February 2, 2023
On January 19, 2023, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Gas Powered Pressure Washers from the People’s Republic of China (China) and the Socialist Republic of Vietnam (Vietnam)” (Initiation Notices). These investigations have been assigned the following case numbers: A-570-148 and C- 570-149 (China), and A-552-008 (Vietnam).
The merchandise covered is cold water gas powered pressure washers (power washers), which are machines that clean surfaces using water pressure that are powered by an internal combustion engine, air-cooled with a power take-off shaft, in combination with a positive displacement pump. The combination of all components is defined as the “power unit”. The scope of these investigations covers power washers, whether finished or unfinished, whether or not assembled or packaged with a frame, cart, or trolley, with or without wheels attached, whether assembled or unassembled, and whether or not containing any additional parts of accessories to assist in the function of the “power unit”, including, but not limited to, spray guns, hoses, lances, and nozzles.
The inclusion in a third country of any components other than the power unit does not remove the power washer from the scope. A power washer is within the scope of these investigations regardless of the origin of its engine. Subject merchandise also includes finished and unfinished power washer that are further processed in a third country or in the United States, including, but not limited to, assembly or any other processing that would not otherwise remove the merchandise from the scope of these investigations if performed in the country of manufacture of the in-scope power washer.
The scope excludes hot water gas powered pressure washers, which are pressure washers that include a heating element used to heat the water sprayed from the machine. Also excluded from the scope is merchandise covered by the scope of the antidumping and countervailing duty orders on certain vertical shaft engines between 99cc and up to 225cc, and parts thereof from the People’s Republic of China.
The cold water gas powered pressure washers subject to these investigations are classified in the Harmonized Tariff Schedule of the United States (HTSUS) as subheadings 8424.30.9000 and 8424.90.9040.
All three requirements below must be observed.
Deadline for Submitting Comments: Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope). This period is intended to provide Commerce with ample opportunity to review all comments and, if necessary, consult with parties prior to the issuance of the preliminary determinations. If comments include factual information, see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information. All such comments should be filed by 5:00 p.m. Eastern Time (ET) on February 8, 2023. Any rebuttal comments must be filed by 5:00 p.m. ET on February 21, 2023. Commerce requests that any factual information relevant to the scope be submitted during this time period. All such comments be filed on the records of each of the concurrent AD and CVD investigations identified above.
In order for a party to participate in this segment and be included on the public service list, they must file a letter of appearance. Section 351.103(d)(1) of Commerce’s regulations states that “with the exception of a petitioner filing a petition in an investigation, to be included on the public service list for a particular segment, each interested party must file a letter of appearance”. The letter of appearance must be filed separetely from any other document, with the exception of an application for APO access. The letter of appearance must state how the party qualifies as an interested party (e.g., an exporter, producer, importer of the subject merchandise) and must include a point of contact, includig address, telephone/fax number, and email address. If you have an E-Filer account for Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS), you may also enter your appearance by logging into ACCESS and clicking on “Manage Entry of Appearance” and then “Create New Entry of Appearance”.
All submissions to Commerce must be filed electronically using ACCESS. An electronically-filed document must be completed and received successfully by the time and date when it is due.
For your convenience, Commerce has the following resources available online to assist you in complying with these electronic filing procedures:
Please note that certification requirements are in effect for company/government officials and their representatives. In all segments of antidumping duty or countervailing duty proceedings, parties submitting factual information must adhere to 19 CFR 351.303(g) regarding the requirement to certify submissions of factual information.
Critical circumstances is a provision in both the antidumping and countervailing duty (AD/CVD) laws that allows for the limited retroactive imposition duties if certain conditions are met. Importers should be aware that entries of subject merchandise made after the initiation of an AD/CVD investigation may retroactively be subject to AD/CVD.
An important tool for Commerce and the U.S. International Trade Commission (ITC) to offset possible import surges during the early period of an AD/CVD investigation are any findings of critical circumstances. The petitioner in an AD/CVD investigation has up to 21 days before the date of Commerce’s final determination to allege critical circumstances during an investigation. If Commerce finds that critical circumstances exist, it has the statutory authority to order the retroactive suspension of liquidation and posting of a cash deposit for entries made before the issuance of a Preliminary and/or Final AD/CVD determination.
Commerce’s authority to suspend entries retroactively for AD/CVD is limited to those entries made on or after the later of: (1) 90 days before the effective date the suspension of liquidation was first ordered, or, (2) the date on which the determination to initiate the investigation is published in the Federal Register. In either case, AD/CVD cash deposits are due on entries subject to critical circumstances determinations.
If, following a preliminary determination by Commerce that critical circumstances exist, both Commerce and the ITC reach a final affirmative determination of dumping or subsidization, but either agency makes a negative final determination of critical circumstances, Commerce will instruct U.S. Customs and Border Protection (CBP) to lift suspension from the entries made during the 90-day critical circumstances period and refund cash deposits made with respect to those entries. Interest is not payable on refunds of cash deposits at this stage in the AD/CVD case.
AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230:
Dusten Hom at (202) 482-5075 (Antidumping Duty Investigation from China);
Laurel LaCivita at (202) 482-4243 (Antidumping Duty Investigation from Vietnam);
Brontee George at (202) 482-4656 (Countervailing Duty Investigation from China).
Determinations related to these proceedings, issued by Commerce and the ITC, will be published in the Federal Register. Parties may also view Commerce’s public AD/CVD instructions to CBP in ACE and “ADD CVD Search” at https://aceservices.cbp.dhs.gov/adcvdweb.
For questions about CBP’s AD/CVD enforcement, see https://www.cbp.gov/trade/priority-issues/adcvd
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.