Notice2026-02563
Erythritol From the People's Republic of China: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 10, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of erythritol from the People's Republic of China (China). The period of investigation (POI) is January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 91 Issue 27 (Tuesday, February 10, 2026)</title>
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[Federal Register Volume 91, Number 27 (Tuesday, February 10, 2026)]
[Notices]
[Pages 5920-5922]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02563]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-193]
Erythritol From the People's Republic of China: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of erythritol from the People's Republic of China (China). The period
of investigation (POI) is January 1, 2023, through December 31, 2023.
DATES: Applicable February 10, 2026.
FOR FURTHER INFORMATION CONTACT: Christopher Doyle, AD/CVD Operations,
Office IX, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2805.
SUPPLEMENTARY INFORMATION:
Background
On May 16, 2025, Commerce published the Preliminary Determination
of this countervailing duty (CVD) investigation of erythritol from
China, in accordance with section 705(a)(1) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR 351.210(b)(3), and aligned this CVD
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation.\1\ On June 24, 2025, we issued a post-
preliminary analysis memorandum regarding certain programs.\2\
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\1\ See Erythritol from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 90 FR 21000 (May 16, 2025) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum for
the Countervailing Duty Investigation of Erythritol from the
People's Republic of China,'' dated June 24, 2025 (Post-Preliminary
Analysis).
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Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
proceedings by 47 days.\3\ Additionally, due to a backlog of documents
that were electronically filed via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS) during the Federal Government shutdown, on November 24,
2025, Commerce tolled all deadlines in administrative proceedings by an
additional 21 days.\4\ Accordingly, the deadline for this final
determination is now February 4, 2026.
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\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
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For a complete discussion of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\5\
The Issues and Decision Memorandum is a public document and is made
available to the public via ACCESS. ACCESS is available to registered
users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of
the Issues and Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\5\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Erythritol from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Investigation
The merchandise covered by the scope of this investigation is
Erythritol from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In the Preliminary Scope Memorandum, we set aside a period of time
for parties to raise issues regarding product coverage (i.e., scope) in
scope-specific case briefs or other written comments.\6\ We received
comments from interested parties on the scope of the investigation as
it appeared in the Preliminary Determination. For a summary of the
product coverage comments submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Final Scope Decision Memorandum.\7\ After
analyzing these comments, we made one change to the scope of the
investigation. Commerce is therefore modifying the scope language as it
appeared in the Initiation Notice and Preliminary Determination. See
the scope in Appendix I to this notice.
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\6\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Erythritol from the People's Republic of
China: Preliminary Scope Decision Memorandum,'' dated July 11, 2025
(Preliminary Scope Memorandum).
\7\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this final determination (Final Scope Decision
Memorandum).
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Verification
As provided in section 782(i) of the Act, Commerce conducted
verification the information reported by Baolingbao Biology Co., Ltd.
(Baolingbao Biology) and Shandong Sanyuan Biotechnology for use in the
final determination. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided at verification.\8\
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\8\ See Memorandum, ``Verification of the Questionnaire
Responses of Shandong Sanyuan Biotechnology Co., Ltd.,'' dated July
16, 2025; see also Memorandum, ``Verification of the Questionnaire
Responses of Baolingbao Biology Company Limited in the
Countervailing Duty Investigation of Erythritol from the People's
Republic of China,'' dated July 18, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a list of
[[Page 5921]]
the issues raised by interested parties and addressed in the Issues and
Decision Memorandum, see Appendix II to this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\9\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the Issues and
Decision Memorandum at the section entitled ``Uses of Facts Available
and Application of Adverse Inferences.'' \10\
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\10\ See also Preliminary Determination PDM at 5-17.
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Changes Since the Preliminary Determination and Post-Preliminary
Analysis
Based on our review and analysis of the information at verification
and comments received from interested parties, we made changes to the
subsidy rate calculations for Baolingbao Biology, Shandong Sanyuan, and
all other producers/exporters, including the addition of subsidy
programs included in the Post-Preliminary Analysis. For a discussion of
these changes, see the Issues and Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that Commerce shall
determine an estimated all-others rate for companies not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated subsidy rates established for those companies
individually examined, excluding any zero and de minimis rates and any
rates based entirely under section 776 of the Act.
In this investigation, Commerce calculated individual estimated
subsidy rates for Baolingbao Biology and Shandong Sanyuan that are not
zero, de minimis, or based entirely on the facts otherwise available.
