Ferrosilicon From the Russian Federation: Preliminary Affirmative Critical Circumstances Determinations, 68860-68862 [2024-19393]
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68860
Federal Register / Vol. 89, No. 167 / Wednesday, August 28, 2024 / Notices
accordance with 19 CFR 351.212(c)(l)(i).
Commerce intends to issue assessment
instructions to CBP for these companies
no earlier than 35 days after the
publication of the preliminary results of
this review in the Federal Register. If a
timely summons is filed at the U.S.
Court of International Trade, the
assessment instructions will direct CBP
not to liquidate relevant entries until the
time for parties to file a request for a
statutory injunction has expired (i.e.,
within 90 days of publication).
Cash Deposit Requirements
In accordance with section 751(a)(1)
of the Act, Commerce intends to instruct
CBP to collect cash deposits of
estimated countervailing duties in the
amounts shown for the POR for each of
the respective companies listed above
on shipments of subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of the final results of this
administrative review. For all nonreviewed firms subject to the Order, we
will instruct CBP to continue to collect
cash deposits of estimated
countervailing duties at the most recent
company-specific or all-others rate
applicable to the company, as
appropriate. These cash deposit
requirements, effective upon
publication of the final results of
review, shall remain in effect until
further notice.
Administrative Protective Order (APO)
This notice also serves as a reminder
to parties subject to an APO of their
responsibility concerning the return or
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return or 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.
khammond on DSKJM1Z7X2PROD with NOTICES
Notification to Interested Parties
We are issuing and publishing these
final results of administrative review
and notice in accordance with sections
751(a)(1) and 777(i) of the Act, and 19
CFR 351.221(b)(5).
Dated: August 15, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix I—List of Topics Discussed in
the Issues and Decision Memorandum
I. Summary
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II. Background
III. Final Rescission of Review, in Part
IV. Scope of the Order
V. Use of Facts Otherwise Available and
Application of Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Commerce Should
Change Its Preliminary Findings
Regarding the Export Buyer’s Credit
Program (EBCP)
Comment 2: Whether the Electricity for
Less Than Adequate Remuneration
(LTAR) Program Is Specific
Comment 3: Whether Certain Input
Suppliers Are Government Authorities
A. Whether Information Is Missing From
the Record
B. Whether Two Suppliers Provided
Sufficient Information
Comment 4: Whether Commerce Properly
Excluded Respondents’ Benchmark Data
A. Whether Commerce Should Use All of
Respondents’ Benchmark Data
B. Whether Commerce Should Revise the
Cut Timber Benchmark
Comment 5: Whether Commerce Should
Revise the Paint Benchmark
Comment 6: Whether Commerce Should
Revise the Ocean Freight Benchmark
A. Whether Commerce Should Include
Drewry Data
B. Whether Commerce Should Adjust Its
Averaging Methodology
C. Whether To Include Certain Surcharges
Comment 7: Whether Commerce Should
Rely on Respondents’ Reported Inland
Freight Data
Comment 8: Whether Commerce Should
Exclude Sales Not Related to Production
Activities
Comment 9: Whether Commerce Should
Rely on Malaysian Land Benchmarks
IX. Recommendation
Appendix II—Non-Selected Companies
Under Review
1. Anji Huaxin Bamboo & Wood Products
Co., Ltd.
2. Fotiou Frames Limited
3. Fujian Hongjia Craft Products Co., Ltd.
4. Fujian Wangbin Decorative Material Co.,
Ltd.
5. Fujian Youxi Best Arts & Crafts Co. Ltd.
6. Homebuild Industries Co., Ltd.
7. Huaan Longda Wood Industry Co., Ltd.
8. Jiangsu Wenfeng Wood Co., Ltd.
9. Longquan Jiefeng Trade Co., Ltd.
10. Nanping Huatai Wood & Bamboo Co.,
Ltd.
11. Nanping Huatai Wood and Bamboo Co.,
Ltd.
12. Putian Yihong Wood Industry Co., Ltd.
13. Shandong Miting Household Co., Ltd.
14. Shaxian Hengtong Wood Industry Co.,
Ltd.
15. Shaxian Shiyiwood, Ltd.
16. Shuyang Kevin International Co., Ltd.
17. Shuyang Zhongding Decoration Materials
Co., Ltd.
