U.S. Department of Commerce Initiates AD and CVD Investigations on Certain Vertical Shaft Engines Between 99cc and 225cc from China
For Immediate Release
April 8, 2020
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical engines), from the People’s Republic of China (China) are being dumped in the United States, and to determine if producers in China are receiving unfair subsidies.
These investigations were initiated based on petitions filed by Briggs and Stratton Corporation (Wauwatosa, Wisc.).
In the AD investigation, Commerce will determine whether imports of small vertical engines from China are being dumped in the U.S. market at less than fair value. The alleged dumping margins range from 457.52 to 541.75 percent.
In the CVD investigation, Commerce will determine whether Chinese producers of small vertical engines are receiving unfair government subsidies. There are 28 subsidy programs alleged for China, including export subsidy programs, grant programs, loan programs, and various tax programs.
During Commerce’s investigations into whether small vertical engines from China are being dumped and/or unfairly subsidized, the U.S. International Trade Commission (ITC) will conduct its own investigation into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations on or before May 4. If the ITC preliminarily determines that there is reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with Commerce’s preliminary CVD determination scheduled for June 11, and Commerce’s preliminary AD determination scheduled for August 25, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing small vertical engines from China.
Final determinations by Commerce in these cases are currently scheduled for August 25, for the CVD investigation and November 9, for the AD investigation, but these dates may be extended. If Commerce finds that small vertical engines are not being dumped or unfairly subsidized, or the ITC finds in its final determinations that there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 228 new AD and CVD investigations – a 200 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 519 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits their production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.