Large Vertical Shaft Engines from China Injure U.S. Industry, Says USITC

February 2, 2021
News Release 21-016
Inv. No(s). 701-TA-637 and 731-TA-1471 (Final)
Contact: Peg O'Laughlin, 202-205-1819

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of large vertical shaft engines from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.

Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative. 

As a result of the Commission’s affirmative determinations, Commerce will issue antidumping and countervailing duty orders on imports of these products from China.

The Commission made a negative finding concerning critical circumstances with regard to imports of this product from China that are sold in the United States at less than fair value.  As a result, these imports will not be subject to retroactive antidumping duties.

The Commission’s public report Large Vertical Shaft Engines from China (Inv. Nos. 701-TA-637 and 731-TA-1471 (Final), USITC Publication 5162, February 2021) will contain the views of the Commission and information developed during the investigations.

The report will be available by March 9, 2021; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Large Vertical Shaft Engines from China
Investigation Nos. 701-TA-637 and 731-TA-1471 (Final)

Product Description:  Large vertical shaft engines are engines that are spark ignition, single or multiple cylinder, air cooled, internal combustion engines with vertical power take off shafts, whether finished or unfinished, whether assembled or unassembled, with a minimum displacement of 225 cubic centimeters (“cc”) and a maximum displacement of 999cc. Such engines are primarily used for riding lawn mowers and zero-turn radius lawn mowers.

Status of Proceedings:

1.   Type of investigation:  Final countervailing duty and antidumping duty investigations.
2.   Petitioners:  The Coalition of American Vertical Engine Producers (Kohler Company, Kohler, WI; and Briggs & Stratton Corporation, Wauwatosa, WI.)
3.   USITC Institution Date:  Wednesday, January 15, 2020.
4.   USITC Hearing Date:  Tuesday, January 5, 2021.
5.   USITC Vote Date:  Tuesday, February 2, 2021.
6.   USITC Notification to Commerce Date:  Not later than Monday, February 22, 2021.

U.S. Industry in 2020:

1.   Number of U.S. producers:  3.
2.   Location of producers’ plants:  Alabama, Georgia, Kentucky, Mississippi, Missouri, Nebraska, and Wisconsin.
3.   Production and related workers:  ^[1]
4.   U.S. producers’ U.S. shipments:  ¹
5.   Apparent U.S. consumption:  ¹
6.   Ratio of subject imports to apparent U.S. consumption:  ¹

U.S. Imports in 2020:

1.   Subject imports:  ¹
2.   Nonsubject imports:  ¹
3.   Leading import sources:  China, Japan, and Thailand.