Notice2026-09910
Fresh Mushrooms From Canada: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
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Published
May 18, 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 fresh mushrooms from Canada. 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 95 (Monday, May 18, 2026)</title>
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[Federal Register Volume 91, Number 95 (Monday, May 18, 2026)]
[Notices]
[Pages 28571-28573]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09910]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-874]
Fresh Mushrooms From Canada: 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 fresh mushrooms from Canada. The period of
investigation is January 1, 2024, through December 31, 2024. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable May 18, 2026.
FOR FURTHER INFORMATION CONTACT: Ines Martinand or Colton Dulin, 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) 482-2000 or (202) 482-1222,
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 January 8,
2026.\1\ Due to the lapse in appropriations and Federal Government
shutdown, on November 14, 2025, Commerce tolled all deadlines in
administrative proceedings by 47 days.\2\ 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.\3\ On February 18, 2026, Commerce
postponed the preliminary determination of this investigation until May
12, 2026.\4\
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\1\ See Fresh Mushrooms from Canada: Initiation of
Countervailing Duty Investigation, 91 FR 668 (January 8, 2026)
(Initiation Notice).
\2\ See Memorandum, ``Deadlines Affected by Shutdown of the
Federal Government,'' dated November 14, 2025.
\3\ See Memorandum, ``Tolling of All Case Deadlines,'' dated
November 24, 2025.
\4\ See Fresh Mushrooms from Canada: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 91 FR 7440
(February 18, 2026).
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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/frnotice">https://access.trade.gov/public/frnotice</a>.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Fresh Mushrooms from Canada,'' 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 fresh mushrooms from
Canada. 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 less-than-fair
value (LTFV) and countervailing duty (CVD) investigations in the
preliminary determination of the companion LTFV 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\
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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.
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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 determination in this investigation with the final
determination in the companion LTFV investigation of fresh mushrooms
from Canada based on a request made by Fresh Mushrooms Fair Trade
Coalition and its individual members (the petitioner).\9\ Consequently,
the final determination will be issued on the same date as the final
LTFV determination, which is currently scheduled to be issued no later
than September 28, 2026, unless postponed.
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\9\ See Petitioner's Letter, ``Request to Align Countervailing
Duty Investigation Final Determination with Antidumping Duty
Investigation Final Determination,'' dated May 12, 2026
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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.
Pursuant to section 705(c)(5)(A)(ii) of the Act, Commerce
calculated an individual estimated countervailable subsidy rate for
Champ's Fresh Farms Inc. (Champ's) and Farmers' Fresh Mushroom Inc.
(Farmers' Fresh) that are not zero, or de minimis, or based entirely on
facts otherwise available. Thus, Commerce calculated the all-others
rate by weight averaging the estimated countervailable subsidy rates
that it calculated for Champ's and Farmers' Fresh by each company's
publicly-ranged values of sales of subject merchandise during the
POI.\10\
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\10\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sales
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 the All-Others Rate Calculation Memorandum.
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[[Page 28572]]
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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Champ's Fresh Farms Inc.\11\............................ 1.62
Farmers' Fresh Mushrooms Inc.\12\....................... 4.97
All Others.............................................. 2.84
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Suspension of Liquidation
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 fresh mushrooms, 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.
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\11\ As discussed in the Preliminary Determination Memorandum,
Commerce has found the following to be cross owned with Champ's:
Loveday Mushroom Farms Ltd. See Preliminary Decision Memorandum at
6.
\12\ As discussed in the Preliminary Decision Memorandum,
Commerce found the following to be cross owned with Farmers' Fresh:
Ross Land Mushroom Farm Ltd.; Farmers' Fresh Management Ltd.;
1134017 B.C. Ltd. (d/b/a Triple 8 Mushrooms); and Abbycel Substrate
Ltd. See Preliminary Decision Memorandum at 8.
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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.\13\ 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.\14\
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\13\ 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).
\14\ See 19 CFR 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.\15\ 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).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ 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 fresh mushrooms from Canada are
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: May 12, 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 covered by this investigation is fresh mushrooms
of the genus Agaricus (fresh mushrooms). This includes, but is not
limited to, fresh mushrooms of the species Agaricus bisporus, which
are commonly referred to as button mushrooms, chestnut mushrooms,
cremini or crimini mushrooms, baby bellas, portabella
[[Page 28573]]
or portobello mushrooms, table mushrooms, or as white or browns.
Fresh mushrooms include whole mushrooms, as well as mushrooms that
have been sliced, diced, or separated into stems and pieces prior to
importation. Fresh mushrooms may also be imported in bulk or loose
form, or may be imported in individual containers packaged for
retail sale. The scope of this investigation includes all fresh
mushrooms of the genus Agaricus, whether or not organic, and
irrespective of age, cut, color, size, species, or packaging.
Subject merchandise may be cleaned, washed, inspected, subjected
to metal detection, sliced, diced, or de-stemmed, and/or vacuum
cooled prior to importation, but otherwise undergoes minimal further
processing. The scope of this investigation covers fresh mushrooms
of the genus Agaricus regardless of end use, including both
mushrooms destined for the fresh market and mushrooms intended for
food processing.
Fresh mushrooms of the genus Agaricus are currently classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
statistical reporting number 0709.51.0100. Although the HTSUS
statistical reporting number is provided for convenience and customs
purposes, the written description of the scope of this investigation
is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of Canada's Economy
V. Subsidies Valuation Information
VI. New Subsidy Allegations
VII. Use of Partial Facts Available
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2026-09910 Filed 5-15-26; 8:45 am]
BILLING CODE 3510-DS-P
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