China small VSE: ITC sunset injury affirmative
ITC first sunset affirmative on China small vertical shaft engines, Commerce AD/CVD sunset rates likely to prevail, and AD/CVD drawback note.
The U.S. International Trade Commission determined that revocation of the antidumping and countervailing duty orders on small vertical shaft engines from China would be likely to lead to continuation or recurrence of material injury to a U.S. industry within a reasonably foreseeable time (Inv. Nos. 701-TA-643 and 731-TA-1493 (Review)). The determinations notice published in the October 20, 2026 Federal Register (91 FR 66358; FR Doc. 2026-21459). Determinations were completed and filed October 16, 2026; views are in USITC Publication 5801 (October 2026). Commissioner Samuel T. Negatu did not participate.
ITC affirmative first sunset on China small vertical shaft engines (99cc to 225cc). Commerce AD sunset: dumping likely up to 541.75%. CVD sunset rates likely to prevail: Kohler 2.84%; Zongshen 18.13%; all others 10.46%. Continuation notice not yet published.
What the ITC decided
- Merchandise: certain vertical shaft engines between 99cc and up to 225cc, and parts thereof, from China (orders issued May 4, 2021; 86 FR 23675). These are the first sunset reviews.
- Instituted: April 1, 2026 (91 FR 16231). On July 6, 2026 the Commission decided to conduct expedited reviews (91 FR 50892, August 6, 2026) because the domestic interested party group response was adequate and the respondent interested party group response was inadequate.
- Holding: revocation of both the CVD and AD orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
- ITC contact (expedited reviews notice): Alec Resch (202) 708-1448.
Inv. Nos. 701-TA-643 and 731-TA-1493 (Review) · instituted Apr 1, 2026 · expedited Jul 6, 2026 (91 FR 50892)
Commerce AD sunset: 91 FR 48369 (Jul 31, 2026; FR Doc. 2026-15473; A-570-124) · margins likely up to 541.75%
Commerce CVD sunset: 91 FR 48366 (Jul 31, 2026; FR Doc. 2026-15566; C-570-125) · Kohler 2.84%; Zongshen 18.13%; all others 10.46%
Commerce AD and CVD sunset results (July 31, 2026)
Commerce's expedited first AD sunset review (A-570-124; applicable July 31, 2026; 91 FR 48369; FR Doc. 2026-15473) found that revocation would be likely to lead to continuation or recurrence of dumping at weighted-average margins up to 541.75%. The domestic interested party was Briggs & Stratton, LLC; Commerce received no substantive response from any respondent interested party. Contact: Zachary Shaykin (202) 482-2638.
Commerce's expedited first CVD sunset review (C-570-125; applicable July 31, 2026; 91 FR 48366; FR Doc. 2026-15566) reported net countervailable subsidy rates likely to prevail of 2.84% for Chongqing Kohler Engines Ltd., 18.13% for Chongqing Zongshen General Power Machine Co., and 10.46% for all others. Contact: Bushra Bani-Salman (202) 482-9170.
The AD margins and CVD rates above are sunset "likely to prevail" figures Commerce reports to the ITC. They are not new cash deposit rates. CBP continues to collect AD and CVD deposits at the company-specific rates in effect at the time of entry.
With both Commerce and the ITC affirmative, Commerce is expected to publish a continuation notice for the orders. That notice is not yet published, so there is no continuation effective date to report here.
AD and CVD duties are not drawback-eligible (19 U.S.C. 1677h). Ordinary customs duties on the same entries can still support drawback when the merchandise is exported or destroyed and the claim otherwise qualifies. See AD/CVD drawback exclusion.
Action items
- Confirm Chinese-origin coverage for lawn and garden equipment and engine importers: engines or parts within the 99cc to 225cc small vertical shaft scope.
- Budget AD/CVD deposits at current company-specific rates; do not treat sunset "likely to prevail" figures as new deposit instructions.
- Watch for Commerce's continuation notice once published (no date yet).
- Check the separate circumvention ruling on Zongshen later-developed models (see China small VSE circumvention final); that is a different proceeding from this sunset.
- FR Doc. 2026-21459 (91 FR 66358): ITC first sunset affirmative on China small vertical shaft engines. Determinations filed Oct 16, 2026; USITC Pub. 5801. Negatu did not participate.
- Reviews instituted Apr 1, 2026; expedited Jul 6, 2026 after adequate domestic and inadequate respondent group responses (91 FR 50892).
- Commerce AD sunset (91 FR 48369): dumping likely up to 541.75%. CVD sunset (91 FR 48366): Kohler 2.84%; Zongshen 18.13%; all others 10.46%. These are likely-to-prevail figures, not new cash deposits.
- Continuation notice expected but not yet published. AD/CVD not drawback-eligible (19 U.S.C. 1677h).
- Small Vertical Shaft Engines From China; Determinations (91 FR 66358; FR Doc. 2026-21459; Inv. Nos. 701-TA-643 and 731-TA-1493 (Review)) · U.S. International Trade Commission
- Certain Vertical Shaft Engines Between 99cc and Up To 225cc, and Parts Thereof (Small Vertical Engines) From China: Final Results of the Expedited First Sunset Review of the Antidumping Duty Order (91 FR 48369; FR Doc. 2026-15473; A-570-124) · U.S. Department of Commerce, International Trade Administration
- Certain Vertical Shaft Engines Between 99cc and Up to 225cc, and Parts Thereof From China: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order (91 FR 48366; FR Doc. 2026-15566; C-570-125) · U.S. Department of Commerce, International Trade Administration
- Small Vertical Shaft Engines From China; Scheduling of Expedited Five-Year Reviews (91 FR 50892; FR Doc. 2026-16020) · U.S. International Trade Commission
This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.