Notice2025-05693

Slag Pots From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination

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Published
April 3, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of slag pots 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.

Full Text

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<title>Federal Register, Volume 90 Issue 63 (Thursday, April 3, 2025)</title>
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[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Notices]
[Pages 14625-14628]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05693]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-197]


Slag Pots From the People's Republic of China: Preliminary 
Affirmative Countervailing 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 slag pots 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.

[[Page 14626]]


DATES: Applicable April 3, 2025.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt or T.J. Worthington, 
AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-7851 
or (202) 482-4567, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made 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 January 28, 
2025.\1\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\2\ 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.vtrade.gov">https://access.vtrade.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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    \1\ See Slag Pots from the People's Republic of China: 
Initiation of Countervailing Duty Investigation, 90 FR 8267 (January 
28, 2025) (Initiation Notice).
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of the Countervailing Duty Investigation 
of Slag Pots 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 products covered by this investigation are slag pots 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,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
submitted to the record for this preliminary determination, and 
accompanying discussion and analysis of the comments timely received, 
see the Preliminary Scope Decision Memorandum.\5\ Commerce is 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See revised scope in Appendix I.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Initiation Notice, 90 FR at 8268.
    \5\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Slag Pots from the People's Republic of China: 
Preliminary Scope Decision Memorandum,'' dated concurrently with 
this notice (Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 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\
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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 on facts 
available and, because Commerce finds that necessary information was 
missing from the record and because respondents did not act to the best 
of their ability to respond to Commerce's requests for information, 
Commerce drew an adverse inference (AFA) in selecting from among the 
facts otherwise available.\7\ For further information, see the ``Use of 
Facts Otherwise Available and Adverse Inferences'' section in the 
Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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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.
    Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual 
estimated countervailable subsidy rates established for all exporters 
and producers individually examined are zero, de minimis, or determined 
based entirely on facts otherwise available, Commerce may use any 
reasonable method to establish the estimated subsidy rate for all other 
producers or exporters. In this investigation, Commerce preliminarily 
determined the individually estimated subsidy rate for each of the 
individually examined respondents based entirely on facts available 
under section 776 of the Act. This is the only rate available in this 
proceeding for deriving the all-others rate. Consequently, pursuant to 
sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce established 
the all-others rate by applying the countervailable subsidy rate 
assigned to the non-responsive companies listed below.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

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                                                  Subsidy rate (percent
                    Company                            ad valorem)
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Chaeng Great Wall Steel Casting Co. Ltd........                 * 226.16
UMECC Beijing Equipment Inc. Ltd...............                 * 226.16
Cast-Con Engineering GmbH & Co. KG.............                 * 226.16
Changzhou Jinyuan Machinery Equipment Ltd. Co..                 * 226.16
Dawang Metals Co. Ltd..........................                 * 226.16
GVA Krefeld GmbH...............................                 * 226.16
Liaoning Mineral and Metallurgy Group Co. Ltd..                 * 226.16
Luoyang Zhongtai Industries Co., Ltd...........                 * 226.16
Shantou Huaxing Metallurgical Equipment Co. Ltd                 * 226.16
Tangshan Sinya International Trade Co., Ltd....                 * 226.16
All Others.....................................                   226.16
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* Rate is based on facts available with adverse inferences.


[[Page 14627]]

Suspension of Liquidation

    In accordance with section 703(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 section 703(d)(1)(B) of the Act and 19 CFR 
351.107(e), Commerce will instruct CBP to require a cash deposit equal 
to the estimated company-specific countervailable subsidy rate or the 
estimated all-others rate, as follows: (1) the cash deposit rate for 
the respondents listed above will be equal to the company-specific 
estimated individual countervailable subsidy rates determined in this 
preliminary determination; (2) if both the producer and exporter of the 
subject merchandise have company-specific estimated subsidy rates 
determined in this preliminary determination, and their rates differ, 
then the applicable cash deposit rate will be the higher of these two 
rates; (3) if either the producer or the exporter, but not both, of the 
subject merchandise have a company-specific estimated subsidy rate 
determined in this preliminary determination, the applicable cash 
deposit rate will be that company's company-specific rate; and (4) the 
cash deposit rate for all other producers and exporters will be equal 
to the estimated all-others subsidy rate.

