US adds Zongshen engine models to China circumvention case
The U.S. Department of Commerce has issued a preliminary determination that two specific vertical shaft engine models (5C65M0 and BC70M0) manufactured by Chongqing Zongshen General Power Machine Co., Ltd. and exported from China circumvent existing antidumping and countervailing duty orders on small vertical shaft engines (99cc–225cc). This finding, published May 18, 2026, treats these models as "later-developed merchandise" subject to the same duties as the original covered products. The determination is preliminary; a final ruling will follow after the administrative process completes.
Photo: mitbg000 / Pexels# US Adds Zongshen Engine Models to China Circumvention Case
The U.S. Department of Commerce has preliminarily determined that two specific vertical shaft engine models produced by Chongqing Zongshen General Power Machine Co., Ltd. in China circumvent existing antidumping and countervailing duty orders, according to a May 18, 2026 Federal Register notice.
What is being targeted
The determination covers models 5C65M0 and BC70M0 vertical shaft engines. These engines fall within the 99cc–225cc displacement range that is already subject to AD/CVD orders on certain vertical shaft engines and parts from China. Commerce has classified these specific models as "later-developed merchandise," a legal category under U.S. trade law that captures products designed to evade existing duties by circumventing the original scope of the orders.
Who is affected
This preliminary determination directly impacts exporters and producers in China shipping these engine models to the United States, as well as U.S. importers purchasing them. Chongqing Zongshen General Power Machine Co., Ltd. is the named respondent. Any importer of these models will face duties retroactively applied once the final determination is issued, and must account for potential duty exposure on inventory already in the U.S. supply chain or in transit.
How circumvention determinations work
When Commerce determines that a later-developed product circumvents an existing duty order, it effectively expands the scope of the order to include the new merchandise. This means the engine models in question will be subject to the same antidumping and countervailing duty rates as the original covered products, regardless of design or engineering changes the manufacturer may have introduced.
"The U.S. Department of Commerce (Commerce) preliminarily determines that imports of models 5C65M0 and BC70M0 vertical shaft engines produced by Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) in, and exported from, the People's Republic of China (China) constitute later-developed merchandise that circumvent the antidumping duty (AD) and countervailing duty (CVD) orders on certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical shaft engines), from China."
This is a preliminary ruling. Commerce will proceed to a final determination after considering comments and additional evidence from interested parties. The final decision will establish the official scope expansion and trigger the duty liability.
What this means for shippers
Importers and forwarders handling these Zongshen engine models (5C65M0, BC70M0) must immediately flag them in their systems and assume duty exposure. Update your landed-cost estimates and duty-rate lookups to reflect potential antidumping and countervailing charges once the final determination publishes. Verify your supply-chain sourcing against this determination now; any in-transit or in-warehouse inventory may face retroactive duty assessments. /landed-cost
