Active Anode Material From the People's Republic of China: Initiation of Countervailing Duty Investigation, 3788-3792 [2025-00657]
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Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Notices
preliminary determination. Under 19
CFR 351.205(e), the petitioner must
International Trade Administration
submit a request for postponement 25
[C–351–865, C–533–935, C–552–848, C–570– days or more before the scheduled date
of the preliminary determination and
185]
must state the reasons for the request.
Hard Empty Capsules From Brazil, the
Commerce will grant the request unless
People’s Republic of China, India, and
it finds compelling reasons to deny the
the Socialist Republic of Vietnam:
request.
Postponement of Preliminary
On December 16, 2024, the
Determinations in the Countervailing
petitioner 2 submitted a timely request
Duty Investigations
that Commerce postpone the
preliminary CVD determinations.3 The
AGENCY: Enforcement and Compliance,
petitioner stated that postponement of
International Trade Administration,
the preliminary determinations is
Department of Commerce.
necessary because the current schedule
DATES: Applicable January 15, 2025.
does not provide Commerce with
FOR FURTHER INFORMATION CONTACT:
adequate time to fully analyze the
Robert Copyak at (202) 482–3542
forthcoming questionnaire responses of
(Brazil); Laura Delgado at (202) 482–
the mandatory respondents and issue
1468 and John Conniff (202) 482–1009
supplemental questionnaires, as
(the People’s Republic of China
necessary.4
(China)); Gorden Struck at (202) 482–
In accordance with 19 CFR
8151 (India), and Jonathan Schueler at
351.205(e), the petitioner submitted its
(202) 482–9175 (the Socialist Republic
request for postponement of the
of Vietnam (Vietnam)), AD/CVD
preliminary determinations in these
Operations, Enforcement and
investigations 25 days or more before
Compliance, International Trade
the scheduled date of the preliminary
Administration, U.S. Department of
determinations and stated the reasons
Commerce, 1401 Constitution Avenue
for its request. Commerce finds no
NW, Washington, DC 20230.
compelling reason to deny the request.
SUPPLEMENTARY INFORMATION:
Therefore, in accordance with section
Background
703(c)(1)(A) of the Act, Commerce is
postponing the deadline for the
On November 13, 2024, the U.S.
preliminary determinations in these
Department of Commerce (Commerce)
investigations to no later than 130 days
initiated countervailing duty (CVD)
investigations of imports of Hard Empty after the date on which it initiated these
investigations, i.e., March, 24, 2025.5
Capsules (capsules) from Brazil, China,
Pursuant to section 705(a)(1) of the Act
India, and Vietnam.1 Currently, the
and 19 CFR 351.210(b)(1), the deadline
preliminary determinations are due no
for the final determinations of these
later than January 17, 2025.
investigations will continue to be 75
Postponement of Preliminary
days after the date of the preliminary
Determinations
determinations.
Section 703(b)(1) of the Tariff Act of
This notice is issued and published
1930, as amended (the Act), requires
pursuant to section 703(c)(2) of the Act
Commerce to issue the preliminary
and 19 CFR 351.205(f)(1).
determination in a CVD investigation
Dated: December 19, 2024.
within 65 days after the date on which
Abdelali Elouaradia,
Commerce initiated the investigation.
However, section 703(c)(1) of the Act
Deputy Assistant Secretary for Enforcement
permits Commerce to postpone the
and Compliance.
preliminary determination in a CVD
[FR Doc. 2025–00658 Filed 1–14–25; 8:45 am]
investigation until no later than 130
BILLING CODE 3510–DS–P
days after the date on which Commerce
initiated the investigation if: (A) the
2 The petitioner is Lonza Greenwood LLC.
petitioner makes a timely request for a
3 See Petitioner’s Letter, ‘‘Lonza’s Request for
postponement; or (B) Commerce
Postponement of the Department’s Countervailing
concludes that the parties concerned are Duty Preliminary Determinations,’’ dated December
16, 2024.
cooperating, that the investigation is
4 Id.
extraordinarily complicated, and that
5 Because the deadline for these preliminary
additional time is necessary to make a
results falls on the weekend (i.e., March 23, 2025),
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DEPARTMENT OF COMMERCE
1 See
Hard Empty Capsules from Brazil, the
People’s Republic of China, India, and the Socialist
Republic of Vietnam: Initiation of Countervailing
Duty Investigations, 89 FR 91680 November 20,
2024) (Initiation Notice).
