Document

Chlorinated Isocyanurates From the People's Republic of China: Preliminary Results and Rescission, in Part, of Countervailing Duty Administrative Review; 2023

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to Heze Huayi Chemical Co. Ltd. (Heze Huayi), a producer an...

Department of Commerce
International Trade Administration
  1. [C-570-991]

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 Heze Huayi Chemical Co. Ltd. (Heze Huayi), a producer and exporter of chlorinated isocyanurates (chlorinated isos) from the People's Republic of China (China). The period of review (POR) is January 1, 2023, through December 31, 2023. In addition, Commerce is rescinding this review, in part, with respect to 41 companies. Interested parties are invited to comment on these preliminary results.

DATES:

Applicable May 13, 2026.

FOR FURTHER INFORMATION CONTACT:

Sun Cho, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6458.

SUPPLEMENTARY INFORMATION:

Background

On December 18, 2024, based on timely requests for review, in accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative review of the countervailing duty (CVD) order on chlorinated isos from China.[1]

Due to the lapse in appropriations and Federal Government shutdown, on November 14, 2025, Commerce tolled all deadlines in administrative proceedings by 47 days.[2] Further, due to a backlog of documents that were electronically filed via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) during the Federal Government shutdown, on November 24, 2025, Commerce tolled all deadlines in administrative proceedings by an additional 21 days.[3] On December 9, 2025, we further extended the deadline for the preliminary results of this review until May 7, 2026.[4] Accordingly, the deadline for these preliminary results is now May 7, 2026.

For a complete description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum.[5] A list of topics included in the Preliminary Decision Memorandum is provided as Appendix I to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via ACCESS. ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/​frnotices.

Scope of the Order

The product covered by the Order is chlorinated isos from China. For a complete description of the scope of the Order, see the Preliminary Decision Memorandum.

Rescission of Administrative Review, in Part

Pursuant to 19 CFR 351.213(d)(3), it is Commerce's practice to rescind an administrative review of a countervailing duty order where it concludes that there were no suspended entries of subject merchandise during the POR.[6] Normally, upon completion of an administrative review, the suspended entries are liquidated at the CVD assessment rate calculated for the POR.[7] Therefore, for an administrative review to be conducted, there must be a reviewable, suspended entry that Commerce can instruct U.S. Customs and Border Protection (CBP) to liquidate at the CVD rate calculated for the POR.[8] Commerce notified all interested parties of its intent to rescind this administrative review regarding the companies listed in Appendix II.[9] No party commented on this memorandum. In the absence of any suspended entries of subject merchandise from these ( printed page 27028) companies during the POR, we are rescinding this administrative review for the companies listed in Appendix II, in accordance with 19 CFR 351.213(d)(3).

Methodology

Commerce is conducting this administrative review in accordance with 751(a)(1)(A) of the Tariff Act of 1930, as amended (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.[10] For a full description of the methodology underlying our conclusions, including our reliance, in part, on facts otherwise available with adverse inferences pursuant to sections 776(a) and (b) of the Act, see the Preliminary Decision Memorandum.

Preliminary Results of Review

As a result of this review, we preliminarily determine the following net countervailable subsidy rate exists for the POR, January 1, 2023, through December 31, 2023:

Company Subsidy rate (percent ad valorem)
Heze Huayi Chemical Co., Ltd 18.71

Disclosure

Commerce intends to disclose its calculations and analysis performed to interested parties for these 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 this notice in accordance with 19 CFR 351.224(b).

Verification

As provided in section 782(i)(3) of the Act, Commerce intends to verify the information relied upon in making its final results.

Public Comment

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 review. 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.[11] 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.[12] 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.

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.[13] 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 results in this administrative review. 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).[14]

Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, filed electronically via ACCESS by 5:00 p.m. Eastern Time 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; and (3) a list of issues to be discussed. Oral presentations at the hearing will be limited to issues raised in the briefs. If a request for a hearing is made, Commerce will inform parties of the scheduled date for the hearing.[15]

Assessment Rates

Consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), upon issuance of the final results, Commerce shall determine, and CBP shall assess, countervailing duties on all appropriate entries covered by this review.

For the companies listed in Appendix II for which the review is being rescinded, Commerce will instruct CBP to assess countervailing duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, in accordance with 19 CFR 351.212(c)(1)(i). Commerce intends to issue rescission instructions to CBP no earlier than 35 days after the date of publication of this rescission in the Federal Register .

Commerce intends to issue assessment instructions to CBP regarding Heze Huayi no earlier than 35 days after the date of publication of the final results of this review in the Federal Register . If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired ( i.e., within 90 days of publication of this notice).

Cash Deposit Requirements

Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.107(e), Commerce intends to instruct CBP to collect cash deposits of estimated countervailing duties with regard to shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review, as follows: (1) the cash deposit rate for the company listed above will be equal to the company-specific estimated individual countervailable subsidy rates determined in the final results of this review, except if the rate is less than 0.50 percent and, therefore, de minimis within the meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate will be zero; (2) if both the producer and exporter of the subject merchandise have company-specific estimated subsidy rates assigned, 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 has a company-specific estimated subsidy rate assigned, 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 continue to be 10.81 percent, the all-others subsidy rate established in the investigation.[16] These cash deposit instructions, when imposed, shall remain in effect until further notice.