18. Suqian Sulu Import & Export Trading Co.,
Ltd.
19. Zhangzhou Wangjiamei Industry & Trade
Co., Ltd.
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20. Zhangzhou Yihong Industrial Co., Ltd.
[FR Doc. 2024–19318 Filed 8–27–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–821–838, C–821–839]
Ferrosilicon From the Russian
Federation: Preliminary Affirmative
Critical Circumstances Determinations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: 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.
DATES: Applicable August 28, 2024.
FOR FURTHER INFORMATION CONTACT:
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.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
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, 2024.1 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.2 On August 19,
1 See Ferrosilicon from Brazil, Kazakhstan,
Malaysia, and the Russian Federation: Initiation of
Countervailing Duty Investigations, 89 FR 31133
(April 24, 2024) (CVD Initiation Notice); see also
Ferrosilicon from Brazil, Kazakhstan, Malaysia, and
the Russian Federation: Initiation of Less-ThanFair-Value Investigations, 89 FR 31137 (April 24,
2024) (AD Initiation Notice).
2 See Petitioners’ Letter, ‘‘Petitioners’ Critical
Circumstances Allegation,’’ dated August 9, 2024
(AD Critical Circumstances Allegation); also see
Petitioners’ Letter, ‘‘Petitioners’ Critical
Circumstances Allegation,’’ dated August 9, 2024
(CVD Critical Circumstances Allegation).
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Federal Register / Vol. 89, No. 167 / Wednesday, August 28, 2024 / Notices
2024, the Government of Russia (GOR)
submitted comments in response to the
petitioners’ CVD critical circumstances
allegation.3 Commerce published its
preliminary AD and CVD
determinations on June 28, 2024.4 In the
CVD Preliminary Determination, 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.5 In the AD
Preliminary Determination, we assigned
the Russia-wide entity an AFA rate as
no individual producers/exporters
participated in the investigation.6
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.
khammond on DSKJM1Z7X2PROD with NOTICES
Critical Circumstances Allegations
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
2024.7 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.8 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
3 See GOR’s Letter, ‘‘Response to the Petitioners’
Critical Circumstances Allegation,’’ dated August
19, 2024.
4 See Ferrosilicon from the Russian Federation:
Preliminary Affirmative Countervailing Duty
Determination, 89 FR 53949 (June 28, 2024) (CVD
Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM); see also
Ferrosilicon from the Russian Federation:
Preliminary Affirmative Determination of Sales at
Less Than Fair Value, 89 FR 53953 (June 28, 2024)
(AD Preliminary Determination), and accompanying
PDM.
5 See CVD Preliminary Determination PDM at 6–
14.
6 See AD Preliminary Determination PDM at 6–8.
7 See AD Critical Circumstance Allegation at 6;
see also CVD Critical Circumstances Allegation at
5.
8 Id.
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Organization Agreement on Subsidies
and Countervailing Measures (SCM
Agreement).9 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.10
Analysis
CVD Allegation: Alleged
Countervailable Subsidies Are
Inconsistent With the SCM Agreement
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.11
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 CVD
Preliminary Determination, 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.12 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.
AD Allegation: History of Dumping and
Material Injury by Reason of Dumped
Imports in the United States or
Elsewhere of the Subject Merchandise
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
9 See
section 771(8)(A) of the Act.
section 733(e)(1) of the Act.
11 Commerce limits its critical circumstances
findings to those subsidies contingent upon export
performance or use of domestic over imported
goods (i.e., those prohibited under Article 3 of the
SCM Agreement). See, e.g., Final Affirmative
Countervailing Duty Determination and Final
Negative Critical Circumstances Determination:
Carbon and Certain Alloy Steel Wire from Germany,
67 FR 55808, 55809–10 (August 30, 2002).
12 See Checklist, ‘‘Enforcement and Compliance,
Countervailing Duty Investigation Initiation
Checklist,’’ dated April 17, 2024, at 8–9.
