Stationary and Portable Air Compressors From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination

Issuing agencies

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of stationary and portable air compressors (air compressors) from the Socialist Republic of Vietnam (Vietnam). The period of investigation (POI) is January 1, 2025, through December 31, 2025. Interested parties are invited to comment on this preliminary determination.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 189 (Thursday, October 1, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 189 (Thursday, October 1, 2026)]
[Notices]
[Pages 62471-62473]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20164]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-857]


Stationary and Portable Air Compressors From the Socialist 
Republic of Vietnam: Preliminary Affirmative Countervailing Duty 
Determination, and Alignment of Final Determination With Final 
Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of stationary and portable air compressors (air 
compressors) from the Socialist Republic of Vietnam (Vietnam). The 
period of investigation (POI) is January 1, 2025, through December 31, 
2025. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable October 1, 2026.

FOR FURTHER INFORMATION CONTACT: Henry Wolfe or Laurel Smalley, 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) 482-0574 or (202) 
482-3456, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on May 27, 
2026.\1\ On July 17, 2026, Commerce postponed the preliminary 
determination of this investigation.\2\ Accordingly, the deadline for 
this preliminary determination is now September 28, 2026.\3\
---------------------------------------------------------------------------

    \1\ See Stationary and Portable Air Compressors from the 
People's Republic of China, Malaysia, and the Socialist Republic of 
Vietnam: Initiation of Countervailing Duty Investigations, 91 FR 
31425 (May 27, 2026) (Initiation Notice).
    \2\ See Stationary and Portable Air Compressors from the 
People's Republic of China, Malaysia, and the Socialist Republic of 
Vietnam: Postponement of Preliminary Determinations in 
Countervailing Duty Investigations, 91 FR 44808 (July 17, 2026).
    \3\ Commerce's practice dictates that where a deadline falls on 
a weekend or Federal holiday, the appropriate deadline is the next 
business day. See Notice of Clarification: Application of ``Next 
Business Day'' Rule for Administrative Determination Deadlines 
Pursuant to the Tariff Act of 1930, as Amended, 70 FR 24533 (May 10, 
2005).
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS), which is available to 
registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at <a href="https://access.trade.gov/frnotices">https://access.trade.gov/frnotices</a>.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of Stationary and Portable Air Compressors from the Socialist 
Republic of Vietnam,'' dated concurrently with, and hereby adopted 
by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are air compressors from 
Vietnam. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ Certain interested 
parties commented on the scope of this investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\7\ 
Commerce is not preliminarily modifying the scope language as it 
appeared in the Initiation Notice. See the scope of this investigation 
in Appendix I.
---------------------------------------------------------------------------

    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 91 FR 31425.
    \7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of Stationary and Portable Air Compressors from 
the People's Republic of China, Malaysia, and the Socialist Republic 
of Vietnam: Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated concurrently with this notice (Preliminary 
Scope Decision Memorandum).
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\8\
---------------------------------------------------------------------------

    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

    In making these findings, Commerce relied, in part, on facts 
available and, because it finds that one or more respondents did not 
act to the best of their ability to respond to Commerce's requests for 
information, it drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\9\ For further 
information, see the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \9\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final

[[Page 62472]]

countervailing duty (CVD) determination in this investigation with the 
final determination in the companion less-than-fair-value (LTFV) 
investigation of air compressors from Vietnam based on a request made 
by MAT Industries, LLC. (the petitioner).\10 \ Consequently, the final 
CVD determination will be issued on the same date as the final LTFV 
determination, which is currently scheduled to be issued no later than 
February 10, 2027, unless postponed.
---------------------------------------------------------------------------

    \10\ See Petitioner's Letter, ``Petitioner's Request to Align 
Countervailing Duty Investigation Final Determinations with 
Antidumping Duty Investigation Final Determinations,'' dated 
September 2, 2026.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. Pursuant to section 705(c)(5)(A)(ii) of the Act, if the 
individual estimated countervailable subsidy rates established for all 
exporters and producers individually examined are zero, de minimis, or 
determined based entirely on facts otherwise available, Commerce may 
use any reasonable method to establish the estimated subsidy rate for 
all other producers and/or exporters.
    In this investigation, Commerce has preliminarily calculated a de 
minimis individual estimated countervailable subsidy rate for Hybest-
Vietnam, Limited Liability Company (Hybest Vietnam) and an estimated 
countervailable subsidy rate based entirely under section 776 of the 
Act for Hongkong Sun Rise Trading Limited (HK Sunrise). Because the 
only individually calculated rates in this proceeding are zero, de 
minimis, or based entirely on facts otherwise available under section 
776 of the Act, we are preliminarily assigning the estimated simple 
average rate calculated for Hybest Vietnam and HK Sunrise to all other 
producers and exporters of the subject merchandise, pursuant to section 
705(c)(5)(A)(i) of the Act.
    For a full description of the methodology underlying Commerce's 
analysis, see the Preliminary Decision Memorandum.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                            Subsidy rate
                          Company                            (percent ad
                                                              valorem)
------------------------------------------------------------------------
Faraday Products Co., Ltd.................................       * 74.39
Fusheng Da Nang Branch (Production & Sales)...............       * 74.39
Fusheng (Vietnam) Industrial Co., Ltd.....................       * 74.39
Jinfeida (Viet Nam) Co., Ltd..............................       * 74.39
Hongkong Sun Rise Trading Limited.........................       * 74.39
Hybest-Vietnam, Limited Liability Company.................        * 0.35
TTI (Vietnam).............................................       * 74.39
Tu-Seiki Air Compressor Joint Stock Company...............       * 74.39
Victor Auto Appliance Company Limited.....................       * 74.39
All Others................................................       * 37.20
------------------------------------------------------------------------
* This rate is based on facts available with an adverse inference.
** De minmis.

