High Purity Dissolving Pulp From Brazil: Final Affirmative Countervailing Duty Determination

Issuing agencies

Abstract

The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of high purity dissolving pulp (HPDP) from Brazil during the period of investigation, January 1, 2024, through December 31, 2024.

Full Text

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<title>Federal Register, Volume 91 Issue 199 (Friday, October 16, 2026)</title>
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[Federal Register Volume 91, Number 199 (Friday, October 16, 2026)]
[Notices]
[Pages 65725-65727]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21138]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-867]


High Purity Dissolving Pulp From Brazil: Final Affirmative 
Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of high purity dissolving pulp (HPDP) from Brazil during the period of 
investigation, January 1, 2024, through December 31, 2024.

DATES: Applicable October 16, 2026.

FOR FURTHER INFORMATION CONTACT: Sarah Keith or Gorden Struck, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0264 or (202) 482-8151, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 2026, Commerce published the Preliminary Determination 
in the Federal Register and invited interested parties to comment.\1\ 
In accordance with section 705(a)(1) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned the 
deadline for the final determination in this countervailing duty (CVD) 
investigation with the deadline for the final determination in the 
companion less-than-fair-value investigation of HPDP from Brazil.\2\ On 
September 11, 2026, Commerce issued a post-preliminary determination 
regarding certain subsidy programs.\3\
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    \1\ See High Purity Dissolving Pulp from Brazil: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 91 FR 14524 
(March 25, 2026) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Preliminary Determination; see also Certain High Purity 
Dissolving Pulp from Brazil: Preliminary Affirmative Determination 
of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Extension of Provisional Measures, 91 FR 31418 
(May 27, 2026).
    \3\ See Memorandum, ``Post-Preliminary Analysis Memorandum for 
the Countervailing Duty Investigation of High Purity Dissolving Pulp 
from Brazil,'' dated September 11, 2026 .
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    For a complete description of the events that occurred since 
Commerce published the Preliminary Determination, as well as a full 
discussion of the issues raised by parties for this final 
determination, see the Issues and Decision Memorandum.\4\ The Issues 
and 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). 
ACCESS is available to registered users at <a href="http://access.trade.gov">http://access.trade.gov</a>. In 
addition, a complete version of the Issues and 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, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of High Purity Dissolving Pulp from Brazil,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is HPDP from Brazil. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    We received no comments from interested parties on the scope of the 
investigation as it appeared in the Preliminary Determination.\5\ 
Therefore, Commerce made no changes to the scope of the investigation.
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    \5\ See Preliminary Determination, 91 FR at 14524.
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Verification

    Commerce conducted verification of the information relied upon in 
making its final determination in this investigation, in accordance 
with section 782(i) of the Act. Specifically, we conducted on-site 
verifications of the subsidy information reported by the Government of 
Brazil (GOB) as well as Bracell Bahia Specialty Cellulose S.A. and its 
cross-owned companies (collectively, Bracell) in May and June 2026 
using standard verification procedures, including an examination of

[[Page 65726]]

relevant sales and accounting records, and original source documents 
provided by Bracell.\6\
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    \6\ See Memorandum, ``Verification of the Questionnaire 
Responses of Bracell Specialty Cellulose S.A.,'' dated July 8, 2026 
; see also Memorandum, ``Verification of the Questionnaire Responses 
of Government of Brazil,'' dated July 9, 2026 .
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs that were submitted by parties in this 
investigation, are discussed in the Issues and Decision Memorandum. For 
a list of the issues raised by parties, and to which we responded in 
the Issues and Decision Memorandum, see Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce 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.\7\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also section 771(5)(E) of the Act 
regarding benefit; and section 771(5A) of the Act regarding 
specificity.
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    In making this final determination, Commerce relied, in part, on 
facts available, including adverse facts available (AFA), pursuant to 
sections 776(a) and (b) of the Act. For a full discussion of our 
application of AFA, see the section ``Use of Facts Otherwise Available 
and Application of Adverse Inferences'' in the accompanying Issues and 
Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our review and analysis of the information received during 
verification, our post-preliminary analysis, and our analysis of 
comments received from parties, we made certain changes to our subsidy 
rate calculations for Bracell and for all other producers/exporters 
from the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum.

