SUPPLEMENTARY INFORMATION:

Background

On May 4, 2021, Commerce published in the Federal Register the AD and CVD orders on small vertical shaft engines from China.^[1] On July 7, 2025, Commerce initiated a circumvention inquiry of the Orders pursuant to section 781(d) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.226(k) to determine whether engines with a model numbers 5C65M0 and BC70M0 produced by Zongshen are later-developed merchandise that are circumventing the Orders, such that they should be subject to the Orders.^[2] On May 18, 2026, Commerce published in the Federal Register its Preliminary Determination  ^[3] that imports of model 5C65M0 and BC70M0 engines produced by Zongshen in China constitute later-developed merchandise that when imported into the United States circumvent the AD and CVD orders on small vertical engines from China.^[4] On June 15, 2026, and September 3, 2026, Commerce extended the final determination of this circumvention inquiry. The deadline to issue the final determination is September 17, 2026.^[5] For a summary of events that occurred since the Preliminary Determination, as well as a full discussion of the issues raised by parties for consideration in the final determination, see the Issues and Decision Memorandum.^[6]

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). ACCESS is available to registered users at access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at access.trade.gov/​frnotices.

Scope of the Orders

The products subject to the Orders are small vertical shaft engines from China. For a complete description of the scope of the Orders, see the Issues and Decision Memorandum.^[7]

Merchandise Subject to the Circumvention Inquiry

The merchandise subject to this circumvention inquiry are engine models 5C65M0 and BC70M0 produced by Zongshen in China (inquiry merchandise). ( printed page 60588)

Methodology

Commerce is conducting this circumvention inquiry pursuant to section 781(d) of the Act, and 19 CFR 351.226(k).

Analysis of Comments Received

All issues raised in the case and rebuttal briefs by parties in these inquiries are addressed in the Issues and Decision Memorandum. A list of the issues raised is attached as an appendix to this notice. Based on our analysis of the comments received from interested parties, we made no changes to the Preliminary Determination.

Affirmative Final Circumvention Determination

Consistent with the Preliminary Determination, Commerce continues to determine that engine models 5C65M0 and BC70M0 small vertical shaft engines produced by Zongshen in China, constitute later-developed merchandise that, when imported into the United States, are circumventing the Orders, pursuant to section 781(d) of the Act.

Suspension of Liquidation and Cash Deposit Requirements

Based on the affirmative final determination of circumvention, in accordance with 19 CFR 351.226(l)(3)(i), Commerce will direct U.S. Customs and Border Protection (CBP) to continue the suspension of liquidation of previously suspended entries and apply the applicable cash deposit rate. Further, in accordance with 19 CFR 351.226(l)(3)(ii), Commerce will direct CBP to suspend liquidation and require a cash deposit of estimated AD and CVD duties for each unliquidated entry of engine models 5C65M0 and BC70M0 produced by Zongshen in China not yet suspended, are entered, or withdrawn from warehouse, for consumption on or after July 11, 2025, the date of publication of the Initiation Notice of this circumvention inquiry in the Federal Register .

Administrative Protective Order (APO)

This notice will serve as the only reminder to all parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

This determination is published in accordance with section 781(d) of the Act and 19 CFR 351.226(g)(2).

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Scope of the Orders

IV. Merchandise Subject to the Circumvention Inquiry

V. Period of Circumvention Inquiry

VI. Changes Since the Preliminary Determination

VII. Discussion of the Issues

Comment 1: Whether Judicial Precedent and Prior Commerce Decisions Allow Merchandise Meeting the Description of a Scope Exclusion

Comment 2: Whether Merchandise Similar to the Models 5C65M0 and BC70M0 Engines from Zongshen Was Available at the Time of the Underlying Less Than Fair Value and CVD Investigations

Comment 3: Whether Merchandise with Previously Available Features Can Be Found to Be Later-Developed

Comment 4: Commerce's Application of Section 781(d) of the Act in this Circumvention Finding

VIII. Circumvention Determination

IX. Recommendation

91 FR 60587