Notice2025-05306
Ferrosilicon From Malaysia: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances, 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 Malaysia during the period of investigation (POI), 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 14075-14077]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05306]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-557-829]
Ferrosilicon From Malaysia: Final Affirmative Countervailing Duty
Determination and Final Affirmative Determination of Critical
Circumstances, 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 Malaysia during the period of investigation (POI),
January 1, 2023, through December 31, 2023.
DATES: Applicable March 28, 2025.
FOR FURTHER INFORMATION CONTACT: Suresh Maniam or Stefan Smith, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1603 or (202) 482-4342,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 10, 2024, Commerce published in the Federal Register
the Preliminary Determination and invited comments from interested
parties.\1\ For a complete description of the events that occurred
since Commerce published the Preliminary Determination, as well as a
full discussion of the issues raised by parties for this final
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="http://access.trade.gov">http://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 Malaysia: Preliminary Affirmative
Countervailing Duty Determination, Preliminary Affirmative Critical
Circumstances Determination, In Part, and Alignment of Final
Determination with Final Antidumping Duty Determination, 89 FR 73364
(September 10, 2024) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Ferrosilicon from Malaysia,'' 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 from
Malaysia. 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 Malaysia (GOM), OM Materials
(Sarawak) Sdn. Bhd (OM Materials), and Pertama Ferroalloys Sdn. Bhd
(Pertama) in October 2024 using standard verification procedures,
[[Page 14076]]
including an examination of relevant sales and accounting records, and
original source documents provided by the GOM, OM Materials, and
Pertama.\3\
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\3\ See Memoranda, ``Verification of the Questionnaire Responses
of Government of Malaysia,'' dated November 22, 2024; ``Verification
of the Questionnaire Responses of Pertama Ferroalloys Sdn. Bhd,''
dated November 22, 2024; and ``Verification of the Questionnaire
Responses of OM Materials (Sarawak) Sdn. Bhd,'' dated November 25,
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 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; see also 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, including adverse facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the Preliminary Determination \5\ and section
``Use of Facts Otherwise Available and Application of Adverse
Inferences'' in the accompanying Issues and Decision Memorandum.
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\5\ See Preliminary Determination PDM at 7-17.
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Final Affirmative Determination of Critical Circumstances, in Part
In accordance with sections 705(a)(2) and 776(a) and 776(b) of the
Act and 19 CFR 351.206, Commerce finds that critical circumstances
exist with respect to imports of ferrosilicon for all other producers
and exporters not individually examined. In addition, we find that
critical circumstances do not exist with respect to imports of
ferrosilicon from Malaysia for OM Materials and Pertama. 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 analysis of the information received during
verification, for this final determination, we made certain changes to
the countervailable subsidy rate calculations for OM Materials,
Pertama, and for all other producers/exporters. 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 those 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. In this investigation, Commerce calculated
individual estimated countervailable subsidy rates for OM Materials and
Pertama 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 merchandise under consideration.\6\
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\6\ 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 merchandise under consideration. 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.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see the All-Others Rate Calculation Memorandum.
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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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\7\ Commerce has found the following companies to be cross-owned
with OM Materials: OM Materials & Logistics (M) Sdn. Bhd; OM
Materials (Samalaju) Sdn. Bhd; and OM Engineering Tech (M) Sdn. Bhd.
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Subsidy
rate
Company (percent ad
valorem)
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OM Materials (Sarawak) Sdn. Bhd \7\........................ 2.78
Pertama Ferroalloys Sdn. Bhd............................... 3.48
All Others................................................. 3.08
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination within five
days of its public announcement, or if there is no public announcement,
within five days of the date of 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, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of 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 OM Materials. Because
we preliminarily determined that critical circumstances existed with
respect to Pertama, we instructed CBP to suspend liquidation of entries
of subject merchandise from Malaysia 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, 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 that
were subject to suspension of liquidation between June 12, 2024, and
January 7, 2024.
Because we now find that critical circumstances do not exist for
Pertama, we will direct CBP to terminate the retroactive suspension of
liquidation ordered at the Preliminary Determination and release any
cash deposits that were required prior to September 10, 2024, the date
of publication of the Preliminary Determination in the Federal
Register,
[[Page 14077]]
consistent with section 705(c)(3) of the Act.
Additionally, as a result of this final affirmative determination
of critical circumstances for all other producers and exporters, we are
instructing CBP to suspend liquidation of all entries of subject
merchandise from those producers and exporters of ferrosilicon from
Malaysia, which were entered or withdrawn from warehouse for
consumption 90 days prior to the date of publication of the notice of
the Preliminary Determination in the Federal Register,\8\ pursuant to
section 705(c)(4)(B) of the Act.
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\8\ See Preliminary Determination, 89 FR 73364.
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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 Malaysia. 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 Malaysia no later than 45 days after this
final determination. In addition, we are making available to the ITC
all non-privileged and nonproprietary 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 or threat of 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, in Part
IV. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Rent Paid by OM Materials and Pertama is a
Countervailable Subsidy
Comment 2: Whether the Industrial Building Allowance is
Countervailable
Comment 3: Whether the Import Duty and Sales Tax Exemptions for
Raw Materials is a Countervailable Subsidy
Comment 4: Whether the Facilitation Fund Agreement Grant is
Countervailable
Comment 5: Whether Commerce Properly Calculated a Benefit From
the Discounted Land Premiums
Comment 6: Whether Commerce Properly Allocated the Non-Recurring
Benefits From the Sarawak Government's Waiver of Land-Use
Installment Payments
VIII. Recommendation
[FR Doc. 2025-05306 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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