Notice2026-17795
Certain Alkyl Phosphate Esters From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
September 1, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from ICL-IP America, Inc. (the requester), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether spray-foam systems from Thailand, which are completed or assembled with components produced in the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain alkyl phosphate esters (esters) from China.
Full Text
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<title>Federal Register, Volume 91 Issue 168 (Tuesday, September 1, 2026)</title>
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[Federal Register Volume 91, Number 168 (Tuesday, September 1, 2026)]
[Notices]
[Pages 56114-56116]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17795]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-168, C-570-169]
Certain Alkyl Phosphate Esters From the People's Republic of
China: Initiation of Circumvention Inquiry on the Antidumping and
Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from ICL-IP America, Inc. (the
requester), the U.S. Department of Commerce (Commerce) is initiating a
country-wide circumvention inquiry to determine whether spray-foam
systems from Thailand, which are completed or assembled with components
produced in the People's Republic of China (China), are circumventing
the antidumping duty (AD) and countervailing duty (CVD) orders on
certain alkyl phosphate esters (esters) from China.
DATES: Applicable September 1, 2026.
FOR FURTHER INFORMATION CONTACT: Patrick Barton or Enio Guevara, AD/CVD
Operations, Office VIII Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0012 or (202) 482-4986,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 30, 2026, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226, the petitioner filed a
circumvention inquiry request alleging that U.S. imports of spray-foam
systems from Thailand containing a blend of Chinese-origin esters are
circumventing the Orders.\1\ On July 13, 2026, Commerce issued a
deficiencies questionnaire to the requester regarding the Circumvention
Request.\2\ On July 27, 2026, the requester responded to Commerce's
Deficiencies Questionnaire.\3\ Accordingly, pursuant to 19 CFR
351.226(d)(1)(ii), the deadline for Commerce to determine whether to
initiate the requested circumvention inquiry is August 26, 2026.
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\1\ See Certain Alkyl Phosphate Esters from the People's
Republic of China: Antidumping and Countervailing Duty Orders, 90 FR
24579 (June 11, 2025); and Certain Alkyl Phosphate Esters from the
People's Republic of China: Antidumping and Countervailing Duty
Orders; Correction, 90 FR 26967 (June 25, 2025) (collectively,
Orders); see also Requester's Letter, ``Request to Initiate Scope
and Anti-Circumvention Inquiries Regarding Imports from Thailand of
Certain Spray-Foam Systems Containing a Blend of Chinese Alkyl
Phosphate Esters,'' dated June 30, 2026 (Circumvention Request).
\2\ See Commerce's Letter, ``Deficiencies Questionnaire,'' dated
July 13, 2026 (Deficiencies Questionnaire).
\3\ See Requester's Letter, ``ICL Response to Supplemental
Questionnaire,'' dated July 27, 2026.
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Scope of the Orders
The merchandise covered by the scope of the Orders is esters from
China. For a complete description of the scope of the Orders, see the
Circumvention Initiation Checklist.\4\
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\4\ See Checklist, ``Antidumping Duty and Countervailing Duty
Orders on Certain Alkyl Phosphate Esters from the People's Republic
of China,'' dated concurrently with, and hereby adopted by, this
notice (Circumvention Initiation Checklist), at Attachment.
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Merchandise Subject to the Circumvention Inquiry
The merchandise subject to this inquiry is the esters containing
side (i.e., the ``B'' side component) of spray-foam systems completed
or assembled in Thailand with Chinese-origin esters. Commerce is
currently conducting a scope inquiry to determine whether certain
components (i.e., the ``B'' side)
[[Page 56115]]
of spray-foam systems are within the scope of the Orders.\5\
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\5\ See Certain Alkyl Phosphate Esters from the People's
Republic of China: Initiation of Scope Inquiry and Deferral of
Circumvention Inquiry of the Antidumping and Countervailing Duty
Orders, 91 FR 46404 (July 23, 2026); see also Memorandum,
``Initiation of Scope Inquiry in Lieu of Circumvention Inquiry for
Spray-Foam Systems Containing Certain Alkyl Phosphate Esters from
the People's Republic of China,'' dated July 16, 2026.
