Notice2026-19518
Large Diameter Graphite Electrodes From the People's Republic of China: Preliminary Affirmative Critical Circumstances Determination in Countervailing Duty Investigation
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 24, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that critical circumstances exist with respect to imports of large diameter graphite electrodes (large graphite electrodes) from the People's Republic of China (China). The period of investigation is January 1, 2025, through December 31, 2025. Interested parties are invited to comment on this preliminary determination of critical circumstances.
Full Text
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<title>Federal Register, Volume 91 Issue 184 (Thursday, September 24, 2026)</title>
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[Federal Register Volume 91, Number 184 (Thursday, September 24, 2026)]
[Notices]
[Pages 60593-60595]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19518]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-221]
Large Diameter Graphite Electrodes From the People's Republic of
China: Preliminary Affirmative Critical Circumstances Determination in
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that critical circumstances exist with respect to imports of
large diameter graphite electrodes (large graphite electrodes) from the
People's Republic of China (China). The period of investigation is
January 1, 2025, through December 31, 2025. Interested parties are
invited to comment on this preliminary determination of critical
circumstances.
DATES: Applicable September 24, 2026.
FOR FURTHER INFORMATION CONTACT: Joseph Molokwu, AD/CVD Operations,
Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401
[[Page 60594]]
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
8043.
SUPPLEMENTARY INFORMATION:
Background
On March 20, 2026, Commerce published the notice of initiation of
this countervailing duty (CVD) investigation in the Federal
Register.\1\ On July 30, 2026, Commerce published its Preliminary
Determination.\2\ In the Preliminary Determination, Commerce applied
facts available with an adverse inference (AFA) to the two mandatory
respondents, Dantan New Materials Co., Ltd. (Dantan New Materials) and
Shanxi Juxian Graphite New Material Co., Ltd. (Shanxi Juxian), and the
Government of China.\3\
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\1\ See Large Diameter Graphite Electrodes from the People's
Republic of China and India: Initiation of Countervailing Duty
Investigations,91 FR 13577 (March 20, 2026) (Initiation Notice).
\2\ See Large Diameter Graphite Electrodes from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination With Final
Antidumping Duty Determination, 91 FR 48076 (July 30, 2026)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\3\ See Preliminary Determination PDM at 4-19.
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On September 1, 2026, the Large Diameter Graphite Electrodes Fair
Trade Coalition (the petitioners) filed a timely critical circumstances
allegation, pursuant to section 703(e)(1) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 351.206, alleging that critical
circumstances exist with respect to large graphite electrodes from
China.\4\
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\4\ The petitioners are the Large Diameter Graphite Electrodes
Fair Trade Coalition and its individual members, Resonac Graphite
America Inc. and Tokai Carbon GE LLC. See Petitioners' Letter, ''
Petitioners' Allegation of Critical Circumstances,'' dated September
1, 2026 (Petitioners' Allegation).
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In accordance with section 703(e)(1) of the Act and 19 CFR
351.206(c)(1), because the petitioners submitted the critical
circumstances allegation more than 30 days before the scheduled date of
the final determination, Commerce will make a preliminary finding as to
whether there is a reasonable basis to believe or suspect that critical
circumstances exist.
Critical Circumstances Allegation
The petitioners allege that there was a massive increase in imports
of large graphite electrodes from China and provided monthly import
data for the period November 2025 through June 2026.\5\ The petitioners
state that a comparison of total imports, by quantity, for the base
period of November 2025 through February 2025 to the comparison period
of March 2026 through June 2026, shows that imports from China
increased by 105.43 percent, which is considered ``massive'' under 19
CFR 351.206(h)(2) and section 703(e)(1)(b) of the Act.\6\ The
petitioners also allege that there is a reasonable basis to believe
that there are subsidies in this investigation which are inconsistent
with the World Trade Organization Agreement on Subsidies and
Countervailing Measures (SCM Agreement).\7\
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\5\ See Petitioners' Allegation at 5-7.
\6\ Id.
\7\ Id at 3-4.
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Critical Circumstances Analysis
Section 703(e)(1) of the Act provides that Commerce will
preliminarily determine that critical circumstances exist in a CVD
investigation if there is a reasonable basis to believe or suspect
that: (A) the alleged countervailable subsidy is inconsistent with the
SCM Agreement; \8\ and (B) there have been massive imports of the
subject merchandise over a relatively short period.
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\8\ Commerce limits its critical circumstances findings to those
subsidies contingent upon export performance or use of domestic over
imported goods (i.e., those prohibited under Article 3 of the SCM
Agreement). See, e.g., Final Affirmative Countervailing Duty
Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002).
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In determining whether ``massive imports'' occurred over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act and 19 CFR 351.206(h) and (i), Commerce normally compares the
import volumes of the subject merchandise for at least three months
immediately preceding the filing of the petition (i.e., the base
period) to a comparable period of at least three months following the
filing of the petition (i.e., the comparison period). However, the
regulations also provide that if Commerce finds that importers, or
exporters or producers, had reason to believe, at some time prior to
the beginning of the proceeding, that a proceeding was likely, Commerce
may consider a period of not less than three months from the earlier
time.\9\ Imports normally will be considered massive when imports
during the comparison period have increased by 15 percent or more
compared to imports during the base period.\10\
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\9\ See 19 CFR 351.206(i).
\10\ See 19 CFR 351.206(h)(2).
