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Commerce Preliminary Affirmative Determination on Pulp from Brazil

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Filed March 20th, 2026
Detected March 21st, 2026
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Summary

The U.S. Department of Commerce announced a preliminary affirmative determination in the countervailing duty investigation of high purity dissolving pulp from Brazil. Preliminary subsidy rates were set at 3.67% for Bracell Bahia Specialty Cellulose S.A. and all other producers. The final determination is scheduled for August 4, 2026.

What changed

The U.S. Department of Commerce has issued a preliminary affirmative determination in the countervailing duty (CVD) investigation concerning high purity dissolving pulp imported from Brazil. The investigation found preliminary subsidy rates of 3.67% for Bracell Bahia Specialty Cellulose S.A. and all other Brazilian exporters, based on facts available with adverse inferences. This determination is a significant step in the trade remedy process, potentially leading to the imposition of duties if the final determination and the International Trade Commission's (ITC) injury determination are also affirmative.

Companies involved in the import or export of high purity dissolving pulp from Brazil should review the preliminary subsidy rates and the scope of the investigation. The final determination is expected on August 4, 2026. Importers may face potential duties based on these preliminary findings. The petitioners in this case are Rayonier Advanced Materials, Inc. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO.

What to do next

  1. Review preliminary subsidy rates and investigation scope for high purity dissolving pulp from Brazil.
  2. Monitor the final determination scheduled for August 4, 2026.
  3. Consult with legal counsel regarding potential duty implications.

Penalties

Potential imposition of countervailing duties.

Source document (simplified)

Preliminary Affirmative Determination in the Countervailing Duty Investigation of High Purity Dissolving Pulp from Brazil

Preliminary Affirmative Determination in the Countervailing Duty Investigation of High Purity Dissolving Pulp from Brazil

On March 20, 2026, the U.S. Department of Commerce (Commerce) announced its preliminary affirmative determination in the countervailing duty (CVD) investigation of high purity dissolving pulp from Brazil

Preliminary Subsidy Rates

Brazil

| Exporter/Producer | Subsidy Rates (percent) |
| --- | --- |
| Bracell Bahia Specialty Cellulose S.A | 3.67 |
| All Others | 3.67 |
*Rate based on facts available with adverse inferences.

Import Statistics

| Brazil | 2022 | 2023 | 2024 |
| --- | --- | --- | --- |
| Volume (CTN) | 230,795 | 198,455 | 218,344 |
| Value (USD) | $207,557,275 | $178,786,189 | $207,766,749 |
Source: U.S. Census Bureau, accessed through S&P Global Trade Atlas (Harmonized Tariff Schedule of the United States (HTSUS) subheadings 4702.00.0020 and 4702.00.0040). Imports of high purity dissolving pulp enter under HTSUS subheadings that may cover subject and non-subject merchandise. Therefore, publicly available import data may not accurately reflect actual imports of high purity dissolving pulp covered by the scope of the investigations.

Next Steps

  • The final determination for the CVD investigation of high purity dissolving pulp from Brazil has been aligned with the concurrent antidumping duty (AD) investigation of high purity dissolving pulp from Brazil and Norway, and therefore, is scheduled to be announced on August 4, 2026, unless postponed.
  • The U.S. International Trade Commission (ITC) is conducting a concurrent injury investigation.  For more information related to the ITC’s timeline, please refer to the ITC’s calendar.

Other Case Information

  • The petitioners are Rayonier Advanced Materials, Inc. (Jacksonville, FL) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (Washington, DC).
  • For general information and next steps, please refer to a list of preliminary FAQs.
  • Additional case information, including the scope of the investigations and alleged subsidy programs, are on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). Once you log in, please refer to the below case numbers:

| Trading Partner | CVD Case Number |
| --- | --- |
| Brazil | C-351-867 |

  • For more information on subsidy programs, please refer to the subsidies enforcement library.
  • To date, Commerce maintains 823 AD and CVD orders that provide relief to American companies and industries impacted by unfair trade.

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Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
CBP
Filed
March 20th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
C-351-867
Docket
C-351-867

Who this affects

Applies to
Importers and exporters Manufacturers
Industry sector
3254 Pharmaceutical Manufacturing
Activity scope
Import/Export Trade Remedies
Geographic scope
United States US

Taxonomy

Primary area
International Trade
Operational domain
Trade Compliance
Topics
Trade Remedies Dumping and Subsidies

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