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the deadline became the next business day (i.e.,
March 24, 2025). See Notice of Clarification:
Application of ‘‘Next Business Day’’ Rule for
Administrative Determination Deadlines Pursuant
to the Tariff Act of 1930, As Amended, 70 FR 24533
(May 10, 2005).
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–195]
Active Anode Material From the
People’s Republic of China: Initiation
of Countervailing Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
DATES:
Applicable January 7, 2025.
FOR FURTHER INFORMATION CONTACT:
Gorden Struck, Office II, AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–8151.
SUPPLEMENTARY INFORMATION:
The Petition
On December 18, 2024, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
petition concerning imports of active
anode material from the People’s
Republic of China (China) filed in
proper form on behalf of the American
Active Anode Material Producers (the
petitioner),1 an ad hoc trade association
of domestic producers.2 The CVD
Petition was accompanied by an
antidumping duty (AD) petition
concerning imports of active anode
material from China.3
Between December 19, 2024, and
January 2, 2025, Commerce requested
supplemental information pertaining to
certain aspects of the Petition in
supplemental questionnaires.4 On
December 27, 2024, and January 3, 2025,
the petitioner filed timely responses to
these requests for additional
information.5
1 The members of the American Active Anode
Material Producers are Anovion Technologies,
Syrah Technologies LLC, NOVONIX Anode
Materials LLC, Epsilon Advanced Materials, and
SKI US, Inc.
2 See Petitioner’s Letter, ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties,’’ dated December 18, 2024 (Petition).
3 Id.
4 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated December 19, 2024; and
‘‘Supplemental Questions,’’ dated December 20,
2024 (General Issues Questionnaire); see also
Memorandum, ‘‘Phone Call with Counsel to the
Petitioner,’’ dated January 2, 2025 (January 2, 2025,
Memorandum).
5 See Petitioner’s Letters, ‘‘Response to
Supplemental Questions Regarding Common Issues
and Injury Volume I of the Petitions,’’ dated
December 27, 2024 (First General Issues
Supplement); ‘‘Response to Supplemental
Questions Regarding Countervailing Duty Volume
III of the Petitions,’’ dated December 27, 2024; and
‘‘Response to Supplemental Questions Regarding
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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 active
anode material in China, and that
imports of such products materially
retard the establishment of an industry
in the United States, or in the
alternative, that such products are
materially injuring, or threatening
material injury to, the active anode
material industry 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)(F) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the requested CVD investigation.6
Period of Investigation
Because the Petition was filed on
December 18, 2024, the period of
investigation for the CVD investigation
is January 1, 2023, through December
31, 2023.7
Scope of the Investigation
The product covered by this
investigation is active anode material
from China. For a full description of the
scope of this investigation, see the
appendix to this notice.
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Comments on the Scope of the
Investigation
On December 20, 2024 and January 2,
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.8 On December 27, 2024
and January 3, 2025, the petitioner
provided clarifications and revised the
scope.9 The description of merchandise
covered by this investigation, as
Volume I of the Petitions,’’ dated January 3, 2025
(Second General Issues Supplement).
6 See section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
7 See 19 CFR 351.204(b)(2).
8 See General Issues Questionnaire; see also
January 2, 2025, Memorandum.
9 See First General Issues Supplement at 2–5; see
also Second General Issues Supplement at 1–6 and
Exhibits I–Supp2–1 through I–Supp2–3.
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described in the appendix to this notice,
reflects these clarifications.
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).10 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.11 To facilitate
preparation of its questionnaires,
Commerce requests that scope
comments be submitted by 5:00 p.m.
Eastern Time (ET) on January 27, 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 6,
2025, which is 10 calendar days from
the initial comment deadline.
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.12 An
electronically filed document must be
received successfully in its entirety by
the time and date it is due.
10 See Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997) (Preamble).
11 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
12 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.13 The GOC did not request
consultations.
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
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
13 See Commerce’s Letter, ‘‘Invitation for
Consultation to Discuss the Countervailing Duty
Petition,’’ dated December 19, 2024.
14 See section 771(10) of the Act.
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decision of either agency contrary to
law.15
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 active
anode material, as defined in the scope,
constitutes a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.17
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 the 2023
production of the domestic like product
for the supporters of the Petition and
compared this to total 2023 production
for the U.S. active anode material
industry.18 We relied on data provided
by the petitioner for purposes of
measuring industry support.19
On December 30, 2024, we received
timely filed comments on industry
support from Tesla, Inc. (Tesla), a U.S.
importer of active anode material.20 On
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)).
