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[Federal Register Volume 90, Number 17 (Tuesday, January 28, 2025)]
[Notices]
[Pages 8267-8271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01794]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-197]

Slag Pots From the People's Republic of China: Initiation of 
Countervailing Duty Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

DATES: Applicable January 21, 2025.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, Office III, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7851.

SUPPLEMENTARY INFORMATION:

The Petition

    On December 31, 2024, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
slag pots from the People's Republic of China (China) filed in proper 
form on behalf of WHEMCO-Steel Castings, Inc. (the petitioner), a U.S. 
producer of slag pots.\1\ The CVD Petition was accompanied by an 
antidumping duty (AD) petition concerning imports of slag pots from 
China.\2\
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    \1\ See Petitioner's Letter, ``Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated December 31, 2024 
(Petition).
    \2\ Id.

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[[Page 8268]]

    Between January 6 and 14, 2025, Commerce requested supplemental 
information pertaining to certain aspects of the Petition in 
supplemental questionnaires.\3\ On January 13 and 16, 2025, the 
petitioner filed timely responses to these requests for additional 
information.\4\
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    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
January 6, 2025; and ``Supplemental Questions,'' dated January 7, 
2025 (General Issues Questionnaire); see also Memorandum ``Phone 
Call with Counsel to the Petitioner, dated January 14, 2024 (January 
14, 2025 Memorandum).
    \4\ See Petitioner's Letters, ``Response to Supplemental 
Questions Regarding Countervailing Duty Petition,'' dated January 
13, 2025; ``Response to Supplemental Questions Regarding Antidumping 
Volume I of the Petitions,'' dated January 13, 2025 (First General 
Issues Supplement); and ``Response to Second Supplemental Questions 
Regarding Volume I of Petitions,'' dated January 16, 2025 (Second 
General Issues Supplement).
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of China 
(GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of slag pots in China, 
and that such imports are materially injuring, or threatening material 
injury to, the domestic industry producing slag pots in the United 
States. Consistent with section 702(b)(1) of the Act and 19 CFR 
351.202(b), for those alleged programs on which we are initiating a CVD 
investigation, the Petition was accompanied by information reasonably 
available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry, because the petitioner is an interested party, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioner demonstrated sufficient industry support with respect to 
the initiation of the requested CVD investigation.\5\
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    \5\ See section on ``Determination of Industry Support for the 
Petition,'' infra.
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Period of Investigation

    Because the Petition was filed on December 31, 2024, the period of 
investigation for the CVD investigation is January 1, 2023, through 
December 31, 2023.\6\
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    \6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation

    The product covered by this investigation is slag pots from China. 
For a full description of the scope of this investigation, see the 
appendix to this notice.

Comments on the Scope of the Investigation

    On January 7 and 14, 2025, Commerce requested information and 
clarification from the petitioner regarding the proposed scope to 
ensure that the scope language in the Petition is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\7\ On January 13 and 16, 2025, the petitioner provided 
clarifications and revised the scope.\8\ The description of merchandise 
covered by this investigation, as described in the appendix to this 
notice, reflects these clarifications.
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    \7\ See General Issues Questionnaire; see also January 14, 2025, 
Memorandum.
    \8\ See First General Issues Supplement at 1-3 and Exhibit I-
SUPP-2; see also Second General Issues Supplement at 1 and Exhibit 
I-2Supp-1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\9\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information, all such 
factual information should be limited to public information.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on February 
10, 2025, which is 20 calendar days from the signature date of this 
notice. Any rebuttal comments, which may include factual information, 
and should also be limited to public information, must be filed by 5:00 
p.m. ET on February 20, 2025, which is 10 calendar days from the 
initial comment deadline.
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    \9\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that parties 
consider relevant to the scope of the investigation be submitted during 
that time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party must contact Commerce and 
request permission to submit the additional information. All scope 
comments must be filed simultaneously on the records of the concurrent 
AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOC of the receipt of the Petition and provided an 
opportunity for consultations with respect to the Petition.\12\ The GOC 
did not request consultations.\13\
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    \12\ See Commerce's Letter, ``Invitation for Consultation to 
Discuss the Countervailing Duty Petition,'' dated December 16, 2024.
    \13\ The GOC submitted comments on the CVD petition. See GOC's 
Letter, ``Comments on Countervailing Duty Petition,'' dated January 
14, 2025.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International

[[Page 8269]]