All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will 
determine an all-others rate for companies not individually examined 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually examined, excluding any zero 
and de minimis rates and any rates based entirely under section 776 of 
the Act.
    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for Bracell, the only individually 
examined exporter/producer in this investigation. Because the only 
individual calculated rate is not zero, de minimis, or based entirely 
on facts otherwise available, the estimated weighted-average rate 
calculated for Bracell is the rate assigned to all other producers and 
exporters, pursuant to section 705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period January 1, 2024, through December 
31, 2024:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Bracell Bahia Specialty Cellulose S.A \8\...............            9.37
All Others..............................................            9.37
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this final determination within five 
days of its public announcement, 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).
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    \8\ Commerce has found the following companies to be cross-owned 
with Bracell Bahia Specialty Cellulose S.A.: Bracell Bahia Florestal 
Ltda, Bracell SP Celulose Limitada, and Bracell SP Florestal Ltda. 
See Issues and Decision Memorandum.
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to collect cash deposits and suspend 
liquidation of entries of subject merchandise, as described in the 
scope of the investigation section, that were entered, or withdrawn 
from warehouse, for consumption on or after March 25, 2026, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we instructed CBP to 
discontinue the suspension of liquidation of all entries of HPDP 
entered or withdrawn from warehouse on or after July 23, 2026, the 
first day provisional measures were no longer in effect, but to 
continue the suspension of liquidation of all entries of HPDP on or 
before July 22, 2026.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above. 
Pursuant to section 705(c)(2) of the Act, if the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated, and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of HPDP from 
Brazil. Because the final determination is affirmative, in accordance 
with section 705(b) of the Act, the ITC will make its final 
determination as to whether the domestic industry in the United States 
is materially injured, or threatened with material injury, by reason of 
imports of HPDP from Brazil no later than 45 days after this final 
determination. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.
    If the ITC determines that material injury or threat of material 
injury does not exist, this proceeding will be terminated, and all cash 
deposits will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue a countervailing duty order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise that are entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as

[[Page 65727]]

discussed above in the ``Continuation of Suspension of Liquidation'' 
section.

Administrative Protective Order

    This notice will serve as the only reminder to parties subject to 
an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO, in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: October 9, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary, for Antidumping and Countervailing 
Duty Operations.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigation is high purity 
dissolving pulp, which is a dissolving pulp with an alpha cellulose 
percentage of 90 percent by weight or higher on an oven dry basis, 
as calculated by: alpha cellulose percentage = (100-S10) + 0.5 * 
(S10-S18) where S10 and S18 values are determined by International 
Organization for Standardization (ISO) 692:1982, and having a 
brightness level of 90 percent or higher, as measured by ISO 2470-
1:2016. High purity dissolving pulp may be derived from any virgin 
or recycled cellulose fiber source (including, but not limited to, 
those sourced from hardwoods, softwoods, woody crops, agricultural 
crops/byproducts/residue, and agricultural/industrial/other waste). 
High purity dissolving pulp may be produced from a chemical pulping 
process including without limitation a kraft (sulfate) pulping and/
or sulfite pulping process.
    High purity dissolving pulp can be shipped in any form, 
including, but not limited to, a liquid slurry or in any dried form 
such as flakes, powder, granules, pellets, shreds, rolls and sheets.
    The scope includes merchandise matching the above description 
that has been finished, packaged, or otherwise processed in a third 
country, including but not limited to processes such as commingling, 
blending, diluting, repackaging, or any other process that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in the subject country. The scope also includes high 
purity dissolving pulp that is commingled or blended with high 
purity dissolving pulp from sources not subject to this 
investigation. Only the subject component of such commingled or 
blended products is covered by the scope of this investigation.
    Excluded from the scope is high purity dissolving pulp with an 
intrinsic viscosity under 455 milliliters per gram (mL/g), as 
measured by ISO 5351:2010.
    Also excluded from the scope is cotton linters pulp that 
consists of at least 90 percent by weight, on an oven-dried basis, 
of cotton linters fibers.
    High purity dissolving pulp products are classified under 
subheadings 4702.00.0020 and 4702.00.0040, of the Harmonized Tariff 
Schedule of the United States (HTSUS). High purity dissolving pulp 
products may also enter under subheadings 4706.30.0000 or 
4706.92.0100. Reference to the HTSUS classifications are provided 
for convenience and customs purposes, and the written description of 
the merchandise under investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Changes Since the Preliminary Determination and Post-
Preliminary Determination
IV. Use of Facts Otherwise Available and Application of Adverse 
Inferences
V. Subsidies Valuation Information
VI. Interest Rate and Benchmarks
VII. Analysis of Programs
VIII. Discussion of Issues
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
to the Government of Brazil
    Comment 2: Whether Commerce Should Find Certain VAT Programs 
Countervailable
    Comment 3: Whether Commerce Should Find the Certain Programs 
Confer a Time-Value-of-Money Benefit
    Comment 4: Whether Commerce Should Find the Preferential Loans 
via Financing Instruments for Agribusiness (CPR Loans) 
Countervailable
    Comment 5: Whether Commerce Should Alter its Calculation of the 
Benefit Attributed to Bracell's CPR Loans
    Comment 6: Whether Commerce Should Find the GOB's Provision of 
Port Use for Less Than Adequate Remuneration to be Countervailable
    Comment 7: Whether Commerce's Regulation Concerning 
``Significant'' Ministerial Errors is Arbitrary and Inconsistent 
With the Statutory Scheme
    Comment 8: Whether Commerce Should Address Ministerial Errors in 
the Final Determination
    Comment 9: Whether Commerce Used Incorrect Sales Denominators 
When Calculating Bracell's Subsidy Rate
    Comment 10: Whether Commerce Used Improper Discount Rates and 
Loan Benchmarks When Calculating Bracell's Subsidy Rates
    Comment 11: Whether Commerce Should Account for Minor 
Corrections Presented at Verification
IX. Recommendation


[FR Doc. 2026-21138 Filed 10-15-26; 8:45 am]
BILLING CODE 3510-DS-P


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