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

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[C-570-179]</DEPDOC> <SUBJECT>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</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Commerce (Commerce) preliminarily 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 is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable December 20, 2024. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> 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. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> This preliminary determination is issued in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on August 13, 2024. <SU>1</SU> <FTREF/> On September 26, 2024, Commerce postponed the preliminary determination of this investigation until December 16, 2024. <SU>2</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">See Certain Tungsten Shot from the People's Republic of China: Initiation of Countervailing Duty Investigation,</E> 89 FR 65852 (August 13, 2024) ( <E T="03">Initiation Notice</E> ). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See Certain Tungsten Shot from the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation,</E> 89 FR 78848 (September 26, 2024). </FTNT> For a complete description of the events that followed the initiation of this investigation, <E T="03">see</E> the Preliminary Decision Memorandum. <SU>3</SU> <FTREF/> 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 Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at <E T="03">https://access.trade.gov.</E> In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E> <FTNT> <SU>3</SU>   <E T="03">See</E> Memorandum, “Decision Memorandum for the Preliminary 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 (Preliminary Decision Memorandum). </FTNT> <HD SOURCE="HD1">Scope of the Investigation</HD> The product covered by this investigation is tungsten shot from China. For a complete description of the scope of this investigation, <E T="03">see</E> Appendix I. <HD SOURCE="HD1">Scope Comments</HD> In accordance with the <E T="03">Preamble</E> to Commerce's regulations, <SU>4</SU> <FTREF/> the <E T="03">Initiation Notice</E> set aside a period of time for parties to raise issues regarding product coverage ( <E T="03">i.e.,</E> scope). <SU>5</SU> <FTREF/> No interested party commented on the scope of the investigation as it appeared in the <E T="03">Initiation Notice.</E> <FTNT> <SU>4</SU>   <E T="03">See Antidumping Duties; Countervailing Duties, Final Rule,</E> 62 FR 27296, 27323 (May 19, 1997) ( <E T="03">Preamble</E> ). </FTNT> <FTNT> <SU>5</SU>   <E T="03">See Initiation Notice</E> , 89 FR at 65852. </FTNT> <HD SOURCE="HD1">Methodology</HD> 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, <E T="03">i.e.,</E> a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific. <SU>6</SU> <FTREF/> For a full description of the methodology underlying our preliminary determination, <E T="03">see</E> the Preliminary Decision Memorandum. <FTNT> <SU>6</SU>   <E T="03">See</E> 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. </FTNT> Commerce notes that, in making these findings, it relied, in part, on facts available and, because it finds that one or more respondents did not act to the best of their ability to respond to Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available. <SU>7</SU> <FTREF/> For further information, <E T="03">see</E> the Preliminary Decision Memorandum at “Use of Facts Otherwise Available and Adverse Inferences.” <FTNT> <SU>7</SU>   <E T="03">See</E> sections 776(a) and (b) of the Act. </FTNT> <HD SOURCE="HD1">Alignment</HD> As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty (CVD) determination in this investigation with the final determination in the companion antidumping duty (AD) investigation of tungsten shot from China based on a request made by the petitioner. <SU>8</SU> <FTREF/> Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than April 28, 2025, unless postponed. <FTNT> <SU>8</SU>   <E T="03">See</E> Petitioner's Letter, “Request to Align Final Determinations,” dated November 20, 2024. </FTNT> <HD SOURCE="HD1">All-Others Rate</HD> 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 <E T="03">de minimis</E> rates and any rates based entirely under section 776 of the Act. Commerce calculated an individual estimated countervailable subsidy rate for Zhuzhou KJ Super Materials Co., Ltd. (KJ Super), the only individually examined exporter/producer in this investigation. Because the only individually calculated rate is not zero, <E T="03">de minimis,</E> 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. <HD SOURCE="HD1">Preliminary Determination</HD> Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s100,12"> <TTITLE> </TTITLE> <CHED H="1">Company</CHED> <CHED H="1"> Subsidy rate (percent <E T="03">ad valorem</E> <ENT I="01">Luoyang Combat Tungsten & Molybdenum Materials Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Luoyang Hypersolid Metal Tech Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Mudanjiang North Alloy Tools Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Shaanxi Xinheng Rare Metal Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Xi'an Refractory & Precise Metals Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou KJ Super Materials Co., Ltd</ENT> <ENT>73.75</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou Oston Carbide Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou Tungsten Man Materials Co., Ltd</ENT> <ENT>* 352.20</ENT> </ROW> <ROW> <ENT I="01">All Others</ENT> <ENT>73.75</ENT> </ROW> <TNOTE>* Rate is based on facts available with adverse inferences.</TNOTE> </GPOTABLE> <HD SOURCE="HD1">Suspension of Liquidation</HD> In accordance with sections 703(d)(1)(B) and (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 <E T="04">Federal Register</E> . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. <HD SOURCE="HD1">Disclosure</HD> Commerce intends to disclose its calculations and analysis performed to interested parties in 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 <E T="04">Federal Register</E> <E T="03">,</E> 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. 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