China Pressure Washers: Commerce Issues CV Duty Final Determination
The Commerce Department issued its final determination in its countervailing duty investigation on gas-powered pressure washers from China (C-570-149). Suspension of liquidation is currently not in effect for entries on or after Oct. 3, 2023, and Commerce will require cash deposits of estimated CV duties on future entries only if it issues a CV duty order.
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Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Feb. 1, Commerce said in a fact sheet. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce also issued a final determination in its concurrent AD duty investigation on gas-powered pressure washers from China, setting AD rates ranging from 189.52% to 274.37% for Chinese exporters (see 2312200018). The agency also recently issued an AD duty order covering gas-powered pressure washers from Vietnam (see 2310250033).
Critical Circumstances for Many Chinese Companies, Cash Deposits Still Retroactive 90 Days
Commerce finalized its determination that 17 exporters of gas-powered pressure washers from China -- including Jiangsu Jianghuai Engine Co., Ltd., also known as JD Power -- increased their exports to the U.S. in the months before the preliminary determination of this investigation. As a result of this "critical circumstances" finding, Commerce continues to retroactively suspend liquidation and require CV duty cash deposits for subject merchandise from these companies as of 90 days before the preliminary CV duty determination, i.e., March 7, 2023.
For subject merchandise from the "all others" companies, which were not subject to Commerce's critical circumstances finding, suspension of liquidation and cash deposit requirements are still in effect as of June 5, 2023.
CV Susp/Cash Deposit Through Oct. 2
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from March 7 or June 5, 2023, depending on the company, through Oct. 2, 2023.
CV Liq Reinstated and No CV Cash Deposit as of Aug. 3
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after Oct. 3, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.
Suspension of liquidation currently remains in effect for AD purposes.
CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued
Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Chinese exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.
| Company | CV Rate | Sus Liq |
|---|---|---|
| Jiangsu Jianghuai Engine Co., Ltd. / Jiangsu Nonghua Intelligent Agriculture Technology Co., Ltd. | 11.19% | 03/07/23 |
| Chongqing Dajiang Power Equipment Co., Ltd. | 206.57% | 03/07/23 |
| China GTL Tools Group, Ltd. | 206.57% | 03/07/23 |
| Loncin Motor Co., Ltd. | 206.57% | 03/07/23 |
| Maxworld Home Co., Ltd. | 206.57% | 03/07/23 |
| Ningbo Jugang Machinery Manufacturing Co., Ltd. | 206.57% | 03/07/23 |
| Powerful Machinery & Electronics Technology Developing Co., Ltd. | 206.57% | 03/07/23 |
| Pinghu Biyi Cleaning Equipment Co., Ltd. | 206.57% | 03/07/23 |
| Senci Electric Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Taizhou Bison Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Taizhou Longfa Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Taizhou Newland Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Zhejiang Anlu Cleaning Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Zhejiang Constant Power Machinery Co., Ltd. | 206.57% | 03/07/23 |
| Zhejiang Lingben Machinery & Electronics Co., Ltd. | 206.57% | 03/07/23 |
| Zhejiang Xinchang Bigyao Power Tool Co., Ltd. | 206.57% | 03/07/23 |
| Zhejiang Zhinanche Cleaning Equipment Co., Ltd. | 206.57% | 03/07/23 |
| All Others | 11.19% | 06/05/23 |
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of Oct. 3 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/21 - 12/31/21. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2306020016 for a summary of the preliminary determination of this investigation.)