Notice2025-05301
Ferrosilicon From Brazil: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 28, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of ferrosilicon from Brazil. The period of investigation (POI) is January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 90 Issue 59 (Friday, March 28, 2025)</title>
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[Federal Register Volume 90, Number 59 (Friday, March 28, 2025)]
[Notices]
[Pages 14114-14116]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05301]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-861]
Ferrosilicon From Brazil: Final Affirmative Countervailing Duty
Determination and Final Affirmative Critical Circumstances
Determination, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of ferrosilicon from Brazil. The period of investigation (POI) is
January 1, 2023, through December 31, 2023.
DATES: Applicable March 28, 2025.
FOR FURTHER INFORMATION CONTACT: Bob Palmer or Laurel Smalley, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-9068 or (202)
482-3456, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 10, 2024, Commerce published the Preliminary
Determination in the Federal Register.\1\ We invited interested parties
to comment on the Preliminary
[[Page 14115]]
Determination. For a complete description of the events that followed
the Preliminary Determination, see the Issues and Decision
Memorandum.\2\ The Issues and Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Ferrosilicon from Brazil: Preliminary Affirmative
Countervailing Duty Determination, Preliminary Affirmative Critical
Circumstances Determination in Part, and Alignment of Final
Determination With Final Antidumping Duty Determination, 89 FR 73371
(September 10, 2024) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Ferrosilicon from Brazil,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decision
Memorandum).
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Scope of the Investigation
The product covered by this investigation is ferrosilicon. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
No interested party commented on the scope of the investigation as
it appeared in the Preliminary Determination. Therefore, no changes
were made to the scope of the investigation.
Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation, in accordance
with section 782(i) of the Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of the subsidy
information reported by the Government of Brazil (GOB), Companhia de
Ferro Ligas da Bahia--FERBASA (Ferbasa), and Minasligas S.A.
(Minasligas) in October 2024 using standard verification procedures,
including an examination of relevant sales and accounting records, and
original source documents provided by the GOB, Ferbasa, and
Minasligas.\3\
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\3\ See Memoranda, ``Verification of the Questionnaire Responses
of Companhia de Ferro Ligas da Bahia--FERBASA,'' dated December 20,
2024; ``Verification of the Questionnaire Responses of the
Government of Brazil,'' dated December 20, 2024; and ``Verification
of the Questionnaire Responses of Minasligas S.A.,'' dated December
19, 2024.
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Analysis of Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by parties, and to which we responded in
the Issues and Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce 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.\4\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\4\ 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.
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In making this final determination, Commerce relied, in part, on
facts available and, because it finds that one or more respondents did
not act to the best of its ability to respond to Commerce's requests
for information, Commerce has drawn an adverse inference where
appropriate in selecting from among the facts otherwise available.\5\
For a full discussion of our application of adverse facts available
(AFA), see the ``Use of Facts Otherwise Available and Application of
Adverse Inferences'' section in the Issues and Decision Memorandum.\6\
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\5\ See sections 776(a) and (b) of the Act.
\6\ See Issues and Decision Memorandum at 5-9.
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Final Affirmative Determination of Critical Circumstances, in Part
In accordance with sections 703(e)(1) and 776(a) and 776(b) of the
Act and 19 CFR 351.206, Commerce continues to find that critical
circumstances exist with respect to imports of ferrosilicon from
Minasligas, and Ligas de Aluminio S.A. (LIASA), but do not exist with
respect to Ferbasa and all other exporters or producers not
individually examined. For a full description of the methodology and
results of Commerce's critical circumstances analysis, see the Issues
and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our findings at verification and our review and analysis
of the comments received from parties, for this final determination, we
made certain changes to the countervailable subsidy rate calculations
for Ferbasa and for all other producers/exporters. We also updated the
data supporting our critical circumstances analysis. For a discussion
of these changes, see the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates based entirely under
section 776 of the Act. We continue to calculate individual estimated
countervailable subsidy rates for Ferbasa and Minasligas that are not
zero, de minimis, or based entirely on facts otherwise available under
section 776 of the Act. We, therefore, continue to calculate the all-
others rate using a weighted average of the individual estimated
subsidy rates calculated for Ferbasa and Minasligas, the individually
examined exporters/producers in this investigation, pursuant to section
705(c)(5)(A)(i) of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
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Subsidy
rate
Company (percent ad
valorem)
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Companhia de Ferro Ligas da Bahia--FERBASA \7\............. 5.25
Minasligas S.A.\8\......................................... 4.44
Ligas de Aluminio S.A...................................... * 61.73
All Others................................................. 5.01
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* Rate based on AFA.
