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Commerce Preliminarily Expands AD/CV Duties to Smaller Displacement Vertical Engines

The Commerce Department will suspend liquidation and require antidumping and countervailing duty cash deposits on imports from China of vertical engines with displacements between 60cc and up to 99cc, it said in a notice released Sept. 6. The agency preliminarily found the low displacement engines are circumventing AD/CV duties on Chinese vertical shaft engines between 99cc and up to 225cc, it said.

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According to Commerce, the smaller displacement engines “are not dissimilar” from engines already subject to AD/CVD “in terms of overall physical characteristics of the merchandise, the expectations of the ultimate users, the use of the merchandise, channels of marketing, and the timing and circumstances under which the Zongshen Companies exported the engines with displacements between 60cc and up to 99cc.”

“Because we find that the merchandise subject to this inquiry is not dissimilar to subject merchandise, we preliminarily determine that the engines at issue constitute merchandise altered in form or appearance in minor respects’ from in-scope merchandise,” Commerce said.

The preliminary circumvention determination sets AD/CVD country-wide on all 60cc to 99cc vertical engines from China. Suspension of liquidation and cash deposit requirements will apply to all 60cc to 99cc vertical engines entered on or after Sept. 17, 2021, which was the date Commerce began its anti-circumvention inquiry (see 2109160034).

Commerce’s final determination in the anti-circumvention inquiry is due Dec. 6.