International Trade Commission Makes Affirmative Final Determinations in Trade Case on Vertical Shaft Engines from China

February 2, 2021

Washington, DC – In a victory for the U.S. industry, the U.S. International Trade Commission (ITC) today made an affirmative final determination in the antidumping (AD) and countervailing duty (CVD) investigations on vertical shaft engines (VSEs) with a displacement of between 225cc and 999cc from China. The ITC found that U.S. vertical shaft engine producers have been materially injured by unfairly traded imports of vertical shaft engines from China, paving the way for imposition of AD/CVD orders.

The ITC determination follows a January 2020 petition filed by the Coalition of American Vertical Engine Producers (the Coalition), a coalition of leading U.S. manufacturers of VSEs. The Coalition has now successfully shown that unfairly dumped and subsidized VSEs from China have injured the U.S. industry. The Commerce Department has already determined that Chinese imports are being unfairly traded, meaning that AD/CVD orders will now be issued on VSEs from China.

Antidumping duties will be imposed at rates ranging from 117.65% to 468.33%, and countervailing duties will be imposed at rates ranging from 17.75% to 19.29%. The AD/CVD order will remain in effect for a minimum of five years, and there is an opportunity each year for duty rates to increase through the annual administrative review process.

“Today’s vote is a major win for the American VSE industry and its workers, which assures that duties will be applied to unfairly traded imports from China,” said Dan Pickard, partner in Wiley’s International Trade Practice and lead counsel to a member of the Coalition.

“We appreciate the Commission’s hard work in this case,” said Robert DeFrancesco, a partner in Wiley’s International Trade Practice. “We look forward to the issuance of the AD/CVD orders, which will help level the playing field in this American industry that has been injured by unfairly traded imports.”