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Alleged Countervailable Subsidies Are Inconsistent With the SCM
Agreement
Commerce considered the evidence on the record that certain
programs are inconsistent with the SCM Agreement because they are
contingent upon export performance. Based on information on the record,
we preliminarily find a reasonable basis to believe or suspect that
Dantan New Materials, Shanxi Juxian, and all other producers and/or
exporters received countervailable subsidies inconsistent with the SCM
Agreement under section 703(e)(1)(A) of the Act. Such programs include:
Export Loans from Chinese State-Owned Bank; Export Seller's Credit;
Export Buyer's Credit; Subsidies for the Development of Famous Brands
and China World Top Brands; Foreign Trade Development Fund Grants; and
Export Assistance Grants.\11\ Thus, because there is a reasonable basis
to believe or suspect these programs are inconsistent with the SCM
Agreement, we preliminarily find that the criterion under section
703(e)(1)(A) of the Act has been met.
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\11\ See Petitioners' Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated February 24, 2026
(Petition), at Volume IV; see also Checklist, ``Countervailing Duty
Investigation Initiation Checklist: Large Diameter Graphite
Electrodes from the People's Republic of China,'' dated March 16,
2026.
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Massive Imports
As explained in the Preliminary Determination, Dantan New Materials
and Shanxi Juxian did not cooperate in this investigation, and we
preliminarily applied total AFA under sections 776(a) and (b) of the
Act. Therefore, in accordance with sections 776(a) and (b) of the Act,
we preliminarily find that critical circumstances exist with respect to
imports of large graphite electrodes from China for Dantan New
Materials and Shanxi Juxian under section 703(e)(1) of the Act.
For all other producers and/or exporters, to determine their total
volume of shipments, Commerce's normal practice is to subtract
shipments reported by the cooperating mandatory respondents from the
total shipment data of subject merchandise. However, as stated above,
there are no cooperative respondents in this investigation. Therefore,
for all other exporters and/or producers, we compared the monthly
shipment data using import data from Trade Data Monitor (TDM) for a
base and a comparison period.
When determining whether massive shipments occurred within the
meaning of 19 CFR 351.206(h), Commerce's practice is to include the
month the petition was filed in the base period if the petition was
filed during the last half of the month.\12\ Further, when
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provisional measures have been applied, Commerce's practice is to use
the longest period for which information is available through the month
in which provisional measures were applied or the month prior to
provisional measures being applied if the preliminary determination
published in the first half of the month.\13\ The Petition was filed
during the second half of February 2026, and the Preliminary
Determination published during the second half of July 2026 (i.e., the
month in which provisional measures were applied). Thus, to determine
whether there was a massive surge in imports, Commerce analyzed the
total import volume from the filing of the petition until provision
measures were imposed, i.e., the five-month base period of October 2025
through February 2026 and a five-month comparison period of March 2026
through July 2025.\14\ The quantity of shipments reported in the TDM
data for the Harmonized Tariff Schedule of the United States (HTSUS)
number 8545.11.0020 during the comparison period exceeded the quantity
of shipments reported for the base period by greater than 15
percent.\15\ Therefore, we determine that the record supports a
determination that there is a massive surge in imports between the base
and comparison periods for all other exporters and producers of large
graphite electrodes from China.\16\
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\12\ See, e.g., Circular Welded Carbon Quality Steel Pipe from
the People's Republic of China: Final Affirmative Countervailing
Duty Determination and Final Affirmative Determination of Critical
Circumstances, 73 FR 31966 (June 5, 2008), and accompanying Issues
and Decision Memorandum (IDM) at 91-92; see also Overhead Door
Counterbalance Torsion Springs from India: Preliminary Affirmative
Determination of Critical Circumstances in the Countervailing Duty
Investigation, 90 FR 35660, 61 (July 29, 2025).
\13\ See, e.g., Certain Quartz Surface Products from the
Republic of Turkey: Final Affirmative Countervailing Duty
Determination and Final Affirmative Determination of Critical
Circumstances, In Part, 85 FR 25400 (May 1, 2020) and accompanying
IDM at 2-3.
\14\ See Memorandum, ``Preliminary Critical Circumstances
Analysis,'' dated concurrently with this notice, at Attachment.
\15\ Id.
\16\ Id.
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Final Determination
We will make a final determination concerning critical
circumstances in the final determination of this investigation, which
is currently scheduled for December 7, 2026.
Public Comments
Case briefs or other written comments limited to Commerce's
preliminary determination of critical circumstances may be submitted to
the Assistant Secretary for Enforcement and Compliance no later than
seven days after the date on which this notice is published in the
Federal Register. 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.\17\ 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.\18\
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\17\ 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).
\18\ 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.\19\
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).\20\
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\19\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\20\ See APO and Service Final Rule.
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for Dantan New
Materials, Shanxi Juxian, and all other producers and/or exporters, we
intend to direct U.S. Customs and Border Protection (CBP) to suspend
liquidation of any unliquidated entries of subject merchandise from
China entered, or withdrawn from warehouse for consumption, on or after
May 1, 2026, which is 90 days prior to the date of publication of the
Preliminary Determination in the Federal Register. For such entries,
CBP shall require a cash deposit equal to the estimated preliminary
subsidy rates established in the Preliminary Determination. This
suspension of liquidation will remain in effect until further notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of this preliminary determination of critical circumstances.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.206.
Dated: September 18, 2026.
Steven Presing,
Executive Director for Policy and Negotiations.
[FR Doc. 2026-19518 Filed 9-23-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 24, 2026.
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