10 See
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68861
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.13 On May 4, 2021,
Egypt imposed an antidumping duty
order on imports of ferrosilicon from
Russia.14 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.15
AD Allegation: The Importer Knew or
Should Have Known That the Exporter
Was Selling at Less Than Fair Value and
That There Was Likely To Be Material
Injury
In determining whether importers
knew or should have known that
exporters were selling subject
merchandise at LTFV and that there was
likely to be material injury by reason of
such sales, pursuant to section
733(e)(1)(A)(ii), Commerce must rely on
the facts before it at the time the
determination is made. Commerce
generally bases its decision with respect
to knowledge on the margins calculated
in the preliminary determination and
the U.S. International Trade
Commission’s (ITC) preliminary injury
determination.16
Commerce normally considers
margins of 25 percent or more for export
price sales and 15 percent or more for
constructed export price sales sufficient
to impute importer knowledge of sales
at LTFV.17 In this investigation, we
preliminarily assigned a dumping
margin of 283.27 percent to the Russiawide entity, which exceeds the
minimum margin required to impute
13 See, e.g., 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, 74 FR 59117, 59120
(November 17, 2009) (OCTG China Preliminary
Determination), unchanged in 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 Targeted
Dumping, 75 FR 20335 (April 19, 2010) (OCTG
China Final Determination).
14 See AD Critical Circumstances Allegation at 3
and Exhibit 1.
15 Id.
16 See, e.g., OCTG China Preliminary
Determination, unchanged in OCTG China Final
Determination.
17 See, e.g., Certain Uncoated Paper from
Australia: Final Determination of Sales at Less
Than Fair Value and Affirmative Final
Determination of Critical Circumstances, In Part, 81
FR 3108 (January 20, 2016) (Uncoated Paper from
Australia), and accompanying Issues and Decision
Memorandum at 13.
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Federal Register / Vol. 89, No. 167 / Wednesday, August 28, 2024 / Notices
knowledge of dumping to U.S.
importers.18
In assessing importers’ knowledge of
likely material injury, Commerce relies
on a preliminary affirmative
determination by the ITC to impute the
requisite knowledge to U.S. importers.19
Thus, Commerce finds that U.S.
importers knew or should have known
that imports of ferrosilicon from Russia
were being sold at LTFV and were likely
to cause injury, which is sufficient to
satisfy the first requirement for an
affirmative critical circumstances
determination.
khammond on DSKJM1Z7X2PROD with NOTICES
Massive Imports
In determining whether there have
been ‘‘massive imports’’ over a
‘‘relatively short period,’’ pursuant to
sections 703(e)(1)(B) and 733(e)(1)(B) of
the Act and 19 CFR 351.206(h),
Commerce normally compares the
import volumes of the subject
merchandise for at least three months
immediately preceding the filing of the
petition (i.e., the ‘‘base period’’) to a
comparable period of at least three
months following the filing of the
petition (i.e., the ‘‘comparison period’’).
Imports normally will be considered
massive when imports during the
comparison period have increased by 15
percent or more compared to imports
during the base period.20 The
regulations also provide, however, that
if Commerce finds that importers, or
exporters or producers, had reason to
believe, at some time prior to the
beginning of the proceeding, that a
proceeding was likely, Commerce may
consider a period of not less than three
months from that earlier time.21 In this
case, Commerce compared the import
volumes of subject merchandise, as
provided by the petitioners,22 for the
three months immediately preceding
and three months following the filing of
the petition, ending with the month
prior to the AD Preliminary
Determination and the CVD Preliminary
Determination.
Because the petitions were filed on
March 28, 2024, to determine whether
there was a massive surge in imports for
the cooperating mandatory respondent,
Commerce compared the total volume of
shipments during the period January
2024 through March 2024 with the
volume of shipments during the
18 See
AD Preliminary Determination.
Ferrosilicon from Brazil, Kazakhstan,
Malaysia, and Russia; Determinations, 89 FR 43435
(May 17, 2024).
20 See 19 CFR 351.206(h)(2).
21 See 19 CFR 351.206(i).
22 See AD Critical Circumstances Allegation at 5–
6; and CVD Critical Circumstances Allegation at 4–
6.
19 See
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18:13 Aug 27, 2024
Jkt 262001
following three-month period of April
2024 through June 2024. Based on this
analysis, we preliminarily determine
that there was a massive surge in
imports from RFA and ‘‘all other’’
producers/exporters from Russia (for
CVD) and for the Russia-wide entity (for
AD).