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: Active Anode Material 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 Active
Anode Material 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.
18 Id.
19 For further discussion, see Attachment II of the
China CVD Initiation Checklist.
20 See Tesla’s Letter, ‘‘Request to Reject the
Petition or to Poll the Industry,’’ dated December
30, 2024.
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January 2, 2025, the petitioner
responded to the comments from Tesla
in a timely filed rebuttal submission.21
Our review of the data provided in the
Petition, the First General Issues
Supplement, the Second General Issues
Supplement, the Petitioner’s Response,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.22 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).23 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.24 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.25 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.26
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, or whether the
establishment of a U.S. industry is
materially retarded, by reason of
imports of the subject merchandise from
China.
21 See Petitioner’s Letter, ‘‘Rebuttal Industry
Support Comments,’’ dated January 2, 2025
(Petitioner’s Response).
22 See Attachment II of the China CVD Initiation
Checklist.
23 Id.; see also section 702(c)(4)(D) of the Act.
24 See Attachment II of the China CVD Initiation
Checklist.
25 Id.
26 Id.
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Allegations and Evidence of Material
Injury and Causation
Section 703(a)(1)(B) of the Act states
that the ITC ‘‘shall determine . . .
whether there is a reasonable indication
that the establishment of an industry in
the United States is materially retarded
by reason of imports of the subject
merchandise.’’ The petitioner alleges
that imports of subject merchandise are
benefiting from countervailable
subsidies and that such imports are
materially retarding the establishment of
the U.S. industry producing active
anode material.27 The petitioner argues
that its production has been ‘‘modest’’
and has not stabilized and, therefore,
the U.S. industry producing active
anode material has not been
established.28 To support its argument,
the petitioner examined the five
factors 29 the ITC considers to determine
if an industry is established, as set forth
in the ITC’s AD/CVD Handbook.30 If the
ITC determines that an industry is not
established, it then considers whether
the performance of the industry reflects
normal start-up difficulties or whether
the imports of the subject merchandise
have materially retarded the
establishment of the industry.31 The
petitioner contends that the domestic
industry has performed substantially
worse than what could reasonably be
expected during normal start-up
conditions, thereby demonstrating that
the establishment of the domestic
industry has been materially retarded by
subject imports.32 The petitioner also
alleges that, in the alternative, the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise benefitting from
countervailable subsidies.33 In addition,
the petitioner alleges that subject
imports exceed the negligibility
threshold provided under section
771(24)(A) of the Act.34
27 For a discussion of the petitioner’s injury
allegation, see China CVD Initiation Checklist at
Attachment III, Analysis of Allegations and
Evidence of Material Retardation, Material Injury,
and Causation for the Antidumping and
Countervailing Duty Petitions Covering Active
Anode Material from the People’s Republic of China
(Attachment III).
28 Id.
29 For a discussion of the factors related to
whether an industry is established, see Attachment
III of the China CVD Initiation Checklist.
30 See Antidumping and Countervailing Duty
Handbook (14th Ed.), USITC Pub. 4540 (June 2015)
(AD/CVD Handbook), at II–33.
31 Id.
32 See Attachment III of the China CVD Initiation
Checklist.
33 Id.
34 Id.
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The petitioner contends that the
industry’s materially retarded, or in the
alternative, injured condition is
illustrated by a significant volume of
subject imports; significant market share
of subject imports; lost sales and
revenues; underselling; low levels of
production; and negative impact on
financial performance.35 We assessed
the allegations and supporting evidence
regarding material retardation, material
injury, threat of material injury,
causation, as well as negligibility, and
we have determined that these
allegations are properly supported by
adequate evidence, and meet the
statutory requirements for initiation.36
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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 active
anode material 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 34 of the 36 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 30 companies in China as
producers and/or exporters of active
anode material.37 Commerce intends to
follow its standard practice in CVD
investigations and calculate companyspecific 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)
35 Id.
36 Id.
37 See Petition at Volume I (pages 6–7 and Exhibit
I–9); see also First General Issues Supplement at 1–
2 and Exhibit I–Supp–1.
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subheading(s) listed in the ‘‘Scope of the
Investigation’’ in the appendix.
On January 7, 2025, Commerce
released CBP data on imports of active
anode material 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.38 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.
