Notice2026-11001
N-Cyclohexylbenzothiazole-2-Sulfenamide from the People's Republic of China: Initiation of Countervailing Duty Investigation
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
June 2, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 91 Issue 105 (Tuesday, June 2, 2026)</title>
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[Federal Register Volume 91, Number 105 (Tuesday, June 2, 2026)]
[Notices]
[Pages 32946-32949]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11001]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-235]
N-Cyclohexylbenzothiazole-2-Sulfenamide from the People's
Republic of China: Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable May 27, 2026.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Samuel Brumitt,
Office III, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4793
or (202) 482-7851, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On May 7, 2026, the U.S. Department of Commerce (Commerce) received
a countervailing duty (CVD) petition concerning imports of N-
Cyclohexylbenzothiazole-2-Sulfenamide (CBS) from the People's Republic
of China (China), filed in proper form on behalf of LANXESS Corporation
(the petitioner), a domestic producer of CBS.\1\ The CVD Petition was
accompanied by an antidumping duty (AD) petition concerning imports of
CBS from China.\2\
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\1\ See Petitioner's Letter, ``Antidumping and Countervailing
Duty Petitions,'' dated May 7, 2026 (Petition).
\2\ Id.
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Between May 13 and 20, 2026, Commerce requested supplemental
information pertaining to certain aspects of the Petition in
supplemental questionnaires.\3\ Between May 15 and 21, 2026, the
petitioner filed timely responses to these requests for additional
information.\4\
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\3\ See Commerce's Letters, ``General Issues Supplemental
Questions,'' dated May 13, 2026 (First General Issues
Questionnaire); see also ``Countervailing Duty Supplemental
Questions,'' dated May 13, 2026; and ``Second Supplemental
Questions,'' dated May 20, 2026 (Second General Issues
Questionnaire).
\4\ See Petitioner's Letters, ``Response to General Issues
Supplemental Questionnaire and Amendment to Volume I of the
Petition,'' dated May 15, 2026 (First General Issues Supplement);
``Response to Countervailing Duty Petition Supplemental
Questionnaire and Amendment to Volume II of the Petition, '' dated
May 15, 2026; and ``Second General Issues Supplemental Questionnaire
Response,'' dated May 21, 2026 (Second General Issues Supplement).
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of CBS from China, and
that such imports are materially injuring, or threatening material
injury to, the domestic industry producing CBS in the United States.
Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for
those alleged programs on which we are initiating a CVD investigation,
the Petition was accompanied by information reasonably available to the
petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petition 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 with respect to
the initiation of the requested CVD investigation.\5\
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\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
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Period of Investigation (POI)
Because the Petition was filed on May 7, 2026, the POI is January
1, 2025, through December 31, 2025.\6\
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\6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The product covered by this investigation is CBS from China. For a
full description of the scope of this investigation, see the appendix
to this notice.
Comments on the Scope of the Investigation
Between May 13 and 20, 2026, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ Between May 15 and 21, 2026, the petitioner provided
clarifications and revised the scope.\8\ The description of merchandise
covered by this investigation, as described in the appendix to this
notice, reflects these clarifications.
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\7\ See First General Issues Questionnaire; see also Second
General Issues Questionnaire.
\8\ See First General Issues Supplement at 3-10; see also Second
General Issues Supplement at 3-4.
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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).\9\ 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 determination. If scope comments include factual
information, all such factual information should be limited to public
information.\10\ 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 16, 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 26, 2026, which is 10 calendar days from
the initial comment deadline.
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\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that parties
consider
[[Page 32947]]
relevant to the scope of this investigation be submitted during that
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigation 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 AD 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 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/help/Handbook_on_Electronic_Filing_Procedures_March2026.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures_March2026.pdf</a>.
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided an
opportunity for consultations with respect to the Petition.\12\ The GOC
did not request consultations.
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\12\ See Commerce's Letter, ``Invitation for Consultations to
Discuss the Countervailing Duty Petition,'' dated May 8, 2026.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(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 702(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 investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that CBS, as defined in the
scope, constitutes 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 this case and information regarding industry support, see
Checklist, ``Countervailing Duty Investigation Initiation Checklist:
N-Cyclohexylbenzothiazole-2-Sulfenamide from the People's Republic
of China,'' dated concurrently with, and hereby adopted by, this
notice (China CVD Initiation Checklist), at Attachment II,
``Analysis of Industry Support for the Antidumping and
Countervailing Duty Petitions Covering N-Cyclohexylbenzothiazole-2-
Sulfenamide from the People's Republic of China'' (Attachment II).
This checklist is on file electronically via ACCESS.
\16\ For further discussion, see Attachment II of the China CVD
Initiation Checklist.
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own 2025 production of the domestic like product.\17\ The petitioner
identified itself as the only producer of CBS in the United States;
therefore, the Petition is supported by 100 percent of the U.S.
industry.\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 Petition, the First General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\20\ First, the Petition 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
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition 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 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition 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 Petition.\23\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\24\
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\20\ See Attachment II of the China CVD Initiation Checklist.