Disclosure
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\7\ Commerce has found the following company to be cross-owned
with Ferbasa: Funda[ccedil][atilde]o Jos[eacute] Carvalho Foundation
(Jose Carvalho Foundation).
\8\ Commerce has found the following companies to be cross-owned
with Minasligas: Irmazi Participa[ccedil][otilde]es S.A. (Irmazi),
Participa[ccedil][otilde]es SZ Ltd. (SZ), and Centrium
Empreendimentos Ltda. (Centrium).
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Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination within five
days of any public announcement, or if there is no public announcement,
within five days of the date of the publication of this notice in the
Federal Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of
[[Page 14116]]
entries of subject merchandise, as described in the scope of the
investigation section, that were entered, or withdrawn from warehouse,
for consumption on or after September 10, 2024, the date of publication
of the Preliminary Determination in the Federal Register for entries
produced and/or exported by all other producers and/or exporters of
ferrosilicon in Brazil. Because we preliminarily determined that
critical circumstances existed with respect to Ferbasa, Minasligas, and
LIASA, the non-responsive company, we instructed CBP to suspend
liquidation of entries of subject merchandise from Brazil that were
entered, or withdrawn from warehouse, for consumption, on or after June
12, 2024, which is 90 days prior to the date of the publication of the
Preliminary Determination in the Federal Register.
In accordance with section 703(d) of the Act, on January 8, 2025,
we instructed CBP to discontinue the suspension of liquidation of all
entries of subject merchandise entered or withdrawn from warehouse on
or after January 8, 2025, but to continue the suspension of liquidation
of all entries of subject merchandise on or after June 12, 2024, for
the examined respondents, and on or after September 10, 2024, for all
other companies, to, on, or before January 7, 2025.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. If the ITC determines
that material injury, or threat of material injury, does not exist,
this proceeding will be terminated, and all estimated duties deposited
or securities posted as a result of the suspension of liquidation will
be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of ferrosilicon
from Brazil. Because the final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of ferrosilicon from Brazil no later than 45 days after this
final determination. In addition, we are making available to the ITC
all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury does not exist, this proceeding
will be terminated and all cash deposits will be refunded.
If the ITC determines that such injury does exist, Commerce will
issue a countervailing duty order directing CBP to assess, upon further
instruction by Commerce, countervailing duties on all imports of the
subject merchandise that are entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: March 21, 2025.
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 scope of this investigation covers all forms and sizes of
ferrosilicon, regardless of grade, including ferrosilicon
briquettes. Ferrosilicon is a ferroalloy containing by weight four
percent or more iron, more than eight percent but not more than 96
percent silicon, three percent or less phosphorus, 30 percent or
less manganese, less than three percent magnesium, and 10 percent or
less of any other element. The merchandise covered also includes
product described as slag, if the product meets these
specifications.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by performing any grinding or any
other finishing, packaging, or processing that would not otherwise
remove the merchandise from the scope of the investigation if
performed in the country of manufacture of the ferrosilicon.
Ferrosilicon is currently classifiable under subheadings
7202.21.1000, 7202.21.5000, 7202.21.7500, 7202.21.9000,
7202.29.0010, and 7202.29.0050 of the Harmonized Tariff Schedule of
the United States (HTSUS). While the HTSUS numbers are provided for
convenience and customs purposes, the written description of the
scope remains dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. Subsidies Valuation Information
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to the Government of Brazil (GBR)
Comment 1a: Whether Commerce Should Apply AFA to the DESENVOLVE
Program
Comment 1b: Whether Commerce Should Include Certain Programs in
the AFA Rate Calculation for LIASA
Comment 1c: Whether Commerce Should Apply AFA to the Imposto
Sobre Circula[ccedil][atilde]o de Mercadorias e Servi[ccedil]os
(ICMS) Exemptions on Sales of Solar Electricity in the State of
Minas Gerais (ICMS Exemptions Solar) Program
Comment 2: Whether the ICMS Exemptions Solar Program Confers a
Benefit to Minasligas
Comment 3: Whether Subsidiaries of Centrais El[eacute]tricas
Brasileiras S.A. (Eletrobr[aacute]s) are Government Authorities
Comment 4: Whether Commerce Should Revise its Electricity for
Less Than Adequate Remuneration Benchmark Calculation
Comment 5: Whether Commerce Should Revise the Northeast Region
Development Authority (SUDENE) Tax Incentives Benefit Calculation
for Ferbasa
VIII. Recommendation
[FR Doc. 2025-05301 Filed 3-27-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 28, 2025.
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