New Trade Case on Imports of Certain Vertical Shaft Engines between 99cc and 225cc, and Parts Thereof from China

A new U.S. antidumping (“AD”) and countervailing duty (“CVD”) case was filed on March 18, 2020, by the Briggs & Stratton Corporation against imports of certain vertical shaft engines between 99cc and 225cc, and parts thereof from China.

The subject engines are gasoline-powered, spark-ignition, internal combustion engines. They have one cylinder and are air-cooled. They have a minimum displacement of 99cc and a maximum displacement of up to 225cc. Engines with this displacement typically generate gross power between 1.95 kilowatts (“kw”) to 4.75 kw. These engines are predominantly designed for and used in walk-behind lawnmowers. They are also used in pressure washers. The full scope of the merchandise covered is set forth below.

The petition includes AD (less than fair value) and CVD (unfair subsidy) allegations against China. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigation.  Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the case will move to the DOC which will calculate the preliminary AD and CVD duty margins.

The DOC’s preliminary determinations are currently scheduled for June 11, 2020 (CVD) and August 25, 2020 (AD), which are the dates when importers will be required to deposit the calculated duties upon the products’ entry in the U.S. market.

There is a strict statutory deadline associated with this proceeding and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioner: The Briggs & Stratton Corporation.

Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins: Petitioners have alleged the following AD and CVD margins:

China- calculated AD margins ranging from 466.01 percent to 548.74 percent and a CVD margin above de minimus.

Merchandise covered by the scope of the case:

The merchandise covered by this investigation consists of spark-ignited, non-road, vertical shaft engines, whether finished or unfinished, whether assembled or unassembled, whether mounted or unmounted, primarily for walk-behind lawnmowers. Engines meeting this physical description may also be for other non-handheld outdoor power equipment, including but not limited to, pressure washers. The subject engines are spark ignition, single-cylinder, air cooled, internal combustion engines with vertical power take-off shafts with a minimum displacement of 99 cubic centimeters (“cc”) and a maximum displacement of up to 225cc. Typically, engines with displacements of this size generate gross power of between 1.95 kilowatts (“kw”) to 4.75 kw.

Engines covered by this scope normally must comply with and be certified under Environmental Protection Agency (EPA) air pollution controls title 40, chapter I, subchapter U, part 1054 of the Code of Federal Regulations standards for small nonroad spark-ignition engines and equipment. Engines that otherwise meet the physical description of the scope but are not certified under 40 CFR part 1054 and are not certified under other parts of subchapter U of the EPA air pollution controls are not excluded from the scope of this proceeding. Engines that may be certified under both 40 CFR part 1054, as well as other parts of subchapter U, remain subject to the scope of this proceeding.

Certain small vertical shaft engines, whether or not mounted on non-hand-held outdoor power equipment, including but not limited to walk-behind lawnmowers and pressure washers, are included in the scope. However, if a subject engine is imported mounted on such equipment, only the engine is covered by the scope. Subject merchandise includes certain small vertical shaft engines produced in the subject country whether mounted on outdoor power equipment in the subject country or in a third country. Subject engines are covered whether or not they are accompanied by other parts.

For purposes of this investigation, an unfinished engine covers at a minimum a sub-assembly comprised of, but not limited to, the following components: crankcase, crankshaft, camshaft, pistons(s), and connecting rod(s). Importation of these components together, whether assembled or unassembled, and whether or not accompanied by additional components such as a sump, carburetor spacer, cylinder head(s), valve train, or valve cover(s), constitutes an unfinished engine for purposes of this investigation. The inclusion of other products such as spark plugs fitted into the cylinder head or electrical devices (e.g., ignition coils) for synchronizing with the engine to supply tension current does not remove the product from the scope. The inclusion of any other components not identified as comprising the unfinished engine subassembly in a third-country does not remove the engine from the scope.

The engines subject to this investigation are predominantly classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 8407.90.1010. The engine subassemblies that are subject to this investigation enter under HTSUS 8409.91.9990. The mounted engines that are subject to this investigation enter under HTSUS 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines subject to this investigation may also enter under HTSUS 8407.90.1020, 8407.90.9040, and 8407.90.9060. The HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise under investigation is dispositive.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski ([email protected]; 202-640-6680), Kevin Williams ([email protected]; 312-985-5907); William Sjoberg ([email protected]; 202-772-0924), Courtney Gayle Taylor ([email protected]; 202-552-2350); or another member of Clark Hill’s International Trade Business Unit.