[Federal Register Volume 85, Number 120 (Monday, June 22, 2020)]
[Notices]
[Pages 37417-37422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13385]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-129; A-552-830]
Certain Walk-Behind Lawn Mowers and Parts Thereof From the
People's Republic of China and the Socialist Republic of Vietnam:
Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable June 15, 2020.
FOR FURTHER INFORMATION CONTACT: Erin Kearney at (202) 482-0167; AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On May 26, 2020, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
walk-behind lawn mowers (lawn mowers) from the People's Republic of
China (China) and the Socialist Republic of Vietnam (Vietnam) filed in
proper form on behalf of the petitioner,\1\ a domestic producer of lawn
mowers.\2\
[[Page 37418]]
The Petitions were accompanied by a countervailing duty (CVD) petition
concerning imports of lawn mowers from China.\3\
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\1\ The petitioner is MTD Products Inc.
\2\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping Duties on Certain Walk-Behind Lawn Mowers from the
People's Republic of China and the Socialist Republic of Vietnam and
Countervailing Duties on Certain Walk-Behind Lawn Mowers from the
People's Republic of China,'' dated May 26, 2020 (the Petitions).
\3\ Id.
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On May 29, 2020, Commerce requested supplemental information
pertaining to certain aspects of the Petitions in separate supplemental
questionnaires.\4\ On June 2, 2020, the petitioner filed responses to
the supplemental questionnaires.\5\
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\4\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of
China and the Socialist Republic of Vietnam: General Issues
Supplemental Questions'' (General Issues Supplemental); ``Petition
for the Imposition of Antidumping Duties on Imports of Certain Walk-
Behind Lawn Mowers and Parts Thereof from the People's Republic of
China: Supplemental Questions''; and ``Petition for the Imposition
of Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers
and Parts Thereof from the Socialist Republic of Vietnam:
Supplemental Questions,'' all dated May 29, 2020.
\5\ See Petitioner's Letters, ``Petitions for the Imposition of
Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers
from the People's Republic of China and the Socialist Republic of
Vietnam, and Countervailing Duties from the People's Republic of
China: General Issues Supplemental Questions Response Volume I''
(General Issues Supplement); ``Petitions for the Imposition of
Antidumping Duties on Imports of Certain Walk-Behind Lawn Mowers
from the People's Republic of China: Supplemental Questionnaire
Response Volume III'' (China AD Supplement); and ``Petitions for the
Imposition of Antidumping Duties on Imports of Certain Walk-Behind
Lawn Mowers from the Socialist Republic of Vietnam: Supplemental
Questionnaire Response Volume III'' (Vietnam AD Supplement), all
dated June 2, 2020.
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of lawn mowers
from China and Vietnam are being, or are likely to be, sold in the
United States at less than fair value (LTFV) within the meaning of
section 731 of the Act, and that imports of such products are
materially injuring, or threatening material injury to, the domestic
lawn mower industry in the United States. Consistent with section
732(b)(1) of the Act, the Petitions are accompanied by information
reasonably available to the petitioner supporting the allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested AD investigations.\6\
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\6\ See the Petitions at section on ``Determination of Industry
Support for the Petitions.''
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Period of Investigation
Because China and Vietnam are non-market economy (NME) countries,
pursuant to 19 CFR 351.204(b)(1), the period of investigation (POI) for
the investigations is October 1, 2019 through March 31, 2020.
Scope of the Investigations
The products covered by these investigations are lawn mowers from
China and Vietnam. For a full description of the scope of these
investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On May 29, 2020, Commerce requested further information from the
petitioner regarding the proposed scope to ensure that the scope
language in the Petitions is an accurate reflection of the products for
which the domestic industry is seeking relief.\7\ On June 2, 2020, the
petitioner revised the scope.\8\ The description of the merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
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\7\ See General Issues Supplemental at 3-4.
