US extends countervailing duties on Chinese vertical shaft engines
The U.S. Department of Commerce has issued final results of an expedited first sunset review, determining that revoking the countervailing duty (CVD) order on certain large vertical shaft engines (225–999cc) and parts from China would likely lead to continuation or recurrence of countervailable subsidies. The duty order remains in effect.
Photo: Liuuu _61 / PexelsUS extends countervailing duties on Chinese vertical shaft engines
On June 3, 2026, the U.S. Department of Commerce announced final results of an expedited first sunset review of countervailing duties imposed on certain large vertical shaft engines between 225cc and 999cc, and parts thereof, originating from the People's Republic of China. The Commerce Department found that revocation of the existing CVD order would likely result in continuation or recurrence of countervailable subsidies.
The U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on certain large vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People's Republic of China (China) would be likely to lead to continuation or recurrence of countervailable subsidies at the levels indicated in the "Final Results of Sunset Review" section of this notice.
Who is affected
Shippers and importers of vertical shaft engines and related parts falling within the 225–999cc range face continued CVD obligations on merchandise sourced from China. Manufacturers relying on these engines—including lawn and garden equipment producers, small engine suppliers, and equipment assemblers—must account for these duties in landed-cost calculations and supplier sourcing decisions.
What remains unchanged
The countervailing duty order stays in place. Importers must continue to post bonds or deposit estimated duties at the port of entry. The final determination confirms that Chinese government subsidies to producers of these engines persist at commercially meaningful levels, justifying the continued trade remedy.
What this means for shippers
If you import vertical shaft engines (225–999cc) or parts from China, the CVD order is not being lifted—your duties continue. Review your HS classification (Chapter 84, likely 8407 or 8408) to confirm product coverage and validate duty deposits with your customs broker. Factor these persistent duties into supplier negotiations and pricing for any FY 2026–2027 contracts. Check the full Federal Register notice for the precise subsidy rates applied to your Chinese supplier, as these may vary by manufacturer and are binding on your imports.
