U.S. Sets Preliminary Subsidy Rates for Corrosion Inhibitors from China

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U.S. Sets Preliminary Subsidy Rates for Corrosion Inhibitors from China

On July 11, 2025, the U.S. Department of Commerce released its preliminary findings for the 2023 countervailing duty administrative review on certain corrosion inhibitors from the People’s Republic of China. The review covers products imported into the U.S. between January 1, 2023, and December 31, 2023.

Companies Reviewed

The review included two main companies: Anhui Trust Chem Co., Ltd. (ATC) and Nantong Botao Chemical Co., Ltd. (Botao). The Department also looked at several other companies that were not chosen for individual examination.

Preliminary Subsidy Rates

The preliminary findings show:

  • Anhui Trust Chem Co., Ltd.: 44.65% subsidy rate
  • Nantong Botao Chemical Co., Ltd.: 44.06% subsidy rate

For companies not individually examined but still under review, the preliminary subsidy rate is set at 44.36%. These companies include:

  • Connect Chemicals China Co., Ltd.
  • Connect Chemicals GMBH
  • Gold Chemical Limited
  • Kanghua Chemical Co., Ltd.

Partial Rescission of Review

The Department has decided to end the review early for five companies. For Jiangyin Delian Chemical Co., Ltd., the review was withdrawn by request. For Relic Chemicals, Sagar Specialty Chemicals Pvt., Ltd., Vcare Medicines, and Yasho Industries Pvt. Ltd., there were no entries of the product during the review period. Thus, no further review was needed for them.

Method Used

Commerce conducted its review according to U.S. law. They looked at which companies got subsidies from the Chinese government and if those matched the law’s definition of a subsidy. Some decisions relied on information from “adverse facts available” under certain situations.

Verification and Public Comment

The Department plans to check (verify) the information provided by ATC and Botao. Interested parties can send in case briefs and written comments. Specific timelines for these comments will be told to the parties. A short executive summary is required for each issue in briefs, and parties can also request a hearing.

All documents and briefs must be filed electronically through the government’s ACCESS system.

Cash Deposits and Assessment

If these preliminary rates are finalized, U.S. Customs will collect cash deposits based on these subsidy rates for relevant imports from the date the final notice is published. If a company’s final rate is zero or “de minimis,” no cash deposits will be required.

Companies for which the review has been rescinded will have duties assessed at the cash deposit rate in effect at the time of entry. Assessment instructions will follow after the final results are published, no sooner than 35 days after publication.

Next Steps

Unless the deadline changes, the Department will issue the final results within 120 days of this preliminary announcement. The final results will include analysis of arguments and further details.


Legal Disclaimer

This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.