New Trade Case on Imports of Walk-Behind Lawn Mowers and Parts Thereof From China and Vietnam

New U.S. antidumping (“AD”) and countervailing duty (“CVD”) petitions were filed on May 26, 2020, by MTD Products, Inc. against imports of walk-behind lawn mowers and parts thereof from China and Vietnam.

The merchandise covered by these Petitions is certain walk-behind lawn mowers, finished or unfinished, assembled or unassembled, and whether containing any additional add-on components to add functionalities in addition to mowing. Walk-behind lawn mowers are rotary-powered grass cutting machines that can be either self-propelled or non-self-propelled (i.e. “pushed”). Lawn mowers subject to the proposed scope of the investigation typically have a minimum cutting width of 20 in (508 mm) and are manually controlled by an operator walking behind the mower. The lawn mowers subject to the scope of this investigation utilize a cutting blade rotating in a horizontal plane. Please see the scope section below for a full review of the subject merchandise.

The petitions include AD (less than fair value) allegations against China and Vietnam and a CVD (unfair subsidy) allegation against China. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations.  Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the cases will move to the DOC which will calculate the preliminary AD and CVD duty margins.

The DOC’s preliminary determinations are currently scheduled for August 19, 2020 (CVD) and November 2, 2020 (AD), which are the dates when importers will be required to deposit the calculated duties upon the products’ entry in the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioners: MTD Products, Inc.

Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins: Petitioners have alleged the following AD and CVD margins:

China: calculated AD margins ranging from 245.47 to 313.58 percent and a CVD margin above de minimus, and
Vietnam: calculated AD margins ranging from 285.10 percent to 416.00 percent ad valorem.

Merchandise covered by the scope of the case:

The merchandise covered by this investigation consists of certain walk-behind lawn mowers powered by an internal combustion engine which are rotary-powered grass cutting machines. The scope of the investigation covers certain walk-behind lawn mowers, whether self-propelled or non-self-propelled, whether finished or unfinished, whether assembled or unassembled, whether containing any additional features that provide for functions in addition to mowing.

Walk-behind lawn mowers within the scope of this investigation are only those powered by an internal combustion engine with a power rating of less than 3.7 kilowatts (kW). These internal combustion engines typically spark ignition, single or multiple cylinder, air cooled, internal combustion engines with vertical power take-off shafts with a maximum displacement of 196cc. Walk-behind lawn mowers covered by this scope typically must be certified and comply with the Consumer Products Safety Commission (CPSC) Safety Standard For Walk-Behind Power Lawn Mowers under the 16 CFR Part 1205. However, lawn mowers that meet the physical descriptions above, but are not certified under 16 CFR Part 1205 remain subject to the scope of this proceeding.

The internal combustion engines of the lawn mowers covered by this scope typically must comply with and be certified under Environmental Protection Agency (EPA) air pollution controls title 40, chapter I, subchapter U, part 1054 of the Code of Federal Regulations standards for small non-road spark-ignition engines and equipment. However, lawn mowers that meet the physical descriptions above but that do not have engines certified under 40 CFR Part 1054 or other parts of subchapter U remain subject to the scope of this proceeding.

For purposes of this investigation, an unfinished and/or unassembled lawn mower means at a minimum, a sub-assembly comprised of the following components: an engine and a cutting deck shell. A cutting deck shell is the portion of the lawn mower—typically of aluminum or steel—that houses and protects a user from a rotating blade. Importation of these components together, whether assembled or unassembled, and whether or not accompanied by additional components such as a handle, blade(s), grass catching bag, or wheel(s) constitute an unfinished lawn mower for purposes of this investigation. The inclusion of any other components not identified as comprising the unfinished lawn mower subassembly in a third-country does not remove the engine from the scope. A lawn mower is within the scope of this investigation regardless of the origin of its engine.

Specifically excluded from the scope of this investigation are electric-powered walk-behind lawn mowers which are lawn mowers primarily powered by an electric motor. Electric-powered walk-behind lawn mowers are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading: 8433.11.0010.

The lawn mowers subject to this investigation are typically at subheading: 8433.11.0050. Lawn mowers subject to this investigation may also enter under HTSUS 8433.90.10.10, 8433.90.10.90, and 8407.90.1010. The HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise under investigation is dispositive.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907); William Sjoberg (wsjoberg@clarkhill.com; 202-772-0924), Courtney Gayle Taylor (cgtaylor@clarkhill.com; 202-552-2350); or another member of Clark Hill's International Trade Business Unit.