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/administrativeprotective-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
active anode material from China
materially retard the establishment of a
U.S. industry, or that subject imports are
materially injuring, or threatening
material injury to, a U.S. industry.39 A
negative ITC determination will result
in the investigation being terminated.40
Otherwise, this CVD investigation will
proceed according to statutory and
regulatory time limits.
38 See Memorandum, ‘‘Release of U.S. Customs
and Border Protection Entry Data,’’ dated January 7,
2025.
39 See section 703(a)(1) of the Act.
40 Id.
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3791
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 41 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.42 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.
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.43 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
41 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
43 See 19 CFR 351.302.
42 See
E:\FR\FM\15JAN1.SGM
15JAN1
3792
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Notices
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.44
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.45
Parties must use the certification
formats provided in 19 CFR
351.303(g).46 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
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).47
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
lotter on DSK11XQN23PROD with NOTICES1
Dated: January 7, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy
and Negotiations.
maximum size of 80 microns when in
powder form. Subject merchandise has an
energy density of 330 milliamp hours per
gram or greater and a degree of graphitization
of 80 percent or greater, where graphitization
refers to the extent of the graphite crystal
structure.
Subject merchandise is covered regardless
of whether it is mixed with silicon based
active materials, e.g., silicon-oxide (SiOx),
silicon-carbon (SiC), or silicon, or additives
such as carbon black or carbon nanotubes.
Subject merchandise is covered regardless of
the combination of compounds that comprise
the graphite material. Subject merchandise is
covered regardless of whether it is imported
independently, as part of a compound, in a
battery, as a component of an anode slurry,
or in a subassembly of a battery such as an
electrode. Only the anode grade graphite
material is covered when entered as part of
a mixture with silicon based active materials,
as part of a compound, in a batter, as a
component of an anode slurry, or in a
subassembly of a battery such as an
electrode.
Active anode material subject to the
investigation may be classified under the
Harmonized Tariff Schedule of the United
States (HTSUS) subheadings 2504.10.5000
and 3801.10.5000. Subject merchandise may
also enter under HTSUS subheadings
2504.10.1000 and 3801.90.0000. The HTSUS
subheadings are provided for convenience
and customs purposes only. The written
description of the scope of the investigation
is dispositive.
[FR Doc. 2025–00657 Filed 1–14–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Appendix—Scope of the Investigation
[A–570–194]
The merchandise covered by this
investigation is active anode material, which
is an anode grade graphite material with a
graphite minimum purity content of 90
percent carbon by weight, whether
containing synthetic graphite, natural
graphite, or a blend of synthetic and natural
graphite; with or without coating. Subject
merchandise may be in the form of powder,
dry, liquid, or block form and is covered
irrespective of the form in which it enters.
Subject merchandise typically has a
Active Anode Material From the
People’s Republic of China: Initiation
of Less-Than-Fair-Value Investigation
44 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/201322853.htm.
45 See section 782(b) of the Act.
46 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.
47 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069
(September 29, 2023).
VerDate Sep<11>2014
18:37 Jan 14, 2025
Jkt 265001
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable January 7, 2025.
FOR FURTHER INFORMATION CONTACT:
Christopher Maciuba, Office II, AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–0413.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On December 18, 2024, the U.S.
Department of Commerce (Commerce)
received an antidumping duty (AD)
petition concerning imports of active
anode material from the People’s
Republic of China (China) filed in
proper form on behalf of the American
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
Active Anode Material Producers (the
petitioner),1 an ad hoc trade association
of domestic producers.2 The AD Petition
was accompanied by a countervailing
duty (CVD) petition concerning imports
of active anode material from China.3
On December 20, 2024 and January 2,
2025, Commerce requested
supplemental information pertaining to
certain aspects of the Petition in
supplemental questionnaires.4 On
December 27, 2024 and January 3, 2025,
the petitioner filed timely responses to
these requests for additional
information.5
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of active anode material from China are
being, or are likely to be, sold in the
United States at less than fair value
(LTFV) within the meaning of section
731 of the Act, and that imports of such
products materially retard the
establishment of an industry in the
United States, or in the alternative, that
such products are materially injuring, or
threaten material injury to, the active
anode material industry in the United
States. Consistent with section 732(b)(1)
of the Act, 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)(F) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support for the initiation of the
requested LTFV investigation.6
Period of Investigation
Because the Petition was filed on
December 18, 2024, and because China
1 The members of the American Active Anode
Material Producers are Anovion Technologies,
Syrah Technologies LLC, NOVONIX Anode
Materials LLC, Epsilon Advanced Materials, and
SKI US, Inc.
