Certain Magnesia Carbon Bricks From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders

Issuing agencies

Abstract

In response to a request from the Magnesia Carbon Bricks Fair Trade Committee (the Committee) (the requester), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of certain refractory bricks containing alumina in an amount greater than zero but less than five percent by weight (bricks with trace alumina) from the People's Republic of China (China) are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain magnesia carbon bricks (Bricks) from China.

Full Text

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<title>Federal Register, Volume 91 Issue 216 (Tuesday, November 10, 2026)</title>
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[Federal Register Volume 91, Number 216 (Tuesday, November 10, 2026)]
[Notices]
[Pages 72529-72530]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22943]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-954, C-570-955]


Certain Magnesia Carbon Bricks From the People's Republic of 
China: Initiation of Circumvention Inquiry on the Antidumping and 
Countervailing Duty Orders

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

SUMMARY: In response to a request from the Magnesia Carbon Bricks Fair 
Trade Committee (the Committee) (the requester), the U.S. Department of 
Commerce (Commerce) is initiating a country-wide circumvention inquiry 
to determine whether imports of certain refractory bricks containing 
alumina in an amount greater than zero but less than five percent by 
weight (bricks with trace alumina) from the People's Republic of China 
(China) are circumventing the antidumping duty (AD) and countervailing 
duty (CVD) orders on certain magnesia carbon bricks (Bricks) from 
China.

DATES: Applicable November 10, 2026.

FOR FURTHER INFORMATION CONTACT: Justin Enck or Cassie Graham, Office 
of Policy, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW Washington, DC 20230; telephone: (202) 482-1614 or (202) 482-2159, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 21, 2026, pursuant to section 781(c) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.226(j), the requester \1\ 
filed a circumvention inquiry request alleging that bricks with trace 
alumina produced in China and exported to the United States constitute 
merchandise altered in form or appearance in minor respects that is 
circumventing the AD and CVD orders on bricks from China \2\ and, 
accordingly, should be included within the scope of the Orders.\3\
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    \1\ The Committee is an ad hoc association of the following U.S. 
producers of Bricks: Magnesita Refractories Company; HarbisonWalker 
International, Inc.; and Resco Products, Inc.
    \2\ See Certain Magnesia Carbon Bricks from Mexico and the 
People's Republic of China: Antidumping Duty Orders, 75 FR 57257 
(September 20, 2010); see also Certain Magnesia Carbon Bricks from 
the People's Republic of China: Countervailing Duty Order, 75 FR 
57442 (September 21, 2010) (collectively, Orders).
    \3\ See Requester's Letter, ``Request for Circumvention Inquiry 
Pursuant to Section 781(c) of the Tariff Act of 1930 and 19 CFR 
351.226,'' dated September 21, 2026 (Circumvention Request).
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    On October 1, 2026, FRC Global, Inc. (FRC Global) filed comments on 
the adequacy of the Circumvention Request.\4\ On October 6, 2026, the 
requester filed rebuttal comments in response to FRC Global's 
comments.\5\ On October 8, 2026, Commerce officials met with counsel to 
the requester to discuss the Circumvention Request.\6\
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    \4\ See FRC Global's Letter, ``Comments in Opposition to 
Initiation of Anticircumvention Inquiry,'' dated October 1, 2026.
    \5\ See Requester's Letter, ``Response to Comments and Factual 
Information of FRC Global,'' dated October 6, 2026.
    \6\ See Memorandum, ``Meeting with Counsel to the Magnesia 
Carbon Bricks Fair Trade Committee,'' dated October 9, 2026.
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    On October 9, 2026, Commerce issued a supplemental questionnaire to 
the requester.\7\ On October 15, 2026, the requester filed its response 
to Commerce's requests for additional information.\8\ On October 19, 
2026, Commerce extended the initiation deadline by 15 days, in 
accordance with 19 CFR 351.226(d)(1).\9\
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    \7\ See Commerce's Letter, ``Circumvention Inquiry Request 
Supplemental Questionnaire,'' dated October 9, 2026.
    \8\ See Requester's Letter, ``Response to Supplemental 
Questionnaire,'' dated October 15, 2026.
    \9\ See Memorandum, ``Extension of Circumvention Inquiry 
Initiation Deadline,'' dated October 19, 2026.
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Scope of the Orders

    The scope of the Orders includes certain chemically-bonded (resin 
or pitch), magnesia carbon bricks with a magnesia component of at least 
70 percent magnesia (MgO) by weight, regardless of the source of raw 
materials for the MgO, with carbon levels ranging from trace amounts to 
30 percent by weight, regardless of enhancements (for example, magnesia 
carbon bricks can be enhanced with coating, grinding, tar impregnation 
or coking, high temperature heat treatments, anti-slip treatments or 
metal casing) and regardless of whether or not antioxidants are present 
(for example, antioxidants can be added to the mix from trace amounts 
to 15 percent by weight as various metals, metal alloys, and metal 
carbides). For a full description of the scope of the Orders, see the 
Circumvention Initiation Checklist.\10\
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    \10\ See Checklist, ``Certain Magnesia Carbon Bricks from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Circumvention Initiation Checklist), at 
Attachment I.
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Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers certain chemically bonded (resin 
or pitch) refractory bricks having a magnesia component of at least 70 
percent magnesia (MgO) by weight and carbon levels ranging from trace 
amounts to 30 percent by weight, and containing alumina 
(Al<INF>2</INF>O<INF>3</INF>) in an amount greater than zero but less 
than five percent by weight upon importation, produced in China and 
exported to the United States. X-ray diffraction should be used to 
determine the amount of aluminum oxide under such condition that 
aluminum oxide would not be created from aluminum during the analysis.