Consequently, Commerce calculated the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents using each company's publicly-ranged values for
the subject merchandise.\11\
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\11\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum, ``Calculation of the All-Others Rate for the Final
Determination,'' dated concurrently with this notice.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
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Subsidy rate
Company (percent ad
valorem)
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Baolingbao Biology Co., Ltd............................. 4.54
Shandong Sanyuan Biotechnology Co., Ltd................. 8.63
All Others.............................................. 8.12
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Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of its
public announcement or, if there is no public announcement, within five
days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from China that were
entered, or withdrawn from warehouse, for consumption, on or after May
16, 2025, the date of the publication of the Preliminary Determination
in the Federal Register.\12\ In accordance with section 703(d) of the
Act, we instructed CBP to discontinue the suspension of liquidation of
all entries of subject merchandise entered or withdrawn from warehouse,
on or after September 13, 2025 but to continue the suspension of
liquidation of all entries of subject merchandise on or before
September 12, 2025.
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\12\ See Preliminary Determination, 90 FR at 21000.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for entries
of subject merchandise in the amounts indicated above. Pursuant to
section 705(c)(2) of the Act, if the ITC determines that material
injury, or threat of material injury, does not exist, this proceeding
will be terminated, and all estimated duties deposited or securities
posted as a result of the suspension of liquidation will be refunded or
cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of erythritol
from China. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
import of erythritol from China. In addition, we are making available
to the ITC all non-privileged and non-proprietary information in our
files, provided the ITC confirms that it will not disclose such
information, either publicly or under administrative protective order
(APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the
[[Page 5922]]
``Continuation of Suspension of Liquidation'' section.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: February 4, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The product within the scope of this investigation is
erythritol, which is a sugar alcohol, commonly referred to as a
polyol, typically produced by the fermentation of glucose using
enzymes and yeast or yeast-like fungi (though the scope includes
erythritol produced using any other feedstock or organism).
Erythritol is an organic compound with the molecular formula C4 H10
O4 and a Chemical Abstracts Service (CAS) registry number of 149-32-
6. Other names for erythritol include meso-erythritol,(2R, 3S)-
butan-1,2,3,4-tetrol, butane-1,2,3,4-tetrol, or meso-1,2,3,4-
Tetrahydryoxybutane.
Erythritol typically appears as a white crystalline, odorless
product that rapidly dissolves in water. While erythritol is
typically produced in the crystalline form or as a fine powder or in
directly compressible form, the scope of this investigation covers
all physical forms and grades of erythritol, including organic
erythritol.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 2905.49.4000. Erythritol may also enter under HTSUS
subheading 2106.90.9998. Although the HTSUS subheadings and the CAS
registry number are provided for convenience and customs purposes,
the written description of the merchandise covered by this
investigation is dispositive.
Specifically excluded from the scope are certain tabletop sugar
substitute products that contain erythritol as an ingredient.
Tabletop sugar substitute products include erythritol as an
ingredient as well as a high intensity sweeter such as monk fruit,
stevia, sucralose, aspartame, and saccharin. The following tabletop
sugar substitute products are excluded: finished goods packaged and
labeled for retail sale or individual consumption.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation Information
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Whether Commerce's Decision to Countervail the
Provision of Electricity for LTAR Program Is Based on Substantial
Evidence and Is in Accordance With Law
Comment 2: Whether Commerce's Decision To Countervail the
Provision of Land-Use Rights for LTAR Is Based on Substantial
Evidence and Is in Accordance With Law
Comment 3: Whether Commerce Erred in Its Calculation of the
Benefit for the Provision of Land Use-Rights for LTAR Program
Comment 4: Other Subsidies
Comment 5: Whether To Modify the Benchmark Applied to Baolingbao
Biology's ``Flat'' Electricity Purchases for the Provision of
Electricity for LTAR Program
Comment 6: Whether Commerce Erred in Its Selection of Discount
Rate To Allocate Baolingbao Biology's Benefits During the AUL Period
Comment 7: Whether To Modify the Benefit Calculation for
Shandong Sanyuan for the Provision of Electricity for LTAR Program
Comment 8: Whether Commerce's Decision To Countervail the
Provision of LNG for LTAR Program Is Based on Substantial Evidence
and Is in Accordance With Law
Comment 9: Whether Commerce Erred in Its Benchmark Calculation
for the Provision of LNG for LTAR Program
Comment 10: Whether Commerce Should Include Shandong Sanyuan's
Benefit From the Income Tax Deduction For Research and Development
Expenses Under the Enterprise Income Tax Law in the Final
Determination
Comment 11: Whether Commerce's Decision To Countervail the Urban
Land-Use Tax Reduction Program for High-Tech Enterprises Is Contrary
to Law
VII. Recommendation
[FR Doc. 2026-02563 Filed 2-9-26; 8:45 am]
BILLING CODE 3510-DS-P
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