Suspension of Liquidation

    With the exception of entries from Hybest Vietnam, in accordance 
with section 703(d)(2) of the Act, Commerce will direct U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise as described in Appendix I to this notice entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the rates indicated above. Because we preliminarily 
determine that the CVD rate in this investigation for Hybest Vietnam is 
de minimis, we will not direct CBP to suspend liquidation of Hybest 
Vietnam's entries of the subject merchandise from Vietnam.
    Pursuant to section 703(d)(1)(B) of the Act and 19 CFR 351.107(e), 
Commerce will instruct CBP to require a cash deposit equal to the 
estimated company-specific countervailable subsidy rate or the 
estimated all-others rate, as follows: (1) the cash deposit rate for 
the respondents listed above will be equal to the company-specific 
estimated individual countervailable subsidy rates determined in this 
preliminary determination; (2) if both the producer and exporter of the 
subject merchandise have company-specific estimated subsidy rates 
determined in this preliminary determination, and their rates differ, 
then the applicable cash deposit rate will be the higher of these two 
rates; (3) if either the producer or the exporter, but not both, of the 
subject merchandise have a company-specific estimated subsidy rate 
determined in this preliminary determination, the applicable cash 
deposit rate will be that company's company-specific rate; and (4) the 
cash deposit rate for all other producers and exporters will be equal 
to the estimated all-others subsidy rate.

Disclosure

    Commerce intends to disclose to parties to the proceeding its 
calculations and analysis performed in this preliminary determination 
within five days of its public announcement of the preliminary 
determination, or if there is no public announcement, within five days 
of the date of publication of this notice in the Federal Register in 
accordance with 19 CFR 351.224(b).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely allegations of significant ministerial 
errors by amending the preliminary determination. However, consistent 
with 19 CFR 351.224(d), Commerce will not consider incomplete 
allegations that do not address the significance standard under 19 CFR 
351.224(g) following the preliminary determination. Instead, Commerce 
will address such allegations in the final determination together with 
issues raised in the case briefs or other written comments.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the LTFV and CVD investigations. The deadlines to submit scope 
case and rebuttal briefs are provided in the Preliminary Scope Decision 
Memorandum. For all scope case and rebuttal briefs, parties must file 
identical documents simultaneously on the records of the ongoing LTFV 
and CVD investigations. No new factual information or business 
proprietary information may be included in either scope case or 
rebuttal briefs.
    Non-scope related case briefs or other written comments may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than seven days after the date on which the last verification 
report is issued in this investigation.\11\ A timeline for the

[[Page 62473]]

submission of case briefs and written comments will be notified to 
interested parties at a later date. Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed not later than five days after 
the date for filing case briefs.\12\ Interested parties who submit case 
or rebuttal briefs in this proceeding must submit: (1) a table of 
contents listing each issue; and (2) a table of authorities.\13\
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \12\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \13\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------

    As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we 
request that interested parties provide at the beginning of their 
briefs a public, executive summary for each issue raised in their 
briefs.\14\ Further, we request that interested parties limit their 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the executive summaries as the 
basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
investigation. We request that interested parties include footnotes for 
relevant citations in the executive summary of each issue. Note that 
Commerce has amended certain of its requirements pertaining to the 
service of documents in 19 CFR 351.303(f).\15\
---------------------------------------------------------------------------

    \14\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \15\ See APO and Service Final Rule.
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice in the Federal Register. 
Requests should contain: (1) the party's name, address, and telephone 
number; (2) the number of participants and whether any participant is a 
foreign national; and (3) a list of the issues to be discussed. If a 
request for a hearing is made, Commerce intends to hold the hearing at 
a time and date to be determined. Parties should confirm by telephone 
the date, time, and location of the hearing two days before the 
scheduled date.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the ITC of its determination. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of air compressors from Vietnam are 
materially injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: September 28, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation 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 0.5 HP (373 
watts) to 15HP (11.19 KW). Reciprocating stationary air compressors 
range in power from 0.5 HP (373 watts) to 25HP (18.64 KW). 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 the investigation 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 the investigation.
    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 the investigation.
    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 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Alignment
V. Injury Test
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2026-20164 Filed 9-30-26; 8:45 am]
BILLING CODE 3510-DS-P


</pre></body>
</html>