N-Cyclohexylbenzothiazole-2-Sulfenamide From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances 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 N-Cyclohexylbenzothiazole-2-Sulfenamide (CBS) 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 194 (Thursday, October 8, 2026)</title>
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[Federal Register Volume 91, Number 194 (Thursday, October 8, 2026)]
[Notices]
[Pages 64337-64339]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20692]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-235]


N-Cyclohexylbenzothiazole-2-Sulfenamide From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Critical Circumstances 
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 N-Cyclohexylbenzothiazole-2-Sulfenamide 
(CBS) 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 8, 2026.

FOR FURTHER INFORMATION CONTACT: Brendan Santschi, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4141.

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 June 2, 
2026.\1\ On July 8, 2026, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
October 5, 2026.\2\
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    \1\ See N-Cyclohexylbenzothiazole-2-Sulfenamide from the 
People's Republic of China: Initiation of Countervailing Duty 
Investigation, 91 FR 32946 (June 2, 2026) (Initiation Notice), and 
accompanying Initiation Checklist.
    \2\ See N-Cyclohexylbenzothiazole-2-Sulfenamide from the 
People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 91 FR 42176 
(July 8, 2026).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ 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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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Countervailing Duty Investigation 
of N-Cyclohexylbenzothiazole-2-Sulfenamide from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is CBS 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,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice.
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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

[[Page 64338]]

gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ 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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    Commerce notes that, in making these findings, it relied on facts 
available and, because it finds that Shandong Derek New Materials Co., 
Ltd (Derek), Shandong Yanggu Huatai International Co., Ltd (Huatai), 
and the companies that did not respond to Commerce's quantity and value 
questionnaire, which include Alchemy Trading Shanghai Limited, Kemai 
Chemical Company Limited, SAIC Motor Corporation Limited, Shandong 
Sunsine Chemical Co., Ltd., and Yingtai International Trading Co. 
(collectively, non-responsive companies), 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.\7\ For further information, see the ``Use of 
Facts Otherwise Available and Adverse Inferences'' section in the 
Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of CBS from China for Derek, Huatai, the non-responsive 
companies, and all other exporters or producers not individually 
examined. For a full description of the methodology and results of 
Commerce's analysis, see the Preliminary Decision Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, 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 antidumping 
duty (AD) investigation of CBS from China based on a request made by 
LANXESS Corporation (the petitioner).\8\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
January 11, 2027, unless postponed.
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    \8\ See Petitioner's Letter, ``Request for Alignment of the 
Countervailing Duty Investigation with the Concurrent Antidumping 
Duty Investigation,'' dated September 16, 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.
    Commerce has preliminarily determined the individually estimated 
subsidy rate for the individually examined respondent under section 776 
of the Act. Thus, this rate is the only rate available in this 
proceeding for deriving the all-others rate. Consequently, pursuant to 
sections 703(d)(1)(A)(i) and 705(c)(5)(A)(ii) of the Act, Commerce has 
established the all-others rate by using the countervailable subsidy 
rate assigned to the companies listed below. 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)
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Shandong Derek New Materials Co., Ltd...................         *107.57
Shandong Yanggu Huatai International Co., Ltd...........         *107.57
Alchemy Trading Shanghai Limited........................         *107.57
Kemai Chemical Company Limited..........................         *107.57
SAIC Motor Corporation Limited..........................         *107.57
Shandong Sunsine Chemical Co., Ltd......................         *107.57
Yingtai International Trading Co........................         *107.57
All Others..............................................          107.57
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* 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 rate 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.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Derek, Huatai, the non-
responsive companies, and all other producers and/or exporters. In 
accordance with section 703(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise from the 
exporters/producers identified in this paragraph that were entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice.

[[Page 64339]]

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in a preliminary determination 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 
individually-examined companies Derek and Huatai, 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, 
it will not conduct verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
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.\9\ 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.\10\ All briefs must be filed 
electronically using ACCESS. An electronically filed document must be 
received successfully in its entirety in ACCESS by 5:00 p.m. Eastern 
Time on the established deadline.
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    \9\ 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).
    \10\ 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.\11\ 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).\12\
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    \11\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \12\ 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. Requests should contain 
(1) the party's name, address, and telephone number; (2) the number of 
participants, 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 CBS 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: October 5, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.

Appendix I

Scope of the Investigation

    The product subject to this investigation is N-
Cyclohexylbenzothiazole-2-sulfenamide (CBS), an organic compound 
also known as N-cyclohexyl-2-benzothiazolesulfenamide, N-(1,3-
benzothiazol-2-ylsulfanyl) cyclohexanamine and N-
cyclohexylbenzothiazol-2-sulphenamide. It may additionally be termed 
Accelerator CZ, CBTS, Thiohexam, HIP4, Curax, DURAX, Conaca, Conach, 
Conacs, or Celacs. A CBS assay or sample most commonly reflects a 
concentration of 94 to 99 percent.
    CBS is most commonly in the form of an off-white or light gray 
powder, oiled powder, or granule, though CBS imported in a different 
color or form is included in the scope. CBS typically has a melting 
point of 90 to 110[deg]C and a molecular weight of 264.4 g/mol. CBS 
may be imported in a solution of benzene, ethanol, or acetone. CBS 
has the chemical formula C13H16N2S2 and is assigned the Chemical 
Abstract Service (CAS) registry No. 95-33-0.
    The scope also includes CBS that is commingled with CBS from 
sources not subject to this investigation.
    CBS powder, oiled powder, and granules are classified under 
subheading 2934.20.8000, Harmonized Tariff Schedule of the United 
States (HTSUS). Imports of CBS may also be classified under 
subheadings 3812.10.1000 and 3812.10.5000, HTSUS. Although the HTSUS 
and CAS numbers are provided for convenience and customs purposes, 
the written description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Critical Circumstances
VIII. Recommendation

[FR Doc. 2026-20692 Filed 10-7-26; 8:45 am]
BILLING CODE 3510-DS-P


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