Certain Tungsten Shot From the People's Republic of China: Final Affirmative Countervailing 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: Final Affirmative Countervailing 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) 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. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable July 11, 2025. </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> On December 20, 2024, Commerce published the <E T="03">Preliminary Determination</E> in the <E T="04">Federal Register</E> and invited interested parties to comment. <SU>1</SU> <FTREF/> On February 6, 2025, Commerce issued a post-preliminary analysis. <SU>2</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">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,</E> 89 FR 104083 (December 20, 2024) ( <E T="03">Preliminary Determination</E> ), and accompanying Preliminary Decision Memorandum (PDM). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> 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). </FTNT> For a complete discussion of the events that followed the <E T="03">Preliminary Determination, see</E> the Issues and Decision Memorandum. <SU>3</SU> <FTREF/> The Issues and Decision Memorandum is a public document and is made available to the public 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 Issues and 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, “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). </FTNT> <HD SOURCE="HD1">Scope of the Investigation</HD> The merchandise covered by the scope of 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> We received no comments from interested parties on the scope of the investigation as it appeared in the <E T="03">Preliminary Determination.</E> Therefore, we made no changes to the scope of the investigation. <HD SOURCE="HD1">Verification</HD> 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. <SU>4</SU> <FTREF/> <FTNT> <SU>4</SU>   <E T="03">See</E> Memorandum, “Verification of the Questionnaire Responses of Zhuzhou KJ Super Materials Co., Ltd.,” dated March 19, 2025. </FTNT> <HD SOURCE="HD1">Analysis of Subsidy Programs and Comments Received</HD> 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, <E T="03">see</E> Appendix II to this notice. <HD SOURCE="HD1">Methodology</HD> 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, <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>5</SU> <FTREF/> For a full description of the methodology underlying our final determination, <E T="03">see</E> the Issues and Decision Memorandum. <FTNT> <SU>5</SU>   <E T="03">See</E> sections 771(5)(B) and (D) of the Act regarding financial contribution; <E T="03">see also</E> section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. </FTNT> 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), <E T="03">see</E> the <E T="03">Preliminary Determination</E>   <SU>6</SU> <FTREF/> and the Issues and Decision Memorandum at the section entitled “Uses of Facts Available and Application of Adverse Inferences.” <FTNT> <SU>6</SU>   <E T="03">See Preliminary Determination</E> PDM at 4-25. </FTNT> <HD SOURCE="HD1">Changes Since the Preliminary Determination and Post-Preliminary Analysis</HD> 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. <SU>7</SU> <FTREF/> For a discussion of these changes, <E T="03">see</E> the Issues and Decision Memorandum. <FTNT> <SU>7</SU>   <E T="03">See</E> Issues and Decision Memorandum at 3 and Appendix. </FTNT> <HD SOURCE="HD1">All-Others Rate</HD> 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 <E T="03">de minimis</E> 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, <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">Final Determination</HD> Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2023, through December 31, 2023: <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s150,12"> <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>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Luoyang Hypersolid Metal Tech Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Mudanjiang North Alloy Tools Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Shaanxi Xinheng Rare Metal Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Xi'an Refractory & Precise Metals Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou KJ Super Materials Co., Ltd</ENT> <ENT>55.64</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou Oston Carbide Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">Zhuzhou Tungsten Man Materials Co., Ltd</ENT> <ENT>* 292.84</ENT> </ROW> <ROW> <ENT I="01">All Others</ENT> <ENT>55.64</ENT> </ROW> <TNOTE>* Rate is based on facts available with adverse inferences.</TNOTE> </GPOTABLE> <HD SOURCE="HD1">Disclosure</HD> 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 the <E T="04">Federal Register</E> , in accordance with 19 CFR 351.224(b). <HD SOURCE="HD1">Continuation of Suspension of Liquidation</HD> As a result of our <E T="03">Preliminary Determination,</E> 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 <E T="03">Preliminary Determination</E> in the <E T="04"> ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 16k characters. 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