Notice2026-10357
Certain Corrosion Inhibitors From the People's Republic of China: Preliminary Results and Rescission, in Part, of Countervailing Duty Administrative Review; 2024
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
May 26, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were provided to producers/ exporters of corrosion inhibitors (corrosion inhibitors) from the People's Republic of China (China). The period of review (POR) is January 1, 2024, through December 31, 2024. Further, Commerce is rescinding the review with respect to five companies. Interested parties are invited to comment on these preliminary results.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 100 (Tuesday, May 26, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 100 (Tuesday, May 26, 2026)]
[Notices]
[Pages 30616-30619]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10357]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-123]
Certain Corrosion Inhibitors From the People's Republic of China:
Preliminary Results and Rescission, in Part, of Countervailing Duty
Administrative Review; 2024
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies were provided to producers/
exporters of corrosion inhibitors (corrosion inhibitors) from the
People's Republic of China (China). The period of review (POR) is
January 1, 2024, through December 31, 2024. Further, Commerce is
rescinding the review with respect to five companies. Interested
parties are invited to comment on these preliminary results.
DATES: Applicable May 26, 2026.
FOR FURTHER INFORMATION CONTACT: Mary Kolberg, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1785.
SUPPLEMENTARY INFORMATION:
Background
On April 28, 2025, based on timely requests for review, in
accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative
review of the countervailing duty order on corrosion inhibitors from
China.\1\ On May 29, 2025, Commerce selected Anhui Trust Chem Co., Ltd.
(ATC) and Nantong Botao Chemical Co., Ltd. (Botao) as the mandatory
respondents in this administrative review.\2\
---------------------------------------------------------------------------
\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 90 FR 17568 (April 28, 2025); see also
Certain Corrosion Inhibitors from the People's Republic of China:
Antidumping Duty and Countervailing Duty Orders, 86 FR 14869 (March
19, 2021) (Order).
\2\ See Memorandum, ``Respondent Selection,'' dated May 29,
2025.
---------------------------------------------------------------------------
Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
[[Page 30617]]
proceeding by 47 days,\3\ and, 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\ On February 2, 2026, we extended the deadline for the
preliminary results of this review by 101 days.\5\ Accordingly, the
deadline for the preliminary results is now May 19, 2026.
---------------------------------------------------------------------------
\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.
\5\ See Memorandum, ``Extension of Deadline for Preliminary
Results,'' dated February 2, 2026.
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\6\
A list of topics discussed in the Preliminary Decision Memorandum is
included in the Appendix to this notice. The Preliminary Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (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/frnotices">https://access.trade.gov/frnotices</a>.
---------------------------------------------------------------------------
\6\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Administrative Review of the Countervailing Duty
Order on Certain Corrosion Inhibitors from the People's Republic of
China; 2024,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Order
The product covered by the Order is corrosion inhibitors from
China. For a complete description of the scope of the Order, see the
Preliminary Decision Memorandum.
Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(3), it is Commerce's practice to
rescind an administrative review of the countervailing duty order where
it concludes that there were no suspended entries of subject
merchandise during the POR.\7\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the CVD
assessment rate calculated for the POR.\8\ Therefore, for an
administrative review to be conducted, there must be a reviewable,
suspended entry that Commerce can instruct U.S. Customs and Border
Protection (CBP) to liquidate at the CVD rate calculated for the
POR.\9\ Commerce notified all interested parties of its intent to
rescind this administrative review regarding the companies listed in
the Appendix II.\10\ No party commented on the notice of intent to
rescind the review, in part. In the absence of any suspended entries of
subject merchandise from these companies during the POR, we are
rescinding this administrative review for the companies listed in the
Appendix II, in accordance with 19 CFR 351.213(d)(3).
---------------------------------------------------------------------------
\7\ See, e.g., Certain Non-Refillable Steel Cylinders from the
People's Republic of China: Rescission of Countervailing Duty
Administrative Review; 2024, 90 FR 48043 (October 3, 2025).
\8\ See 19 CFR 351.212(b)(2).