( printed page 27029)

Final Results of Review

Unless the deadline is extended, Commerce intends to issue the final results of this administrative review, which will include the results of Commerce's analysis of the issues raised in the case briefs, within 120 days of publication of these preliminary results in the Federal Register , pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h)(1).

Notification to Interested Parties

We are issuing and publishing these preliminary results in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

Dated: May 7, 2026.

Christopher Abbott,

Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary

II. Background

III. Scope of the Order

IV. Rescission of Administrative Review, In Part

V. Diversification of China's Economy

VI. Use of Facts Otherwise Available and Application of Adverse Inference

VII. Subsidies Valuation

VIII. Benchmarks

IX. Analysis of Programs

X. Recommendation

Appendix II

List of Companies Rescinded From Review

1. A.H.A International Co., Ltd

2. Anhui Hongze New Material Technology

3. Canaxy Asia Limited

4. Centurion Chemicals Co Ltd.

5. Chemball (Hangzhou) Chemicals Co., Ltd.

6. Dalian Trico Chemical Co Ltd.

7. Eastar International Trading (Shanghai)

8. Gigacloud Technology (Suzhou) Company

9. Hangzhou Keli Chemical Co., Ltd.

10. Hebei Ferturea Trade Co., Ltd.

11. Hebei Fuhui Water Treatment Co., Ltd.

12. Hebei Haida Chemical Industry Co Ltd.

13. Hebei Higwi Trade Co Ltd.

14. Hebei Jiheng Chemical Co., Ltd.

15. Henan QX Trade Co., Ltd.

16. Henan Saifu Trading Co., Ltd.

17. Henan Zerui New Material

18. Huangshan Jinfeng Industrial Co., Ltd.

19. Hydrotech Investment Corporation

20. Jinchang International Forwarding

21. Juancheng Kangtai Chemical Co., Ltd.

22. Orient Express Container (Shanghai)

23. Presafer Qingyuan Phosphor Chemical

24. Qingdao Best Chemical Company Limited

25. Qingdao Hot Chemicals Co., Ltd.

26. Qingdao Huaxijin Industry and Trade

27. Qingdao Sinosalt Chemical Co., Ltd.

28. RS Logistics Limited

29. Safety Shield (Qingdao) Technology

30. Shandong Jianbang New Material

31. Shandong Lichen Chemical Co., Ltd.

32. Shandong Orange Joy Co., Ltd.

33. Shandong QC Industry Co., Ltd.

34. Shandong Wolan Biologic Group Co.

35. Shanghai JiuHan Trading Co Ltd.

36. Tech-Power (Huangshan) Ltd.

37. Tianjin DSC International Trade Co.

38. Ultrafast Chemical Logistics (Shanghai)

39. Weifang Longshuo Chemical Co., Ltd.

40. Yiwu Leixi Trading Company

41. Ynnovate Sanzheng (Yingkou)

Footnotes

1.   See Initiation of Antidumping and Countervailing Duty Administrative Reviews,89 FR 102856 (December 18, 2024) ( Initiation Notice); see also Chlorinated Isocyanurates from the People's Republic of China: Countervailing Duty Order,79 FR 67424 (November 13, 2014) ( Order).

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2.   See Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” dated November 14, 2025.

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3.   See Memorandum, “Tolling of all Case Deadlines,” dated November 24, 2025.

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4.   See Memorandum, “Extension of Deadline for Preliminary Results of Countervailing Duty Administrative Review,” dated December 9, 2025.

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5.   See Memorandum, “Decision Memorandum for the Preliminary Results of the Administrative Review of the Countervailing Duty Order on Chlorinated Isocyanurates from the People's Republic of China; 2023,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).

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6.   See, e.g., Certain Non-Refillable Steel Cylinders from the People's Republic of China: Rescission of Countervailing Duty Administrative Review; 2024,90 FR 48043 (October 3, 2025).

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8.   See, e.g., Shanghai Sunbeauty Trading Co. v. United States, 380 F.Supp.3d 1328, 1337 (CIT 2019), at 12 (referring to section 751(a) of the Act, the U.S. Court of International Trade held that “{w}hile the statute does not explicitly require that an entry be suspended as a prerequisite for establishing entitlement to a review, it does explicitly state the determined rate will be used as the liquidation rate for the reviewed entries. This result can only obtain if the liquidation of entries has been suspended”; see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2018-2019,86 FR 36102, and accompanying Issues and Decision Memorandum at Comment 4; and Solid Fertilizer Grade Ammonium Nitrate from the Russian Federation: Notice of Rescission of Antidumping Duty Administrative Review,77 FR 65532 (October 29, 2012) (noting that “for an administrative review to be conducted, there must be a reviewable, suspended entry to be liquidated at the newly calculated assessment rate”).

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9.   See Memorandum, “Notice of Intent to Rescind Review, in Part” dated March 18, 2026.

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10.   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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11.   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 Procedures).

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13.  We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.

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14.   See APO and Service Procedures.

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16.   See Order.

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[FR Doc. 2026-09461 Filed 5-12-26; 8:45 am]

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91 FR 27027

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“Chlorinated Isocyanurates From the People's Republic of China: Preliminary Results and Rescission, in Part, of Countervailing Duty Administrative Review; 2023,” thefederalregister.org (May 13, 2026), https://thefederalregister.org/documents/2026-09461/chlorinated-isocyanurates-from-the-people-s-republic-of-china-preliminary-results-and-rescission-in-part-of-countervaili.