Press Release

U.S. Department of Commerce Preliminarily Finds Unfair Subsidization of Imports of Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and Parts Thereof from China

For Immediate Release
August 18, 2020
Contact: ITA Office of Public Affairs 
Phone: 202-482-3809

WASHINGTON - Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical engines), from China, finding that exporters received countervailable subsidies rates that range from 13.45 to 21.29 percent.

The Department of Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of small vertical engines from China based on these preliminary rates. 

In 2019, imports of small vertical engines from China were valued at approximately $43.6 million. 

The petitioner is the Briggs and Stratton Corporation (Wauwatosa, Wisc.). 

Commerce is currently scheduled to announce its final CVD determination on or about December 29.

If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about February 11, 2021. If Commerce makes an affirmative final determination in this investigation and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce or the ITC makes a negative final determination, the investigation will be terminated, and no order will be issued.

Read the fact sheet on today’s decision.

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 281 new antidumping (AD) and CVD investigations – this is a 260 percent increase from the comparable period in the previous administration.

The CVD law provides American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. Commerce currently maintains 531 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from those companies 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 countervailing 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 is consistent with international rules and is based on factual evidence provided on the record. 

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