Conclusion
For the CVD investigation, based on
the criteria and findings discussed
above, we preliminarily determine that
critical circumstances exist with respect
to imports of ferrosilicon from Russia
produced or exported by RFA and all
other producers/exporters. For the AD
investigation, based on the criteria and
findings discussed above, we
preliminarily determine that critical
circumstances exist with respect to all
imports of ferrosilicon from Russia
produced or exported by the Russiawide entity.
Final Critical Circumstances
Determinations
We will make final critical
circumstances determinations
concerning critical circumstances in the
final AD and CVD determinations,
which are currently due no later than
September 11, 2024.
Public Comment
Interested parties are invited to
comment on these preliminary critical
circumstances determinations no later
than five days after the date on which
this notice is published in the Federal
Register. Given that the final
determinations for the AD and CVD
investigations are due no later than
September 11, 2024, Commerce will
allow two days for parties to submit
rebuttal comments.
We request that interested parties
provide at the beginning of their briefs
a public, executive summary for each
issue raised in their briefs.23 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 memoranda that will
accompany the final determinations in
these investigations. 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
23 We use the term ‘‘issue’’ here to describe an
argument that Commerce would normally address
in a comment of the Issues and Decision
Memorandum.
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requirements pertaining to the service of
documents in 19 CFR 351.303(f).24
Suspension of Liquidation
In accordance with section
703(e)(2)(A) of the Act, for all entries,
we will direct U.S. Customs and Border
Protection (CBP) to suspend liquidation
of any unliquidated entries of subject
merchandise from Russia entered, or
withdrawn from warehouse for
consumption, on or after March 30,
2024, which is 90 days prior to the date
of publication of the AD Preliminary
Determination and CVD Preliminary
Determination in the Federal Register.
For such entries, CBP shall require a
cash deposit equal to the estimated
weighted-average dumping margin
established in the AD Preliminary
Determination and CVD Preliminary
Determination. This suspension of
liquidation will remain in effect until
further notice.
U.S. International Trade Commission
Notification
In accordance with sections 703(f)
and 733(f) of the Act, we will notify the
ITC of these preliminary determinations
of critical circumstances.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 703(f),
733(f), and 777(i) of the Act and 19 CFR
351.206.
Dated: August 22, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and
Negotiations, performing the non-exclusive
functions and duties of the Assistant
Secretary for Enforcement and Compliance.
[FR Doc. 2024–19393 Filed 8–26–24; 4:15 pm]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Institute of Standards and
Technology
Information Collection Activities;
Submission to the Office of
Management and Budget (OMB) for
Review and Approval; Comment
Request; Safety and Health
Information Collection
The Department of Commerce will
submit the following information
collection request to the Office of
Management and Budget (OMB) for
review and clearance in accordance
with the Paperwork Reduction Act of
24 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069,
67077 (September 29, 2023).
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Agencies
[Federal Register Volume 89, Number 167 (Wednesday, August 28, 2024)]
[Notices]
[Pages 68860-68862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19393]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-838, C-821-839]
Ferrosilicon From the Russian Federation: Preliminary Affirmative
Critical Circumstances Determinations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: 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.
DATES: Applicable August 28, 2024.
FOR FURTHER INFORMATION CONTACT: 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.
SUPPLEMENTARY INFORMATION:
Background
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.\1\ 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.\2\ On August 19,
[[Page 68861]]
2024, the Government of Russia (GOR) submitted comments in response to
the petitioners' CVD critical circumstances allegation.\3\ Commerce
published its preliminary AD and CVD determinations on June 28,
2024.\4\ In the CVD Preliminary Determination, 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.\5\ In the AD Preliminary Determination, we assigned
the Russia-wide entity an AFA rate as no individual producers/exporters
participated in the investigation.\6\
---------------------------------------------------------------------------
\1\ See Ferrosilicon from Brazil, Kazakhstan, Malaysia, and the
Russian Federation: Initiation of Countervailing Duty
Investigations, 89 FR 31133 (April 24, 2024) (CVD Initiation
Notice); see also Ferrosilicon from Brazil, Kazakhstan, Malaysia,
and the Russian Federation: Initiation of Less-Than-Fair-Value
Investigations, 89 FR 31137 (April 24, 2024) (AD Initiation Notice).
