Notice2026-10516
Stationary and Portable Air Compressors From the People's Republic of China, Malaysia, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations
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 27, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 91 Issue 101 (Wednesday, May 27, 2026)</title>
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[Federal Register Volume 91, Number 101 (Wednesday, May 27, 2026)]
[Notices]
[Pages 31406-31413]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10516]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-232, A-557-836, A-552-856]
Stationary and Portable Air Compressors From the People's
Republic of China, Malaysia, and the Socialist Republic of Vietnam:
Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable May 20, 2026.
FOR FURTHER INFORMATION CONTACT: Jinny Ahn and Caroline Davis at (202)
482-0339 and (202) 482-1362, respectively (the People's Republic of
China (China)), Anne Entz at (202) 482-3845 (Malaysia), and Patrick
Barton at (202) 482-0012 (the Socialist Republic of Vietnam (Vietnam)),
AD/CVD Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
[[Page 31407]]
SUPPLEMENTARY INFORMATION:
The Petitions
On April 30, 2026, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of
stationary and portable air compressors (air compressors) from China,
Malaysia, and Vietnam, filed in proper form on behalf of MAT
Industries, LLC (the petitioner), a domestic producer of air
compressors.\1\ The AD Petitions were accompanied by countervailing
duty (CVD) petitions concerning imports of air compressors from China,
Malaysia, and Vietnam.\2\
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\1\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated April 30, 2026
(Petitions).
\2\ Id.
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Between May 6 and 14, 2026, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in
supplemental questionnaires.\3\ Between May 11 and 18, 2026, the
petitioner filed timely responses to these requests for additional
information.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
May 6, 2026 (First General Issues Questionnaire); and ``First
Country-Specific AD Supplemental Questionnaires: China AD
Supplemental, Malaysia AD Supplemental, and Vietnam AD
Supplemental,'' dated May 6, 2026; see also Memorandum,
``Teleconference with Counsel to the Petitioner,'' dated May 14,
2026 (Second General Issues Questionnaire); Country-Specific AD
Memoranda: Second China AD Supplemental, Second Malaysia AD
Supplemental, and Second Vietnam AD Supplemental, dated May 14,
2026; and Memoranda, ``Teleconference with Counsel to the
Petitioner,'' dated May 19, 2026 (Third General Issues
Questionnaire).
\4\ See Petitioner's Letters, ``Response to the General Issues
Supplemental Question,'' dated May 11, 2026 (First General Issues
Supplement); Country-Specific AD Supplemental Responses: First China
AD Supplement, First Malaysia AD Supplement, and First Vietnam AD
Supplement, dated May 11, 2026; ``Response to the Second
Supplemental Questionnaire Regarding Volume I,'' dated May 18, 2026
(Second General Issues Supplement); Second Country-Specific AD
Supplemental Responses: Second China AD Supplement, Second Malaysia
AD Supplement, and Second Vietnam AD Supplement, dated May 18, 2026;
and ``Response to the Third Supplemental Questionnaire Regarding
Volume I,'' dated May 20, 2026 (Third General Issues Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of air
compressors from China, Malaysia, and Vietnam are being, or are likely
to be, sold in the United States at less than fair value (LTFV) within
the meaning of section 731 of the Act, and that imports of such
products are materially injuring, or threatening material injury to,
the air compressors industry in the United States. Consistent with
section 732(b)(1) of the Act, the Petitions were accompanied by
information reasonably available to the petitioner supporting its
allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(C) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested LTFV investigations.\5\
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\5\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
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Periods of Investigations (POI)
Because the Petitions were filed on April 30, 2026, pursuant to 19
CFR 351.204(b)(1), the POI for the Malaysia LTFV investigation is April
1, 2025, through March 31, 2026. Because China and Vietnam are non-
market economy (NME) countries, pursuant to 19 CFR 351.204(b)(1), the
POI for the China and Vietnam LTFV investigations is October 1, 2025,
through March 31, 2026.
Scope of the Investigations
The products covered by these investigations are air compressors
from China, Malaysia, and Vietnam. For a full description of the scope
of these investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
Between May 6 and 19, 2026, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\6\ Between May 11 and 20, 2026, the petitioner provided
clarifications and revised the scope.\7\ The description of merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
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\6\ See First General Issues Questionnaire; see also Second
General Issues Questionnaire; and Third General Issues
Questionnaire.
