Large Diameter Graphite Electrodes From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of large diameter graphite elect...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of large diameter graphite electrodes (large graphite electrodes) from India. The period of investigation is January 1, 2025, through December 31, 2025. Interested parties are invited to comment on this preliminary determination.
DATES:
Applicable July 30, 2026.
FOR FURTHER INFORMATION CONTACT:
Nathan James or Olivia Woolverton, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5305 or (202) 482-7452, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on March 20, 2026.[1]
On May 6, 2026, Commerce postponed the preliminary determination of this investigation and the revised deadline is now July 24, 2026.[2]
For a complete description of the events that followed the initiation of this investigation,
see
the Preliminary Decision Memorandum.[3]
A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System, which is available to registered users at
https://access.trade.gov.
In addition, a complete version of the Preliminary Decision Memorandum can be accessed at
https://access.trade.gov/frnotices.
Scope of the Investigation
The products covered by this investigation are large graphite electrodes from India. For a complete description of the scope of this investigation,
see
Appendix I.
Scope Comments
In accordance with the
Preamble
to Commerce's regulations,[4]
in the
Initiation Notice
we set aside a period of time for parties to raise issues regarding product coverage (
i.e.,
scope).[5]
Certain interested parties commented on the scope of the investigation as it appeared in the
Initiation Notice.
For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received,
see
the Preliminary Scope Decision Memorandum.[6]
Commerce is preliminarily modifying the scope language as it appeared in the
Initiation Notice. See
the revised scope in Appendix I to this notice.
( printed page 48082)
Methodology
Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy,
i.e.,
a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific.[7]
Commerce notes that, in making these findings, we relied, in part, on facts available and, because we found that one or more respondents did not act to the best of their ability to respond to Commerce's requests for information, we drew an adverse inference where appropriate in selecting from among the facts otherwise available.[8]
For further information,
see
the “Use of Facts Otherwise Available and Adverse Inferences” section in the Preliminary Decision Memorandum.
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final determination in this countervailing duty (CVD) investigation with the final determination in the companion less-than-fair-value (LTFV) investigation of large graphite electrodes from India based on a request made by the petitioners.[9]
Consequently, the final determination in this CVD investigation will be issued on the same date as the final determination in the LTFV investigation of large graphite electrodes from India, which is currently scheduled to be issued no later than December 7, 2026, unless postponed.
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and
de minimis
rates and any rates based entirely under section 776 of the Act.
In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Graphite India Limited (GIL) and HEG Limited (HEG) that are not zero,
de minimis,
or based entirely on facts otherwise available. Commerce calculated the all-others rate using a weighted average of the individual estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged values for the subject merchandise.[10]
Preliminary Determination
Commerce preliminarily determines that the following estimated countervailable subsidy rates exist:
Company
Subsidy rate
(percent
ad valorem)
Graphite India Limited
3.68
HEG Limited
6.99
All Others
5.87
Suspension of Liquidation
In accordance with section 703(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the
Federal Register
. Further, pursuant to section 703(d)(1)(B) of the Act and 19 CFR 351.107(e), Commerce will instruct CBP to require a cash deposit equal to the estimated company-specific countervailable subsidy rate or the estimated all-others rate, as follows: (1) the cash deposit rate for the respondents listed above will be equal to the company-specific estimated individual countervailable subsidy rates determined in this preliminary determination; (2) if both the producer and exporter of the subject merchandise have company-specific estimated subsidy rates determined in this preliminary determination, and their rates differ, then the applicable cash deposit rate will be the higher of these two rates; (3) if either the producer or the exporter, but not both, of the subject merchandise have a company-specific estimated subsidy rate determined in this preliminary determination, the applicable cash deposit rate will be that company's company-specific rate; and (4) the cash deposit rate for all other producers and exporters will be equal to the estimated all-others subsidy rate.
Disclosure
Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if appropriate, correct any timely allegations of significant ministerial errors by amending the preliminary determination. However, consistent with 19 CFR 351.224(d), Commerce will not consider incomplete allegations that do not address the significance standard under 19 CFR 351.224(g) following the preliminary determination. Instead, Commerce will address such allegations in the final determination together with issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination.
Public Comment
The deadlines to submit scope case and rebuttal briefs are provided in the Preliminary Scope Decision Memorandum. For all scope case and rebuttal briefs, parties must file identical documents simultaneously on the records of the ongoing LTFV and CVD large graphite electrodes. No new factual information or business proprietary information may be included in either scope case or rebuttal briefs
Non-scope related case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in the case briefs, may be
( printed page 48083)
filed not later than five days after the date for filing case briefs.[11]
Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.[12]
As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.[13]
Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the Issues and Decision Memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).[14]
Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain (1) the party's name, address, and telephone number, (2) the number of participants, and whether any participant is a foreign national, and (3) a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify the ITC of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of large graphite electrodes from India are materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: July 24, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix I—Scope of the Investigation
The merchandise covered by this investigation includes all large diameter graphite electrodes of any length, whether or not finished, of a kind used in furnaces, with a nominal or actual diameter exceeding 425 millimeters (16.7 inches), and whether or not attached to a graphite pin joining system or any other type of joining system or hardware. The merchandise covered by the investigation also includes graphite pin joining systems (commonly referred to as pins or nipples) for large diameter graphite electrodes, of any length, and with a minimum diameter of 228.6 mm (9 inches) at its widest transverse cross-section, whether or not finished, of a kind used in furnaces, and whether or not the graphite pin joining system is attached to, sold with, or sold separately from, the large diameter graphite electrode. Unfinished large diameter graphite electrodes are graphitized electrodes that have not undergone final machining. For purposes of the investigation, the country of origin is determined by the country of graphitization.
