Ferrosilicon From the Russian Federation: Preliminary Affirmative Critical Circumstances Determinations

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[A-821-838, C-821-839]</DEPDOC> <SUBJECT>Ferrosilicon From the Russian Federation: Preliminary Affirmative Critical Circumstances Determinations</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Commerce (Commerce) preliminarily determines that that critical circumstances exist, with respect to imports of ferrosilicon in the antidumping duty (AD) and countervailing duty (CVD) investigations of ferrosilicon from the Russian Federation (Russia). The AD period of investigation is July 1, 2023, through December 31, 2023, and the CVD period of investigation is January 1, 2023, through December 31, 2023. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable August 28, 2024. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Mark Hoadley AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482- 3148. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> These preliminary determinations are made in accordance with sections 703(e) and 733(e) of the Tariff Act of 1930, as amended (the Act). Commerce published the notices of initiation of these AD and CVD investigations on April 24, 2024. <SU>1</SU> <FTREF/> On August 9, 2024, CC Metals and Alloys, LLC and Ferroglobe USA, INC. (collectively, the petitioners) filed timely allegations, pursuant to sections 703(e)(1) and 733(e)(1) of the Act and 19 CFR 351.206, that critical circumstances exist with respect to ferrosilicon from Russia. <SU>2</SU> <FTREF/> On August 19, 2024, the Government of Russia (GOR) submitted comments in response to the petitioners' CVD critical circumstances allegation. <SU>3</SU> <FTREF/> Commerce published its preliminary AD and CVD determinations on June 28, 2024. <SU>4</SU> <FTREF/> In the <E T="03">CVD Preliminary Determination,</E> we applied adverse facts available (AFA) to the mandatory respondent, Russian Ferro Alloys Inc./RFA International LP (RFA) and determined an all-others rate based on the rate for RFA. <SU>5</SU> <FTREF/> In the <E T="03">AD Preliminary Determination,</E> we assigned the Russia-wide entity an AFA rate as no individual producers/exporters participated in the investigation. <SU>6</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">See Ferrosilicon from Brazil, Kazakhstan, Malaysia, and the Russian Federation: Initiation of Countervailing Duty Investigations,</E> 89 FR 31133 (April 24, 2024) ( <E T="03">CVD Initiation Notice</E> ); <E T="03">see also Ferrosilicon from Brazil, Kazakhstan, Malaysia, and the Russian Federation: Initiation of Less-Than-Fair-Value Investigations,</E> 89 FR 31137 (April 24, 2024) ( <E T="03">AD Initiation Notice</E> ). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> Petitioners' Letter, “Petitioners' Critical Circumstances Allegation,” dated August 9, 2024 (AD Critical Circumstances Allegation); also <E T="03">see</E> Petitioners' Letter, “Petitioners' Critical Circumstances Allegation,” dated August 9, 2024 (CVD Critical Circumstances Allegation). </FTNT> <FTNT> <SU>3</SU>   <E T="03">See</E> GOR's Letter, “Response to the Petitioners' Critical Circumstances Allegation,” dated August 19, 2024. </FTNT> <FTNT> <SU>4</SU>   <E T="03">See Ferrosilicon from the Russian Federation: Preliminary Affirmative Countervailing Duty Determination,</E> 89 FR 53949 (June 28, 2024) ( <E T="03">CVD Preliminary Determination</E> ), and accompanying Preliminary Decision Memorandum (PDM); <E T="03">see also Ferrosilicon from the Russian Federation: Preliminary Affirmative Determination of Sales at Less Than Fair Value,</E> 89 FR 53953 (June 28, 2024) ( <E T="03">AD Preliminary Determination</E> ), and accompanying PDM. </FTNT> <FTNT> <SU>5</SU>   <E T="03">See CVD Preliminary Determination</E> PDM at 6-14. </FTNT> <FTNT> <SU>6</SU>   <E T="03">See AD Preliminary Determination</E> PDM at 6-8. </FTNT> In accordance with sections 703(e)(1) and 733(e)(1) of the Act and 19 CFR 351.206(c)(1) and (2)(ii), because the petitioners submitted the critical circumstances allegations more than 30 days before the scheduled date of the final determinations, Commerce will make preliminary findings as to whether there is a reasonable basis to believe or suspect that critical circumstances exist and will issue preliminary critical circumstances determinations within 30 days after the allegations are filed. <HD SOURCE="HD1">Critical Circumstances Allegations</HD> The petitioners allege that imports of ferrosilicon from Russia were massive over a relatively short period, and provided monthly import data comparing a base period of January 2024 through March 2024, to a comparison period of April 2024 through June 2024. <SU>7</SU> <FTREF/> The