Imports of Tungsten Shot from China

U.S. manufacturer of tungsten shot, Tungsten Parts Wyoming, Inc., filed international trade petitions against imports of certain tungsten shot products from China.

Tungsten shots are non-toxic and are used in the production of shotgun ammunition. Denser than both steel and lead, tungsten is a more effective option for longer-range shooting, making it a better choice for hunting.

The total value of the subject imports in 2023 was about $27 million.

The petitions threaten the imposition of antidumping (AD) and countervailing duties (CVD) on imports of tungsten shots, alleging the following duty rates:

Antidumping Duties

• 196.32 percent

Countervailing Duties

Countervailing duty rates are calculated based on the number of subsidy programs, the value of benefits received, and the specific company's revenue. These rates typically vary between single and triple digits.

The CVD petition alleges thirty-two subsidy programs.

For foreign producers, exporters, and U.S. importers participating in these investigations, the final duty rates often end up much lower than the alleged rates and sometimes result in no duties being imposed at all.

The Focus of the Investigations:

The petitions were filed with the two U.S. agencies involved in antidumping and countervailing duty investigations: the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC).

1. The DOC will calculate the dumping margins and countervailable subsidy rates for foreign exporters of tungsten shot from these countries.

2. The ITC will assess whether imports from China is causing material injury to the U.S. tungsten shot industry.

Dumping occurs when a foreign company sells a product in the U.S. at a price below its normal value, which is assessed based on the company's above-cost sales in its home market or a comparable market. This evaluation aims to identify price discrimination.

Countervailable subsidies consist of financial assistance provided by foreign governments that benefit the production, manufacture, or exportation of goods, specifically targeting the exporter, industry, or geographic region. Such subsidies can take various forms, including discounted loans, tax breaks, direct grants, or low-cost rent.

The injury investigation examines whether the U.S. industry suffers material injury or faces a threat of material injury by reason of the allegedly dumped and subsidized imports.

Participation:

The DOC is currently evaluating the sufficiency of the petitions and is set to decide whether to officially launch the investigations by July 30, 2024. Once initiated, participation in the investigations is almost always vital for maintaining U.S. market share and staying competitive.

In the antidumping and countervailing duty investigations, the DOC normally examines two companies from each country, typically chosen based on their export volume to the U.S. These companies will be required to actively participate in the investigations, and the dumping margins and countervailable subsidy rates determined for them will likely set the duty rates for other producers and exporters.

The ITC initiated its injury investigation on July 10, 2024, and will have 45 days to reach a preliminary determination. Producers, importers, and exporters can participate in the ITC investigation by responding to questionnaires about the production, importation, and sales of tungsten shot. Questionnaires will be issued soon. Parties can also defend themselves at the ITC against claims that imports are harming the U.S. industry.

Retroactive Duties:

Duty may be required for merchandise currently in transit or expected to be shipped soon. Antidumping and countervailing duties normally become effective when the DOC makes affirmative preliminary determinations. However, if the petitioner later alleges critical circumstances and dumping or subsidization is determined, imports arriving after July 10, 2024 (the petition filing date), but before the AD and CVD preliminary determination dates, could face retroactive cash deposits.

Key Dates:

DOC Initiation: July 30, 2024

ITC Preliminary Determination: August 26, 2024

DOC CVD Preliminary Determination: October 3, 2024

DOC AD Preliminary Determination: December 17, 2024

DOC CVD Final Determinations: December 17, 2024

DOC AD Final Determinations: March 3, 2025

ITC Final CVD Determination: January 31, 2025

ITC Final AD Determination: April 17, 2025

Issuance of Orders: April 24, 2025

Note: The above deadlines are estimates and might be extended under certain circumstances.

REQUESTED SCOPE OF MERCHANDISE UNDER CONSIDERATION

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 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.