\7\ See First General Issues Supplement at 2-8; see also Second
General Issues Supplement at 1-4; and Third General Issues
Questionnaire at 1.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\8\ Commerce will consider all scope
comments received from interested parties and, if necessary, will
consult with interested parties prior to the issuance of the
preliminary determinations. If scope comments include factual
information, all such factual information should be limited to public
information.\9\ Commerce requests that interested parties provide at
the beginning of their scope comments a public executive summary for
each comment or issue raised in their submission. Commerce further
requests that interested parties limit their public executive summary
of each comment or issue to no more than 450 words, not including
citations. Commerce intends to use the public executive summaries as
the basis of the comment summaries included in the analysis of scope
comments. To facilitate preparation of its questionnaires, Commerce
requests that scope comments be submitted by 5:00 p.m. Eastern Time
(ET) on June 9, 2026, which is 20 calendar days from the signature date
of this notice. Any rebuttal comments, which may include factual
information, and should also be limited to public information, must be
filed by 5:00 p.m. ET on June 22, 2026, which is the next business day
after 10 calendar days from the initial comment deadline.\10\
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ The deadline for scope rebuttal comments falls on June 19,
2026, which is a federal holiday. Commerce's practice dictates that
where a deadline falls on a weekend or federal holiday, the
appropriate deadline is the next business day (in this instance,
June 22, 2026). See 19 CFR 351.303(b)(1) (``For both electronically
filed and manually filed documents, if the applicable due date falls
on a non-business day, the Secretary will accept documents that are
filed on the next business day.'').
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Commerce requests that any factual information that parties
consider relevant to the scope of these investigations be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
LTFV and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\11\ An
[[Page 31408]]
electronically filed document must be received successfully in its
entirety by the time and date it is due.
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\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help">https://access.trade.gov/help</a> and a handbook can be
found at <a href="https://access.trade.gov/ACCESS%20Handbook%20on%20Electronic%20Filing%20Procedures_March2026.pdf">https://access.trade.gov/ACCESS%20Handbook%20on%20Electronic%20Filing%20Procedures_March2026.pdf</a>.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of air compressors to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOP) or cost of production (COP) accurately, as well as to
develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) general product
characteristics; and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe air compressors, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on June 9, 2026,
which is 20 calendar days from the signature date of this notice. Any
rebuttal comments must be filed by 5:00 p.m. ET on June 22, 2026, which
is the next business day after 10 calendar days from the initial
comment deadline.\12\ All comments and submissions to Commerce must be
filed electronically using ACCESS, as explained above, on the record of
each of the LTFV investigations.
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\12\ The deadline for product characteristics rebuttal comments
falls on June 19, 2026, which is a federal holiday. Commerce's
practice dictates that where a deadline falls on a weekend or
federal holiday, the appropriate deadline is the next business day
(in this instance, June 22, 2026). See 19 CFR 351.303(b)(1) (``For
both electronically filed and manually filed documents, if the
applicable due date falls on a non-business day, the Secretary will
accept documents that are filed on the next business day.'').
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Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F.Supp.2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.Supp.
639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\15\ Based on our analysis of the information
submitted on the record, we have determined that air compressors, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\16\
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\15\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklists, ``Antidumping Duty Investigation Initiation
Checklists: Stationary and Portable Air Compressors from the
People's Republic of China, Malaysia, and the Socialist Republic of
Vietnam,'' dated concurrently with, and hereby adopted by, this
notice (Country-Specific AD Initiation Checklists), at Attachment
II, ``Analysis of Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Stationary and Portable Air
Compressors from the People's Republic of China, Malaysia, and the
Socialist Republic of Vietnam'' (Attachment II). These checklists
are on file electronically via ACCESS.
\16\ For further discussion, see Attachment II of the Country-
Specific AD Initiation Checklists.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own shipments of air compressors in 2025 and compared this to the
estimated total shipments of the domestic like product for the entire
domestic industry.\17\ Because total production data for the domestic
like product for 2025 are not reasonably available to the petitioner,
and the petitioner has established that shipments are a reasonable
proxy for production data,\18\ we relied on data provided by the
petitioner for purposes of measuring industry support.\19\
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\17\ Id.
\18\ Id.
\19\ Id.
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Our review of the data provided in the Petitions, the First General
Issues Supplement, the Second General Issues Supplement, the Third
General Issues Supplement, and other information
[[Page 31409]]
readily available to Commerce indicates that the petitioner has
established industry support for the Petitions.\20\ First, the
Petitions established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, Commerce is not required to take
further action in order to evaluate industry support (e.g.,
polling).\21\ Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petitions account for at least 25 percent of the total production of
the domestic like product.\22\ Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petitions account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the
Petitions.\23\ Accordingly, Commerce determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act.\24\
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\20\ Id.
