Steel Concrete Reinforcing Bar From Egypt: 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 steel concrete reinforcing bar (rebar) from Egypt. The period of investigation is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
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<title>Federal Register, Volume 91 Issue 8 (Tuesday, January 13, 2026)</title>
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[Federal Register Volume 91, Number 8 (Tuesday, January 13, 2026)]
[Notices]
[Pages 1263-1265]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00494]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-729-806]
Steel Concrete Reinforcing Bar From Egypt: 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 steel concrete reinforcing bar (rebar) from
Egypt. The period of investigation is January 1, 2024, through December
31, 2024. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable January 13, 2026.
FOR FURTHER INFORMATION CONTACT: Lingjun Wang, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2316.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On June 30,
2025, Commerce published the notice of initiation of this
investigation.\1\ On July 25, 2025, Commerce postponed the preliminary
determination of this investigation until November 3, 2025.\2\
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\1\ See Steel Concrete Reinforcing Bar from Algeria, Egypt, and
the Socialist Republic of Vietnam: Initiation of Countervailing Duty
Investigations, 90 FR 27838 (June 30, 2025) (Initiation Notice).
\2\ See Steel Concrete Reinforcing Bar from Algeria, Egypt, and
the Socialist Republic of Vietnam: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 90 FR
35278 (July 25, 2025).
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Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
proceedings by 47 days.\3\ Additionally, due to a backlog of documents
that were electronically filed via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS) during the Federal Government shutdown, on November 24,
2025, Commerce tolled all deadlines in administrative proceedings by an
additional 21 days.\4\ Accordingly, the deadline for this preliminary
determination is now January 8, 2026.
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\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\5\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II of this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via 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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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Steel Concrete Reinforcing Bar from the Arab Republic of Egypt,''
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 rebar from Egypt. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\7\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. Thus, the scope of the investigation is unchanged
from the Initiation Notice.
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\7\ See Initiation Notice, 90 FR at 25225-26.
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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.\8\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\8\ 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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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final determination of this CVD
investigation with the final determination in the companion less-than-
fair value (LTFV) investigation of rebar from Egypt based on the
petitioner's request.\9\ Consequently, the final CVD determination will
be issued on the same date as the final LTFV determination, which is
currently scheduled to be issued no later than May 26, 2026, unless
postponed.
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\9\ The petitioner is the Rebar Trade Action Coalition. See
Petitioner's Letter, ``Request to Align Countervailing Duty
Investigation Final Determinations with Antidumping Duty
Investigation Final Determinations,'' dated January 6, 2026.
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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
[[Page 1264]]
examined, excluding any rates that are zero, de minimis, or based
entirely under section 776 of the Act. If the rates established for all
exporters and producers individually investigated are zero, de minimis,
or determined entirely under facts available, Commerce may use any
reasonable method to establish an all-others rate.\10\
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\10\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
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In this investigation, Commerce preliminarily calculated an
individual estimated countervailable subsidy rate for the Ezz Group
that is not zero, de minimis, or based entirely on the facts otherwise
available.\11\ Commerce calculated the all-others rate using the
individual estimated subsidy rate calculated for the sole examined
respondent, i.e., the Ezz Group.
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\11\ The Ezz Group consists of mandatory respondents and cross-
owned companies Ezz Steel Company S.A.E. (ESR) and Al-Ezz Dekheila
Steel Alexandria Company (SAE) (EZDK), as well the following
additional cross-owned companies: Al-Ezz Flat Steel Company (SAE)
(EFS), Ezz Rolling Mills Company (SAE) (ERM), Al-Ezz Group Holding
Company for Industry & Investment (Ezz Industries), and Contra Steel
Co. (Contra).
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist for the period of investigation
January 1, 2024 through December 31, 2024:
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Subsidy rate (percent
Company ad valorem)
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Al-Ezz Dekheila Steel Alexandria Company (SAE); 29.51
Ezz Steel Company S.A.E.; Ezz Rolling Mills
Company (SAE); Al-Ezz Flat Steel Company
(SAE); Contra Steel Co.; Al-Ezz Group Holding
Company for Industry & Investment.............
All Others..................................... 29.51
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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 rebar from Egypt, as described in Appendix I to this
notice, 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
Commerce intends to disclose its calculations and analysis
performed in connection with 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, excluding scope 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.\12\ Interested
parties who submit case or rebuttal briefs in this proceeding must
submit: (1) a table of contents listing each issue; and (2) a table of
authorities.\13\
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\12\ 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).
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
request that interested parties provide at the beginning of their
briefs a public, executive summary for each issue raised in their
briefs.\14\ Further, we request that interested parties limit their
public executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public 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).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ 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 in the Federal Register.
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. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, Commerce intends to hold
the hearing at a date and time to be determined.
[[Page 1265]]
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 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 rebar from Egypt 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) of the Act, and 19 CFR 351.205(c).
Dated: January 8, 2026.
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 subject to this investigation is steel concrete
reinforcing bar imported in either straight length or coil form
(rebar) regardless of metallurgy, length, diameter, or grade or lack
thereof.
The subject merchandise includes rebar that has been further
processed in the subject countries or a third country, including but
not limited to cutting, grinding, galvanizing, painting, coating, or
any other processing that would not otherwise remove the merchandise
from the scope of this investigation if performed in the country of
manufacture of the rebar.
Specifically excluded are plain rounds (i.e., nondeformed or
smooth rebar).
The subject merchandise is classifiable in the Harmonized Tariff
Schedule of the United States (HTSUS) primarily under item numbers
7213.10.0000, 7214.20.0000, and 7228.30.8010. The subject
merchandise may also enter under other HTSUS numbers including
7221.00.0017, 7221.00.0018, 7221.00.0030, 7221.00.0045,
7222.11.0001, 7222.11.0057, 7222.11.0059, 7222.30.0001,
7227.20.0080, 7227.90.6030, 7227.90.6035, 7227.90.6040,
7228.20.1000, and 7228.60.6000. HTSUS numbers are provided for
convenience and customs purposes; however, the written description
of the scope remains dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of Egypt's Economy
V. Subsidies Valuation
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2026-00494 Filed 1-12-26; 8:45 am]
BILLING CODE 3510-DS-P
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