91 FR 48076 · published 2026-07-30
· Commerce Department, International Trade Administration
Mirrored from the Federal Register (retrieved 2026-08-08) —
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The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters 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.
[Federal Register Volume 91, Number 145 (Thursday, July 30, 2026)]
[Notices]
[Pages 48076-48079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-15397]
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-221]
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
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 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.
DATES: Applicable July 30, 2026.
FOR FURTHER INFORMATION CONTACT: Joseph Molokwu, AD/CVD Operations,
Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8043.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made 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 March 20, 2026.\1\ On May
6, 2026, Commerce postponed the preliminary determination of this
investigation and the revised deadline is now July 24, 2026.\2\
\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 and India: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 91 FR
24520 (May 6, 2026).
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ 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, which is available to registered
users at https://access.trade.gov. In addition, a complete version of
the Preliminary Decision Memorandum can be accessed at https://access.trade.gov/frnotices.
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Large Diameter Graphite Electrodes from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
Scope of the Investigation
The products covered by this investigation are large graphite
electrodes from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ in
the Initiation Notice we set aside a period of time for parties to
raise issues regarding product coverage (i.e., scope).\5\ Certain
interested parties commented on the scope of the investigation as it
appeared in the Initiation Notice. For a summary of the product
coverage comments and rebuttal responses submitted to the record for
this preliminary determination, and accompanying discussion and
analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum.\6\ Commerce is preliminarily modifying the scope
language as it appeared in the Initiation Notice. See the revised scope
in Appendix I to this notice.
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 91 FR at 13577.
\6\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Large Diameter Graphite Electrodes from India
and the People's Republic of China: Preliminary Scope Decision
Memorandum,'' dated concurrently with this notice (Preliminary Scope
Decision Memorandum).
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.\7\
\7\ 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.
Commerce notes that, in making these findings, it relied on facts
available and, because we found that the respondents did not act to the
best of 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.\8\ For further
information, see the ``Use of Facts Otherwise Available and Adverse
Inferences'' section in the Preliminary Decision Memorandum.
\8\ See sections 776(a) and (b) of the Act.
Alignment
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 determination in this countervailing duty (CVD)
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation of large graphite electrodes from China
based on a request made by the petitioners.\9\ Consequently, the final
determination in this CVD investigation will be issued on the same date
as the final determination in the LTFV investigation of large graphite
electrodes from China, which is currently scheduled to be issued no
later than December 7, 2026, unless postponed.
\9\ 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 Petitioner's Letter,
``Petitioners' Request to Align Final Countervailing Duty
Determinations with the Companion Antidumping Duty Final
Determinations,'' dated June 24, 2026.
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 facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all
other producers or exporters. In this investigation, Commerce
preliminarily determined the estimated subsidy rate for each of the
individually examined respondents based entirely on facts available
under section 776 of the Act. Thus, this is the only rate available in
this proceeding for deriving 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.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
Subsidy rate
Company (percent ad
valorem)
Dantan New Materials Co., Ltd........................... * 103.49
Shanxi Juxian Graphite New Material Co., Ltd............ * 103.49
All Others.............................................. 103.49
* Rate is 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 and analysis
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 this notice, in accordance with 19 CFR 351.224(b).
However, because Commerce preliminarily relied on total adverse facts
available (AFA) in the calculation of the benefit for the individually
examined companies, Dantan New Materials Co., Ltd. and Shanxi Juxian
Graphite New Material Co., Ltd. in this investigation, in accordance
with section 776 of the Act, and the applied AFA rates are based on
rates calculated in prior proceedings, there are no calculations to
disclose.
Verification
Because the examined respondents in this investigation did not
provide information requested by Commerce and Commerce preliminarily
determines each of the examined respondents to have been uncooperative,
it will not conduct verification.
Public Comment
The deadlines to submit scope case and rebuttal briefs are provided
in the Preliminary Scope Decision Memorandum. For all scope case and
rebuttal briefs, parties must file identical documents simultaneously
on the records of the ongoing LTFV and CVD large graphite electrodes.
No new factual information or business proprietary information may be
included in either scope case or rebuttal briefs
Non-scope related 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\
\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).
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 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\
\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.
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, within 30 days
after the date of publication of this notice. Requests should contain
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
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. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
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 large graphite electrodes from China
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) of the Act, and 19 CFR 351.205(c).