\8\ See General Issues Supplemental at Exhibit S-I-3.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information, all such
factual information should be limited to public information.\10\ To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on July 6, 2020, which is the next business day after 20 calendar
days from the signature date of this notice.\11\ 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 from the initial comment
deadline.\12\
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ Commerce's practice dictates that where a deadline falls on
a weekend or Federal holiday, the appropriate deadline is the next
business day (in this instance, May 11, 2020). See Notice of
Clarification: Application of ``Next Business Day'' Rule for
Administrative Determination Deadlines Pursuant to the Tariff Act of
1930, As Amended, 70 FR 24533 (May 10, 2005) (Next Business Day
Rule).
\12\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
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 submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's (E&C's) Antidumping Duty and
Countervailing Duty Centralized Electronic Service System (ACCESS),
unless an exception applies.\13\ An electronically filed document must
be received successfully in its entirety by the time and date it is
due.
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\13\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of lawn mowers to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOPs) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaires, all
product characteristics comments must be filed by 5:00 p.m. ET on July
6, 2020, which is the next business day after 20 calendar days from the
signature date of this notice.\14\ Any rebuttal comments
[[Page 37419]]
must be filed by 5:00 p.m. ET on July 16, 2020. All comments and
submissions to Commerce must be filed electronically using ACCESS, as
explained above, on the record of both of the AD investigations.
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\14\ See 19 CFR 351.303(b). Commerce practice dictates that
where a deadline falls on a weekend or Federal holiday (in this
instance, July 5, 2020), the appropriate deadline is the next
business day. See Next Business Day Rule, 70 FR at 24533.
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\15\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\16\
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\15\ See section 771(10) of the Act.
\16\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989),
cert. denied 492 U.S. 919 (1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\17\ Based on our analysis of the information
submitted on the record, we have determined that lawn mowers, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\18\
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\17\ See Volume I of the Petitions at 18-24.
\18\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see the China and Vietnam AD Initiation Checklists at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petitions Covering Certain Walk-Behind Lawn Mowers from the
People's Republic of China and the Socialist Republic of Vietnam
(Attachment II). These checklists are dated concurrently with, and
hereby adopted by, this notice and on file electronically via
ACCESS.
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On June 10, 2020, we received comments on industry support from
Sumec Hardware & Tools Co., Ltd. (Sumec), a Chinese producer of subject
merchandise, and Merotec Inc (Merotec), an importer of subject
merchandise.\19\ The petitioner responded to the industry support
comments on June 11, 2020.\20\ On June 12, 2020, we received
surrebuttal comments from Sumec and Merotec with regard to the
petitioner's June 11, 2020 comments.\21\ The petitioner responded to
these surrebuttal industry support comments on June 15, 2020.\22\
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\19\ See Sumec and Merotec's Letter, ``Walk-Behind Lawn Mowers
and Parts Thereof from the People's Republic of China, Request to
the Department to Poll the Industry,'' dated June 10, 2020.
\20\ See Petitioner's Letter, ``Investigations on Certain Walk-
Behind Lawn Mowers from the People's Republic of China and the
Socialist Republic of Vietnam, and Countervailing Duties from the
People's Republic of China, Inv. Nos. 731-1521-1522 and 701-TA-648
(Preliminary): Response to Sumec Hardware & Tools Co., Ltd.'s
Request to the Department to Poll the Industry,'' dated June 11,
2019.
\21\ See Sumec and Merotec's Letter, ``Walk-Behind Lawn Mowers
and Parts Thereof from the People's Republic of China, Reply to
Petitioner's Response to the Request to Poll the Industry,'' dated
June 12, 2020.
