Stationary and Portable Air Compressors From Malaysia: 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 Malaysia. 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 62468-62471]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20166]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-557-837]


Stationary and Portable Air Compressors From Malaysia: 
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 Malaysia. 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: Ethan Lewis or Ted Pearson, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4046 or (202) 482-2631, 
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\
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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

[[Page 62469]]

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 
Determination of the Countervailing Duty Investigation of Stationary 
and Portable Air Compressors from Malaysia,'' 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 
Malaysia. 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 the 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.
    \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 Malaysia 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, ``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. 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 or exporters.
    In this investigation, Commerce has preliminarily determined the 
individually estimated subsidy rate for the individually examined 
respondents under section 776 of the Act. Consequently, as a reasonable 
method, Commerce established the all-others rate based on the rate 
determined under section 776 of the Act for the non-responsive 
companies listed below, because this is the only rate available in this 
proceeding.\11\
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    \11\ See, e.g., Melamine from Germany: Final Affirmative 
Countervailing Duty Determination, 89 FR 97586 (December 9, 2024); 
see also Overhead Door Counterbalance Torsion Springs from the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination and Final Affirmative Critical Circumstances 
Determination in Part, 90 FR 39374 (August 15, 2025).
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Preliminary Determination

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

------------------------------------------------------------------------
                                                            Subsidy rate
                          Company                            (percent ad
                                                              valorem)
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Alton Intelligent Technology Sdn. Bhd.....................       * 92.86
Panasonic Industrial Device Sales.........................       * 92.86
Puma Air Compressors......................................       * 92.86
Samlin International SDN BHD..............................       * 92.86
Sinppa Industrial SDN BHD.................................       * 92.86
All Others................................................       * 92.86
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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 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

[[Page 62470]]

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

    Normally, Commerce discloses to interested parties the calculations 
performed in preliminary results within five days of any public 
announcement or, if there is no public announcement, within five days 
of the date of publication of the notice of preliminary determination 
in the Federal Register, in accordance with 19 CFR 351.224(b). However, 
because Commerce preliminarily applied adverse facts available to the 
sole individually examined respondent, Alton Intelligent Technology 
Sdn. Bhd, in this investigation, in accordance with section 776 of the 
Act, there are no calculations to disclose.

Verification

    Because the examined respondents in this investigation did not 
provide information requested by Commerce and Commerce preliminarily 
determines each of the examined respondents to have been uncooperative, 
we will not conduct verification.

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 14 days after the date of publication of the preliminary 
determination. 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 briefs 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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    \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 Malaysia 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 the 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 15 HP (11.19 KW). Reciprocating stationary air compressors range 
in power from 0.5 HP (373 watts) to 25 HP (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

[[Page 62471]]

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. Injury Test
IV. Diversification of Malaysia's Economy
V. Use of Facts Available and Adverse Inferences
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2026-20166 Filed 9-30-26; 8:45 am]
BILLING CODE 3510-DS-P


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