Notice2026-17796
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 requestor), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether certain alkyl phosphate esters (esters), which are completed or assembled in Thailand with intermediate chemicals produced in the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on 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 56124-56126]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17796]
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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
requestor), the U.S. Department of Commerce (Commerce) is initiating a
country-wide circumvention inquiry to determine whether certain alkyl
phosphate esters (esters), which are completed or assembled in Thailand
with intermediate chemicals produced in the People's Republic of China
(China), are circumventing the antidumping duty (AD) and countervailing
duty (CVD) orders on esters from China.
DATES: Applicable September 1, 2026.
FOR FURTHER INFORMATION CONTACT: Hannah Lee, 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) 482-1216.
SUPPLEMENTARY INFORMATION:
Background
On June 30, 2026, pursuant to sections 781(b) of the Tariff Act of
1930, as amended (the Act) and 19 CFR 351.226, the requestor filed a
circumvention inquiry request alleging that U.S. imports of esters from
Thailand completed or assembled with inputs from China are
circumventing
[[Page 56125]]
the Orders.\1\ On July 13, 2026, Commerce issued a supplemental
questionnaire to the requestor.\2\ On July 27, 2026, the requestor
timely filed responses to the supplemental questionnaire.\3\ The
deadline to initiate this 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 Requestor's Letter, ``Request to Initiate an Anti-
Circumvention Inquiry Regarding Imports from Thailand of Alkyl
Phosphate Esters Made from Chinese Inputs,'' dated June 30, 2026
(Circumvention Request).
\2\ See Commerce's Letter, ``Supplemental Questionnaire,'' dated
July 13, 2026 (Supplemental).
\3\ See Requestor'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 are 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, ``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 1.
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Merchandise Subject to the Circumvention Inquiry
The merchandise subject to this inquiry is esters completed or
assembled from Chinese-origin intermediate chemicals such as Phosphorus
Trichloride (PCl3) or Phosphorus Oxychloride (POCl3) and Propylene
Oxide.\5\
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\5\ See Circumvention Request at 6-7.
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Statutory and Regulatory Requirements To Initiate a Circumvention
Inquiry
Section 351.226(d) 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 petitioner alleges
circumvention pursuant to section 781(b) of the Act (i.e., merchandise
completed or assembled in other foreign countries).
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 or not 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.\6\
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.\7\
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\6\ See Statement of Administrative Action accompanying the
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316 (1994) at
893.
\7\ 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 circumvention request, Commerce
determines that the requestor 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
a circumvention inquiry. For a full discussion of the basis for our
decision to initiate a circumvention inquiry, see the Circumvention
Initiation Checklist.\8\ As explained in the Circumvention Initiation
Checklist, the information provided by the requestor 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.\9\
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\8\ See Circumvention Initiation Checklist.
\9\ 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 Circ.); 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) (Carbon Steel
Butt-Weld Pip Fittings from China Circ.); 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) (CORE from China Circ.).
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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
[[Page 56126]]
questionnaire to solicit information from producers and exporters in
Thailand concerning their production of esters and their shipments
thereof to the United States.\10\
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\10\ See, e.g., CORE from Korea and Taiwan Circ., 83 FR 37785;
Carbon Steel Butt-Weld Pip Fittings from China Circ., 82 FR at
40560, and CORE from China Circ., 81 FR at 79458.
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Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
the record of this proceeding within five days of the publication of
this initiation notice, which will be available on Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
<a href="https://access.trade.gov">https://access.trade.gov</a>. Comments regarding the CBP data and
respondent selection should be submitted within seven days after
placement of the CBP data on the record of the inquiry. Parties wishing
to submit rebuttal comments should submit those comments within five
days after the deadline for the initial comments.
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.
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 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.
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 inquiry 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.\11\ 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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\11\ Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20,
2021) at 52345-52348 (Final Rule).
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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 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.\12\
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\12\ See Circumvention Initiation Checklist.
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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. 2026-17796 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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