Dated: July 24, 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 merchandise covered by this investigation includes all large
diameter graphite electrodes of any length, whether or not finished,
of a kind used in furnaces, with a nominal or actual diameter
exceeding 425 millimeters (16.7 inches), and whether or not attached
to a graphite pin joining system or any other type of joining system
or hardware. The merchandise covered by the investigation also
includes graphite pin joining systems (commonly referred to as pins
or nipples) for large diameter graphite electrodes, of any length,
and with a minimum diameter of 228.6 mm (9 inches) at its widest
transverse cross-section, whether or not finished, of a kind used in
furnaces, and whether or not the graphite pin joining system is
attached to, sold with, or sold separately from, the large diameter
graphite electrode. Unfinished large diameter graphite electrodes
are graphitized electrodes that have not undergone final machining.
For purposes of the investigation, the country of origin is
determined by the country of graphitization.
Excluded from the scope of the investigation are large diameter
graphite electrodes that are subject to the existing antidumping
duty order on Small Diameter Graphite Electrodes from the People's
Republic of China. See Antidumping Duty Order: Small Diameter
Graphite Electrodes from the People's Republic of China, 74 FR 8775
(February 26, 2009) (SDGE China AD Order) due to an affirmative
determination of circumvention that imports of graphite electrodes
from the People's Republic of China, produced and/or exported by
Sinosteel Jilin Carbon Co., Ltd. and Jilin Carbon Import & Export
Company (collectively, Jilin Carbon), with an actual or nominal
diameter of 17 inches and otherwise meeting the description of the
scope of the SDGE China AD Order constitute merchandise subject to
the SDGE China AD Order. See Small Diameter Graphite Electrodes from
the People's Republic of China: Affirmative Final Determination of
Circumvention of the Antidumping Duty Order and Rescission of Later-
Developed Merchandise Anticircumvention Inquiry, 78 FR 56864
(September 16, 2013). In the case of graphite electrodes entering
the United
States determined to be subject to the SDGE China AD Order, such
order controls. In the case of graphite electrodes entering the
United States meeting the scope definition of the investigation and
not covered by the scope of the SDGE China AD Order, the scope of
the investigation controls.
Large diameter graphite electrodes and graphite pin joining
systems for large diameter graphite electrodes that are covered by
the investigation are currently classified under the Harmonized
Tariff Schedule of the United States (HTSUS) statistical reporting
number 8545.11.0020. Merchandise covered by the investigation may
also enter under HTSUS statistical reporting numbers 3801.10.5090 or
3801.90.0050. The HTSUS numbers are provided for convenience and
customs purposes, but the written description of the scope is
dispositive.
Excluded from the scope of the investigation are certain thermal
energy storage (TES) graphite blocks. The excluded TES graphite
blocks are machine-milled, non-cylindrical graphite blocks, which
have: a coefficient of thermal expansion of 1.5 [micro]m/
(m[middot]K) or greater, and an apparent (also known as bulk)
density below 1.74 g/cm3, and which have an actual length of between
228.6 mm (9.0 inches) and 3010 mm (118.5 inches), an actual width
between 228.6 mm (9.0 inches) and 560 mm (22.0 inches), an actual
height between 228.6 mm (9.0 inches) and 560 mm (22.0 inches), and
which have been machined to include two or more holes of at least
150 mm (5.9 inches) in depth and at least 35 mm (1.4 inches) in
diameter.
The two or more 150 mm deep holes must be located: (i) along the
longest centerline of the longest side of the block, each located on
the same side of the block, (ii) spaced at intervals of no greater
than 1000 mm (39.4 inches) apart as measured from the outer edge of
the holes, and (iii) with the hole closest to each end of the
longest centerline located within 1000 mm of the corresponding end
of the block. Blocks may contain any number of additional holes,
channels, or grooves in any configuration or location, provided that
at least two or more holes of at least 150 mm depth are present as
described above.
Further excluded from the scope of the investigation are certain
TES graphite blocks, anchors, and pins, regardless of shape, which
have a coefficient of thermal expansion of 1.5 [micro]m/(m[middot]K)
or greater, and an apparent (also known as bulk) density below 1.74
g/cm3, with actual dimensions such that any one or more of the
length, width, or height is less than 228.6 mm (9.0 inches).
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2026-15397 Filed 7-29-26; 8:45 am]
BILLING CODE 3510-DS-P
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