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Enforcement and Compliance, International Trade Administration, Department of Commerce.
The U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on certain large vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People's Republic of China (China) would be likely to lead to continuation or recurrence of countervailable subsidies at the levels indicated in the “Final Results of Sunset Review” section of this notice.
Applicable June 3, 2026.
David De Falco, Trade Agreements Policy and Negotiations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2178.
On March 4, 2021, Commerce published the CVD order on vertical shaft engines from China.[1] On February 2, 2026, Commerce published the notice of initiation of the first sunset review of the Order, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.218(c).[2]
On February 17, 2026, Commerce received a notice of intent to participate in this review from Briggs & Stratton, LLC (Briggs & Stratton) [3] and Discovery Energy, LLC (Discovery) [4] (collectively, ( printed page 33142) the domestic interested parties), within the deadline specified in 19 CFR 351.218(d)(1)(i). The domestic interested parties claims interested party status within the meaning of section 771(9)(C) of the Act and 19 CFR 351.102(b)(29)(v) as producers of the domestic like product.5
On March 4, 2026, Commerce received an adequate substantive response from the domestic interested parties, within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i). [6] Commerce did not receive a substantive response from either the Government of China or a respondent interested party to this proceeding. On March 27, 2026, Commerce notified the U.S. International Trade Commission (ITC) that it did not receive an adequate substantive response from respondent interested parties.[7] As a result, Commerce conducted an expedited (120-day) sunset review of the Order, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)(2) and (C)(2).
The products covered by the Order are vertical shaft engines from China. For a full description of the scope of the Order, see the Issues and Decisions Memorandum.[8]
A complete discussion of all issues raised in this sunset review, including the likelihood of continuation or recurrence of subsidization and the countervailable subsidy rates likely to prevail if the Order were to be revoked, is contained in the Issues and Decision Memorandum.[9] A list of the topics discussed in the Issues and Decision Memorandum is attached as an appendix to this notice. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS), which is available to registered users at https://access.trade.gov. In addition, complete versions of the Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/frnotices.
Pursuant to sections 751(c) and 752(b) of the Act, Commerce determines that revocation of the Order would be likely to lead to continuation or recurrence of countervailable subsidies at the following net countervailable subsidy rates:
| Producers/exporters | Net countervailable subsidy rate (percent ad valorem) |
|---|---|
| Loncin Motor Co | 18.96 |
| Chongqing Zongshen General Power Machine Co | 20.38 |
| All Others | 19.85 |
This notice also serves as the only reminder to parties subject to an APO of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of the return or destruction of APO materials, or conversion to judicial protective, orders is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.
We are issuing and publishing these final results in accordance with sections 751(c), 752(b), and 777(i)(1) of the Act, and 19 CFR 351.221(c)(5)(ii).
Dated: May 29, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.
I. Summary
II. Background
III. Scope of the Order
IV. History of the Order
V. Legal Framework
VI. Discussion of the Issues
1. Likelihood of Continuation or Recurrence of a Countervailable Subsidy
2. Net Countervailable Subsidy Rates Likely to Prevail
3. Nature of the Subsidies
VII. Final Results of Sunset Review
VIII. Recommendation
1. See Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination,86 FR 12619 (March 4, 2021) ( Order).
Back to Citation2. See Initiation of Five-Year (Sunset) Reviews,91 FR 4499 (February 2, 2026).
Back to Citation3. See Briggs & Stratton's Letter, “Five-Year (“Sunset”) Review of the Antidumping and Countervailing Duty Orders on Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China: Domestic Industry's Notice of Intent to Participate,” dated February 17, 2026.
Back to Citation4. See Discovery's Letter, “Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China: Notie of Intent to Participate in Sunset Review,” dated February 17, 2026.
5. Id. at 2.
Back to Citation6. See Domestic Interested Parties' Letter, “Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China: Substantive Response to Notice of Initiation,” dated March 4, 2026.
Back to Citation7. See Commerce's Letter, “Sunset Reviews Initiated February 2, 2026,” dated March 27, 2026.
Back to Citation8. See Memorandum, “Issues and Decision Memorandum for the Final Results of the Expedited Sunset Review of the Countervailing Duty Order on Certain Large Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
Back to Citation9. Id.
Back to Citation[FR Doc. 2026-11119 Filed 6-2-26; 8:45 am]
BILLING CODE 3510-DS-P