07/31/2026 | Press release | Distributed by Public on 07/31/2026 06:54
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 vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical 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 July 31, 2026.
Bushra Bani-Salman, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-9170.
On May 4, 2021, Commerce published in the Federal Register the Order on small vertical engines from China. (1) On April 1, 2026, Commerce published the notice of initiation of the first five-year (sunset) review of the Order, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act). (2)
On April 13, 2026, Commerce received notices of intent to participate from Briggs & Stratton, LLC (the petitioner) within the deadline specified in 19 CFR 351.218(d)(1)(i). (3) The petitioner claimed interested party status under section 771(9)(C) of the Act and 19 CFR 351.102(b)(29)(v) as a producer of the domestic like product. (4)
On May 1, 2026, Commerce received an adequate substantive response from the petitioner, within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i). (5) We did not receive a substantive response from any other interested party in this proceeding. On May 20, 2026, Commerce notified the U.S. International Trade Commission that it did not receive an adequate substantive response from respondent interested parties. (6) As a result, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)(2) and (C)(2), Commerce conducted an expedited (120-day) sunset review of the Order.
The products covered by the Order are small vertical engines from China. For a full description of the scope of the Order, see the Issues and Decision Memorandum. (7)
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 provided in the Issues and Decision Memorandum. 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 http://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/frnotices.
Pursuant to sections 751(c)(1) 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:
| Manufacturer/producer/exporter | Net countervailable subsidy(percent) |
| Chongqing Kohler Engines Ltd | 2.84 |
| Chongqing Zongshen General Power Machine Co | 18.13 |
| All Others | 10.46 |
This notice serves as the only reminder to parties subject to APO of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely written notification of 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).
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 99cc and Up to 225cc, and Parts Thereof from the People's Republic of China: Antidumping and Countervailing Duty Orders, 86 FR 23675 (May 4, 2021) ( Order ).
(2) See Initiation of Five-Year (Sunset) Reviews, 91 FR 16181 (April 1, 2026) ( Initiation Notice ).
(3) See Petitioner's Letter, "Domestic Industry's Notice of Intent to Participate," dated April 13, 2026.
(4) Id.
(5) See Petitioner's Letter, "Domestic Industry's Substantive Response," dated May 1, 2026.
(6) See Commerce's Letter, "Sunset Reviews Initiated on April 1, 2026," dated May 20, 2026.
(7) See Memorandum, "Issues and Decision Memorandum for the Final Results of the Expedited Sunset Review of the Countervailing Duty Order on Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts Thereof from the People's Republic of China," dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).