U.S. Says China Guilty Of Small Engine “Dumping”

By Mike Brezonick16 October 2020

The U.S. Dept. of Commerce (DOC) has announced “a positive preliminary determination” that certain small vertical shaft gasoline engines 99 to 225 cc from China are being sold in the United States at less than fair value. The department said that exporters from China have dumped small vertical shaft engines in the United States at margins between 316.88 and 541.75%

Dumping is when an offshore producer sells its product at a lower price in the importing country than it does in its home country, in other primary markets, or below its production costs. The original petition was filed by Briggs & Stratton Corp. in March.

As part of its investigation into dumping charges, the U.S. International Trade Commission (USITC) said more than 2.26 million engines were imported from China from 2017 through 2019, representing a total value of more than $152 million.

The DOC’s finding covers engines typically from 2 to 6.3 hp (1.95 to 4.75 kW), assembled or disassembled, either imported as loose engines or on equipment such as lawn mowers and pressure washers. Specifically excluded from the scope of the investigation are commercial or heavy commercial engines that have a displacement of 160 cc or greater, a cast iron cylinder liner, an automatic compression release and a muffler with at least three chambers and volume greater than 400 cc.

As a result of the decision, DOC will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of small vertical shaft engines from China based on the preliminary rates noted earlier.

DOC is scheduled to announce its final determination in this case on or about December 29.  If the final determination is affirmative, the USITC will be scheduled to make its final injury determination on or about Feb. 11, 2021. If DOC makes an affirmative final determination of dumping and the USITC makes an affirmative final injury determination, DOC will issue an anti-dumping order.

As the final determination has yet to be made, Briggs & Stratton declined to comment.

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