90 FR 131 pgs. 30869-30871 - Certain Tungsten Shot From the People's Republic of China: Final Affirmative Countervailing Duty Determination
Type: NOTICEVolume: 90Number: 131Pages: 30869 - 30871
Pages: 30869, 30870, 30871Docket number: [C-570-179]
FR document: [FR Doc. 2025-12966 Filed 7-10-25; 8:45 am]
Agency: Commerce Department
Sub Agency: International Trade Administration
Official PDF Version: PDF Version
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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
Footnotes:
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).
[top] For a complete discussion of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum. 3 The Issues and
Footnotes:
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).
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
Footnotes:
4 ? See Memorandum, "Verification of the Questionnaire Responses of Zhuzhou KJ Super Materials Co., Ltd.," dated March 19, 2025.
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.
Footnotes:
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.
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."
Footnotes:
6 ? See Preliminary Determination PDM at 4-25.
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.
Footnotes:
7 ? See Issues and Decision Memorandum at 3 and Appendix.
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:
| Company | Subsidy rate (percent ad valorem ) |
|---|---|
| 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 |
| *?Rate is based on facts available with adverse inferences. | |
Disclosure
[top] 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
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.
Footnotes:
8 ? See Preliminary Determination, 89 FR at 104083.
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