Morocco phosphate fertilizers: CVD sunset finals

Commerce issued final results in the first full sunset review of the countervailing duty order on phosphate fertilizers from Morocco (FR Doc. 2026-22435; case C-714-001). The notice is scheduled for publication in the Federal Register on November 3, 2026 (public-inspection PDF linked in sources). Dated October 28, 2026, Scot Fullerton. Commerce finds that revocation would likely lead to continuation or recurrence of countervailable subsidies.

Final sunset: revocation likely leads to 20.04% ad valorem subsidies for OCP S.A. and all others. That is the rate reported to the ITC as likely to prevail, not a new cash deposit rate.

Review path

CVD order published April 7, 2021 (86 FR 18037). Sunset initiated March 2, 2026 (91 FR 10053). Commerce conducted a full review because domestic interested parties and the Government of Morocco and OCP S.A. filed adequate responses. Preliminary results July 24, 2026 (91 FR 46772). Case briefs from the GOM and OCP August 24, 2026; rebuttal briefs from The Mosaic Company and J.R. Simplot Company August 31, 2026.

What 20.04% means (and does not)

Under sections 751(c)(1) and 752(b) of the Act, Commerce reports the net countervailable subsidy rates likely to prevail if the order were revoked: 20.04 percent ad valorem for OCP S.A. and 20.04 percent for all others. That figure is what Commerce reports to the ITC for the likelihood analysis. It is not a new cash deposit rate, and this notice does not change current cash deposits. The order stays in effect while the ITC completes its separate full review.

Issues addressed in the Issues and Decision Memorandum include whether programs underwent substantial changes, government loan guarantees, reliance on an AFA rate for OCP's payroll tax refund, incorporation of judicial decisions, and calculation of the net subsidy rate likely to prevail. ACCESS hosts the memorandum (access.trade.gov).

The ITC's parallel full sunset schedule (hearing April 1, 2027; entries of appearance due 45 days after that scheduling notice) is covered in Phosphate fertilizers Morocco/Russia ITC full CVD sunsets. Do not predict the ITC vote. The notice's DATES line says applicable on the date of Federal Register publication (by our reading, November 3, 2026).

Action items

• Treat 20.04% as Commerce's sunset "likely to prevail" rate for the ITC, not as a revised deposit instruction.
• Keep tracking Morocco phosphate fertilizer entries under the existing CVD order and cash deposits until any later continuation or revocation notice.
• Watch the ITC full review calendar (April 1, 2027 hearing) for the injury-side outcome that decides whether the order continues.

Countervailing duties are not drawback-eligible (19 U.S.C. 1677h; see AD/CVD duties are excluded from drawback). Ordinary customs duties on the same entries can still be drawback-eligible when merchandise is exported or destroyed (or used to manufacture exported goods) and the claim otherwise qualifies (how to file a duty drawback claim).

This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.