TRADE REMEDIES | 2026-09-23

Fatty Acids From Malaysia: Commerce Sets Preliminary Dumping Margins of 4.47 and 7.07 Percent, With an All-Others Rate of 5.23 Percent

A rare preliminary determination where every examined rate was actually calculated rather than inferred — which is why the all-others rate is a genuine weighted average and not a penalty figure.

On September 22, 2026 the U.S. Department of Commerce published a preliminary affirmative determination that certain fatty acids from Malaysia are being, or are likely to be, sold in the United States at less than fair value, in case A-557-834. The period of investigation is January 1, 2025 through December 31, 2025. Evyap Sabun Malaysia received a preliminary margin of 4.47 percent and the Palm-Oleo single entity 7.07 percent, producing an all-others rate of 5.23 percent. Commerce also postpone

On September 22, 2026 the U.S. Department of Commerce published its preliminary affirmative determination of sales at less than fair value in the antidumping investigation of certain fatty acids from Malaysia, case number A-557-834. The notice also postpones the final determination and extends provisional measures. The determination is applicable September 22, 2026, and the period of investigation is January 1, 2025 through December 31, 2025.

Commerce published the notice of initiation of this investigation on March 13, 2026, and postponed the preliminary determination in July 2026.

The preliminary margins

Commerce preliminarily determines the following estimated weighted-average dumping margins:

Evyap Sabun Malaysia Sdn. Bhd. — 4.47 percent, with a cash deposit rate of 4.46 percent after adjustment for subsidy offset.

Palm-Oleo Sdn. Bhd. / Palm-Oleo (Klang) Sdn. Bhd. / KL-Kepong Oleomas Sdn. Bhd. — 7.07 percent, with a cash deposit rate of 7.06 percent. Commerce preliminarily determines that these three companies are a single entity.

All Others — 5.23 percent, with a cash deposit rate of 5.22 percent.

Why these numbers look different from the ones in the news

Set these rates beside the other trade remedy determinations of the same month and the contrast is striking. Solar cells from India drew 123.04 percent antidumping and 126.09 percent countervailing. Tin mill products from China drew 66.61 percent countervailing. The petitions on linear hydraulic cylinders allege margins running into the hundreds of percent. Against that backdrop, 4.47 and 7.07 percent look almost like rounding.

The reason is methodological, and it is worth understanding because it tells importers something about how much a rate can be argued with.

Under sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act, the all-others rate is a weighted average of the margins calculated for the individually examined exporters and producers, excluding any margins that are zero, de minimis, or determined entirely under section 776 — the adverse facts available provision that applies when a respondent fails to cooperate to the best of its ability.

In this investigation Commerce states expressly that it calculated margins for both Evyap and Palm-Oleo that are not zero, not de minimis, and not based entirely on facts otherwise available. Both respondents participated. Commerce therefore had real, verified cost and pricing data to work from, and it built the all-others rate as a genuine weighted average using each company's publicly-ranged values for the merchandise under consideration.

That is the whole difference. A rate of 123 percent built on adverse inferences reflects what the record permitted Commerce to assume when a respondent would not answer. A rate of 5.23 percent built on calculated margins reflects what the pricing actually was. The first number is a consequence of conduct in the proceeding; the second is a measurement.

The lesson for any respondent, in any case

For an exporter or its U.S. importer, this determination is the clearest recent illustration of why participation matters. The two examined Malaysian respondents engaged with Commerce and received single-digit margins. Respondents in other 2026 proceedings that did not engage saw rates two orders of magnitude higher applied not only to themselves but, through the all-others mechanism, to every uninvestigated producer in their country.

Importers do not control whether their supplier cooperates. They can, however, ask — early, and in writing — whether a supplier named in a proceeding intends to respond to Commerce's questionnaires, because the answer determines the importer's own duty exposure for years.

Suspension of liquidation and provisional measures

In accordance with section 733(d)(2) of the Act, Commerce will direct CBP to suspend liquidation of entries of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the preliminary determination in the Federal Register.

Note the difference from the circumvention determinations published the same week. There, suspension reached back to the initiation of the inquiry — in the hangers case, thirteen months. Here, in an original investigation without a critical circumstances finding, suspension runs forward from publication. Importers of fatty acids from Malaysia are not facing a retroactive assessment on entries already made.