\21\ Id.; see also section 732(c)(4)(D) of the Act.
\22\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\23\ Id.
\24\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\25\
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\25\ For further discussion, see Country-Specific AD Initiation
Checklists at Attachment III, ``Analysis of Allegations and Evidence
of Material Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Stationary and Portable Air
Compressors from the People's Republic of China, Malaysia, and the
Socialist Republic of Vietnam.''
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The petitioner contends that the industry's injured condition is
illustrated by a significant increase in the volume of subject imports;
reduced market share; underselling and price depression and
suppression; lost sales and revenues; decline U.S. shipments and a U.S.
producer ceasing production; negative impact on financial performance,
and negative impact on investment in automation and technology.\26\ We
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\27\
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\26\ Id.
\27\ Id.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate LTFV investigations
of imports of air compressors from China, Malaysia, and Vietnam. The
sources of data for the deductions and adjustments relating to U.S.
price and normal value (NV) are discussed in greater detail in the
Country-Specific AD Initiation Checklists.
U.S. Price
For all countries, the petitioner based export price (EP) on
pricing information for air compressors produced in each country and
sold or offered for sale in the U.S. market during the POI.\28\ For
each country, the petitioner made certain adjustments to U.S. price to
calculate a net ex-factory U.S. price, where applicable.\29\
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\28\ See Country-Specific AD Initiation Checklists.
\29\ Id.
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Normal Value <SUP>30</SUP>
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\30\ In accordance with section 773(b)(2) of the Act, for the
Malaysia investigation, Commerce will request information necessary
to calculate the constructed value (CV) and COP to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product.
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For Malaysia, the petitioner stated that it was unable to obtain
home market or third-country pricing information for air compressors
produced in Malaysia to use as the basis for NV.\31\ Therefore, for
Malaysia, the petitioner calculated NV based on constructed value
(CV).\32\ For further discussion of CV, see the section ``Normal Value
Based on Constructed Value.''
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\31\ See Malaysia AD Initiation Checklist.
\32\ Id.
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Commerce considers China and Vietnam to be NME countries.\33\ In
accordance with section 771(18)(C)(i) of the Act, any determination
that a foreign country is an NME country shall remain in effect until
revoked by Commerce. Therefore, we continue to treat China and Vietnam
as NME countries for purposes of the initiation of the LTFV
investigations. Accordingly, we base NV on FOPs valued in surrogate
market economy countries in accordance with section 773(C) of the Act.
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\33\ See, e.g., Raw Honey from the Socialist Republic of
Vietnam: Final Results of Antidumping Duty Changed Circumstances
Review, 89 FR 64411 (August 7, 2024), and accompanying NME Analysis
Memorandum at 5; see also Certain Freight Rail Couplers and Parts
Thereof from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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The petitioner claims that Malaysia, Mexico, and the Republic of
T[uuml]rkiye (T[uuml]rkiye) are appropriate surrogate countries for
China because they are market economy countries that are at a level of
economic development comparable to that of China and are significant
producers of comparable merchandise.\34\ The petitioner provided
publicly available information from Malaysia, Mexico, and T[uuml]rkiye
to value all FOPs, where applicable.\35\ Based on the information
provided by the petitioner, we believe it is appropriate to use
Malaysia, Mexico, and T[uuml]rkiye as surrogate countries for China to
value FOPs for initiation purposes.
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\34\ See China AD Initiation Checklist.
\35\ Id.
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The petitioner claims that El Salvador, Indonesia, and Tunisia are
appropriate surrogate countries for Vietnam because they are market
economy countries that are at a level of economic development
comparable to that of Vietnam and are significant producers of
comparable merchandise.\36\ The petitioner provided publicly available
information from El Salvador, Indonesia, and Tunisia to value all FOPs,
where applicable.\37\ Based on the information provided by the
petitioner, we believe it is appropriate to use El Salvador, Indonesia,
and Tunisia as surrogate countries for Vietnam to value FOPs for
initiation purposes.
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\36\ See Vietnam AD Initiation Checklist.
\37\ See Country-Specific AD Initiation Checklists.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determinations.