Initiation of Circumvention Inquiry

    Section 351.226(d)(1)(iii) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
circumvention inquiry request allege ``that the elements necessary for 
a circumvention determination under section 781 of the Act exist'' and 
be ``accompanied by information reasonably available to the interested 
party supporting these allegations.'' The requester alleged 
circumvention pursuant to section 781(c) of the Act (merchandise 
altered in form or appearance in minor respects).

[[Page 72530]]

    Section 781(c)(1) of the Act provides that the class or kind of 
merchandise subject to an AD or CVD order shall include articles that 
have been ``altered in form or appearance in minor respects . . . 
whether or not included in the same tariff classification.'' Section 
781(c)(2) of the Act provides an exception that section 781(c)(1) of 
the Act ``shall not apply with respect to altered merchandise if the 
administering authority determines that it would be unnecessary to 
consider the altered merchandise within the scope of the 
{order{time} .'' Concerning the allegation of minor alterations under 
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider 
criteria including, but not limited to: (1) the overall physical 
characteristics of the merchandise; (2) the expectations of the 
ultimate users; (3) the use of the merchandise; (4) the channels of 
marketing; and (5) the cost of any modification relative to the total 
value of the imported products.
    In accordance with 19 CFR 351.226(m)(2), for companion AD and CVD 
proceedings, ``the Secretary will initiate and conduct a single inquiry 
with respect to the product at issue for both orders only on the record 
of the antidumping proceeding.'' Further, once ``the Secretary issues a 
final circumvention determination on the record of the AD proceeding, 
the Secretary will include a copy of that determination on the record 
of the CVD.'' Accordingly, once Commerce concludes this circumvention 
inquiry, Commerce intends to place its final circumvention 
determination on the record of the companion CVD proceeding.

Analysis

    Based on our analysis of the requester's circumvention inquiry 
request and supplemental response, we determine that it has satisfied 
the criteria under 19 CFR 351.226(c), and thus, pursuant to 19 CFR 
351.226(d)(1)(iii), we are initiating the requested circumvention 
inquiry. For a full discussion of the basis for our decision to 
initiate the circumvention inquiry, see the Circumvention Initiation 
Checklist. As explained in the Circumvention Initiation Checklist, the 
information provided by the requester warrants initiating the 
circumvention inquiry on a country-wide basis. Commerce has taken this 
approach in prior circumvention inquiries, where the facts warranted 
initiation on a country-wide basis.\11\
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    \11\ See, e.g., Hydrofluorocarbon Blends from the People's 
Republic of China: Initiation of Circumvention Inquiry on the 
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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    Consistent with the approach in the prior circumvention inquiries 
that were initiated on a country-wide basis, Commerce intends to 
solicit information from certain companies in China concerning their 
production of bricks with trace alumina and their shipments thereof to 
the United States.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of this initiation and direct CBP to 
continue the suspension of liquidation of entries of products subject 
to the circumvention inquiry that were already subject to the 
suspension of liquidation under the Orders and to apply the cash 
deposit rates that would be applicable if the products were determined 
to be covered by the scope of the Orders.
    Should Commerce issue an affirmative preliminary or final 
circumvention determination, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that 
Commerce issues an affirmative preliminary or final circumvention 
determination that the products are circumventing the Orders, Commerce 
will instruct CBP to continue the suspension of liquidation of 
previously suspended entries and to apply the applicable cash deposit 
rate. Commerce will also instruct CBP to begin the suspension of 
liquidation and application of cash deposits for any unliquidated 
entries not yet suspended, entered, or withdrawn from warehouse, for 
consumption, on or after the date of publication of the notice of 
initiation of the circumvention inquiry pursuant to 19 CFR 
351.226(l)(2)(ii) and (l)(3)(ii). In addition, pursuant to 19 CFR 
351.226(l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to 
begin the suspension of liquidation and application of cash deposits 
for any unliquidated entries not yet suspended, entered, or withdrawn 
from warehouse, for consumption, prior to the date of initiation of the 
circumvention inquiry, but not for such entries prior to November 4, 
2021, the effective date of these provisions in the Final Rule.\12\ 
These rules will not affect CBP's authority to take any additional 
action with respect to the suspension of liquidation or related 
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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    \12\ See Regulations to Improve Administration and Enforcement 
of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345 
(September 20, 2021) (Final Rule).
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Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(c) of the Act, 
Commerce determines that the requester's request for a circumvention 
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, 
Commerce is notifying all interested parties of the initiation of the 
circumvention inquiry to determine whether bricks with trace alumina 
are circumventing the Orders. In addition, we have included a 
description of the products that are subject to this inquiry, and an 
explanation of Commerce's decision to initiate the inquiry is provided 
in the accompanying Circumvention Initiation Checklist.\13\
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    \13\ See Circumvention Initiation Checklist.
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    In accordance with 19 CFR 351.226(e)(1), unless the circumvention 
inquiry is rescinded, in whole or in part, or extended, Commerce 
intends to issue its preliminary circumvention determination no later 
than 150 days from the date of publication of the notice of initiation 
of this circumvention inquiry in the Federal Register. Furthermore, in 
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2), 
unless the circumvention inquiry is rescinded, in whole or in part, or 
extended, Commerce intends to issue its final determination within 300 
days from the date of publication of the notice of initiation of the 
circumvention inquiry in the Federal Register.
    This notice is published in accordance with section 781(c) of the 
Act and 19 CFR 351.226(d)(1)(iii).

    Dated: November 5, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2026-22943 Filed 11-9-26; 8:45 am]
BILLING CODE 3510-DS-P


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