\22\ See Petitioner's Letter, ``Investigations on Certain Walk-
Behind Lawn Mowers from the People's Republic of China and the
Socialist Republic of Vietnam, and Countervailing Duties from the
People's Republic of China, Inv. Nos. 731-1521-1522 and 701-TA-648
(Preliminary): Response to Sumec Hardware & Tools Co., Ltd.'s Reply
to Petitioner's Response to the Request to Poll the Industry,''
dated June 15, 2019.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
2019 shipments of the domestic like product.\23\ To estimate the 2019
shipments for the entire U.S. lawn mowers industry, the petitioner
relied on 2019 shipment data reported by the Outdoor Power Equipment
Institute and made certain adjustments to reflect total shipments by
U.S. producers of lawn mowers.\24\ The petitioner estimated the
production of the domestic like product for the entire domestic
industry based on shipment data, because production data for the entire
domestic industry were not available to the petitioner, and shipments
are a close approximation of production in the lawn mowers
industry.\25\ We relied on data provided by the petitioner for purposes
of measuring industry support.\26\ Accordingly, Commerce determines
that the Petitions were filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act.\27\
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\23\ See Volume I of the Petitions at 4-5 and Exhibit I-2; see
also General Issues Supplement at 7 and Exhibit S-I-5.
\24\ See Volume I of the Petitions at 4-5 and Exhibits I-1, I-2,
and I-23; see also General Issues Supplement at 7 and Exhibit S-I-5.
\25\ See Volume I of the Petitions at 4-5 and Exhibit I-23.
\26\ See Volume I of the Petitions at 4-5 and Exhibit I-2; see
also General Issues Supplement at 7 and Exhibit S-I-5. For further
discussion, see Attachment II of the China and Vietnam AD Initiation
Checklists.
\27\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\28\
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\28\ See Volume I of the Petitions at 24-25 and Exhibit I-8.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
declining market share; underselling and price depression and
suppression;
[[Page 37420]]
lost sales and revenues; declines in shipments, capacity utilization,
and capital expenditures; plant closures and declines in employment
variables; declining profitability; and the magnitude of dumping.\29\
We assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\30\
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\29\ See Volume I of the Petitions at 27-40 and Exhibits I-8
through I-11 and I-20 through I-22, and I-24; see also General
Issues Supplement at 2 and Exhibit S-I-1.
\30\ See the China and Vietnam AD Initiation Checklists at
Attachment III, Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and Countervailing Duty
Petitions Covering Certain Walk-Behind Lawn Mowers and Parts Thereof
from the People's Republic of China and the Socialist Republic of
Vietnam (Attachment III).
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of lawn mowers from China and Vietnam. The sources of data for
the deductions and adjustments relating to U.S. price and normal value
(NV) are discussed in greater detail in the China and Vietnam AD
Initiation Checklists.
U.S. Price
For both China and Vietnam, the petitioner based export price (EP)
on two methodologies: (1) The average unit values (AUVs) of publicly-
available import data adjusted to deduct foreign inland freight
expenses; and (2) a transaction-specific AUV derived from official
import data and tied to ship manifest data obtained from Datamyne.\31\
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\31\ See the China and Vietnam AD Initiation Checklists.
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Normal Value
Commerce considers China and Vietnam to be NME countries.\32\ In
accordance with section 771(18)(C)(i) of the Act, any determination
that a foreign country is an NME country shall remain in effect until
revoked by Commerce. Therefore, we continue to treat China and Vietnam
as NME countries for purposes of the initiation of these
investigations. Accordingly, NVs in China and Vietnam are appropriately
based on FOPs valued in surrogate market economy countries, in
accordance with section 773(c) of the Act.
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\32\ See, e.g., Antidumping Duty Investigation of Certain
Aluminum Foil from the People's Republic of China: Affirmative
Preliminary Determination of Sales at Less-Than-Fair Value and
Postponement of Final Determination, 82 FR 50858, 50861 (November 2,
2017), and accompanying Preliminary Decision Memorandum at ``China's
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 83 FR 9282 (March 5, 2018); and Certain Frozen
Fish Fillets from the Socialist Republic of Vietnam: Final Results,
and Final Results of No Shipments of the Antidumping Duty
Administrative Review; 2016-2017, 84 FR 18007 (April 29, 2019).
