Tariffs & HTS
U.S. finds two Chinese Zongshen engine models circumvent AD/CVD
Commerce made a final affirmative determination that engine models 5C65M0 and BC70M0, small vertical shaft engines produced in China by Chongqing Zongshen General Power Machine Co., Ltd., are later-developed merchandise circumventing the AD and CVD orders on vertical shaft engines between 99cc and 225cc from China. CBP is to suspend liquidation and collect AD/CVD cash deposits on entries made on or after July 11, 2025.
What changed
The AD and CVD orders date from May 4, 2021. Commerce initiated the inquiry on July 7, 2025, published the initiation notice on July 11, 2025 and issued an affirmative preliminary determination on May 18, 2026; after reviewing the parties' comments it made no changes.
The finding covers only models 5C65M0 and BC70M0 produced by Zongshen.
Commerce will direct CBP to keep suspending entries already suspended and apply the applicable cash deposit rate, and to suspend and require AD and CVD deposits for unliquidated entries of these models not yet suspended that were entered, or withdrawn from warehouse, on or after July 11, 2025. The notice, applicable September 24, 2026, does not itself state the deposit rates.
What an import team should check
- Check engine model numbers on invoices, specification sheets and nameplates against 5C65M0 and BC70M0, and confirm whether Chongqing Zongshen General Power Machine Co., Ltd. produced them.
- Pull unliquidated entries of these models made on or after July 11, 2025 and ask your customs broker how CBP's suspension and cash deposit instructions apply to them.
- Ask your broker which AD and CVD cash deposit rates CBP applies to these models, since the notice does not list them, and update landed-cost estimates accordingly.