Unwrought Palladium From the Russian Federation: Preliminary Affirmative Countervailing 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 unwrought palladium (palladium) from the Russian Federation (Russia). 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 47 (Wednesday, March 11, 2026)</title>
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[Federal Register Volume 91, Number 47 (Wednesday, March 11, 2026)]
[Notices]
[Pages 11949-11951]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04765]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-841]
Unwrought Palladium From the Russian Federation: 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 unwrought palladium (palladium) from the
Russian Federation (Russia). The period of investigation is January 1,
2024, through December 31, 2024. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable March 11, 2026.
FOR FURTHER INFORMATION CONTACT: Kelsie Hohenberger or Olivia
Woolverton, AD/CVD Operations, Office V, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2517
or (202) 482-7452.
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 August 22,
2025, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation in the Federal Register.\1\ On
September 30, 2025, Commerce postponed the preliminary determination
until December 29, 2025.\2\
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\1\ See Unwrought Palladium from the Russian Federation:
Initiation of Countervailing Duty Investigation, 90 FR 41039 (August
22, 2025) (Initiation Notice).
\2\ See Unwrought Palladium from the Russian Federation:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 90 FR 46791 (September 30, 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 March 5, 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 to 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 Unwrought Palladium from the Russian Federation,'' 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 palladium from Russia.
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
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Accordingly, Commerce is not preliminarily
modifying the scope language as it appeared in 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 41039.
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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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Commerce notes that, in making these findings, we relied on facts
available and, because we find that certain respondents did not act to
the best of
[[Page 11950]]
their ability to respond to Commerce's requests for information, we
drew an adverse inference where appropriate in selecting from among the
facts otherwise available.\9\ For further information, see the ``Use of
Facts Otherwise Available and Adverse Inferences'' section in the
Preliminary Decision Memorandum.
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\9\ 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 adverse facts available (AFA), Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all
other producers or exporters. In this investigation, no company
respondent participated and all rates are based entirely on AFA under
section 776 of the Act. Therefore, the AFA rate is the only rate
available in this proceeding to assign as 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 mandatory
respondents listed below.
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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JSC Urals Innovative Technologies....................... * 109.10
Prioksky Plant of Non Ferrous Metals.................... * 109.10
All Others.............................................. 109.10
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* Rate based on facts available with adverse inferences.
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 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 publication of the
notice, in accordance with 19 CFR 351.224(b). However, because Commerce
preliminarily applied total AFA for the calculation of the benefit for
the mandatory respondents, and the applied AFA rates are based on rates
calculated in prior proceedings, there are no company-specific
calculations to disclose.
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
Because the examined company respondents in this investigation did
not provide information requested by Commerce and Commerce
preliminarily determines each of these respondents have been
uncooperative, it will not conduct verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of the preliminary
determination.\10\ 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.\11\ 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.\12\
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\10\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 for
general filing requirements
\11\ 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).
\12\ 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.\13\ 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 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).\14\
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\13\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\14\ 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 the party's name, address, and telephone
[[Page 11951]]
number, the number of participants and 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.
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 palladium from Russia 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)(1) of the Act, and 19 CFR 351.205(c).
Dated: March 5, 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 scope of this investigation is unwrought palladium.
Unwrought palladium includes palladium, whether or not refined, in
the form of ingots, blocks, lumps, billets, cakes, slabs, pigs,
cathodes, anodes, briquettes, cubes, sticks, grains, sponge,
pellets, shot, powder, and similar primary forms.
Unwrought palladium is covered by the scope regardless of
production method. The scope includes unwrought palladium produced
through ore extraction, unwrought palladium produced by recycling
palladium-containing scrap, unwrought palladium produced by any
other method, and blends of unwrought palladium produced by
different methods.
The scope includes unwrought palladium that is commingled with
unwrought palladium from sources not subject to this investigation
or commingled with other metals. Only the subject unwrought
palladium component of such commingled products is covered by the
scope of this investigation.
Subject merchandise includes merchandise matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by refining, grinding, commingling,
adding or removing additives (such as other metals), or performing
any other finishing, packaging, or processing that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the subject country.
The covered merchandise is currently classified in the
Harmonized Tariff Schedule of the United States (HTSUS) at
subheading 7110.21.0000. Unwrought palladium meeting the scope
description may also enter under HTSUS subheading 7110.29.0000.
Although the HTSUS subheadings are provided for convenience and for
customs purposes, the written description of the subject merchandise
is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Injury Test
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2026-04765 Filed 3-10-26; 8:45 am]
BILLING CODE 3510-DS-P
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