Notice2026-20165
Stationary and Portable Air Compressors From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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
October 1, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
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 People's Republic of China (China). The period of investigation is January 1, 2025, through December 31, 2025. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 91 Issue 189 (Thursday, October 1, 2026)</title>
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[Federal Register Volume 91, Number 189 (Thursday, October 1, 2026)]
[Notices]
[Pages 62474-62477]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20165]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-233]
Stationary and Portable Air Compressors From the People's
Republic of China: 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 People's Republic of China (China). The period of
investigation 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: Jonathan Hall-Eastman or Maria Teresa
Aymerich, AD/CVD Operations, Office IV, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6467
or (202) 482-0499, 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
[[Page 62475]]
in the Federal Register 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\
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\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).
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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>.
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\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).
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Scope of the Investigation
The products covered by this investigation are air compressors from
China. 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.
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\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).
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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\
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\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.
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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.
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\9\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final countervailing duty (CVD)
determination in this investigation with the final determination in the
companion less-than-fair-value (LTFV) investigation of air compressors
from China 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.
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\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.
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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.
In this investigation, Commerce preliminarily assigned a rate based
entirely on facts available to mandatory respondent Suzhou Alton
Electrical & Mechanical Industry Co., Ltd. (Suzhou Alton). Therefore,
the only rate that is not zero, de minimis, or based entirely on facts
otherwise available is the rate calculated for mandatory respondent FNA
(Zhejiang) Co., Ltd. (FNZ). Consequently, Commerce assigned the rate
calculated for FNZ as the rate for all other producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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FNA (Zhejiang) Co., Ltd................................. 3.84
Shanghai Aote E-Commerce Co., Ltd....................... * 112.29
Shanghai Greeloy Industry Co., Ltd...................... * 112.29
Suzhou Alton Electrical & Mechanical Industry Co., Ltd.. * 112.29
Suzhou Honbase Machinery Manufactur..................... * 112.29
Taizhou Huanyang Electric & Machinery Co., Ltd.......... * 112.29
Yancheng Dafeng Zhenlian Machinery...................... * 112.29
All Others.............................................. 3.84
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* This rate is based on facts available with adverse inferences.
Suspension of Liquidation
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 the scope of the
investigation section entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register. Further, 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
[[Page 62476]]
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
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, must 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\
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\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 19 351.309(c)(2) and (d)(2).
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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\
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\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.
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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 China 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 0.5HP (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
[[Page 62477]]
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 this 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 of the Investigation
IV. Scope Comments
V. Injury Test
VI. Analysis of China's Financial System
VII. Diversification of China's Economy
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Subsidies Valuation Information
X. Interest Rates and Benchmarks
XI. Analysis of Programs
XII. Recommendation
[FR Doc. 2026-20165 Filed 9-30-26; 8:45 am]
BILLING CODE 3510-DS-P
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