Excluded from the scope of the investigation are large diameter graphite electrodes that are subject to the existing antidumping duty order on Small Diameter Graphite Electrodes from the People's Republic of China.
See Antidumping Duty Order: Small Diameter Graphite Electrodes from the People's Republic of China,74 FR 8775 (February 26, 2009) (
SDGE China AD Order) due to an affirmative determination of circumvention that imports of graphite electrodes from the People's Republic of China, produced and/or exported by Sinosteel Jilin Carbon Co., Ltd. and Jilin Carbon Import & Export Company (collectively, Jilin Carbon), with an actual or nominal diameter of 17 inches and otherwise meeting the description of the scope of the
SDGE China AD Order
constitute merchandise subject to the
SDGE China AD Order. See Small Diameter Graphite Electrodes from the People's Republic of China: Affirmative Final Determination of Circumvention of the Antidumping Duty Order and Rescission of Later-Developed Merchandise Anticircumvention Inquiry,78 FR 56864 (September 16, 2013). In the case of graphite electrodes entering the United States determined to be subject to the
SDGE China AD Order,
such order controls. In the case of graphite electrodes entering the United States meeting the scope definition of the investigation and not covered by the scope of the
SDGE China AD Order,
the scope of the investigation controls.
Large diameter graphite electrodes and graphite pin joining systems for large diameter graphite electrodes that are covered by the investigation are currently classified under the Harmonized Tariff Schedule of the United States (HTSUS) statistical reporting number 8545.11.0020. Merchandise covered by the investigation may also enter under HTSUS statistical reporting numbers 3801.10.5090 or 3801.90.0050. The HTSUS numbers are provided for convenience and customs purposes, but the written description of the scope is dispositive.
Excluded from the scope of the investigation are certain thermal energy storage (TES) graphite blocks. The excluded TES graphite blocks are machine-milled, non-cylindrical graphite blocks, which have: a coefficient of thermal expansion of 1.5 µm/(m·K) or greater, and an apparent (also known as bulk) density below 1.74 g/cm3, and which have an actual length of between 228.6 mm (9.0 inches) and 3010 mm (118.5 inches), an actual width between 228.6 mm (9.0 inches) and 560 mm (22.0 inches), an actual height between 228.6 mm (9.0 inches) and 560 mm (22.0 inches), and which have been machined to include two or more holes of at least 150 mm (5.9 inches) in depth and at least 35 mm (1.4 inches) in diameter.
The two or more 150 mm deep holes must be located: (i) along the longest centerline of the longest side of the block, each located on the same side of the block, (ii) spaced at intervals of no greater than 1000 mm (39.4 inches) apart as measured from the outer edge of the holes, and (iii) with the hole closest to each end of the longest centerline located within 1000 mm of the corresponding end of the block. Blocks may contain any number of additional holes, channels, or grooves in any configuration or location, provided that at least two or more holes of at least 150 mm depth are present as described above.
Further excluded from the scope of the investigation are certain TES graphite blocks, anchors, and pins, regardless of shape, which have a coefficient of thermal expansion of 1.5 µm/(m·K) or greater, and an apparent (also known as bulk) density below 1.74 g/cm3, with actual dimensions such that any one or more of the length, width, or height is less than 228.6 mm (9.0 inches).
Appendix II—List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of India's Economy
V. Use of Facts Available and Adverse Inferences
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Recommendation
Footnotes
1.
See Large Diameter Graphite Electrodes from the People's Republic of China and India: Initiation of Countervailing Duty Investigations,91 FR 13577 (March 20, 2026) (
Initiation Notice).
2.
See Large Diameter Graphite Electrodes from the People's Republic of China and India: Postponement of Preliminary Determinations in the Countervailing Duty Investigations,91 FR 24520 (May 6, 2026).
3.
See
Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination in the Countervailing Duty Investigation of Large Diameter Graphite Electrodes from India,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
6.
See
Memorandum, “Less-Than-Fair-Value and Countervailing Duty Investigations of Large Diameter Graphite Electrodes from India and the People's Republic of China: Preliminary Scope Decision Memorandum,” dated concurrently with this notice (Preliminary Scope Decision Memorandum).
7.
See
sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
9.
The petitioners are the Large Diameter Graphite Electrodes Fair Trade Coalition and its individual members, Resonac Graphite America Inc. and Tokai Carbon GE LLC.
See
Petitioner's Letter, “Petitioners' Request to Align Final Countervailing Duty Determinations with the Companion Antidumping Duty Final Determinations,” dated June 24, 2026.
10.
Pursuant to 19 CFR 351.109(f)(2)(ii), with two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sale values for the subject merchandise. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. As complete publicly ranged sales data were available, and the weighted average calculated using the publicly-ranged data was closer to the actual weighted-average margin than a simple average, Commerce based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data,
see
Memorandum, “Preliminary Calculation of the All Others Rate,” dated concurrently with this notice.
11.
See 19 CFR 351.309(d);
see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,88 FR 67069, 67077 (September 29, 2023) (
APO and Service Final Rule).
Use this for formal legal and research references to the published document.
91 FR 48081
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Large Diameter Graphite Electrodes From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination,” thefederalregister.org (July 30, 2026), https://thefederalregister.org/documents/2026-15396/large-diameter-graphite-electrodes-from-india-preliminary-affirmative-countervailing-duty-determination-and-alignment-of.