United States importers must pay cash deposits of 3.84% to 112.29% on Chinese stationary and portable air compressors from Oct. 1, 2026, after a preliminary Commerce subsidy finding.<\/p>\n
The U.S. Department of Commerce has found in a preliminary ruling that Chinese makers of stationary and portable air compressors receive unfair government subsidies, and from Oct. 1, 2026, importers must pay cash deposits of 3.84% to 112.29% on these compressors1<\/a><\/sup>.<\/p>\n The ruling appeared in the Federal Register on Oct. 1, 2026, and is dated Sept. 28, 20261<\/a><\/sup>. It is the first decision on duties in a case that a U.S. compressor maker began in April 20262<\/a><\/sup>.<\/p>\n In short, piston-type air compressors from China now cost more to bring into the United States. Customs will hold back the final duty bill on each shipment and collect a deposit at the border, at 3.84% of the value for most Chinese suppliers and 112.29% for six named companies.<\/p>\n Commerce found that producers and exporters of air compressors in China receive countervailable subsidies<\/strong>1<\/a><\/sup>. These are government support that gives a company a benefit and that U.S. law allows to be offset with an extra import tax. That tax is called a countervailing duty.<\/p>\n The decision is preliminary. Commerce looked at subsidies given during the period of investigation, Jan. 1 to Dec. 31, 2025<\/strong>1<\/a><\/sup>. Its final decision will come later, after it checks the companies’ information.<\/p>\n Commerce also found that some companies did not answer its questions as well as they could1<\/a><\/sup>. For those companies it used "adverse inferences". This means it chose the facts least helpful to them when setting their rates.<\/p>\n Commerce examined two Chinese companies in detail, called mandatory respondents1<\/a><\/sup>. One was FNA (Zhejiang) Co., Ltd., known as FNZ. The other was Suzhou Alton Electrical & Mechanical Industry Co., Ltd., known as Suzhou Alton.<\/p>\n FNZ received a calculated rate of 3.84%<\/strong>1<\/a><\/sup>. Suzhou Alton received a rate based entirely on facts available, because it did not cooperate fully.<\/p>\n The Federal Register notice lists these preliminary subsidy rates, as a share of the goods’ value1<\/a><\/sup>:<\/p>\n The six companies at 112.29% all received rates based on facts available with adverse inferences1<\/a><\/sup>. A deposit of 112.29% more than doubles the cost of a compressor at the border.<\/p>\n The law sets an "all-others rate" for companies that Commerce did not examine one by one1<\/a><\/sup>. It is normally the average of the rates for the examined companies. Zero rates, very small rates and rates based only on facts available are left out.<\/p>\n Suzhou Alton’s rate was based only on facts available, so it did not count1<\/a><\/sup>. That left FNZ’s rate as the only usable one. Commerce therefore gave 3.84% to all other producers and exporters<\/strong> in China.<\/p>\n The petition named over 300 companies in China as producers or exporters of air compressors2<\/a><\/sup>. Most of these suppliers will fall under the all-others rate.<\/p>\n Commerce will tell U.S. Customs and Border Protection (CBP) to suspend liquidation<\/strong> of the goods1<\/a><\/sup>. Liquidation is the final step in which customs fixes the duty owed on an entry. Suspending it means the final bill stays open until the case ends.<\/p>\nWhat did Commerce decide on Chinese air compressors?<\/h2>\n
Which companies face the 112.29% rate?<\/h2>\n
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How was the 3.84% rate for other suppliers set?<\/h2>\n
How do the cash deposits work at the border?<\/h2>\n
Which deposit rate applies<\/h4>\n