Certain Tungsten Shot From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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Issuing agencies
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain tungsten shot (tungsten shot) from the People's Republic of China (China). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 89 Issue 245 (Friday, December 20, 2024)</title>
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[Federal Register Volume 89, Number 245 (Friday, December 20, 2024)]
[Notices]
[Pages 104083-104085]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30478]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-179]
Certain Tungsten Shot From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain tungsten shot (tungsten shot) from
the People's Republic of China (China). The period of investigation is
January 1, 2023, through December 31, 2023. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable December 20, 2024.
FOR FURTHER INFORMATION CONTACT: Samuel Evans, AD/CVD Operations,
Office IX, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2420.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is issued in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on August 13,
2024.\1\ On September 26, 2024, Commerce postponed the preliminary
determination of this investigation until December 16, 2024.\2\
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\1\ See Certain Tungsten Shot from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 89 FR 65852
(August 13, 2024) (Initiation Notice).
\2\ See Certain Tungsten Shot from the People's Republic of
China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 89 FR 78848 (September 26, 2024).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Certain Tungsten Shot from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is tungsten shot from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 89 FR at 65852.
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Methodology
Commerce is conducting this investigation in accordance with
section
[[Page 104084]]
701 of the Act. For each of the subsidy programs found countervailable,
Commerce preliminarily determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\6\ For a full
description of the methodology underlying our preliminary
determination, see the Preliminary Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see the Preliminary Decision Memorandum at
``Use of Facts Otherwise Available and Adverse Inferences.''
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of tungsten shot from China based on a request
made by the petitioner.\8\ Consequently, the final CVD determination
will be issued on the same date as the final AD determination, which is
currently scheduled to be issued no later than April 28, 2025, unless
postponed.
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\8\ See Petitioner's Letter, ``Request to Align Final
Determinations,'' dated November 20, 2024.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
Commerce calculated an individual estimated countervailable subsidy
rate for Zhuzhou KJ Super Materials Co., Ltd. (KJ Super), the only
individually examined exporter/producer in this investigation. Because
the only individually calculated rate is not zero, de minimis, or based
entirely on facts otherwise available, the estimated weighted-average
rate calculated for KJ Super is the rate assigned to all other
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the
Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Luoyang Combat Tungsten & Molybdenum Materials Co., Ltd. * 352.20
Luoyang Hypersolid Metal Tech Co., Ltd.................. * 352.20
Mudanjiang North Alloy Tools Co., Ltd................... * 352.20
Shaanxi Xinheng Rare Metal Co., Ltd..................... * 352.20
Xi'an Refractory & Precise Metals Co., Ltd.............. * 352.20
Zhuzhou KJ Super Materials Co., Ltd..................... 73.75
Zhuzhou Oston Carbide Co., Ltd.......................... * 352.20
Zhuzhou Tungsten Man Materials Co., Ltd................. * 352.20
All Others.............................................. 73.75
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* Rate is based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of publication of this
notice in the Federal Register, in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\9\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\10\
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\9\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\10\ See 19 CFR 351.309(c)(2) and (d)(2)
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\11\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\12\
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\11\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\12\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain (1) the party's name, address, and telephone number; (2)
the number of participants and whether any participant is a foreign
national; and (3) a list of the issues to be discussed. If a request
for a hearing is made, Commerce intends to hold the hearing at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its preliminary determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of tungsten shot from China are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: December 16, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is certain tungsten
spheres or balls, also known as shot, that are 92.6 percent or
greater tungsten by weight, not including the weight of any
additional coating. In scope shot have a diameter ranging from 1.5
millimeters (mm) to 10.0 mm. Subject shot can be referred to as
``Tungsten Super Shot.'' Merchandise is covered regardless of the
combination of compounds that comprise the non-tungsten material and
whether or not the tungsten shot is additionally coated with another
material, including but not limited to copper, nickel, iron, or
metallic alloys. Tungsten shot subject to the investigation may be
classified under the following Harmonized Tariff Schedule of the
United States (HTSUS) subheading: 9306.29.0000. Merchandise may also
be entered under HTSUS subheading 8101.99.8000. The HTSUS
subheadings are provided for convenience and customs purposes only.
The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks To Determine the Adequacy of Remuneration
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2024-30478 Filed 12-19-24; 8:45 am]
BILLING CODE 3510-DS-P
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