The notice also postpones the final determination and extends provisional measures, which is a routine step but one with a concrete consequence: the period during which cash deposits are collected at preliminary rates, before final rates are known, is longer than it otherwise would be.

What importers of oleochemicals should do

First, identify your actual producer. The rates attach by exporter and producer. An importer buying through a trading company may not know whether its goods originate with Evyap, with the Palm-Oleo entity, or with an uninvestigated producer that will take the 5.23 percent all-others rate.

Second, confirm scope. The merchandise covered is defined by the product description in the appendix to the notice rather than by an HTSUS heading alone. Fatty acids are a broad commercial category, and whether a particular grade, chain length or blend falls inside the scope is a question to settle before entry, not after a CBP inquiry. A documented tariff classification and scope position is what makes that answer defensible.

Third, budget for the deposit period. Provisional measures have been extended, so the window during which you are posting cash at preliminary rates is longer. That is a working-capital question as much as a legal one.

Fourth, keep valuation clean. Even at single-digit ad valorem rates, customs valuation errors compound across volume, and the assists, royalties and related-party pricing questions that apply at 100 percent apply here too.

Fifth, watch the countervailing side and the ITC. An affirmative preliminary LTFV determination moves the case toward a final determination and then to the U.S. International Trade Commission for its injury determination. If the Commission's final determination is negative, the proceeding terminates and cash deposits are refunded.

The wider picture

September 2026 has produced an unusually dense run of trade remedy activity touching California importers — solar cells, tin mill products, brake drums, garment hangers, fatty acids, and five new investigations on hydraulic cylinders. The through-line is that the rate an importer ends up paying is determined less by the product than by who participated, what was documented, and when the relevant notice published.

Trembach Law Firm advises importers on AD/CVD exposure, scope and classification, and the entry and bond consequences that follow a preliminary determination. To assess how this determination affects your supply chain, call (818) 514-7680 or contact a California customs attorney.

Frequently Asked Questions

What are the preliminary margins on fatty acids from Malaysia?

Evyap Sabun Malaysia Sdn. Bhd. received 4.47 percent, with a 4.46 percent cash deposit rate after subsidy offset. The Palm-Oleo single entity — Palm-Oleo Sdn. Bhd., Palm-Oleo (Klang) Sdn. Bhd. and KL-Kepong Oleomas Sdn. Bhd., which Commerce preliminarily treats as one entity — received 7.07 percent with a 7.06 percent deposit. All others received 5.23 percent with a 5.22 percent deposit.

Why are these rates so much lower than other 2026 cases?

Because both examined respondents participated. Commerce states expressly that it calculated margins for Evyap and Palm-Oleo that are not zero, not de minimis, and not based entirely on facts otherwise available, so it had real cost and pricing data and built the all-others rate as a genuine weighted average. A rate of 123 percent built on adverse inferences reflects what the record permitted Commerce to assume when a respondent would not answer; a rate of 5.23 percent built on calculated margins reflects what the pricing actually was.

Will duties apply to entries I have already made?

No. Under section 733(d)(2), suspension of liquidation runs forward from the date the preliminary determination publishes in the Federal Register. Unlike the circumvention determinations published the same week — where the hangers case reached back thirteen months — this is an original investigation without a critical circumstances finding, so there is no retroactive assessment on entries already made.

What does postponing the final determination mean for my cash flow?

The notice postpones the final determination and extends provisional measures. That is routine, but it lengthens the period during which cash deposits are collected at preliminary rates before final rates are known. It is a working-capital question as much as a legal one.

How do I know whether my product is even covered?

The covered merchandise is defined by the product description in the appendix to the notice rather than by an HTSUS heading alone. Fatty acids are a broad commercial category, and whether a particular grade, chain length or blend falls inside the scope is a question to settle before entry rather than after a CBP inquiry.

This article is provided for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Trade remedy proceedings depend on the specific producers, products and entry records involved, and no particular outcome is guaranteed. Consult a qualified attorney about your own circumstances.

Contact Trembach Law Firm at (818) 514-7680 for a confidential consultation.

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