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With respect to China, the petitioner argues that the Republic of
Turkey (Turkey) is an appropriate surrogate country because Turkey is a
market economy country that is at a level of economic development
comparable to that of China and is a significant producer of comparable
merchandise.\33\ The petitioner submitted publicly available
information from Turkey to value all FOPs.\34\ Based on the information
provided by the petitioner, we determine that it is appropriate to use
Turkey as a surrogate country for China for initiation purposes.
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\33\ See Volume II of the Petitions at 3 and Exhibit II-2.
\34\ Id. at Exhibits II-3, II-14--II 16.
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For Vietnam, the petitioner claims that India is an appropriate
surrogate country because India is a market economy country that is at
a level of economic development comparable to that of Vietnam and is a
significant producer of comparable merchandise.\35\ The petitioner
provided publicly available information from India to value all
FOPs.\36\ Based on the information provided by the petitioner, we
determine that it is appropriate to use India as a surrogate country
for Vietnam for initiation purposes.
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\35\ See Volume III of the Petitions at 3-4 and Exhibit III-1.
\36\ Id. at Exhibit III-11.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selections and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
For China and Vietnam, the petitioner used its own product-specific
consumption rates as a surrogate to value Chinese and Vietnamese
manufacturers' FOPs.\37\ Additionally, the petitioner calculated
factory overhead; selling, general and administrative expenses; and
profit based on the experience of Turkish and Indian producers of
comparable merchandise.\38\
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\37\ See Volume II of the Petitions at 3 and Exhibits II-9 and
II-10; and Volume III of the Petitions at 7 and Exhibits III-9 and
III-10.
\38\ See Volume II of the Petition at 9 and Exhibits II-3 and
II-12; Volume III of the Petitions at 4-5 and Exhibit III-18; China
AD Supplement at Exhibit S-II-3; and Vietnam AD Supplement at 2 and
Exhibit S-III-3.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of lawn mowers from China and Vietnam are being,
or are likely to be, sold in the United States at LTFV. Based on
comparisons of EP to NV in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for lawn mowers from China are
274.29-313.58 percent, and 289.63-416.00 percent for lawn mowers from
Vietnam.\39\
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\39\ See China AD Supplement at Exhibit S-II-6; and Vietnam AD
Supplement at Exhibit S-III-4.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating AD investigations to determine
whether imports of lawn mowers from China and Vietnam are being, or are
likely to be, sold in the United States at LTFV. In accordance with
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than
140 days after the date of this initiation.
Respondent Selection
In the Petitions, the petitioner named 46 companies in China and
three companies in Vietnam as producers/exporters of lawn mowers.\40\
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\40\ See Volume I of the Petitions at 2 and Exhibit I-5.
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In accordance with our standard practice for respondent selection
in AD investigations involving NME countries, Commerce selects
respondents based on quantity and value (Q&V) questionnaires in cases
where it has determined that the number of companies is large, and it
cannot individually examine each company based upon its resources.
Therefore, considering the number of producers and exporters identified
in the Petitions, Commerce will solicit Q&V information that can serve
as a basis for selecting exporters for individual examination in the
event that Commerce decides to limit the number of respondents
individually examined pursuant to section 777A(c)(2) of the Act. For
Vietnam, because there are three producers and exporters identified in
the Petitions, Commerce has determined
[[Page 37421]]
that it will issue Q&V questionnaires to each potential respondent for
which the petitioner has provided a complete address. However, because
there are 46 producers and exporters for China identified in the
Petitions, Commerce has determined to limit the number of Q&V
questionnaires that it will send out to exporters and producers based
on U.S. Customs and Border Protection (CBP) data for lawn mowers from
China during the POI under the appropriate Harmonized Tariff Schedule
of the United States number listed in the ``Scope of the
Investigation,'' in the appendix. Accordingly, Commerce will send Q&V
questionnaires to the largest producers and exporters that are
identified in the CBP data for which there is address information on
the record.