\2\ See Petitioners' Letter, ``Petitioners' Critical
Circumstances Allegation,'' dated August 9, 2024 (AD Critical
Circumstances Allegation); also see Petitioners' Letter,
``Petitioners' Critical Circumstances Allegation,'' dated August 9,
2024 (CVD Critical Circumstances Allegation).
\3\ See GOR's Letter, ``Response to the Petitioners' Critical
Circumstances Allegation,'' dated August 19, 2024.
\4\ See Ferrosilicon from the Russian Federation: Preliminary
Affirmative Countervailing Duty Determination, 89 FR 53949 (June 28,
2024) (CVD Preliminary Determination), and accompanying Preliminary
Decision Memorandum (PDM); see also Ferrosilicon from the Russian
Federation: Preliminary Affirmative Determination of Sales at Less
Than Fair Value, 89 FR 53953 (June 28, 2024) (AD Preliminary
Determination), and accompanying PDM.
\5\ See CVD Preliminary Determination PDM at 6-14.
\6\ See AD Preliminary Determination PDM at 6-8.
---------------------------------------------------------------------------
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.
Critical Circumstances Allegations
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.\7\ 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.\8\ 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).\9\ 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.\10\
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\7\ See AD Critical Circumstance Allegation at 6; see also CVD
Critical Circumstances Allegation at 5.
\8\ Id.
\9\ See section 771(8)(A) of the Act.
\10\ See section 733(e)(1) of the Act.
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Analysis
CVD Allegation: Alleged Countervailable Subsidies Are Inconsistent With
the SCM Agreement
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.\11\
---------------------------------------------------------------------------
\11\ Commerce limits its critical circumstances findings to
those subsidies contingent upon export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3
of the SCM Agreement). See, e.g., Final Affirmative Countervailing
Duty Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002).
---------------------------------------------------------------------------
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 CVD Preliminary
Determination, 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.\12\ 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.
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\12\ See Checklist, ``Enforcement and Compliance, Countervailing
Duty Investigation Initiation Checklist,'' dated April 17, 2024, at
8-9.
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AD Allegation: History of Dumping and Material Injury by Reason of
Dumped Imports in the United States or Elsewhere of the Subject
Merchandise
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.\13\ On May 4,
2021, Egypt imposed an antidumping duty order on imports of
ferrosilicon from Russia.\14\ 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.\15\
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\13\ See, e.g., 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,
74 FR 59117, 59120 (November 17, 2009) (OCTG China Preliminary
Determination), unchanged in 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 Targeted Dumping, 75 FR
20335 (April 19, 2010) (OCTG China Final Determination).
\14\ See AD Critical Circumstances Allegation at 3 and Exhibit
1.
\15\ Id.
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AD Allegation: The Importer Knew or Should Have Known That the Exporter
Was Selling at Less Than Fair Value and That There Was Likely To Be
Material Injury
In determining whether importers knew or should have known that
exporters were selling subject merchandise at LTFV and that there was
likely to be material injury by reason of such sales, pursuant to
section 733(e)(1)(A)(ii), Commerce must rely on the facts before it at
the time the determination is made. Commerce generally bases its
decision with respect to knowledge on the margins calculated in the
preliminary determination and the U.S. International Trade Commission's
(ITC) preliminary injury determination.\16\
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\16\ See, e.g., OCTG China Preliminary Determination, unchanged
in OCTG China Final Determination.
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Commerce normally considers margins of 25 percent or more for
export price sales and 15 percent or more for constructed export price
sales sufficient to impute importer knowledge of sales at LTFV.\17\ In
this investigation, we preliminarily assigned a dumping margin of
283.27 percent to the Russia-wide entity, which exceeds the minimum
margin required to impute
[[Page 68862]]
knowledge of dumping to U.S. importers.\18\
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\17\ See, e.g., Certain Uncoated Paper from Australia: Final
Determination of Sales at Less Than Fair Value and Affirmative Final
Determination of Critical Circumstances, In Part, 81 FR 3108
(January 20, 2016) (Uncoated Paper from Australia), and accompanying
Issues and Decision Memorandum at 13.
\18\ See AD Preliminary Determination.