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Statutory and Regulatory Requirements To Initiate a Circumvention
Inquiry
Section 351.226(d)(1)(iii) of Commerce's regulations states that,
if Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
circumvention inquiry request allege ``that the elements necessary for
a circumvention determination under section 781 of the Act exist'' and
be ``accompanied by information reasonably available to the interested
party supporting these allegations.'' The requester alleges
circumvention pursuant to section 781(b) of the Act (i.e., merchandise
completed or assembled in other foreign countries).\6\
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\6\ See Circumvention Request at 1.
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Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry under section 781(b)(1) of the Act, Commerce
relies on the following criteria: (A) merchandise imported into the
United States is of the same class or kind as any merchandise produced
in a foreign country that is the subject of an AD or CVD order or
finding; (B) before importation into the United States, such imported
merchandise is completed or assembled in another foreign country from
merchandise which is subject to the order or merchandise which is
produced in the foreign country that is subject to the order; (C) the
process of assembly or completion in the foreign country referred to in
section (B) is minor or insignificant; (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States; and (E) the administering authority determines that
action is appropriate to prevent evasion of such order or finding.
In determining whether the process of assembly or completion in the
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
third country is minor or insignificant.\7\ Accordingly, it is
Commerce's practice to evaluate each of these five factors as they
exist in the third country, depending on the totality of the
circumstances of the particular circumvention inquiry.\8\
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\7\ See Statement of Administrative Action accompanying the
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316 (1994) at
893.
\8\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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Section 781(b)(3) of the Act sets forth additional factors to
consider in determining whether to include merchandise assembled or
completed in a third country within the scope of an AD and/or CVD
order. Specifically, Commerce shall take into account such factors as:
(A) the pattern of trade, including sourcing patterns; (B) whether the
manufacturer or exporter of the merchandise is affiliated with the
person who, in the third country, uses the merchandise to complete or
assemble the merchandise which is subsequently imported into the United
States; and (C) whether imports of the merchandise into the third
country have increased after the initiation of the investigation that
resulted in the issuance of such order or finding.
Analysis
Based on our analysis of the requester's circumvention request,
Commerce determines that the requester has satisfied the criteria under
19 CFR 351.226(c) to warrant the initiation of a circumvention inquiry
of the Orders. Thus, pursuant to 19 CFR 351.226(d)(1)(iii), we are
initiating the requested circumvention inquiry. For a full discussion
of the basis for our decision to initiate the circumvention inquiry,
see the Circumvention Initiation Checklist.\9\ As explained in the
Circumvention Initiation Checklist, the information provided by the
requester warrants initiating this circumvention inquiry on a country-
wide basis. Commerce has taken this approach in prior circumvention
inquiries, where the facts warranted initiation on a country-wide
basis.\10\
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\9\ See Circumvention Initiation Checklist.
\10\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti- Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018) (CORE from Korea and Taiwan); Carbon Steel
Butt-Weld Pipe Fittings from the People's Republic of China:
Initiation of Anti-Circumvention Inquiry on the Antidumping Duty
Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation
that Commerce would evaluate the extent to which a country-wide
finding applicable to all exports might be warranted); and Certain
Corrosion-Resistant Steel Products from the People's Republic of
China: Initiation of Anti-Circumvention Inquiries on the Antidumping
Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November
14, 2016) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to issue
a questionnaire to solicit information from producers and exporters in
Thailand concerning their production of spray-foam systems and their
shipments thereof to the United States, should the ongoing scope
inquiry determine that the spray-foam systems are within the scope of
the Orders.\11\
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\11\ See CORE from Korea and Taiwan, 83 FR at 37790; see also
Certain Alkyl Phosphate Esters from the People's Republic of China:
Initiation of Circumvention Inquiry on the Antidumping and
Countervailing Duty Orders, 91 FR 46404 (July 23, 2026) (Spray-Foam
Systems from China Circ).
