Notice2026-05805
High Purity Dissolving Pulp From Brazil: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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Published
March 25, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of high purity dissolving pulp (dissolving pulp) from Brazil. The period of investigation is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 91 Issue 57 (Wednesday, March 25, 2026)</title>
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[Federal Register Volume 91, Number 57 (Wednesday, March 25, 2026)]
[Notices]
[Pages 14524-14526]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05805]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-867]
High Purity Dissolving Pulp From Brazil: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Determination
With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of high purity dissolving pulp (dissolving
pulp) from Brazil. The period of investigation is January 1, 2024,
through December 31, 2024. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable March 25, 2026.
FOR FURTHER INFORMATION CONTACT: Sarah Keith or Gorden Struck, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0264 or (202) 482-8151,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on September
8, 2025.\1\ On September 29, 2025, Commerce postponed the preliminary
determination of this investigation until January 12, 2026.\2\
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\1\ See High Purity Dissolving Pulp from Brazil: Initiation of
Countervailing Duty Investigation, 90 FR 43174 (September 8, 2024)
(Initiation Notice).
\2\ See High Purity Dissolving Pulp from Brazil: Postponement of
Preliminary Determination in the Countervailing Duty Investigation,
90 FR 46561 (September 29, 2025).
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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 preliminary
determination is now March 19, 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 description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\5\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
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 Preliminary
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, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of High Purity Dissolving Pulp from Brazil,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The product covered by this investigation is dissolving pulp from
Brazil. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\7\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigations in the
preliminary determination of the companion AD investigation.
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\8\ Commerce notes that, in making these findings, Commerce
relied, in part, on facts available, and, because it finds that the
Government of Brazil did not act to the best of its ability to respond
to Commerce's requests for information, it drew an adverse inference
where appropriate in selecting from among the facts otherwise
available.\9\ For further information, see the ``Use of Facts Otherwise
Available and Adverse Inferences,'' section in the Preliminary Decision
Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
\9\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of dissolving
pulp from Brazil based on a request made by the petitioners.\10\
Consequently, the final
[[Page 14525]]
CVD determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
August 3, 2026, unless postponed.
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\10\ See Petitioners' Letter, ``Petitioners' Request for
Alignment of the Countervailing Duty Investigation with the
Concurrent Antidumping Duty Investigation,'' dated March 5, 2026.
The petitioners are Rayonier Advanced Materials Inc. and the United
Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union, AFL-CIO
(collectively, the petitioners).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, 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.
Commerce calculated an individual estimated countervailable subsidy
rate for Bracell Bahia Specialty Cellulose S.A. (BSC), the only
individually examined exporter/producer in this investigation. Because
the only individual calculated rate is not zero, de minimis, or based
entirely on facts otherwise available, the estimated weighted-average
rate calculated for BSC is the rate assigned to all other producers and
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Bracell Bahia Specialty Cellulose S.A. \11\............. 3.67
All Others.............................................. 3.67
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Suspension of Liquidation
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
BSC: Bracell Bahia Florestal Ltda, Bracell SP Celulose Limitada, and
Bracell SP Florestal Ltda.. See Preliminary Decision Memorandum at
2.
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In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of dissolving pulp, as described in the
scope of the investigation section, entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to section
703(d)(1)(B) of the Act and 19 CFR 351.107(e), Commerce will instruct
CBP to require a cash deposit equal to the estimated company-specific
countervailable subsidy rate or the estimated all-others rate, as
follows: (1) the cash deposit rate for the respondents listed above
will be equal to the company-specific estimated individual
countervailable subsidy rates determined in this preliminary
determination; (2) if both the producer and exporter of the subject
merchandise have company-specific estimated subsidy rates determined in
this preliminary determination, and their rates differ, then the
applicable cash deposit rate will be the higher of these two rates; (3)
if either the producer or the exporter, but not both, of the subject
merchandise have a company-specific estimated subsidy rate determined
in this preliminary determination, the applicable cash deposit rate
will be that company's company-specific rate; and (4) the cash deposit
rate for all other producers and exporters will be equal to the
estimated all-others subsidy rate.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\12\ Interested parties who submit case or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\13\
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\12\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\13\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
request that interested parties provide at the beginning of their
briefs a public executive summary for each issue raised in their
briefs.\14\ Further, we request that interested parties limit their
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the executive summaries as the
basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of dissolvable pulp from Brazil are
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materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: March 19, 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 merchandise subject to this investigation is high purity
dissolving pulp, which is a dissolving pulp with an alpha cellulose
percentage of 90 percent by weight or higher on an oven dry basis,
as calculated by: alpha cellulose percentage = (100-S10) + 0.5*(S10-
S18) where S10 and S18 values are determined by International
Organization for Standardization (ISO) 692:1982, and having a
brightness level of 90 percent or higher, as measured by ISO 2470-
1:2016. High purity dissolving pulp may be derived from any virgin
or recycled cellulose fiber source (including, but not limited to,
those sourced from hardwoods, softwoods, woody crops, agricultural
crops/byproducts/residue, and agricultural/industrial/other waste).
High purity dissolving pulp may be produced from a chemical pulping
process including without limitation a kraft (sulfate) pulping and/
or sulfite pulping process.
High purity dissolving pulp can be shipped in any form,
including, but not limited to, a liquid slurry or in any dried form
such as flakes, powder, granules, pellets, shreds, rolls and sheets.
The scope includes merchandise matching the above description
that has been finished, packaged, or otherwise processed in a third
country, including but not limited to processes such as commingling,
blending, diluting, repackaging, or any other process that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the subject country. The scope also includes high
purity dissolving pulp that is commingled or blended with high
purity dissolving pulp from sources not subject to this
investigation. Only the subject component of such commingled or
blended products is covered by the scope of this investigation.
Excluded from the scope is high purity dissolving pulp with an
intrinsic viscosity under 455 milliliters per gram (mL/g), as
measured by ISO 5351:2010.
Also excluded from the scope is cotton linters pulp that
consists of at least 90 percent by weight, on an oven-dried basis,
of cotton linters fibers.
High purity dissolving pulp products are classified under
subheadings 4702.00.0020 and 4702.00.0040, of the Harmonized Tariff
Schedule of the United States (HTSUS). High purity dissolving pulp
products may also enter under subheadings 4706.30.0000 or
4706.92.0100. Reference to the HTSUS classifications are provided
for convenience and customs purposes, and the written description of
the merchandise under investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of Brazil's Economy
V. Subsidies Valuation Information
VI. New Subsidy Allegations
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2026-05805 Filed 3-24-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 25, 2026.
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