[[Page 31410]]
Factors of Production
Because information regarding the volume of inputs consumed by
Chinese and Vietnamese producers/exporters was not reasonably
available, the petitioner used its own production experience and
product-specific consumption rates for air compressors as a surrogate
to value Chinese and Vietnamese manufacturers' FOPs.\38\ For China, the
petitioner calculated factory overhead, selling, general, and
administrative (SG&A) expenses, and profit based on the experience of
Malaysian, Mexican, and Turkish producers of comparable
merchandise.\39\ For Vietnam, the petitioner calculated factory
overhead, SG&A, and profit based on the experience of an Indonesian
producer of comparable merchandise.\40\
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\38\ Id.
\39\ See China AD Initiation Checklist.
\40\ See Vietnam AD Initiation Checklist.
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Normal Value Based on Constructed Value
As noted above for Malaysia, the petitioner stated that it was
unable to obtain home market or third-country pricing information for
air compressors produced in Malaysia to use as the basis for NV.
Therefore, the petitioner calculated NV based on CV.\41\
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\41\ See Malaysia AD Initiation Checklist.
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Pursuant to section 773(e) of the Act, the petitioner calculated CV
as the sum of the cost of manufacturing, SG&A expenses, financial
expenses, and profit.\42\ In calculating the cost of manufacturing, the
petitioner relied on its own production experience and input
consumption rates for air compressors, valued using publicly available
information applicable to Malaysia.\43\ In calculating SG&A expenses,
financial expenses, and profit ratios, the petitioner relied on the
fiscal year 2025 financial statements of a producer of comparable
merchandise domiciled in Malaysia.\44\
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\42\ Id.
\43\ Id.
\44\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of air compressors from China, Malaysia, and
Vietnam are being, or are likely to be, sold in the United States at
LTFV. Based on comparisons of EP to NV in accordance with sections 772
and 773 of the Act, the estimated dumping margins for air compressors
for each of the countries covered by the initiation are as follows: (1)
China (Malaysia surrogate)--93.97 to 211.15 percent; (2) China (Mexico
surrogate)--56.68 to 201.41 percent; (3) China (T[uuml]rkiye
surrogate)--94.81 to 187.45 percent; (4) Malaysia--73.14 to 116.17
percent; (5) Vietnam (El Salvador surrogate)--52.53 to 106.22 percent;
(6) Vietnam (Indonesia surrogate)--25.85 to 132.31 percent; and (7)
Vietnam (Tunisia surrogate)--22.06 to 140.39 percent.\45\
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\45\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating LTFV investigations to determine
whether imports of air compressors from China, Malaysia, and Vietnam
are being, or are likely to be, sold in the United States at LTFV. In
accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of this
initiation.
Respondent Selection
China and Vietnam
In the Petitions, the petitioner identified over 300 companies in
China and 12 companies in Vietnam as producers and/or exporters of air
compressors.\46\ Our standard practice for respondent selection in AD
investigations involving NME countries is to select respondents based
on quantity and value (Q&V) questionnaires in cases where Commerce has
determined that the number of companies is large, and it cannot
individually examine each company based upon its resources. Therefore,
considering the number of producers and/or exporters identified in the
Petitions, Commerce will solicit Q&V information that can serve as a
basis for selecting exporters for individual examination in the event
that Commerce determines that the number is large and decides to limit
the number of respondents individually examined pursuant to section
777A(c)(2) of the Act. Because there are over 300 Chinese producers
and/or exporters identified in the Petitions, Commerce has determined
that it will issue Q&V questionnaires to the largest producers and/or
exporters in China that are identified in the U.S. Customs and Border
Protection (CBP) POI entry data for which there is complete address
information on the record.\47\ For Vietnam, because there are 12
producers and/or exporters identified in the Petitions, Commerce will
issue a Q&V questionnaire to each potential respondent in Vietnam for
which there is complete address information on the record.
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\46\ See Petitions at Volume I (Exhibit 11); see also First
General Issues Supplement at Exhibit GI-SUPP-1; and Second General
Issues Supplement at Exhibit GI-SUPP2-1.
\47\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated May 19, 2026.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-qv-questionnaire">https://www.trade.gov/ec-adcvd-qv-questionnaire</a>. Producers/exporters of air compressors from China and
Vietnam that do not receive Q&V questionnaires may still submit a
response to the Q&V questionnaire and can obtain a copy of the Q&V
questionnaire from Commerce's website. Responses to the Q&V
questionnaire must be submitted by the relevant Chinese and Vietnamese
producers/exporters no later than 5:00 p.m. ET on June 3, 2026, which
is two weeks from the signature date of this notice. All Q&V
questionnaire responses must be filed electronically via ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted
above.
Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305(b). As stated above, instructions for filing such applications
may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Malaysia
In the Petitions, the petitioner identified five companies in
Malaysia.\48\ Following standard practice in AD investigations
involving market economy countries, Commerce would normally select
respondents based on CBP entry data for imports under the appropriate
Harmonized Tariff Schedule of the United States (HTSUS) subheading(s)
listed in the ``Scope of the Investigations'' in the appendix. However,
for this investigation, one of the main HTSUS subheadings under which
the subject merchandise would enter (8414.80.1685) is a basket category
under which non-subject merchandise may also enter. Therefore, instead
of relying on CBP entry data in selecting respondents, we intend to
issue Q&V questionnaires to each potential
[[Page 31411]]
respondent for which there is complete address information on the
record.
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\48\ See Petitions at Volume I (Exhibit I-15); see also First
General Issues Supplement at Exhibit GI-SUPP-1.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at <a href="https://www.trade.gov/ec-adcvd-qv-questionnaire">https://www.trade.gov/ec-adcvd-qv-questionnaire</a>. Producers/exporters of air compressors from Malaysia
that do not receive Q&V questionnaires may still submit a response to
the Q&V questionnaire and can obtain a copy of the Q&V questionnaire
from Commerce's website. Responses to the Q&V questionnaire must be
submitted by the relevant producers/exporters no later than 5:00 p.m.
ET on June 3, 2026, which is two weeks from the signature date of this
notice. All Q&V questionnaire responses must be filed electronically
via ACCESS. An electronically filed document must be received
successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on
the deadline noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). As stated above, instructions
for filing such applications may be found on Commerce's website at
<a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate rate application. The
specific requirements for submitting a separate rate application in an
NME investigation are outlined in detail in the application itself,
which is available on Commerce's website at <a href="https://www.trade.gov/non-market-economy-separate-rate-applications-and-certifications">https://www.trade.gov/non-market-economy-separate-rate-applications-and-certifications</a>. Note that
Commerce recently promulgated new regulations pertaining to separate
rates, including the separate rate application deadline and eligibility
for separate rate status, in 19 CFR 351.108.\49\ Pursuant to 19 CFR
351.108(d)(1), the separate rate application will be due 21 days after
publication of this initiation notice.\50\ Exporters and producers must
file a timely separate rate application if they want to be considered
for individual examination. In addition, pursuant to 19 CFR 351.108(e),
exporters and producers who submit a separate rate application and have
been selected as mandatory respondents will be eligible for
consideration for separate rate status only if they fully respond to
all parts of Commerce's AD questionnaire and participate in the LTFV
proceeding as mandatory respondents.\51\ Commerce requires that
companies from China and Vietnam submit a response both to the Q&V
questionnaire and to the separate rate application by the respective
deadlines to receive consideration for separate rate status. Companies
not filing a timely Q&V questionnaire response will not receive
separate rate consideration.
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\49\ See Regulations Enhancing the Administration of the
Antidumping and Countervailing Duty Trade Remedy Laws, 89 FR 101694,
101759-60 (December 16, 2024).
\50\ See 19 CFR 351.108(d)(1).
\51\ See 19 CFR 351.108(e).
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that {Commerce{time} will now
assign in its NME investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the {weighted
average{time} of the individually calculated rates. This practice
is referred to as the application of ``combination rates'' because
such rates apply to specific combinations of exporters and one or
more producers. The cash-deposit rate assigned to an exporter will
apply only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\52\
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\52\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005), at 6 (emphasis added), available on Commerce's website at
<a href="https://www.trade.gov/enforcement-and-compliance-policy-bulletins-0">https://www.trade.gov/enforcement-and-compliance-policy-bulletins-0</a>.
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the Governments of China, Malaysia, and Vietnam via ACCESS.
To the extent practicable, we will attempt to provide a copy of the
public version of the Petitions to each exporter named in the
Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of air compressors from China, Malaysia, and/or
Vietnam are materially injuring, or threatening material injury to, a
U.S. industry.\53\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\54\ Otherwise, these LTFV investigations will proceed
according to statutory and regulatory time limits.
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\53\ See section 733(a) of the Act.
\54\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \55\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\56\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\55\ See 19 CFR 351.301(b).
