China Large Lawn Mower Engines: Commerce Issues AD Duty Final Determination
The Commerce Department issued its final determination in the antidumping duty investigation on vertical shaft engines between 225cc and 999 cc from China (A-570-119). Cash deposit rates set in this final determination take effect Jan. 11, the date the final determination is scheduled for publication in the Federal Register.
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The next step is for the International Trade Commission to make its final injury determination, currently scheduled for Feb. 18, Commerce said in a news release Jan. 5. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.
Commerce is also issuing its final determination in the concurrent countervailing duty investigation on large lawn mower engines from China (see 2101080025), setting CV duty rates ranging from 17.75% to 19.29%. Collection of CV duties is currently on hold pending the ITC's final injury determination.
Critical Circumstances for All Chinese Companies, Cash Deposits Retroactive 90 Days
Commerce found that all Chinese exporters of large lawn mower engines from China increased their exports to the U.S. in the months before the preliminary determination. That includes Chongqing Zongshen, for which the agency had originally found critical circumstances in its preliminary determination but subsequently reversed course (see 2010060042). As a result, the agency will direct CBP to retroactively suspend liquidation for Chongqing Zongshen, and continue to retroactively suspend liquidation for all other Chinese companies, and require AD duty cash deposits for subject merchandise from all Chinese companies 90 days before the preliminary determination, i.e., May. 21, 2020.
Estimated AD Cash Deposit Rates
Commerce will instruct CBP to continue to suspend liquidation for AD duty purposes and collect cash deposits for subject merchandise entered on or after May 21, 2020, and set cash deposit rates as follows:
| Exporter | Producer | AD Rate | Adjusted* |
|---|---|---|---|
| Loncin Motor Co., Ltd. | Loncin Motor Co., Ltd. | 177.65% | 165.42% |
| Chongqing Zongshen General Power Machine Co., Ltd. | Chongqing Zongshen General Power Machine Co., Ltd. | 336.26% | 324.93% |
| Chongqing Rato Technology Co., Ltd. | Chongqing Rato Technology Co., Ltd. | 270.95% | 259.17% |
| Jialing-Honda Motors Co., Ltd. | Jialing-Honda Motors Co., Ltd. | 270.95% | 259.17% |
| Yamaha Motor Powered Products Jiangsu Co., Ltd. | Yamaha Motor Powered Products Jiangsu Co., Ltd. | 270.95% | 259.17% |
| China-wide Entity | 468.33% | 457% |
*As adjusted for export subsidies found in the CV duty investigation. This AD duty rate will serve as the AD duty cash deposit rate if and when CV duties are back in effect after Commerce issues its CV duty order. For now, the column marked “AD Rate” is the cash deposit rate.
(The period of investigation is 07/01/19 - 12/31/19. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 2008260028 for a summary of the preliminary AD duty determination.)