\9\ See, e.g., Shanghai Sunbeauty Trading Co. v. United States,
380 F.Supp.3d 1328, 1337 (CIT 2019), at 12 (referring to section
751(a) of the Act, the U.S. Court of International Trade held that
``{w{time} hile the statute does not explicitly require that an
entry be suspended as a prerequisite for establishing entitlement to
a review, it does explicitly state the determined rate will be used
as the liquidation rate for the reviewed entries. This result can
only obtain if the liquidation of entries has been suspended''; see
also Certain Frozen Fish Fillets from the Socialist Republic of
Vietnam: Final Results of Antidumping Duty Administrative Review and
Final Determination of No Shipments; 2018-2019, 86 FR 36102, and
accompanying Issues and Decision Memorandum at Comment 4; and Solid
Fertilizer Grade Ammonium Nitrate from the Russian Federation:
Notice of Rescission of Antidumping Duty Administrative Review, 77
FR 65532 (October 29, 2012) (noting that ``for an administrative
review to be conducted, there must be a reviewable, suspended entry
to be liquidated at the newly calculated assessment rate'').
\10\ See Memorandum, ``Intent to Rescind Review, in Part,''
dated February 24, 2026.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this administrative review in accordance
with 751(a)(1)(A) of the Tariff Act of 1930, as amended (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.\11\ For a full description
of the methodology underlying our conclusions, including our reliance,
in part, on facts otherwise available with adverse inferences pursuant
to sections 776(a) and (b) of the Act, see the Preliminary Decision
Memorandum.
---------------------------------------------------------------------------
\11\ 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.
---------------------------------------------------------------------------
Rate for Non-Selected Companies Under Review
The Act and Commerce's regulations do not address the establishment
of a rate to apply to companies not selected for individual examination
when Commerce limits its examination in an administrative review
pursuant to section 777A(e)(2) of the Act. Generally, Commerce looks to
section 705(c)(5) of the Act, which provides instructions for
calculating the all-others rate in a CVD investigation. Section
777A(e)(2) of the Act provides that ``the individual countervailable
subsidy rates determined under subparagraph (A) shall be used to
determine the all-others rate under section 705(c)(5) {of the
Act{time} .''
Under section 705(c)(5)(A)(i) of the Act, the all-others rate is
normally an amount equal to the weighted average countervailable
subsidy rates established for each of the companies individually
investigated, excluding any rates that are zero, de minimis (i.e., less
than 0.5 percent), or determined entirely on the basis of facts
available. Where the countervailable subsidy rates for each of the
individually examined companies is zero, de minimis, or based entirely
on facts available, section 705(c)(5)(A)(ii) of the Act provides that
Commerce may use ``any reasonable method to establish an all-others
rate for exporters and producers not individually investigated,
including averaging the weighted average countervailable subsidy rates
determined for the exporters and producers individually investigated.''
In this administrative review, we preliminarily calculated
countervailable subsidy rates for the mandatory respondents, ATC and
Botao, that are not zero, de minimis, or based entirely on facts
available. Accordingly, we are preliminarily assigning to the companies
under review that were not selected for individual examination a
countervailable subsidy rate equal to the weighted average of the
countervailable subsidy rates calculated for ATC and Botao, weighted by
the mandatory respondents' publicly ranged sales values for the
merchandise under consideration, consistent with the guidance in
section 705(c)(5)(A)(i) of the Act.\12\
---------------------------------------------------------------------------
\12\ 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.
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. See also Memorandum, ``Calculation of the Weighted-
Average Subsidy Rate for the Companies Not Selected for Individual
Examination,'' dated concurrently with this notice.
---------------------------------------------------------------------------
[[Page 30618]]
Preliminary Results of Review
As a result of this review, we preliminarily determine the
following net countervailable subsidy rates exist for the POR, January
1, 2024, through December 31, 2024:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Anhui Trust Chem Co., Ltd.\13\.......................... 19.31
Nantong Botao Chemical Co., Ltd.\14\.................... 48.45
Companies Not Selected for Individual Review \15\....... 36.67
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties for these preliminary results within
five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice, in accordance with 19 CFR 351.224(b).
---------------------------------------------------------------------------
\13\ As discussed in the Preliminary Decision Memorandum,
Commerce finds the following companies to be cross-owned with ATC:
Nanjing Trust Chem Co., Ltd.; and Jiangsu Trust Chem Co., Ltd.
