Preliminary Decision on Malaysian Fatty Acids by the U.S. Department of Commerce
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The United States Department of Commerce (Commerce) has delivered a preliminary affirmative determination concerning countervailable subsidies on imports of certain fatty acids from Malaysia. This decision follows an investigation that spanned the entire calendar year of 2025. In this determination, Commerce found that producers and exporters from Malaysia received countervailable subsidies.
The investigation initially commenced back on March 13, 2026. However, Commerce announced a postponement on April 29, 2026, moving the preliminary determination to July 17, 2026. Brandon James and Rachel Accorsi, from the International Trade Administration, are responsible for overseeing this case. They can be reached for further inquiries at (202) 482-7472 and (202) 482-3149, respectively.
This investigation and determination process are executed under section 703(b) of the Tariff Act of 1930. Commerce released the notices and findings via the Federal Register, ensuring transparency and public access to the information. A detailed Description and a list of topics discussed can be accessed through the Preliminary Decision Memorandum available at the provided links: access.trade.gov and access.trade.gov/frnotices.
The specific products under scrutiny are certain fatty acids from Malaysia, as defined in Appendix I of the investigation document. The determination found countervailable subsidies under 701 of the Act, with noted financial contributions that offered specific benefits to participants. As documented, facts available and adverse inferences were applied due to non-cooperative responses from certain respondents.
Alignment to ensure consistent final determinations across sectors, Commerce has aligned the final Consequential Value Determination (CVD) with its less-than-fair-value (LTFV) findings. Malaysia-based companies must now contend with the outcome that sets forth an ‘all-others’ rate—derived based on non-zero or non-de minimis subsidy rates—to ensure uniform application of determinations.
The determined preliminary assessments are as follows: Evyap Sabun Malaysia Sdn Bhd received a subsidy rate of 4.40 percent. Palm-Oleo Sdn Bhd, and its affiliates, were marked at 4.19 percent. Other enterprises were assigned an average rate of 4.32 percent.
Commerce has instructed the U.S. Customs and Border Protection (CBP) to suspend liquidation of related imports and cash deposits are now mandated at specified rates for involved companies. This suspension is applicable from the document’s publication date.
Detailed calculations of these determinations are expected to be disclosed soon, providing additional insights into Commerce’s decision-making process. Moreover, verification processes will be employed to affirm the accuracy of the provided details.
The issue remains under review, with public comment and hearing opportunities open for stakeholders to express concerns or additional observations. Comments, case briefs, or requests for hearings should be submitted within designated timelines post-verification.
This matter is now awaiting evaluation by the U.S. International Trade Commission, which will determine the broader market impact of this preliminary decision and its implications on domestic industries.
Interested parties, stakeholders, and relevant agencies are informed of these proceedings and encouraged to monitor developments as Commerce advances toward final determinations.
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