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In assessing importers' knowledge of likely material injury,
Commerce relies on a preliminary affirmative determination by the ITC
to impute the requisite knowledge to U.S. importers.\19\ Thus, Commerce
finds that U.S. importers knew or should have known that imports of
ferrosilicon from Russia were being sold at LTFV and were likely to
cause injury, which is sufficient to satisfy the first requirement for
an affirmative critical circumstances determination.
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\19\ See Ferrosilicon from Brazil, Kazakhstan, Malaysia, and
Russia; Determinations, 89 FR 43435 (May 17, 2024).
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Massive Imports
In determining whether there have been ``massive imports'' over a
``relatively short period,'' pursuant to sections 703(e)(1)(B) and
733(e)(1)(B) of the Act and 19 CFR 351.206(h), Commerce normally
compares the import volumes of the subject merchandise for at least
three months immediately preceding the filing of the petition (i.e.,
the ``base period'') to a comparable period of at least three months
following the filing of the petition (i.e., the ``comparison period'').
Imports normally will be considered massive when imports during the
comparison period have increased by 15 percent or more compared to
imports during the base period.\20\ The regulations also provide,
however, that if Commerce finds that importers, or exporters or
producers, had reason to believe, at some time prior to the beginning
of the proceeding, that a proceeding was likely, Commerce may consider
a period of not less than three months from that earlier time.\21\ In
this case, Commerce compared the import volumes of subject merchandise,
as provided by the petitioners,\22\ for the three months immediately
preceding and three months following the filing of the petition, ending
with the month prior to the AD Preliminary Determination and the CVD
Preliminary Determination.
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\20\ See 19 CFR 351.206(h)(2).
\21\ See 19 CFR 351.206(i).
\22\ See AD Critical Circumstances Allegation at 5-6; and CVD
Critical Circumstances Allegation at 4-6.
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Because the petitions were filed on March 28, 2024, to determine
whether there was a massive surge in imports for the cooperating
mandatory respondent, Commerce compared the total volume of shipments
during the period January 2024 through March 2024 with the volume of
shipments during the following three-month period of April 2024 through
June 2024. Based on this analysis, we preliminarily determine that
there was a massive surge in imports from RFA and ``all other''
producers/exporters from Russia (for CVD) and for the Russia-wide
entity (for AD).
Conclusion
For the CVD investigation, based on the criteria and findings
discussed above, we preliminarily determine that critical circumstances
exist with respect to imports of ferrosilicon from Russia produced or
exported by RFA and all other producers/exporters. For the AD
investigation, based on the criteria and findings discussed above, we
preliminarily determine that critical circumstances exist with respect
to all imports of ferrosilicon from Russia produced or exported by the
Russia-wide entity.
Final Critical Circumstances Determinations
We will make final critical circumstances determinations concerning
critical circumstances in the final AD and CVD determinations, which
are currently due no later than September 11, 2024.
Public Comment
Interested parties are invited to comment on these preliminary
critical circumstances determinations no later than five days after the
date on which this notice is published in the Federal Register. Given
that the final determinations for the AD and CVD investigations are due
no later than September 11, 2024, Commerce will allow two days for
parties to submit rebuttal comments.
We request that interested parties provide at the beginning of
their briefs a public, executive summary for each issue raised in their
briefs.\23\ 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
memoranda that will accompany the final determinations in these
investigations. 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).\24\
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\23\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\24\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069, 67077 (September 29, 2023).
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for all
entries, we will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of any unliquidated entries of subject merchandise
from Russia entered, or withdrawn from warehouse for consumption, on or
after March 30, 2024, which is 90 days prior to the date of publication
of the AD Preliminary Determination and CVD Preliminary Determination
in the Federal Register. For such entries, CBP shall require a cash
deposit equal to the estimated weighted-average dumping margin
established in the AD Preliminary Determination and CVD Preliminary
Determination. This suspension of liquidation will remain in effect
until further notice.
U.S. International Trade Commission Notification
In accordance with sections 703(f) and 733(f) of the Act, we will
notify the ITC of these preliminary determinations of critical
circumstances.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f), 733(f), and 777(i) of the Act and 19 CFR 351.206.
Dated: August 22, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2024-19393 Filed 8-26-24; 4:15 pm]
BILLING CODE 3510-DS-P