U.S. Finalizes Countervailing Duties on Tungsten Shot from China

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Background of Investigation

The United States Department of Commerce has announced its final determination that producers and exporters of certain tungsten shot from the People’s Republic of China are receiving countervailable subsidies. The period of investigation covers January 1, 2023, through December 31, 2023. This action follows a preliminary determination published on December 20, 2024, and further analysis issued on February 6, 2025.

The investigation examined whether Chinese producers of tungsten shot received unfair government subsidies. There were no comments from interested parties challenging the scope of the investigation. Commerce checked documents from companies involved, especially Zhuzhou KJ Super Materials Co., Ltd. (KJ Super), using standard inspection and verification methods.

Scope of the Investigation

The investigation covers tungsten spheres or balls, known as shot, that are at least 92.6 percent tungsten by weight, not counting any coatings. The examined shot measures from 1.5 millimeters to 10.0 millimeters in diameter. This can also be called “Tungsten Super Shot.” The shot may be coated with other metals, and may enter U.S. customs under tariff codes 9306.29.0000 or 8101.99.8000.

Final Subsidy Rates

Commerce found the following subsidy rates for January 1, 2023, to December 31, 2023:

  • Zhuzhou KJ Super Materials Co., Ltd.: 55.64% subsidy rate
  • All others: 55.64% subsidy rate
  • Seven other named companies: 292.84% subsidy rate*
    • These companies are Luoyang Combat Tungsten & Molybdenum Materials Co., Ltd.; Luoyang Hypersolid Metal Tech Co., Ltd.; Mudanjiang North Alloy Tools Co., Ltd.; Shaanxi Xinheng Rare Metal Co., Ltd.; Xi’an Refractory & Precise Metals Co., Ltd.; Zhuzhou Oston Carbide Co., Ltd.; Zhuzhou Tungsten Man Materials Co., Ltd.

(*Rates with an asterisk are based on facts available with adverse inferences.)

Investigation Methods and Findings

Commerce followed legal steps set out in section 701 of the Tariff Act of 1930. Each subsidy program was checked for financial contributions by government authorities, benefits to companies, and whether the subsidies were targeted.

Some results used “facts available” because certain information was missing. In these cases, adverse inferences were applied according to the law. Commerce also updated benchmark prices for tungsten and freight expenses, and revised certain rates after reviewing information verified during the investigation.

Suspension of Liquidation

U.S. Customs and Border Protection (CBP) is holding cash deposits and has suspended liquidation on tungsten shot from China for entries made on or after December 20, 2024. This suspension stopped for entries made after April 19, 2025, but remains in place for previous entries.

If the U.S. International Trade Commission (ITC) finds in its final review that the domestic U.S. industry is hurt by these imports, Commerce will issue a permanent countervailing duty order. If the ITC finds no harm, all duties collected will be refunded.

ITC and Disclosure

Commerce will share its final determination with the ITC. The ITC will determine within 45 days if U.S. industry is harmed or threatened by these imports.

During this period, parties can see Commerce’s calculations. This includes detailed information about rates and subsidy programs.

Administrative Protective Order

Commerce reminded parties under an administrative protective order (APO) to destroy or return all confidential material as required by federal rules.

Appendices

The notice includes:

  • Appendix I: Full technical definition of what products are covered.
  • Appendix II: Summary topics from the Issues and Decision Memorandum, including discussion points such as calculation of benchmark prices, government role, use of adverse facts, and treatment of business information.

Contact

For questions, parties may contact Samuel Evans at the U.S. Department of Commerce, AD/CVD Operations, Office IX.

Official Publication

The notice was published in the Federal Register on July 11, 2025, by Christopher Abbott, Deputy Assistant Secretary for Policy and Negotiations.


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