New AD/CVD Petitions: Tungsten Shot from China

On July 10, 2024, a new antidumping (AD) and countervailing duty (CVD) petition was filed against imports of Tungsten Shot from China. Tungsten shot is used to produce shotgun shot.

tungsten shot picture

The petition was by Tungsten Parts Wyoming, Inc.  Unlike most AD/CVD petition, this petitioner admits that they only began production last year in 2023, and thus the domestic industry has not yet been established.  Instead of arguing that the Chinese imports have injured or threaten to injure them; the petitioner here is asking ITC and DOC to find that the establishment of the U.S. domestic industry has been “materially retarded” by reason of the allegedly unfair Chinese imports.

So even though they are a brand-new U.S. producer, they are asking the U.S. government to protect their still developing operations from Chinese import competition that presumably have long been the primary suppliers to meet the U.S. market demand for tungsten shot.

These AD/CVD investigations will be conducted by two federal agencies.  The International Trade Commission (“ITC”) will investigate whether the subject imports have materially retarded the establishment of the domestic industry.  The U.S. Department of Commerce (“DOC”) will investigate whether the subject imports are being sold to the United States at less than fair value (“dumping”) or benefit from unfair government subsidies.  Both agencies have to make affirmative findings of material retardation (ITC) or of dumping or subsidies (DOC) in order for AD/CVD duties to be imposed on the subject imports.

The merchandise covered by the investigations is certain tungsten spheres or balls, also known as shot, that are 92.6 percent or greater tungsten by weight. In scope shot have a diameter ranging from 1.5 mm to 10.0 mm. Subject shot can be referred to as “Tungsten Super Shot.” Merchandise is covered regardless of the combination of compounds that comprise the non-tungsten material and whether or not the tungsten shot is additionally coated with another material, including but not limited to copper, nickel, iron or metallic alloys.

tungsten shot picture

Tungsten shot subject to the investigations may be classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheading: 8101.99.8000. Merchandise may also be entered under HTS subheadings 8482.91.0020 or 9306.21.0000. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive.

Alleged AD/CVD Margins.

Petitioner calculated estimated dumping margins of 196.32% for the Chinese subject imports.

Petitioner did not provide any specific subsidy margin calculations.

Estimated Schedule of Investigations.

July 10, 2024 – Petitions filed

July 30, 2024 – DOC initiates investigation

July 31, 2024 – ITC Staff Conference

August 24, 2024 – ITC preliminary determination

December 7, 2024 – DOC CVD preliminary determination (assuming extended deadline) (10/3/24 – unextended)

February 5, 2025 – DOC AD preliminary determination (assuming extended deadline) (12/17/24 – unextended)

June 20, 2025 – DOC AD/CVD final determination (extended)

August 4, 2025 – ITC final determination (extended)

August 11, 2025 – DOC AD/CVD orders issued (extended)

source:harris sliwoski

 

 

WeChat