SUPPLEMENTARY INFORMATION:

The Petition

On September 24, 2026, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of certain wooden fence components ^[1] from the People's Republic of China (China), filed in proper form on behalf of the American Alliance of Wooden Fence Producers (the petitioner),^[2] the members of which are domestic producers of certain wooden fence components.^[3] The CVD Petition was accompanied by an antidumping duty (AD) petition concerning imports of certain wooden fence components from China.^[4]

On October 13, 2026, Commerce extended the initiation deadline by 20 days to further examine the issue of industry support, because it was not clear from the Petition whether the industry support criteria had been met.^[5]

Between September 29 and October 29, 2026, Commerce requested supplemental information pertaining to certain aspects of the Petition in supplemental questionnaires.^[6] Between October 4 and 30, 2026, the petitioner filed timely responses to these requests for additional information.^[7]

In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of China (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of certain wooden fence components from China, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing certain wooden fence components in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioner supporting its allegations.

Commerce finds that the petitioner filed the Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(F) of the Act.^[8] Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.^[9]

Period of Investigation (POI)

Because the Petition was filed on September 24, 2026, the POI is January 1, 2025, through December 31, 2025.^[10]

Scope of the Investigation

The products covered by this investigation are certain wooden fence components from China. For a full description of the scope of this investigation, see the appendix to this notice.

Comments on the Scope of the Investigation

Between September 29 and October 14, 2026, Commerce requested information and clarification from the petitioner regarding the proposed scope to ensure that the scope language in the Petition is an accurate reflection of the products for which the domestic industry is seeking relief.^[11] Between October 4 and 19, 2026, the petitioner provided clarifications and/or revised the scope.^[12] The description of merchandise covered by this investigation, as described in the appendix to this notice, reflects these clarifications.

As discussed in the Preamble to Commerce's regulations, we are setting aside a period for interested parties to raise issues regarding product coverage ( i.e., scope).^[13] Commerce will consider all scope comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information, all such factual information should be limited to public information.^[14] Commerce requests that interested parties provide at the beginning of their scope comments a public executive summary for each comment or issue raised in ( printed page 70838) their submission. Commerce further requests that interested parties limit their public executive summary of each comment or issue to no more than 450 words, not including citations. Commerce intends to use the public executive summaries as the basis of the comment summaries included in the analysis of scope comments. To facilitate preparation of its questionnaires, Commerce requests that scope comments be submitted by 5:00 p.m. Eastern Time (ET) on November 23, 2026, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, and should also be limited to public information, must be filed by 5:00 p.m. ET on December 3, 2026, which is 10 calendar days from the initial comment deadline.

Commerce requests that any factual information that parties consider relevant to the scope of this investigation be submitted during that period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party must contact Commerce and request permission to submit the additional information. All scope comments must be filed simultaneously on the records of the concurrent AD and CVD investigations.

Filing Requirements

All submissions to Commerce must be filed electronically via Enforcement and Compliance's Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.^[15] An electronically filed document must be received successfully in its entirety by the time and date it is due.

Consultations

Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the GOC of the receipt of the Petition and provided an opportunity for consultations with respect to the Petition.^[16] The GOC filed consultation remarks in lieu of consultations on October 13, 2026.^[17]

Determination of Industry Support for the Petition

Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) at least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the “industry.”

Section 771(4)(A) of the Act defines the “industry” as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (ITC), which is responsible for determining whether “the domestic industry” has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC apply the same statutory definition regarding the domestic like product,^[18] they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce's determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.^[19]

Section 771(10) of the Act defines the domestic like product as “a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.” Thus, the reference point from which the domestic like product analysis begins is “the article subject to an investigation” ( i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition).

With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation.^[20] Based on our analysis of the information submitted on the record, we have determined that certain wooden fence components, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.^[21]

As noted above, on October 13, 2026, Commerce extended the initiation deadline by 20 days to further examine the issue of industry support. In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the “Scope of the Investigation,” in the appendix to this notice. To establish industry support, the petitioner provided the 2025 production of the domestic like product for the U.S. producers that support the Petition and compared this to the estimated total production of the domestic like product by the U.S. certain wooden fence components industry.^[22] We relied on data provided by the petitioner for purposes of measuring industry support.^[23]

Our review of the data provided in the Petition, the First General Issues Supplement, and the Third General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.^[24] First, the Petition established support from domestic producers (or ( printed page 70839) workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support ( e.g., polling).^[25] Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the domestic like product.^[26] Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.^[27] Accordingly, Commerce determines that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.^[28]

Injury Test

Because China is a “Subsidies Agreement Country” within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from China materially injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

The petitioner alleges that imports of the subject merchandise are benefiting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.^[29]

The petitioner contends that the industry's injured condition is illustrated by significant increase in the volume of subject imports; significant market share by subject imports and reduced market share for the domestic industry; underselling and price depression and suppression; negative impact on financial performance; lost sales and revenue; and decline in production, U.S. shipments, capacity utilization, and employment variables.^[30] We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.^[31]

Initiation of CVD Investigation

Based upon the examination of the Petition and supplemental responses, we find that they meet the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of certain wooden fence components from China benefit from countervailable subsidies conferred by the GOC. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation.

Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 37 programs alleged by the petitioner. For a full discussion of the basis for our decision to initiate on each program, see the China CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS.

Respondent Selection

In the Petition, the petitioner identified 80 companies in China.^[32] Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in the investigation. In the event Commerce determines that the number of companies is large, and it cannot individually examine each company based upon Commerce's resources, Commerce intends to select mandatory respondents based on U.S. Customs and Border Protection (CBP) data for imports under the appropriate Harmonized tariff Schedule of the United States (HTSUS) subheading(s) listed in the “Scope of the Investigation,” in the appendix.

On November 3, 2026, Commerce released CBP data on imports of certain wooden fence components from China under administrative protective order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment on CBP data and/or respondent selection must do so within three days of the publication date of the notice of initiation of this investigation.^[33] Comments must be filed electronically using ACCESS. An electronically filed document must be received successfully in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. Commerce will not accept rebuttal comments regarding the CBP data or respondent selection.

Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on Commerce's website at www.trade.gov/​administrative-protective-orders.

Distribution of a Copy of the Petition

In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

Commerce will notify the ITC of its initiation, as required by section 702(d) of the Act.

Preliminary Determination by the ITC

The ITC will preliminarily determine, within 25 days after the date on which it receives notice of initiation of this investigation, whether there is a reasonable indication that imports of certain wooden fence components from China are materially injuring, or threatening material injury to, a U.S. industry.^[34] A negative ITC determination will result in the investigation being terminated.^[35] Otherwise, this CVD investigation will proceed according to statutory and regulatory time limits.

Submission of Factual Information

Factual information is defined in 19 CFR 351.102(b)(21) as: (i) evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors of production under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR ( printed page 70840) 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)-(iv). Section 351.301(b) of Commerce's regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted ^[36] and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.^[37] Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in this investigation.

Extensions of Time Limits

Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301, or as otherwise specified by Commerce.^[38] For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances we will grant untimely filed requests for the extension of time limits, where we determine, based on 19 CFR 351.302, that extraordinary circumstances exist. Parties should review Commerce's regulations concerning the extension of time limits and the Time Limits Final Rule prior to submitting factual information in this investigation.^[39]

Certification Requirements

Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.^[40] Parties must use the certification formats provided in 19 CFR 351.303(g).^[41] Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements.

Notification to Interested Parties

Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) ( e.g., by filing the required letters of appearance). Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).^[42]

This notice is issued and published pursuant to sections 702 and 777(i) of the Act, and 19 CFR 351.203(c).

Appendix

Scope of the Investigation

The scope of this investigation includes certain wooden fence components (commonly referred to as wooden fence pickets), finished and unfinished, whether assembled or unassembled. Wooden fence pickets included in this scope are made of one or more wood species, typically from Cryptomeria japonica (Japanese Cedar or Sugi), but can also be made from other wood species, including but not limited to Western Red Cedar, Redwood, Incense Cedar, Douglas Fir, Western Hemlock, Sitka Spruce, and Cunninghamia lanceolata (Chinese Fir). Wooden fence pickets are included within the scope of this investigation regardless of form or shape, including, but not limited to flat top (also known as square or square top), pointed, dog ear, gothic (including but not limited to French gothic, French gothic blunt point) and stockade.

Generally, assembled wooden fence pickets contain at least one fence picket attached to one or more cross rails, framing lumber, or other fencing materials, and can include fully pre-assembled fence panels. Unassembled wooden fence pickets consist of one or more wooden fence pickets, not attached to any framing lumber, whether sold individually, bundled, or in a kit with framing lumber.

The finished products covered by the scope of this investigation have the following dimensions: a thickness of no more than 1 inch, a width of no more than 12 inches, and a length of at least 3 feet. The products covered by the scope are typically a length of 5 feet, 6 feet, or 8 feet when finished.

Wooden fence pickets are included within the scope of this investigation regardless of whether they have been painted, stained, pressure-treated, or otherwise coated or treated. Subject merchandise also includes wooden fence pickets that have been further processed in a third country, including but not limited to trimming, cutting, notching, sanding, planing or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the in-scope product.

Excluded from the scope of this investigation are wooden fence pickets made exclusively of bamboo (including, but not limited to, Phyllostachys edulis, Bambusa textilis, and Bambusa oldhamii), Brazilian Pine (Paraná pine), or Southern Yellow Pine (including Shortleaf Pine (Pinus echinata), Slash Pine (Pinus ellioti), Longleaf Pine (Pinus palustris), or Loblolly Pine (Pinus taeda)).

Also excluded from the scope of this investigation are wood mouldings and millwork products covered by the antidumping and countervailing duty orders on wood mouldings and millwork products from the People's Republic of China. See Wood Mouldings and Millwork Products from the People's Republic of China: Amended Final Antidumping Duty Determination and Antidumping Duty Order,86FR 9486 (February 16, 2021) (amended final antidumping duty determination and antidumping duty order); Wood Mouldings and Millwork Products from the People's Republic of China: Countervailing Duty Order,86 FR 9484 (February 16, 2021) (countervailing duty order).

Imports of subject merchandise are typically classified under Harmonized Tariff Schedule of the United States (HTSUS) statistical numbers 4404.10.0040, 4407.19.0092, 4421.99.7020, and 4421.99.7040. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

91 FR 70837