In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at http://www.trade.gov/enforcement/news.asp. Producers/exporters of lawn mowers from China and
Vietnam that do not receive Q&V questionnaires may still submit a
response to the Q&V questionnaire and can obtain a copy of the Q&V
questionnaire from E&C's website. In accordance with the standard
practice for respondent selection in AD cases involving NME countries,
in the event Commerce decides to limit the number of respondents
individually investigated, Commerce intends to base respondent
selection on the responses to the Q&V questionnaire that it receives.
Responses to the Q&V questionnaire must be submitted by the
relevant Chinese and Vietnamese producers/exporters no later than 5:00
p.m. ET on July 1, 2020. All Q&V questionnaire responses must be filed
electronically via ACCESS.
On June 10, 2020, Commerce released CBP data on imports of lawn
mowers from China under administrative protective order (APO) to all
parties with access to information protected by APO, and indicated that
interested parties wishing to comment on the CBP data must do so within
three business days of the publication date of the notice of initiation
of this investigation.\41\ We further stated that we will not accept
rebuttal comments.
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\41\ See Memorandum, ``Certain Walk-Behind Lawn Mowers and Parts
Thereof from the People's Republic of China: Release of Customs Data
from U.S. Customs and Border Protection,'' dated June 10, 2020.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on E&C's website at http://enforcement.trade.gov/apo.
Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted
above. Commerce intends to finalize its decisions regarding respondent
selection within 20 days of publication of this notice.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\42\
The specific requirements for submitting a separate-rate application in
a China or Vietnam investigation are outlined in detail in the
application itself, which is available on E&C's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\43\ Exporters and producers who submit a separate-rate
application and have been selected as mandatory respondents will be
eligible for consideration for separate-rate status only if they
respond to all parts of Commerce's AD questionnaire as mandatory
respondents. Commerce requires that companies from China or Vietnam
submit a response to both the Q&V questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. Companies not filing a timely
Q&V questionnaire response will not receive separate rate
consideration.
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\42\ See Policy Bulletin 05.1: ``Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving NME Countries,'' (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
\43\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the {Commerce{time} will
now assign in its NME Investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\44\
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\44\ See Policy Bulletin 05.1 at 6 (emphasis added).
Distribution of Copies of the AD Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of China and Vietnam via ACCESS.
Furthermore, to the extent practicable, Commerce will attempt to
provide a copy of the public version of the Petitions to each exporter
named in the Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of lawn mowers from China and/or Vietnam are
materially injuring, or threatening material injury to, a U.S.
industry.\45\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country.\46\
Otherwise, these AD investigations will proceed according to statutory
and regulatory time limits.
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\45\ See section 733(a) of the Act.
\46\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the
[[Page 37422]]
information is being submitted \47\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\48\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Interested parties should review the regulations prior to submitting
factual information in these investigations.
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\47\ See 19 CFR 351.301(b).
\48\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\49\
Parties must use the certification formats provided in 19 CFR
351.303(g).\50\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\49\ See section 782(b) of the Act.
\50\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in these investigations should ensure
that they meet the requirements of these procedures (e.g., the filing
of letters of appearance as discussed at 19 CFR 351.103(d)). Note that
Commerce has temporarily modified certain of its requirements for
serving documents containing business proprietary information, until
July 17, 2020, unless extended.\51\
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\51\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: June 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigations
The merchandise covered by these investigations consists of
certain rotary walk-behind lawn mowers, which are grass-cutting
machines that are powered by internal combustion engines. The scope
of these investigations covers 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 these investigations
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
these proceedings.
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 these
proceedings.
For purposes of these investigations, 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 these investigations. 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 these investigations regardless of the origin of its
engine.
The lawn mowers subject to these investigations are typically at
subheading: 8433.11.0050. Lawn mowers subject to these
investigations 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.
[FR Doc. 2020-13385 Filed 6-19-20; 8:45 am]
BILLING CODE 3510-DS-P