China Potassium Phosphate CVD Review: 109.11%

The China potassium phosphate CVD review has reinforced the substantial trade-remedy exposure attached to certain salts imported from China. Commerce determined that revoking the order would likely cause countervailable subsidies to continue or recur at 109.11%, placing renewed emphasis on scope analysis, sourcing controls, entry verification, and accurate duty drawback calculations.

What the 109.11% Sunset Review Result Means

Commerce’s Finding Does Not Complete the Sunset Process

Commerce published the final results of its expedited third sunset review on October 5, 2026. The agency determined that revocation of the countervailing duty order would likely lead to the continuation or recurrence of countervailable subsidies at a net rate of 109.11% ad valorem.

That rate applies in the sunset analysis to the following companies and category:

• Lianyungang Mupro Import Export Co Ltd.
• Mianyang Aostar Phosphate Chemical Industry Co. Ltd.
• Shifang Anda Chemicals Co. Ltd.
• All other producers and exporters

The review was expedited because U.S. producers submitted an adequate substantive response, while the Government of China and respondent interested parties did not participate. Under the applicable sunset review process, Commerce therefore completed its analysis on an expedited 120-day schedule.

The 109.11% result represents the subsidy rate Commerce found likely to prevail if the order were revoked. It should not be treated as an automatic statement of the current cash deposit rate for every shipment. Importers and brokers should continue confirming company-specific cash deposit instructions through current ACE AD/CVD messages before filing an entry.

The proceeding now moves through the U.S. International Trade Commission’s injury analysis. If the ITC determines that revocation would likely lead to the continuation or recurrence of material injury, the order will generally remain in place. A negative injury determination would typically result in revocation. Until the sunset process is completed and agencies issue corresponding instructions, entry teams should continue administering the order as active.

Scope and Sourcing Risks for Potassium Phosphate Imports

Product Descriptions Control the Scope Analysis

The order covers certain potassium phosphate salts from China, including products described as monopotassium phosphate, commonly abbreviated MKP, and tetrapotassium pyrophosphate, commonly abbreviated TKPP. These chemicals may be used in food and beverage production, water treatment, fertilizers, cleaning formulations, and a range of industrial processes.

Scope analysis can become difficult when covered salts are incorporated into mixtures, sold under commercial product names, altered in concentration, or entered as components of downstream formulations. Tariff classification may assist with screening, but an HTS classification alone generally does not determine whether merchandise is covered. The written product description, chemical identity, composition, physical characteristics, origin, and condition as imported remain central to the analysis.

Importers should maintain records that connect purchasing data to technical product information. Depending on the merchandise, relevant documentation may include:

• Chemical specifications and composition data
• Safety data sheets and certificates of analysis
• Supplier declarations and production records
• Commercial descriptions, invoices, and purchase orders
• Manufacturing locations and country-of-origin support
• Records identifying intermediate processors or third-country suppliers

The 109.11% finding makes sourcing errors potentially expensive. It also increases the commercial incentive for routing, relabeling, or minor processing through third countries. Importers should not assume that a third-country invoice or shipment route changes Chinese origin. CBP may examine whether declared origin reflects substantial production or merely transshipment, repackaging, blending, or other limited operations.

Trade compliance teams should therefore incorporate AD/CVD scope and origin controls into supplier onboarding rather than waiting until entry. Procurement, laboratory, customs, and legal personnel may all need to participate when product descriptions or manufacturing histories are ambiguous.

Entry Compliance and Duty Drawback Treatment

AD/CVD Exposure Must Be Separated From Drawback-Eligible Duties

For entries involving potentially covered potassium phosphate salts, customs brokers and importers should verify the CVD case number, exporter and producer combination, applicable cash deposit rate, and current ACE instructions. The relevant CVD case is C-570-963, but case identification does not eliminate the need to check the specific entry facts and active instructions.

A separate antidumping duty order also applies to certain potassium phosphate salts from China. As a result, an in-scope shipment may be subject to both AD and CVD cash deposits in addition to ordinary customs duties and fees. Each trade remedy should be evaluated independently because rates, company combinations, and administrative instructions may differ.

Entry controls should generally include:

• Matching the manufacturer and exporter against ACE case records
• Confirming whether the merchandise satisfies the written scope description
• Reviewing origin support for goods shipped through third countries
• Separating ordinary duties from AD/CVD cash deposits in accounting records
• Monitoring liquidation and post-entry instructions
• Escalating uncertain scope questions before entry whenever possible

The accounting distinction is especially important for duty drawback. Under 19 U.S.C. 1677h and 19 CFR 190.3, antidumping and countervailing duties are not refundable through drawback. AD/CVD cash deposits should therefore never be included in the drawback duty base, even if the imported potassium phosphate is later exported or used to manufacture an exported article.

Other eligible duties associated with the importation may potentially support drawback when the statutory and operational requirements for a claim are met. Brokers and claimants must keep those amounts segregated from non-drawback-eligible AD/CVD deposits. Failure to make that distinction can overstate a claim, create audit exposure, and distort the expected economic benefit of an export program.

Frequently Asked Questions

Does the 109.11% Rate Apply to Every Current Entry?

Not necessarily. The 109.11% figure is the net countervailable subsidy rate Commerce found likely to prevail if the order were revoked. The actual cash deposit required at entry should be determined from current ACE instructions, including the applicable producer-exporter combination and any subsequent administrative changes.

Is the CVD Order Now Guaranteed to Continue?

No. Commerce has completed the subsidy component of the sunset review, but the ITC must still determine whether revocation would likely cause material injury to continue or recur. An affirmative ITC determination would generally lead to continuation of the order; a negative determination would generally lead to revocation.

Are Potassium Phosphate Blends Automatically Within Scope?

No. A blend or downstream formulation may or may not fall within the order. The analysis typically depends on the written scope language and the product’s chemical composition and condition as imported. Product names and tariff classifications can support the review but generally are not conclusive by themselves.

Can CVD Cash Deposits Be Recovered Through Duty Drawback?

No. Countervailing duties, like antidumping duties, are excluded from drawback. They should not be included in the duty base of a drawback claim, even when the imported merchandise is subsequently exported or used to manufacture an exported product.

What Should Importers Verify Before Sourcing Through a Third Country?

Importers should verify where the potassium phosphate was manufactured, what processing occurred in each country, and whether that processing supports the declared origin. Supplier invoices or third-country shipment routes alone generally do not resolve origin. Production records, specifications, and traceable supplier documentation are important safeguards against transshipment and circumvention risk.

How Stable Software Can Help

Support a Broker-Led Drawback Program

Stable Software offers DrawbackAI duty drawback software under a flat software license for U.S. customs brokers. Brokers can white-label the software for importer clients and file drawback claims under their own filer code. Stable Software never takes a percentage of the importer’s refund.

That commercial structure can be particularly relevant when importers need to distinguish eligible ordinary duties from non-refundable AD/CVD amounts across ongoing export activity. Customs brokers evaluating a scalable, client-facing approach to drawback can explore DrawbackAI while retaining control of the filing relationship and the economics of the recovery program.

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