\14\ As discussed in the Preliminary Decision Memorandum,
Commerce finds the following companies to be cross-owned with Botao:
Rugao Connect Chemical Co., Ltd.; Rugao Jinling Chemical Co., Ltd.;
and Nantong Yutu Group Co., Ltd.
\15\ See Appendix III for a list of the non-selected companies
under review.
---------------------------------------------------------------------------
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Commerce will
establish the briefing schedule at a later time and will notify parties
of the schedule in accordance with 19 CFR 351.309. 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.\16\ Interested
parties who submit case briefs or rebuttal briefs in this proceeding
must submit: (1) a table of contents listing each issue; and (2) a
table of authorities.\17\ All briefs must be filed electronically using
ACCESS. An electronically filed document must be received successfully
in its entirety in ACCESS by 5:00 p.m. Eastern Time on the established
deadline.
---------------------------------------------------------------------------
\16\ 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 Procedures).
\17\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------
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.\18\ 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 results in this administrative
review. 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).\19\
---------------------------------------------------------------------------
\18\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\19\ See APO and Service Procedures.
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically via
ACCESS by 5:00 p.m. Eastern Time 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 (3) a list of issues to be discussed. Oral presentations at the
hearing will be limited to issues raised in the briefs. If a request
for a hearing is made, Commerce will inform parties of the scheduled
date for the hearing.\20\
---------------------------------------------------------------------------
\20\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------
Assessment Rates
Consistent with section 751(a)(1) of the Act and 19 CFR
351.212(b)(2), upon issuance of the final results, Commerce shall
determine, and U.S. Customs and Border Protection (CBP) shall assess,
countervailing duties on all appropriate entries covered by this
review.
For the companies listed in Appendix II for which the review is
being rescinded, Commerce will instruct CBP to assess countervailing
duties on all appropriate entries at a rate equal to the cash deposit
of estimated countervailing duties required at the time of entry, or
withdrawal from warehouse, for consumption, in accordance with 19 CFR
351.212(c)(1)(i). Commerce intends to issue rescission instructions to
CBP no earlier than 35 days after the date of publication of this
notice in the Federal Register.
Cash Deposit Requirements
Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.107(e),
Commerce intends to instruct CBP to collect cash deposits of estimated
countervailing duties with regard to shipments of subject merchandise
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of the final results of this review, as follows:
(1) the cash deposit rate for the companies listed above will be equal
to the company-specific estimated individual countervailable subsidy
rates determined in the final results of this review, except if the
rate is less than 0.50 percent and, therefore, de minimis within the
meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate
will be zero; (2) if both the producer and exporter of the subject
merchandise have company-specific estimated subsidy rates assigned, 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 has a company-specific
estimated subsidy rate assigned, 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 continue to be 77.34
percent, the all-others subsidy rate established in the
investigation.\21\ These cash deposit instructions, when imposed, shall
remain in effect until further notice.
---------------------------------------------------------------------------
\21\ See Certain Corrosion Inhibitors from the People's Republic
of China: Antidumping Duty and Countervailing Duty Orders, 86 FR
14869 (March 19, 2021).
---------------------------------------------------------------------------
Notification to Interested Parties
We are issuing and publishing these preliminary results in
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR
351.221(b)(4).
Dated: May 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
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
[[Page 30619]]
V. Non-Selected Companies Under Review
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Application of Adverse
Inference
VIII. Subsidies Valuation
IX. Interest Rate, Discount Rate, Input, Electricity, and Land
Benchmarks
X. Analysis of Programs
XI. Recommendation
Appendix II
Companies With No Reviewable Entries Rescinded from Review
1. Connect Chemicals China Co., Ltd.
2. Relic Chemicals
3. Sagar Speciality Chemicals Pvt., Ltd.
4. Wuxi Connect Chemicals Co., Ltd.
5. Yasho Industries Pvt. Ltd.
Appendix III
Non-Selected Companies Under Review
1. Kanghua Chemical Co., Ltd.
2. Connect Chemicals GMBH
3. Gold Chemical Limited
[FR Doc. 2026-10357 Filed 5-22-26; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on May 26, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.