\21\ Id.; see also section 702(c)(4)(D) of the Act.
\22\ See Attachment II of the China CVD Initiation Checklist.
\23\ Id.
\24\ Id.
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[[Page 32948]]
Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. 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 China CVD Initiation Checklist
at Attachment III, ``Analysis of Allegations and Evidence of
Material Injury and Causation for the Antidumping and Countervailing
Duty Petitions Covering N-Cyclohexylbenzothiazole-2-Sulfenamide from
the People's Republic of China.''
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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; lost sales and revenues; underselling and price
depression and suppression; declines in production, capacity
utilization, U.S. shipments, and employment variables; and negative
impact on financial performance.\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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Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental
responses, we find that they meet the requirements of section 702 of
the Act. Therefore, we are initiating a CVD investigation to determine
whether imports of CBS from China benefit from countervailable
subsidies conferred by the GOC. In accordance with section 703(b)(1) of
the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 65 days after the date of this
initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 32 programs
alleged by the petitioner. For a full discussion of the basis for our
decision to initiate on each program, see the China CVD Initiation
Checklist. A public version of the initiation checklist for this
investigation is available on ACCESS.
Respondent Selection
In the Petition, the petitioner identified six companies in
China.\28\ Commerce intends to follow its standard practice in CVD
investigations and calculate company-specific subsidy rates in this
investigation. In the event that Commerce determines that the number of
companies is large and it cannot individually examine each company
based on Commerce's resources, Commerce normally selects mandatory
respondents in CVD investigations using U.S. Customs and Border
Protection (CBP) entry data for U.S. imports under the appropriate
Harmonized Tariff Schedule of the United States (HTSUS) subheading(s)
listed in the ``Scope of the Investigation'' in the appendix. However,
for this investigation, the main HTSUS subheading under which the
subject merchandise would enter (2934.20.8000) is not limited to
subject merchandise and therefore may also cover non-subject
merchandise. Therefore, we cannot rely on CBP entry data in selecting
respondents. Accordingly, Commerce will send quantity and value (Q&V)
questionnaires to each producer and/or exporter for which there is
complete address information on the record.
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\28\ See Petition at Volume I (page 13 and Exhibit I-17); see
also First General Issues Supplement at 2-3 and Exhibit I-Supp-1.
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Commerce will post the Q&V questionnaire 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 CBS from China 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 producers/exporters no later than
5:00 p.m. ET on June 10, 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). 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>.
Distribution of a Copy of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOC via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of CBS from China are materially injuring, or
threatening material injury to, a U.S. industry.\29\ A negative ITC
determination will result in the investigation being terminated.\30\
Otherwise, this CVD investigation will proceed according to statutory
and regulatory time limits.
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\29\ See section 703(a)(1) of the Act.
\30\ 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 of production 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 \31\ 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.\32\ Time limits for the submission of factual
information are
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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 this investigation.
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\31\ See 19 CFR 351.301(b).
\32\ See 19 CFR 351.301(b)(2).
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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.\33\ 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 this investigation.\34\
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\33\ See 19 CFR 351.302.
\34\ 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>.
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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.\35\
Parties must use the certification formats provided in 19 CFR
351.303(g).\36\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\35\ See section 782(b) of the Act.
\36\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, 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 this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letters of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\37\
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\37\ 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 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: May 27, 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 Investigation
The product subject to this investigation is N-
Cyclohexylbenzothiazole-2-sulfenamide (CBS), an organic compound
also known as N-cyclohexyl-2-benzothiazolesulfenamide, N-(1,3-
benzothiazol-2-ylsulfanyl) cyclohexanamine and N-
cyclohexylbenzothiazol-2-sulphenamide. It may additionally be termed
Accelerator CZ, CBTS, Thiohexam, HIP4, Curax, DURAX, Conaca, Conach,
Conacs, or Celacs. A CBS assay or sample most commonly reflects a
concentration of 94 to 99 percent.
CBS is most commonly in the form of an off-white or light gray
powder, oiled powder, or granule, though CBS imported in a different
color or form is included in the scope. CBS typically has a melting
point of 90 to 110 [deg]C and a molecular weight of 264.4 g/mol. CBS
may be imported in a solution of benzene, ethanol, or acetone. CBS
has the chemical formula
C<INF>13</INF>H<INF>16</INF>N<INF>2</INF>S<INF>2</INF> and is
assigned the Chemical Abstract Service (CAS) registry No. 95-33-0.
The scope also includes CBS that is commingled with CBS from
sources not subject to this investigation.
CBS powder, oiled powder, and granules are classified under
subheading 2934.20.8000, Harmonized Tariff Schedule of the United
States (HTSUS). Imports of CBS may also be classified under
subheadings 3812.10.1000 and 3812.10.5000, HTSUS. Although the HTSUS
and CAS numbers are provided for convenience and customs purposes,
the written description of the scope is dispositive.
[FR Doc. 2026-11001 Filed 6-1-26; 8:45 am]
BILLING CODE 3510-DS-P
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