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ITC Says Chinese Pressure Washers Harmed US Cos.

By Alyssa Aquino

Law360 (January 25, 2024, 12:50 PM EST) — The U.S. International Trade Commission unanimously found that domestic manufacturers are being injured by subsidized Chinese gas-powered pressure washers that are being sold in the U.S. at unfairly low prices.

The commission’s vote clears the way for the U.S. Department of Commerce to enact high tariffs – some of which totaling more than quadruple the products’ value – on pressure washers from China.

“Commerce will issue antidumping duty and countervailing orders on imports of this product,” the commission said in a Wednesday statement announcing the affirmative vote.

The commission and Commerce’s International Trade Administration have both been investigating gas-powered pressure washers at the request of the Wisconsin-based FNA Group Inc.

FNA Group, which describes itself as the largest gas-powered pressure washer manufacturer in the U.S., claimed to be facing a “low-priced, high-volume assault” from Chinese and Vietnamese imports.

U.S. trade officials have largely corroborated FNA Group’s claims, with Commerce finding that Beijing unfairly subsidized its pressure washer industry and that imports from both countries were being sold in the U.S. at unfairly low prices.

To counteract those trade practices, Commerce finalized a 225.65% antidumping tariff on Vietnamese pressure washers, as well as antidumping duties between 189.52% and 274.37% on Chinese pressure washers. Pressure washers produced by sixteen Chinese companies were also hit with a 206.57% countervailing duty, with only one company receiving the more subdued 11.19% countervailing duty rate, according to a December fact sheet from Commerce.

The orders on the Chinese products are slated to go into effect on Feb. 8, according to the ITC’s Wednesday announcement.

Commerce and the ITC completed their investigations into the Vietnamese imports last fall. Those duties were issued on Oct. 13.

Counsel for FNA Group declined to comment on Thursday. A representative for the importers did not immediately respond to a request for comment.

FNA Group Inc. is represented by Matthew J. McConkey, Duane W. Layton and Fabian P. Rivelis of Mayer Brown LLP.

Sarah M. Wyss and Kristin H. Mowry of Mowry & Grimson PLLC represent the importers, Neil Ellis of the Law Office of Neil Ellis PLLC and Richard Mojica, Lara Hakki and Alexandra Prime of Miller & Chevalier Chartered.

The case is Gas Powered Pressure Washers from China, investigation numbers 701-TA-684 and 731- TA-1597, in the U.S. International Trade Commission.

–Editing by Nicole Bleier.

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GAS POWERED PRESSURE WASHERS FROM VIETNAM INJURE U.S. INDUSTRY, SAYS USITC

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September 25, 2023
News Release 23-085
Inv. No(s). 731-TA-1598
Contact: Lawrence Jones, 202-205-1819

GAS POWERED PRESSURE WASHERS FROM VIETNAM INJURE U.S. INDUSTRY, SAYS USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of certain imports of gas-powered pressure washers from Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, and Amy A. Karpel voted in the affirmative. Commissioner Randolph J. Stayin did not participate.

As a result of the Commission’s affirmative determination, Commerce will issue an antidumping duty order on imports of this product from Vietnam.

The Commission also made a negative critical circumstance finding with respect to imports of this product from Vietnam. As a result, these imports will not be subject to retroactive antidumping duties.

The Commission’s public report, Gas Powered Pressure Washers from Vietnam (Inv. No. 731-TA-1598 (Final), USITC Publication 5465, October 2023) will contain the views of the Commission and information developed during the investigation.

The report will be available by November 6, 2023; when available, it may be accessed on the USITC website.

at: https://www.usitc.gov/commission_publications _library.

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Gas Powered Pressure Washers from Vietnam

Investigation No: 731-TA-1598 (Final)

Product Description: The products covered by this investigation are cold­ water gas powered pressure washers (“GPPW”). These machines have three main components: an internal combustion engine, a power take-off shaft, and a positive displacement pump. Together, these components are known as the “power unit.” GPPW include both finished and unfinished gas-powered pressure washers, which include, at a minimum, the power unit, or components of the components of the power unit, packaged or imported together.” Additional components, including, but not limited to, spray guns, nozzles, and hoses, may accompany the power unit.

Status of Proceedings:

1. Type of investigation: Final antidumping duty
2. Petitioner: FNA Group, Inc.
3. USITC Institution Date: Friday, December 30, 2023
4. USITC Hearing Date: Thursday, August 24, 2023
5. USITC Vote Date: Monday, September 25, 2023
6. USITC Notification to Commerce Date: Friday, October 13, 2023

U.S. Industry in 2022:

1. Number of U.S. producers: 4.
2. Location of producers’ plants: Arkansas, Minnesota, South Carolina, Tennessee, Texas, and Wisconsin.
3. Production and related workers: [1]
4. S. producers’ U.S. shipments: [1]
5. Apparent U.S. consumption: [1]
6. Ratio of subject imports to apparent U.S. consumption: [1]

U.S. Imports in 2022:

1. Subject imports: [1]
2. No subject: imports: [1]
3. Leading import sources: China, Vietnam

[1] Withheld to avoid disclosure of business proprietary information.

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