Notice2025-12966

Certain Tungsten Shot From the People's Republic of China: Final Affirmative Countervailing Duty Determination

Primary source

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Published
July 11, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) 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 (POI) is January 1, 2023, through December 31, 2023.

Full Text

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<title>Federal Register, Volume 90 Issue 131 (Friday, July 11, 2025)</title>
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[Federal Register Volume 90, Number 131 (Friday, July 11, 2025)]
[Notices]
[Pages 30869-30871]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12966]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-179]


Certain Tungsten Shot From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) 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 (POI) is January 1, 2023, 
through December 31, 2023.

DATES: Applicable July 11, 2025.

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

    On December 20, 2024, Commerce published the Preliminary 
Determination in the Federal Register and invited interested parties to 
comment.\1\ On February 6, 2025, Commerce issued a post-preliminary 
analysis.\2\
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    \1\ See 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, 89 FR 104083 (December 20, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Post-Preliminary Analysis Memorandum in 
the Countervailing Duty Investigation of Certain Tungsten Shot from 
the People's Republic of China,'' dated February 5, 2025 (Post-
Preliminary Analysis).
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    For a complete discussion of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and

[[Page 30870]]

Decision Memorandum is a public document and is made available to the 
public 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 Issues and 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, ``Issues and Decision Memorandum for the 
Final 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 
(Issues and Decision Memorandum).
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Scope of the Investigation

    The merchandise covered by the scope of this investigation is 
tungsten shot from China. For a complete description of the scope of 
this investigation, see Appendix I.

Scope Comments

    We received no comments from interested parties on the scope of the 
investigation as it appeared in the Preliminary Determination. 
Therefore, we made no changes to the scope of the investigation.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in February 2025, Commerce verified the information reported 
by the Zhuzhou KJ Super Materials Co., Ltd. (KJ Super) for use in our 
final determination. We used standard verification procedures, 
including an examination of relevant accounting records and original 
source documents provided at verification.\4\
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    \4\ See Memorandum, ``Verification of the Questionnaire 
Responses of Zhuzhou KJ Super Materials Co., Ltd.,'' dated March 19, 
2025.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs that were submitted by interested parties 
in this investigation are discussed in the Issues and Decision 
Memorandum. For a list of the issues raised by interested parties and 
addressed in the Issues and Decision Memorandum, see Appendix II to 
this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce 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.\5\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also section 771(5)(E) of the Act 
regarding benefit; and section 771(5A) of the Act regarding 
specificity.
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    In making this final determination, Commerce relied, in part, on 
facts otherwise available, including with an adverse inference, 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of adverse facts available (AFA), see the 
Preliminary Determination \6\ and the Issues and Decision Memorandum at 
the section entitled ``Uses of Facts Available and Application of 
Adverse Inferences.''
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    \6\ See Preliminary Determination PDM at 4-25.
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Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    Based on our review and analysis of the information at 
verification, we made changes to the tariff rate used to calculate the 
benchmark prices for the provision of tungsten for less than adequate 
remuneration program and the inland freight expenses included in the 
benchmark prices for tungsten. Furthermore, we revised the calculation 
of AFA rate to reflect changes to KJ Super's program rates, to 
incorporate the four programs assessed in the Post-Preliminary 
Analysis, and to correct certain rates selected under Commerce's AFA 
hierarchy.\7\ For a discussion of these changes, see the Issues and 
Decision Memorandum.
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    \7\ See Issues and Decision Memorandum at 3 and Appendix.
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All-Others Rate

    Section 705(c)(5)(A)(i) of the Act states that, for companies not 
individually investigated, Commerce will determine an all-others rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and/or producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act.
    Commerce calculated an individual estimated countervailable subsidy 
rate for 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.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period January 1, 2023, through December 
31, 2023:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Luoyang Combat Tungsten & Molybdenum Materials Co., Ltd.        * 292.84
Luoyang Hypersolid Metal Tech Co., Ltd..................        * 292.84
Mudanjiang North Alloy Tools Co., Ltd...................        * 292.84
Shaanxi Xinheng Rare Metal Co., Ltd.....................        * 292.84
Xi'an Refractory & Precise Metals Co., Ltd..............        * 292.84
Zhuzhou KJ Super Materials Co., Ltd.....................           55.64
Zhuzhou Oston Carbide Co., Ltd..........................        * 292.84
Zhuzhou Tungsten Man Materials Co., Ltd.................        * 292.84
All Others..............................................           55.64
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* Rate is based on facts available with adverse inferences.

Disclosure

    Commerce intends to disclose its calculations performed to 
interested parties in this final determination within five days of its 
public announcement or, if there is no public announcement, within five 
days of the date of the publication of this notice in

[[Page 30871]]

the Federal Register, in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to collect cash deposits and suspend 
liquidation of entries of subject merchandise from China that were 
entered, or withdrawn from warehouse, for consumption, on or after 
December 20, 2024, the date of the publication of the Preliminary 
Determination in the Federal Register.\8\ In accordance with section 
703(d) of the Act, we instructed CBP to discontinue the suspension of 
liquidation of all entries of subject merchandise entered or withdrawn 
from warehouse, on or after April 19, 2025 but to continue the 
suspension of liquidation of all entries of subject merchandise on or 
before April 18, 2025.
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    \8\ See Preliminary Determination, 89 FR at 104083.
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    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
(CVD) order, reinstate the suspension of liquidation under section 
706(a) of the Act, and require a cash deposit of estimated 
countervailing duties for entries of subject merchandise in the amounts 
indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated, and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or cancelled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of tungsten 
shot from China. As Commerce's final determination is affirmative, in 
accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
import of tungsten shot from China. In addition, we are making 
available to the ITC all non-privileged and non-proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under administrative protective order 
(APO), without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    If the ITC determines that material injury or threat of material 
injury does not exist, this proceeding will be terminated, and all cash 
deposits will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue a CVD order directing CBP to assess, upon 
further instruction by Commerce, countervailing duties on all imports 
of the subject merchandise that are entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Administrative Protective Order

    This notice will serve as the final reminder to parties subject to 
an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO, in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: July 7, 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 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Use of Facts Available and Adverse Inferences
V. Subsidies Valuation
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether to Modify the Benchmark Calculation for the 
Provision of Tungsten for Less-Than-Adequate-Remuneration (LTAR) 
Program
    Comment 2: Whether Suppliers of Tungsten are ``Authorities''
    Comment 3: Whether to Use Surrogate Values to Assess the Benefit 
Conferred from the Provision of Tungsten for LTAR Program
    Comment 4: Whether to Apply Adverse Facts Available (AFA) for KJ 
Super's Use of Income Tax Programs
    Comment 5: Whether the Petitioner's Treatment of Business 
Proprietary Information (BPI) in its New Factual Information (NFI) 
Submission was Appropriate
VIII. Recommendation

[FR Doc. 2025-12966 Filed 7-10-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 11, 2025.

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