Trade Commission (ITC), which is responsible for determining whether 
``the domestic industry'' has been injured, must also determine what 
constitutes a domestic like product in order to define the industry. 
While both Commerce and the ITC apply the same statutory definition 
regarding the domestic like product,\14\ they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, Commerce's determination is subject to limitations of time 
and information. Although this may result in different definitions of 
the like product, such differences do not render the decision of either 
agency contrary to law.\15\
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    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\16\ Based on our analysis of the information 
submitted on the record, we have determined that slag pots, as defined 
in the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\17\
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    \16\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Checklist, ``Countervailing Duty Investigation Initiation Checklist: 
Slag Pots from the People's Republic of China,'' dated concurrently 
with, and hereby adopted by, this notice (China CVD Initiation 
Checklist), at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Slag Pots 
from the People's Republic of China (Attachment II). This checklist 
is on file electronically via ACCESS.
    \17\ See Attachment II of the China CVD Initiation Checklist.
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    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2023 and compared this 
to the estimated total production of the domestic like product in 2023 
by the U.S. slag pots industry.\18\ We relied on data provided by the 
petitioner for purposes of measuring industry support.\19\
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    \18\ Id.
    \19\ For further discussion, see Attachment II of the China CVD 
Initiation Checklist.
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    Our review of the data provided in the Petition, the First General 
Issues Supplement, the Second General Issues Supplement, and other 
information readily available to Commerce indicates that the petitioner 
has established industry support for the Petition.\20\ First, the 
Petition established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, Commerce is not required to take 
further action in order to evaluate industry support (e.g., 
polling).\21\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 702(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petition account for at least 25 percent of the total production of the 
domestic like product.\22\ Finally, the domestic producers (or workers) 
have met the statutory criteria for industry support under section 
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) 
who support the Petition account for more than 50 percent of the 
production of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the Petition.\23\ 
Accordingly, Commerce determines that the Petition was filed on behalf 
of the domestic industry within the meaning of section 702(b)(1) of the 
Act.\24\
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    \20\ Id.
    \21\ Id.; see also section 702(c)(4)(D) of the Act.
    \22\ See Attachment II of the China CVD Initiation Checklist.
    \23\ Id.
    \24\ Id.
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Injury Test

    Because China is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from China materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports from China exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\25\
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    \25\ For further information regarding negligibility and the 
injury allegation, see China CVD Initiation Checklist at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Slag Pots from the People's Republic of China (Attachment 
III).
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    The petitioner contends that the industry's injured condition is 
illustrated by the significant volume and market share of subject 
imports; underselling and price suppression; lost sales and revenues; 
and declines in the domestic industry's net sales quantities, 
employment variables, and financial performance.\26\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, cumulation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence and meet the statutory requirements for 
initiation.\27\
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    \26\ Id.
    \27\ Id.
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Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating a CVD investigation to determine 
whether imports of slag pots from China benefit from countervailable 
subsidies conferred by the GOC. In accordance with section 703(b)(1) of 
the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 65 days after the date of this 
initiation.
    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on 29 of the 32 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate on each program, see the China CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

Respondent Selection

    In the Petition, the petitioner identified 11 companies in China as 
producers and/or exporters of slag pots.\28\ Commerce intends to follow 
its

[[Page 8270]]