\56\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested
[[Page 31412]]
party submits a PMS allegation pursuant to section 773(e) of the Act
(i.e., a cost-based PMS allegation), the submission must be filed in
accordance with the requirements of 19 CFR 351.416(b), and Commerce
will respond to such a submission consistent with 19 CFR
351.301(c)(2)(v). If Commerce finds that a cost-based PMS exists under
section 773(e) of the Act, then it will modify its dumping calculations
appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v),
sets a deadline for the submission of cost-based PMS allegations and
supporting factual information. However, in order to administer section
773(e) of the Act, Commerce must receive PMS allegations and supporting
factual information with enough time to consider the submission. Thus,
should an interested party wish to submit a cost-based PMS allegation
and supporting new factual information pursuant to section 773(e) of
the Act, it must do so no later than 20 days after submission of a
respondent's initial section D questionnaire response.
We note that a PMS allegation filed pursuant to sections
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a
respondent's initial section B questionnaire response, in accordance
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(2).
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\57\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10:00 a.m. ET on the due date. Under certain
circumstances, Commerce may elect to specify a different time limit by
which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will inform parties in a letter or memorandum of the deadline
(including a specified time) by which extension requests must be filed
to be considered timely. An extension request must be made in a
separate, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in these investigations.\58\
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\57\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013 (Time Limits Final
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
\58\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\59\
Parties must use the certification formats provided in 19 CFR
351.303(g).\60\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\59\ See section 782(b) of the Act.
\60\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2023) (Final Rule). Additional
information regarding the Final Rule is available at <a href="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letter of
appearance). Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f).\61\
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\61\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: May 20, 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
Scope of the Investigations
The merchandise covered by these investigations consists of
certain stationary and portable air compressors, whether electric,
gas, or battery powered, including electric motor and gasoline
engine powered air compressors with either oil free or oil
lubricated reciprocating pumps, and with an integrated pressure
vessel that ranges in size from 1 to 80 gallons. The compressors may
be either direct drive or belt driven.
Direct drive air compressors included in the scope have a motor
connected directly to the compressor element. Belt driven air
compressors included in the scope have a motor connected to the
compressor crankshaft with a belt. Direct drive air compressors are
more often portable but can be stationary, while belt driven air
compressors are either portable or stationary.
Covered air compressors have a power level designation between
373 watts (0.5 HP) and 22.37 kilowatts (30 HP). Specifically,
portable air compressors often range in power from 0.5HP (373 watts)
to 15HP (11.19KW). Reciprocating stationary air compressors range in
power from 0.5HP (373 watts) to 25HP (18.64KW). However, a portable
or stationary air compressor with a different power level, within
the range of 373 watts to 22.37 KW, and otherwise meeting the
language of the scope, is covered by the scope. The scope includes
only certain reciprocating (piston) compressors, which use a piston
moving back and forth in a cylinder to compress the air. The scope
also includes unfinished compressors exported from the subject
countries. Subject merchandise also includes finished and unfinished
compressors that are further processed in a third country or in the
United States, including, but not limited to, assembly or any other
processing that would not otherwise remove the merchandise from the
scope of these investigations if performed in the country of
manufacture of the in-scope air compressors. The additional parts
used to complete ``unfinished compressors'' in a third country are
subject to the scope of these investigations.
For the purposes of this scope, ``unfinished compressors'' are
compressors which require additional fabrication such as labeling,
and packaging, and kitting operations adding accessories.
Specifically included in the scope are compressors which are
imported as part of a package with accessories or other products, or
kit. Such accessories include but are not limited to hoses,
fittings, tool kits, oils, nail guns, pneumatic paint sprayers, air
ratchet wrenches, air grease guns, air drills, air hammers, air
sanders, air inflators, and air impact drivers. If such accessories
or other products are imported separately from the air compressor,
such products are not subject to the scope of these investigations.
Specifically excluded from the scope are AC, DC, and battery
powered inflators without an integrated air tank or air reservoir
that have an output of 1 CFM or less.
The scope excludes rotary compressors. Types of rotary
compressors excluded from the scope are rotary screw, rotary vane,
and scroll compressors. The scope also excludes dynamic compressors.
Types of dynamic compressors excluded from the scope are centrifugal
compressors and axial compressors, where rotating impellers or
blades compress air.
The in-scope stationary air compressors are classified under
subheadings 8414.80.1615, 8414.80.1625, and 8414.80.1635 of the
Harmonized Tariff Schedule of the United States (HTSUS). The in-
scope portable air
[[Page 31413]]
compressors are classified under subheading 8414.80.1685 of the
HTSUS. Although the HTSUS subheadings are provided for convenience
and customs purposes, the written description of the covered
merchandise is dispositive.
[FR Doc. 2026-10516 Filed 5-26-26; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on May 27, 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.