Disclosure

    Normally, Commerce discloses its calculations and analysis 
performed in connection with the preliminary determination to 
interested parties within five days of its public announcement, or if 
there is no public announcement, within five days of the date of this 
notice in accordance with 19 CFR 351.224(b). However, because Commerce 
preliminarily applied total AFA in the calculation of the benefit for 
Chaeng Great Wall Steel Casting Co. Ltd., UMECC Beijing Equipment Inc. 
Ltd, and the non-responsive companies, and the applied AFA rates are 
based on rates calculated in prior proceedings, there are no 
calculations to disclose.

Verification

    Because the examined respondents in this investigation did not 
provide information requested by Commerce and Commerce preliminarily 
determines each of the examined respondents to have been uncooperative, 
it will not conduct verification.

Public Comment

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the less-than-fair-value (LTFV)and CVD investigations. The 
deadlines to submit scope case and rebuttal briefs will be provided in 
the preliminary scope decision memorandum. For all scope case and 
rebuttal briefs, parties must file identical documents simultaneously 
on the records of the ongoing LTFV and CVD slag pots investigations. No 
new factual information or business proprietary information may be 
included in either scope case or rebuttal briefs.
    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than 20 days after the date of publication of the preliminary 
determination. 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.\8\ 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.\9\
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    \8\ 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).
    \9\ See 19 351.309(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.\10\ 
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).\11\
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    \10\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \11\ 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 within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and 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 Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its 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 slag pots 
from China are materially injuring, or threaten material injury to, the 
U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: March 27, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is slag pots with a 
nominal capacity of 65 cubic feet to 1200 cubic feet regardless of 
shape, form, or finish.
    Slag pots are load bearing devices typically formed as a curved 
shell or bowl-shaped container. Slag pots are metallurgical goods 
typically produced either using a casting process or a fabrication 
process (e.g., welding) and may include a ceramic refractory 
coating, heat treatment or various finishes in order to handle high 
temperature slag. Slag pots may contain integral features or 
attachments including (1) legs (or a stand) and (2) pivotal mounting 
hooks or brackets. Legs (or a stand) are a fixed or detachable

[[Page 14628]]

support structure which allows the slag pot to be securely 
positioned upright on a surface when not being lifted or transported 
and may also keep the slag pot off the ground and allow for air 
cooling. The pivotal mounting hooks and brackets are specialized 
attachment points (such as lifting lugs or trunnions) that allow the 
slag pot to be securely lifted and transported by a crane or lifting 
device, or that enable the slag pot to swing or rotate while 
remaining attached to the lifting mechanism. The merchandise covered 
by this investigation includes all aforementioned attachments of a 
fully assembled slag pot, regardless of whether shipped assembled or 
unassembled.
    Slag pots are included within the scope whether finished or 
unfinished, whether imported individually or with other subject or 
non-subject merchandise, or whether assembled with attachments or 
unassembled. Finishing includes, but is not limited to, arc washing, 
welding, grinding, shot blasting, heat treatment, machining, and 
assembly of various parts.
    The country of origin for slag pots whether fully assembled, 
unfinished or finished, is the country where the slag pot was cast 
or forged. Subject merchandise includes slag pots that have been 
further processed or further assembled in a third country. Further 
processing and further assembly include, but is not limited to, arc 
washing, welding, grinding, shot blasting, heat treatment, painting, 
coating, priming, machining, and assembly of attachments.
    Slag pots subject to the investigation are specified within the 
Harmonized Tariff Schedule of the United States (HTSUS) under 
subheadings 7309.00.0090 and 8454.20.0080. The slag pot attachments 
covered by the scope of this investigation may enter under HTSUS 
subheadings 7316.00.0000, 7325.10.0080, 7325.99.1000, 7325.99.5000, 
and 7326.19.0080. The HTSUS subheading is 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. Analysis of Programs
VIII. Recommendation

[FR Doc. 2025-05693 Filed 4-2-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on April 3, 2025.

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