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Respondent Selection
Commerce intends to base respondent selection upon responses to the
quantity and value (Q&V) questionnaire that it intends to issue, should
the ongoing scope inquiry determine that spray-foam systems are within
the scope of the Orders,\12\ to each potential respondent for which
there is complete address information on the record. Commerce intends
to issue, and establish a deadline for responding to, the Q&V
questionnaire upon completion of the ongoing scope inquiry, should
Commerce determine that spray-foam systems are within the scope of the
Orders. Comments regarding the Q&V questionnaire responses, and
respondent selection, should be submitted within seven days after the
deadline to respond to Commerce's Q&V questionnaire. Parties wishing to
submit
[[Page 56116]]
rebuttal comments should submit those comments within five days after
the deadline for the initial comments.
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\12\ See Spray-Foam Systems from China Circ, 91 FR at 46404.
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Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of partial or total facts available, pursuant to section
776(a) of the Act, which may include adverse inferences, pursuant to
section 776(b) of the Act.
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.\13\ An electronically filed document must be received
successfully in its entirety by the applicable deadline. Each
submission must be placed on the record of the segment of the AD
proceeding (i.e., A-570-168), ACCESS circumvention inquiry segment
``Spray Foam Systems from Thailand.''
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\13\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011), as amended in 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 help 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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Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), when Commerce initiates a
circumvention inquiry under 19 CFR 351.226(d), Commerce will notify
U.S. Customs and Border Protection (CBP) of the initiation and direct
CBP to continue the suspension of liquidation of entries of products
covered by the circumvention inquiry that were already covered by the
suspension of liquidation under the Orders, and to apply the cash
deposit rate that would be applicable if the product was determined to
be covered by the scope of the Orders.
Accordingly, Commerce will notify CBP of the initiation of the
circumvention inquiry and direct CBP to continue to suspend
(unliquidated) entries of the products covered by the circumvention
inquiry that were already covered by the suspension of liquidation. In
addition, Commerce will direct CBP to apply the cash deposit rate that
would be applicable if the products were determined to be circumventing
the Orders.
In the event that Commerce issues affirmative preliminary or final
circumvention determinations that the products from Thailand are
circumventing the Orders, Commerce will instruct CBP to continue the
suspension of liquidation of previously suspended entries and to apply
the applicable cash deposit rate. Commerce will also instruct CBP to
begin the suspension of liquidation and application of cash deposits
for any unliquidated entries not yet suspended, entered, or withdrawn
from warehouse, for consumption, on or after the date of publication of
the notice of initiation of the circumvention inquiries pursuant to
paragraphs (l)(2)(ii) and (l)(3)(ii).
In addition, pursuant to paragraphs (l)(2)(iii)(A) and
(l)(3)(iii)(A), Commerce may instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries not yet suspended, entered, or withdrawn from warehouse, for
consumption, prior to the date of initiation of the circumvention
inquiry.\14\ These rules will not affect CBP's authority to take any
additional action with respect to the suspension of liquidation or
related measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\14\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345-48
(September 20, 2021).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that the request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce
is notifying all interested parties of the initiation of a
circumvention inquiry to determine whether imports of spray-foam
systems containing a blend of esters completed or assembled in Thailand
using components manufactured in China are circumventing the Orders. In
addition, we have included a description of the products that are the
subject of this inquiry, and an explanation of the reasons for
Commerce's decision to initiate this inquiry as provided above and in
the accompanying Circumvention Initiation Checklist.
In accordance with 19 CFR 351.226(e)(1), Commerce intends to issue
its preliminary circumvention determination within 150 days from the
date of publication of the notice of initiation of a circumvention
inquiry in the Federal Register. Furthermore, in accordance with
section 781(f) of the Act and 19 CFR 351.226(e)(2), unless the
circumvention inquiry is rescinded, in whole or in part, or extended,
Commerce intends to issue its final determination within 300 days from
the date of publication of the notice of initiation of the
circumvention inquiry in the Federal Register.
This notice is published in accordance with section 781(b) of the
Act and 19 CFR 351.226(d)(1)(iii).
Dated: August 26, 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.
[FR Doc. 2026-17795 Filed 8-31-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 1, 2026.
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