standard practice in CVD investigations and calculate company-specific 
subsidy rates in this investigation. In the event that Commerce 
determines that the number of companies is large and it cannot 
individually examine each company based on Commerce's resources, 
Commerce normally selects mandatory respondents in CVD investigations 
using U.S. Customs and Border Protection (CBP) entry data for U.S. 
imports under the appropriate Harmonized Tariff Schedule of the United 
States (HTSUS) subheading(s) listed in the ``Scope of the 
Investigation'' in the appendix.
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    \28\ See Petition at Volume I (page 6 and Exhibit I-4); see also 
First General Issues Supplement at 1.
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    On January 16, 2025, Commerce released CBP data on imports of slag 
pots from China under administrative protective order (APO) to all 
parties with access to information protected by APO and indicated that 
interested parties wishing to comment on CBP data and/or respondent 
selection must do so within three business days of the publication date 
of the notice of initiation of this investigation.\29\ Comments must be 
filed electronically using ACCESS. An electronically-filed document 
must be received successfully in its entirety via ACCESS by 5:00 p.m. 
ET on the specified deadline. Commerce will not accept rebuttal 
comments regarding the CBP data or respondent selection.
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    \29\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Entry Data,'' dated January 16, 2025.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS. To the extent practicable, we will 
attempt to provide a copy of the public version of the Petition to each 
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of slag pots from China are materially 
injuring, or threatening material injury to, a U.S. industry.\30\ A 
negative ITC determination will result in the investigation being 
terminated.\31\ Otherwise, this CVD investigation will proceed 
according to statutory and regulatory time limits.
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    \30\ See section 703(a)(1) of the Act.
    \31\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors of production under 19 CFR 351.408(c) or 
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); 
(iv) evidence placed on the record by Commerce; and (v) evidence other 
than factual information described in (i)-(iv). Section 351.301(b) of 
Commerce's regulations requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted \32\ and, if the information is 
submitted to rebut, clarify, or correct factual information already on 
the record, to provide an explanation identifying the information 
already on the record that the factual information seeks to rebut, 
clarify, or correct.\33\ Time limits for the submission of factual 
information are addressed in 19 CFR 351.301, which provides specific 
time limits based on the type of factual information being submitted. 
Interested parties should review the regulations prior to submitting 
factual information in this investigation.
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    \32\ See 19 CFR 351.301(b).
    \33\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301, or as otherwise specified by 
Commerce.\34\ For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date. Under certain 
circumstances, Commerce may elect to specify a different time limit by 
which extension requests will be considered untimely for submissions 
which are due from multiple parties simultaneously. In such a case, we 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to 
submitting factual information in this investigation.\35\
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    \34\ See 19 CFR 351.302.
    \35\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\36\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\37\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \36\ See section 782(b) of the Act.
    \37\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in this investigation should ensure that they meet the requirements of 
19 CFR 351.103(d) (e.g., by filing the required letters of appearance). 
Note that Commerce has amended certain of its requirements pertaining 
to the service of documents in 19 CFR 351.303(f).\38\
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    \38\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
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    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act, and 19 CFR 351.203(c).

[[Page 8271]]

    Dated: January 21, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by the investigation is slag pots with a 
nominal capacity of 65 cubic feet to 1200 cubic feet regardless of 
shape, form, or finish.
    Slag pots are load bearing devices typically formed as a curved 
shell or bowl-shaped container. Slag pots are metallurgical goods 
typically produced either using a casting process or a fabrication 
process (e.g., welding) and may include a ceramic refractory 
coating, heat treatment or various finishes in order to handle high 
temperature slag. Slag pots may contain integral features or 
attachments including (1) legs (or a stand) and (2) pivotal mounting 
hooks or brackets. Legs (or a stand) are a fixed or detachable 
support structure which allows the slag pot to be securely 
positioned upright on a surface when not being lifted or transported 
and may also keep the slag pot off the ground and allow for air 
cooling. The pivotal mounting hooks and brackets are specialized 
attachment points (such as lifting lugs or trunnions) that allow the 
slag pot to be securely lifted and transported by a crane or lifting 
device, or that enable the slag pot to swing or rotate while 
remaining attached to the lifting mechanism. The merchandise covered 
by this investigation includes all aforementioned attachments of a 
fully assembled slag pot, regardless of whether shipped assembled or 
unassembled.
    Slag pots are included within the scope whether finished or 
unfinished, whether imported individually or with other subject or 
non-subject merchandise, or whether assembled with attachments or 
unassembled. Finishing includes, but is not limited to, arc washing, 
welding, grinding, shot blasting, heat treatment, machining, and 
assembly of various parts.
    The country of origin for slag pots whether fully assembled, 
unfinished or finished, is the country where the slag pot was cast 
or forged. Subject merchandise includes slag pots that have been 
further processed or further assembled in a third country. Further 
processing and further assembly include, but is not limited to, arc 
washing, welding, grinding, shot blasting, heat treatment, painting, 
coating, priming, machining, and assembly of attachments.
    Slag pots subject to the investigation are specified within the 
Harmonized Tariff Schedule of the United States (HTSUS) under 
subheading 7309.00.0090. The slag pot attachments covered by the 
scope of this investigation may enter under HTSUS subheadings 
7316.00.0000, 7325.10.0080, 7325.99.1000, 7325.99.5000, and 
7326.19.0080. The HTSUS subheading is provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2025-01794 Filed 1-27-25; 8:45 am]
BILLING CODE 3510-DS-P
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