2 See Petitioner’s Letter, ‘‘Petition for the
Imposition of Antidumping and Countervailing
Duties,’’ dated December 18, 2024 (Petition).
3 Id.
4 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated December 20, 2024 (General
Issues Questionnaire); and ‘‘Supplemental
Questions,’’ dated December 20, 2024; see also
Memorandum, ‘‘Phone Call with Counsel to the
Petitioner,’’ dated January 2, 2025.
5 See Petitioner’s Letters, ‘‘Response to
Supplemental Questions Regarding Common Issues
and Injury Volume I of the Petitions,’’ dated
December 27, 2024 (First General Issues
Supplement); ‘‘Response to Supplemental Petition
Questionnaire,’’ dated December 27, 2024; and
‘‘Response to Supplemental Questions Regarding
Volume I of the Petitions,’’ dated January 3, 2025
(Second General Issues Supplement).
6 See section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
E:\FR\FM\15JAN1.SGM
15JAN1
]]>Agencies
[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Notices]
[Pages 3788-3792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00657]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-195]
Active Anode Material 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 7, 2025.
FOR FURTHER INFORMATION CONTACT: Gorden Struck, Office II, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8151.
SUPPLEMENTARY INFORMATION:
The Petition
On December 18, 2024, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
active anode material from the People's Republic of China (China) filed
in proper form on behalf of the American Active Anode Material
Producers (the petitioner),\1\ an ad hoc trade association of domestic
producers.\2\ The CVD Petition was accompanied by an antidumping duty
(AD) petition concerning imports of active anode material from
China.\3\
---------------------------------------------------------------------------
\1\ The members of the American Active Anode Material Producers
are Anovion Technologies, Syrah Technologies LLC, NOVONIX Anode
Materials LLC, Epsilon Advanced Materials, and SKI US, Inc.
\2\ See Petitioner's Letter, ``Petition for the Imposition of
Antidumping and Countervailing Duties,'' dated December 18, 2024
(Petition).
\3\ Id.
---------------------------------------------------------------------------
Between December 19, 2024, and January 2, 2025, Commerce requested
supplemental information pertaining to certain aspects of the Petition
in supplemental questionnaires.\4\ On December 27, 2024, and January 3,
2025, the petitioner filed timely responses to these requests for
additional information.\5\
---------------------------------------------------------------------------
\4\ See Commerce's Letters, ``Supplemental Questions,'' dated
December 19, 2024; and ``Supplemental Questions,'' dated December
20, 2024 (General Issues Questionnaire); see also Memorandum,
``Phone Call with Counsel to the Petitioner,'' dated January 2, 2025
(January 2, 2025, Memorandum).
\5\ See Petitioner's Letters, ``Response to Supplemental
Questions Regarding Common Issues and Injury Volume I of the
Petitions,'' dated December 27, 2024 (First General Issues
Supplement); ``Response to Supplemental Questions Regarding
Countervailing Duty Volume III of the Petitions,'' dated December
27, 2024; and ``Response to Supplemental Questions Regarding Volume
I of the Petitions,'' dated January 3, 2025 (Second General Issues
Supplement).
---------------------------------------------------------------------------
[[Page 3789]]
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 active anode
material in China, and that imports of such products materially retard
the establishment of an industry in the United States, or in the
alternative, that such products are materially injuring, or threatening
material injury to, the active anode material industry 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)(F) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support with respect to
the initiation of the requested CVD investigation.\6\
---------------------------------------------------------------------------
\6\ See section on ``Determination of Industry Support for the
Petition,'' infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on December 18, 2024, the period of
investigation for the CVD investigation is January 1, 2023, through
December 31, 2023.\7\
---------------------------------------------------------------------------
\7\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is active anode material
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 December 20, 2024 and January 2, 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.\8\ On December 27, 2024 and January 3, 2025, the
petitioner provided clarifications and revised the scope.\9\ The
description of merchandise covered by this investigation, as described
in the appendix to this notice, reflects these clarifications.
---------------------------------------------------------------------------
\8\ See General Issues Questionnaire; see also January 2, 2025,
Memorandum.
\9\ See First General Issues Supplement at 2-5; see also Second
General Issues Supplement at 1-6 and Exhibits I-Supp2-1 through I-
Supp2-3.