petitioners allegation of massive imports utilizes base and comparison periods established in accordance with 19 CFR 351.206(i) and reflects an increase from 0 to 5,744.922 metric tons, which is “massive” under 19 CFR 351.206(h)(2) and under sections 703(e)(1)(b) and 733(e)(1)(b) of the Act. <SU>8</SU> <FTREF/> For the CVD investigation, the petitioners also allege that there is a reasonable basis to believe that there are subsidies in this investigation which are inconsistent with the World Trade Organization Agreement on Subsidies and Countervailing Measures (SCM Agreement). <SU>9</SU> <FTREF/> For the AD investigation, the petitioners also allege that there is reason to believe there is history of dumping and material injury by reason of dumped imports in the United States or elsewhere of ferrosilicon and a reason to believe importers knew or should have known that Russian producers and/or exporters were selling ferrosilicon at less than fair value (LTFV) and that material injury was likely. <SU>10</SU> <FTREF/> <FTNT> <SU>7</SU>   <E T="03">See</E> AD Critical Circumstance Allegation at 6; <E T="03">see also</E> CVD Critical Circumstances Allegation at 5. </FTNT> <FTNT> <SU>8</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>9</SU>   <E T="03">See</E> section 771(8)(A) of the Act. </FTNT> <FTNT> <SU>10</SU>   <E T="03">See</E> section 733(e)(1) of the Act. </FTNT> <HD SOURCE="HD1">Analysis</HD> <HD SOURCE="HD2">CVD Allegation: Alleged Countervailable Subsidies Are Inconsistent With the SCM Agreement</HD> Section 703(e)(1) of the Act provides that Commerce will determine that critical circumstances exist in CVD investigations if there is a reasonable basis to believe or suspect that the alleged countervailable subsidy is inconsistent with the SCM Agreement. <SU>11</SU> <FTREF/> <FTNT> <SU>11</SU>  Commerce limits its critical circumstances findings to those subsidies contingent upon export performance or use of domestic over imported goods ( <E T="03">i.e.,</E> those prohibited under Article 3 of the SCM Agreement). <E T="03">See, e.g., Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination: Carbon and Certain Alloy Steel Wire from Germany,</E> 67 FR 55808, 55809-10 (August 30, 2002). </FTNT> To determine whether an alleged countervailable subsidy is inconsistent with the SCM Agreement, in accordance with section 703(e)(1)(A) of the Act, Commerce considered the evidence currently on the record of this investigation. As determined in the <E T="03">CVD Preliminary Determination,</E> we found, based on AFA, that the non-cooperating mandatory respondent RFA used the Import Substitution Loans program. Record evidence indicates that this program is contingent on the use of domestic over imported goods, rendering it inconsistent with Article 3 of the SCM Agreement. <SU>12</SU> <FTREF/> Therefore, Commerce preliminarily determines, for purposes of this critical circumstances' determination, that there are subsidies in this investigation that are inconsistent with the SCM Agreement. <FTNT> <SU>12</SU>   <E T="03">See</E> Checklist, “Enforcement and Compliance, Countervailing Duty Investigation Initiation Checklist,” dated April 17, 2024, at 8-9. </FTNT> <HD SOURCE="HD2">AD Allegation: History of Dumping and Material Injury by Reason of Dumped Imports in the United States or Elsewhere of the Subject Merchandise</HD> In determining whether there is a history of dumping pursuant to section 733(e)(1)(A)(i) of the Act, Commerce generally considers current or previous AD orders on subject merchandise from the country in question in the United States and current orders in any other country with regard to imports of subject merchandise. <SU>13</SU> <FTREF/> On May 4, 2021, Egypt imposed an antidumping duty order on imports of ferrosilicon from Russia. <SU>14</SU> <FTREF/> This third-country antidumping duty order remains in effect and constitutes evidence of a history of dumping and material injury by reason of LTFV sales. <SU>15</SU> <FTREF/> <FTNT> <SU>13</SU>   <E T="03">See, e.g.,</E> <E T="03">Certain Oil Country Tubular Goods from the People's Republic of China: Notice of Preliminary Determination of Sales at Less Than Fair Value, Affirmative Preliminary Determination of Critical Circumstances and Postponement of Final Determination,</E> 74 FR 59117, 59120 (November 17, 2009) ( <E T="03">OCTG China Preliminary Determination</E> ), unchanged in <E T="03">Certain Oil Country Tubular Goods from the People's Republic of China: Final Determination of Sales at Less Than Fair Value, Affirmative Final Determination of Critical Circumstances and Final Determination of Targete ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 19k characters. 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