China Small Vertical Engines: Commerce Finds Dual-Piston Engines Circumvent AD/CV Duties
The Commerce Department will order suspension of liquidation and antidumping and countervailing duty cash deposit requirements for imports dual-piston engines from China, after preliminarily finding that the dual-piston engines are circumventing AD/CVD orders on vertical shaft engines between 99cc and up to 225cc from China (A-570-124/C-570-125).
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In a preliminary circumvention determination published in the Sept. 29 Federal Register, Commerce said the dual-piston engines with a single, common combustion chamber are “later developed merchandise” created after the orders were issued in an attempt to get around the AD/CVD orders. The preliminary finding of circumvention applies countrywide to all dual-piston engines from China “of the type designed by FNA Group, Inc.” that are of Chinese origin.
As a result of its preliminary affirmative finding of circumvention, Commerce will direct CBP to suspend liquidation for all subject dual-piston engines entered on or after April 25, 2022, the initiation date of the anti-circumvention inquiry (see 2204220047). It also will direct CBP to require AD/CVD cash deposits “equal to the cash deposit rates in effect for small vertical engines” beginning on that date.
Commerce’s final determination in this anti-circumvention inquiry is due in February, though the deadline may be extended until April.