---------------------------------------------------------------------------
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).\10\ 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.\11\ To
facilitate preparation of its questionnaires, Commerce requests that
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on January
27, 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 6, 2025, which is 10 calendar days from the initial
comment deadline.
---------------------------------------------------------------------------
\10\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\11\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
---------------------------------------------------------------------------
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.\12\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\12\ 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.
---------------------------------------------------------------------------
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.\13\ The GOC
did not request consultations.
---------------------------------------------------------------------------
\13\ See Commerce's Letter, ``Invitation for Consultation to
Discuss the Countervailing Duty Petition,'' dated December 19, 2024.
---------------------------------------------------------------------------
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 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
[[Page 3790]]
decision of either agency contrary to law.\15\
---------------------------------------------------------------------------
\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)).
---------------------------------------------------------------------------
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 active anode material,
as defined in the scope, constitutes a single domestic like product,
and we have analyzed industry support in terms of that domestic like
product.\17\
---------------------------------------------------------------------------
\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:
Active Anode Material 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 Active Anode Material 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.
---------------------------------------------------------------------------
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 the
2023 production of the domestic like product for the supporters of the
Petition and compared this to total 2023 production for the U.S. active
anode material industry.\18\ We relied on data provided by the
petitioner for purposes of measuring industry support.\19\
---------------------------------------------------------------------------
\18\ Id.
\19\ For further discussion, see Attachment II of the China CVD
Initiation Checklist.
---------------------------------------------------------------------------
On December 30, 2024, we received timely filed comments on industry
support from Tesla, Inc. (Tesla), a U.S. importer of active anode
material.\20\ On January 2, 2025, the petitioner responded to the
comments from Tesla in a timely filed rebuttal submission.\21\
---------------------------------------------------------------------------
\20\ See Tesla's Letter, ``Request to Reject the Petition or to
Poll the Industry,'' dated December 30, 2024.
\21\ See Petitioner's Letter, ``Rebuttal Industry Support
Comments,'' dated January 2, 2025 (Petitioner's Response).
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the First General
Issues Supplement, the Second General Issues Supplement, the
Petitioner's Response, and other information readily available to
Commerce indicates that the petitioner has established industry support
for the Petition.\22\ 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).\23\ 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.\24\ 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.\25\ 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.\26\
---------------------------------------------------------------------------
\22\ See Attachment II of the China CVD Initiation Checklist.
\23\ Id.; see also section 702(c)(4)(D) of the Act.
\24\ See Attachment II of the China CVD Initiation Checklist.
\25\ Id.
\26\ Id.
---------------------------------------------------------------------------
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, or whether the
establishment of a U.S. industry is materially retarded, by reason of
imports of the subject merchandise from China.
Allegations and Evidence of Material Injury and Causation
Section 703(a)(1)(B) of the Act states that the ITC ``shall
determine . . . whether there is a reasonable indication that the
establishment of an industry in the United States is materially
retarded by reason of imports of the subject merchandise.'' The
petitioner alleges that imports of subject merchandise are benefiting
from countervailable subsidies and that such imports are materially
retarding the establishment of the U.S. industry producing active anode
material.\27\ The petitioner argues that its production has been
``modest'' and has not stabilized and, therefore, the U.S. industry
producing active anode material has not been established.\28\ To
support its argument, the petitioner examined the five factors \29\ the
ITC considers to determine if an industry is established, as set forth
in the ITC's AD/CVD Handbook.\30\ If the ITC determines that an
industry is not established, it then considers whether the performance
of the industry reflects normal start-up difficulties or whether the
imports of the subject merchandise have materially retarded the
establishment of the industry.\31\ The petitioner contends that the
domestic industry has performed substantially worse than what could
reasonably be expected during normal start-up conditions, thereby
demonstrating that the establishment of the domestic industry has been
materially retarded by subject imports.\32\ The petitioner also alleges
that, in the alternative, the U.S. industry producing the domestic like
product is being materially injured, or is threatened with material
injury, by reason of the imports of the subject merchandise benefitting
from countervailable subsidies.\33\ In addition, the petitioner alleges
that subject imports exceed the negligibility threshold provided under
section 771(24)(A) of the Act.\34\
---------------------------------------------------------------------------
\27\ For a discussion of the petitioner's injury allegation, see
China CVD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Retardation, Material Injury,
and Causation for the Antidumping and Countervailing Duty Petitions
Covering Active Anode Material from the People's Republic of China
(Attachment III).
