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Fatty Acids from Indonesia and Malaysia - Preliminary Injury Determination

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Summary

The US International Trade Commission issued affirmative preliminary injury determinations in countervailing duty investigation Nos. 701-TA-785-786 and antidumping duty investigation Nos. 731-TA-1773-1774 regarding fatty acids from Indonesia and Malaysia. The Commission found reasonable indication that the US industry is materially injured by reason of subsidized and LTFV imports. The investigations advance to the final phase pending Commerce's preliminary determinations.

What changed

The ITC determined that there is reasonable indication that the US fatty acids industry is materially injured by reason of imports from Indonesia and Malaysia alleged to be subsidized and sold at less than fair value. The Commission advanced the investigations to the final phase, with draft questionnaires to be circulated to parties and a final phase scheduling notice to follow Commerce's preliminary determinations.

Domestic fatty acid producers and importers of Indonesian/Malaysian product face significant compliance and financial implications. If Commerce issues affirmative preliminary determinations and the ITC ultimately issues affirmative final injury determinations, retroactive cash deposits and duties could be applied, materially affecting pricing and supply chains for fatty acids used in surfactants, lubricants, plastics, and food processing industries.

What to do next

  1. Monitor for Commerce preliminary determination on subsidies and LTFV margins
  2. Prepare for final phase questionnaire participation if on the service list
  3. Review customs compliance for affected fatty acid imports under HTS 2915/2916/3823 subheadings

Penalties

If final determinations are affirmative, countervailing and antidumping duties may be imposed on fatty acids from Indonesia and Malaysia, potentially resulting in 100% or greater tariff rates on affected imports.

Archived snapshot

Apr 8, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Content

On the basis of the record (1) developed in the subject investigations, the United States International Trade Commission (“Commission”) determines, pursuant
to the Tariff Act of 1930 (“the Act”), that there is a reasonable indication that an industry in the United States is materially
injured by reason of imports of fatty acids from Indonesia and Malaysia, provided for in subheadings 2915.70.01, 2915.90.10,
2916.15.10, 2916.15.51, 3823.11.00, 3823.12.00, 3823.19.20, and 3823.19.40 of the Harmonized Tariff Schedule of the United
States, that are alleged to be sold in the United States at less than fair value (“LTFV”) and imports of the subject merchandise
from Indonesia and Malaysia that are alleged to be subsidized by the governments of Indonesia and Malaysia. (2)

Commencement of Final Phase Investigations

Pursuant to section 207.18 of the Commission's rules, the Commission also gives notice of the commencement of the final phase
of its investigations. The Commission will issue a final phase notice of scheduling, which will be published in the
Federal Register
as provided in § 207.21 of the Commission's rules, upon notice from the U.S. Department of Commerce (“Commerce”) of affirmative
preliminary determinations in the investigations under §§ 703(b) or 733(b) of the Act, or, if the preliminary determinations
are negative, upon notice of affirmative final determinations in those investigations under §§ 705(a) or 735(a) of the Act.
Parties that filed entries of appearance in the preliminary phase of the investigations need not enter a separate appearance
for the final phase of the investigations. Any other party may file an entry of appearance for the final phase of the investigations
after publication of the final phase notice of scheduling. Industrial users, and, if the merchandise under investigation is
sold at the retail level, representative consumer organizations have the right to appear as parties in Commission antidumping
and countervailing duty investigations. The Secretary will prepare a public service list containing the names and addresses
of all persons, or their representatives, who are parties to the investigations. As provided in section 207.20 of the Commission's
rules, the Director of the Office of Investigations will circulate draft questionnaires for the final phase of the investigations
to parties to the investigations, placing copies on the Commission's Electronic Document Information System (EDIS, https://edis.usitc.gov), for comment.

Background

On January 28, 2026, Vantage Specialty Chemicals, Inc., Deerfield, Illinois, filed petitions with the Commission and Commerce,
alleging that an industry in the United States is materially injured or threatened with material injury by reason of subsidized
imports of fatty acids from Indonesia and Malaysia and LTFV imports of fatty acids from Indonesia and Malaysia. Accordingly,
effective January 28, 2026, the Commission instituted countervailing duty investigation Nos. 701-TA-785-786 and antidumping
duty investigation Nos. 731-TA-1773-1774 (Preliminary).

Notice of the institution of the Commission's investigations and of a public conference to be held in connection therewith
was given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission, Washington,
DC, and by publishing the notice in the
Federal Register
of February 2, 2026 (91 FR 4616). (3) The Commission conducted its conference on February 18, 2026. All persons who requested the opportunity were permitted to
participate.

The Commission made these determinations pursuant to §§ 703(a) and 733(a) of the Act (19 U.S.C. 1671b(a) and 1673b(a)). It
completed and filed its determinations in these investigations on April 3, 2026. The views of the Commission are contained
in USITC Publication 5723 (April 2026), entitled Fatty Acids from Indonesia and Malaysia: Investigation Nos. 701-TA-785-786 and 731-TA-1773-1774 (Preliminary).

By order of the Commission.

Issued: April 3, 2026. Lisa Barton, Secretary to the Commission. [FR Doc. 2026-06741 Filed 4-7-26; 8:45 am] BILLING CODE 7020-02-P

Footnotes

(1) The record is defined in § 207.2(f) of the Commission's Rules of Practice and Procedure (19 CFR 207.2(f)).

(2) 91 FR 12342 and 91 FR 12353 (March 13, 2026).

(3) The Commission published a revised schedule on February 17, 2026 (91 FR 7301) to conform with Commerce's new schedule after
Commerce extended the deadline for its initiation determinations from February 17, 2026 to March 9, 2026 (91 FR 6192, February
11, 2026).

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Named provisions

19 CFR 207.18 19 CFR 207.20 19 CFR 207.21

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Last updated

Classification

Agency
ITC
Published
April 3rd, 2026
Instrument
Rule
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
Investigation Nos. 701-TA-785-786 and 731-TA-1773-1774 (Preliminary)
Docket
ITC-2026-2047-0001

Who this affects

Applies to
Importers and exporters Manufacturers
Industry sector
3241 Chemical Manufacturing
Activity scope
Antidumping duty investigation Countervailing duty investigation Import monitoring
Geographic scope
United States US

Taxonomy

Primary area
International Trade
Operational domain
Compliance
Topics
Trade Remedies Consumer Protection

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