83 FR 9838 - Silicon Metal From Brazil: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 46 (March 8, 2018)

Page Range9838-9839
FR Document2018-04661

The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of silicon metal from Brazil. The period of investigation is January 1, 2016, through December 31, 2016.

Federal Register, Volume 83 Issue 46 (Thursday, March 8, 2018)
[Federal Register Volume 83, Number 46 (Thursday, March 8, 2018)]
[Notices]
[Pages 9838-9839]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04661]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-851]


Silicon Metal From Brazil: Final Affirmative Countervailing Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of silicon metal from Brazil. The period of investigation is January 1, 
2016, through December 31, 2016.

DATES: Applicable March 8, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Palmer or George Ayache, 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) 
482-2623, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Determination on August 14, 
2017.\1\ Commerce exercised its discretion to toll all deadlines 
affected by the closure of the Federal Government from January 20 
through 22, 2018. If the new deadline falls on a non-business day, in 
accordance with Commerce's practice, the deadline will become the next 
business day. The revised deadline for the final determination of this 
investigation is now February 27, 2018.\2\ A summary 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, may be found in the Issues and Decision Memorandum 
issued concurrently with this notice.\3\ 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 http://access.trade.gov, and is available to all 
parties in the Central Records Unit, room B8024 of the main Department 
of Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \1\ See Silicon Metal from Brazil: Preliminary Affirmative 
Countervailing Duty Determination, and Alignment of Final 
Determination with Final Antidumping Duty Determination, 82 FR 37841 
(August 14, 2017) (Preliminary Determination).
    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
    \3\ See Memorandum, ``Silicon Metal from Brazil: Issues and 
Decision Memorandum for the Final Determination of the 
Countervailing Duty Investigation,'' dated concurrently with this 
determination (Issues and Decision Memorandum) and hereby adopted by 
this notice.
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Scope of the Investigation

    The product covered by this investigation is silicon metal from 
Brazil. For a full description of the scope of this investigation, see 
the ``Scope of the Investigation'' in Appendix I of this notice.

Scope Comments

    During the course of this investigation, Commerce received numerous 
scope comments from interested parties. Prior to the Preliminary 
Determination, Commerce issued a Preliminary Scope Decision Memorandum 
\4\ to address these comments. Since the Preliminary Determination, 
Globe Specialty Metals, Inc. (the petitioner) submitted a case brief 
and interested parties submitted rebuttal briefs concerning the limits 
to silicon content as specified in the scope.
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    \4\ See Memorandum, ``Silicon Metal from Australia, Brazil, 
Kazakhstan, and Norway: Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated June 29, 2017 (Preliminary Scope 
Decision Memorandum).
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    Commerce reviewed these briefs, considered the arguments therein, 
and is not making any additional changes to the scope of the 
investigation. For further discussion, see Commerce's Final Scope 
Decision Memorandum.\5\ The scope in Appendix I reflects the final 
scope language.
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    \5\ See Memorandum, ``Silicon Metal from Australia, Brazil, 
Kazakhstan, and Norway: Final Scope Comments Decision Memorandum,'' 
dated February 27, 2018 (Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found 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.\6\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \6\ 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 these findings, Commerce relied, in part, on facts 
otherwise available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Issues and Decision Memorandum.
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    \7\ See sections 776(a), (b), and 782(d) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, verification, and the minor corrections presented at 
verification, we made certain changes to the respondents' subsidy rate 
calculations. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Determination

    In accordance with section 705(c)(l)(B)(i) of the Act, we 
calculated a rate for Palmyra do Brasil Ind[uacute]stria e 
Com[eacute]rcio de Silicio Met[aacute]lico e Recursos Naturais Ltda. 
(Palmyra do Brasil), a producer/exporter of subject

[[Page 9839]]

merchandise selected for individual examination in this 
investigation.\8\
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    \8\ Palmyra do Brasil reported that it changed its name from Dow 
Corning Silicio do Brasil Ind[uacute]stria e Com[eacute]rcio Ltda. 
(DC Silicio) on June 30, 2017. Commerce verified this name change. 
See Issues and Decision Memorandum at 2.
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    Commerce assigned a rate based entirely on facts otherwise 
available with an adverse inference pursuant to section 776 of the Act 
to Ligas de Aluminio S.A.--LIASA (LIASA).
    Section 705(c)(5)(A) of the Act provides that in the final 
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.
    The only rate for an individually-examined respondent that is not 
zero, de minimis or based entirely on adverse facts otherwise available 
is the rate calculated for Palmyra do Brasil. Consequently, the rate 
calculated for Palmyra do Brasil is also assigned as the rate for all-
other producers and exporters, pursuant to section 705(c)(5)(A)(i) of 
the Act.
    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \9\ As discussed in the Preliminary Determination, Commerce has 
found the following companies to be cross-owned with Palmyra do 
Brasil, previously known as Dow Corning Silicio do Brasil 
Ind[uacute]stria e Com[eacute]rcio Ltda. (DC Silicio): Palmyra 
Recursos Naturais Explora[ccedil][atilde]o e Com[eacute]rcio Ltda. 
and Dow Corning Metais do Par[aacute] IND.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Palmyra do Brasil Ind[uacute]stria e Com[eacute]rcio de             2.44
 Silicio Met[aacute]lico e Recursos Naturais Ltda.\9\.......
Ligas de Aluminio S.A.--LIASA...............................       52.51
All-Others..................................................        2.44
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of publication of our final determination, in accordance with 
19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed 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 the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for countervailing duty (CVD) purposes for subject merchandise entered, 
or withdrawn from warehouse, on or after December 12, 2017, but to 
continue the suspension of liquidation of all entries from August 14, 
2017, through December 11, 2017.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above. 
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.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its 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.

Notification Regarding Administrative Protective Orders

    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.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: February 27, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The scope of this investigation covers all forms and sizes of 
silicon metal, including silicon metal powder. Silicon metal 
contains at least 85.00 percent but less than 99.99 percent silicon, 
and less than 4.00 percent iron, by actual weight. Semiconductor 
grade silicon (merchandise containing at least 99.99 percent silicon 
by actual weight and classifiable under Harmonized Tariff Schedule 
of the United States (HTSUS) subheading 2804.61.0000) is excluded 
from the scope of these investigations.
    Silicon metal is currently classifiable under subheadings 
2804.69.1000 and 2804.69.5000 of the HTSUS. While 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. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether the Tax Incentives in the State of 
Par[aacute] (ICMS) Program Is Countervailable
    Comment 2: Whether the Predominantly Exporting Companies (PEC) 
Program Is Countervailable
    Comment 3: Whether Palmyra do Brasil Received Reintegra Benefits 
During the Period of Investigation (POI)
    Comment 4: Whether the Forest Fee Reduction Program Is 
Countervailable
VII. Recommendation

[FR Doc. 2018-04661 Filed 3-7-18; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable March 8, 2018.
ContactRobert Palmer or George Ayache, 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) 482-2623, respectively.
FR Citation83 FR 9838 

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