\28\ Id.
\29\ For a discussion of the factors related to whether an
industry is established, see Attachment III of the China CVD
Initiation Checklist.
\30\ See Antidumping and Countervailing Duty Handbook (14th
Ed.), USITC Pub. 4540 (June 2015) (AD/CVD Handbook), at II-33.
\31\ Id.
\32\ See Attachment III of the China CVD Initiation Checklist.
\33\ Id.
\34\ Id.
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[[Page 3791]]
The petitioner contends that the industry's materially retarded, or
in the alternative, injured condition is illustrated by a significant
volume of subject imports; significant market share of subject imports;
lost sales and revenues; underselling; low levels of production; and
negative impact on financial performance.\35\ We assessed the
allegations and supporting evidence regarding material retardation,
material injury, threat of material injury, causation, as well as
negligibility, and we have determined that these allegations are
properly supported by adequate evidence, and meet the statutory
requirements for initiation.\36\
---------------------------------------------------------------------------
\35\ Id.
\36\ Id.
---------------------------------------------------------------------------
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 active anode material 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 34 of the 36
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 30 companies in China as
producers and/or exporters of active anode material.\37\ Commerce
intends to follow its 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.
---------------------------------------------------------------------------
\37\ See Petition at Volume I (pages 6-7 and Exhibit I-9); see
also First General Issues Supplement at 1-2 and Exhibit I-Supp-1.
---------------------------------------------------------------------------
On January 7, 2025, Commerce released CBP data on imports of active
anode material 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.\38\
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.
---------------------------------------------------------------------------
\38\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated January 7, 2025.
---------------------------------------------------------------------------
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 active anode material from China materially
retard the establishment of a U.S. industry, or that subject imports
are materially injuring, or threatening material injury to, a U.S.
industry.\39\ A negative ITC determination will result in the
investigation being terminated.\40\ Otherwise, this CVD investigation
will proceed according to statutory and regulatory time limits.
---------------------------------------------------------------------------
\39\ See section 703(a)(1) of the Act.
\40\ 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 \41\ 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.\42\ 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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\41\ See 19 CFR 351.301(b).
\42\ 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.\43\ 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
[[Page 3792]]
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.\44\
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\43\ See 19 CFR 351.302.
\44\ 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.\45\
Parties must use the certification formats provided in 19 CFR
351.303(g).\46\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\45\ See section 782(b) of the Act.
\46\ 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).\47\
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\47\ 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).
Dated: January 7, 2025.
Steven Presing,
Acting Deputy Assistant Secretary for Policy and Negotiations.
Appendix--Scope of the Investigation
The merchandise covered by this investigation is active anode
material, which is an anode grade graphite material with a graphite
minimum purity content of 90 percent carbon by weight, whether
containing synthetic graphite, natural graphite, or a blend of
synthetic and natural graphite; with or without coating. Subject
merchandise may be in the form of powder, dry, liquid, or block form
and is covered irrespective of the form in which it enters. Subject
merchandise typically has a maximum size of 80 microns when in
powder form. Subject merchandise has an energy density of 330
milliamp hours per gram or greater and a degree of graphitization of
80 percent or greater, where graphitization refers to the extent of
the graphite crystal structure.
Subject merchandise is covered regardless of whether it is mixed
with silicon based active materials, e.g., silicon-oxide (SiOx),
silicon-carbon (SiC), or silicon, or additives such as carbon black
or carbon nanotubes. Subject merchandise is covered regardless of
the combination of compounds that comprise the graphite material.
Subject merchandise is covered regardless of whether it is imported
independently, as part of a compound, in a battery, as a component
of an anode slurry, or in a subassembly of a battery such as an
electrode. Only the anode grade graphite material is covered when
entered as part of a mixture with silicon based active materials, as
part of a compound, in a batter, as a component of an anode slurry,
or in a subassembly of a battery such as an electrode.
Active anode material subject to the investigation may be
classified under the Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 2504.10.5000 and 3801.10.5000. Subject
merchandise may also enter under HTSUS subheadings 2504.10.1000 and
3801.90.0000. The HTSUS subheadings are provided for convenience and
customs purposes only. The written description of the scope of the
investigation is dispositive.
[FR Doc. 2025-00657 Filed 1-14-25; 8:45 am]
BILLING CODE 3510-DS-P
