4b should not be liquidated until specific liquidation instructions are issued. Any entries which are set for liquidation must be unset immediately. 5. This instruction does not affect or otherwise limit CBP's independent authority to take any additional action with respect to the suspension of liquidation or related measures. 6. If there are any questions by the importing public regarding this message, please contact the Call Center for the Office of AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, at (202) 482-0984. CBP ports should submit their inquiries through authorized CBP channels only. (This message was generated by OII: MM.) 7. There are no restrictions on the release of this information. Alexander Amdur