[Federal Register Volume 90, Number 59 (Friday, March 28, 2025)]
[Notices]
[Pages 14108-14110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05304]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-834-813]
Ferrosilicon From the Republic of Kazakhstan: Final Affirmative
Countervailing Duty Determination
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 the Republic of Kazakhstan (Kazakhstan). The
period of investigation (POI) is January 1, 2023, through December 31,
2023.
DATES: Applicable March 28, 2025.
FOR FURTHER INFORMATION CONTACT: Peter Shaw or Jose Rivera, AD/CVD
Operations, Office OVII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0697 or (202)
482-0842, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 10, 2024, Commerce published the Preliminary
Determination in the Federal Register and invited interested parties to
comment on it.\1\ 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 http://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\1\ See Ferrosilicon from the Republic of Kazakhstan:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 89 FR 73369 (September 10, 2024), 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 the Republic of Kazakhstan,''
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
Kazakhstan. 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 between September 9
and September 20, 2024, of the subsidy information reported by the
Government of the Republic of Kazakhstan (GOK), YDD Corporation LLP
(YDD), and TNC Kazchrome JSC (Kazchrome).\3\ On October 24, 2024,
Commerce conducted verification of the subsidy information reported by
TELF AG.\4\ We used standard verification procedures, including an
examination of relevant accounting records and original source
documents provided by the respondents.
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\3\ See Memoranda, ``Verification of the Questionnaire Response
of the Government of Kazakhstan,'' dated November 19, 2024;
``Verification of Questionnaire Responses of YDD Corporation LLP,''
dated November 19, 2024; and ``Verification of Questionnaire
Responses of TNC Kazchrome JSC Corporation LLP.,'' dated November
19, 2024.
\4\ See Memorandum, ``Verification of Questionnaire Responses of
TELF AG,'' dated November 19, 2024.
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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 are discussed in the Issues and
Decision Memorandum. For a list of topics discussed, and the issues
raised by parties 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 Tariff Act of 1920, as amended (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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ 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 otherwise 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 section ``Use of Facts Otherwise
Available and Adverse Inferences'' in the accompanying Issues and
Decision Memorandum.\6\
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\6\ See Issues and Decision Memorandum at Section IV.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for YDD, Kazchrome, 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
[[Page 14109]]
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 an individual estimated subsidy
rate for YDD, the only individually-examined exporter/producer in this
investigation for which Commerce is calculating an estimated
countervailable subsidy rate. Because the only individually calculated
rate that is not zero, de minimis, or based entirely on facts otherwise
available, is the estimated countervailable subsidy rate calculated for
YDD that is the rate assigned to all other producers and exporters,
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 of January 1, 2023, through December
31, 2023:
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\7\ This rate applies to YDD Corporation LLP and its cross-owned
companies: ASIA FerroAlloys LLP; and KazSilicon Metallurgical
Combine LLP.
\8\ This rate applies to TELF AG and TNC Kazchrome JSC and its
cross-owned companies: Eurasian Energy Corporation JSC; and
Shubarkol Komir JSC. As described above, Commerce has calculated a
rate based on adverse inferences to TNC Kazchrome JSC as the
unaffiliated producer. This rate is to be applied to subject
merchandise produced and/or exported by TELF AG and/or TNC Kazchrome
JSC.
\9\ This rate applies to TELF AG and TNC Kazchrome JSC and its
cross-owned companies: Eurasian Energy Corporation JSC; and
Shubarkol Komir JSC. As described above, Commerce has calculated a
rate based on adverse inferences to TNC Kazchrome JSC as
unaffiliated producer. This rate is to be applied to subject
merchandise produced and/or exported by TELF AG and/or TNC Kazchrome
JSC.
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Subsidy rate
Company (percent ad
valorem)
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YDD Corporation LLP \7\............................ 16.76
TELF AG \8\........................................ * 265.38
TNC Kazchrome JSC \9\.............................. * 265.38
All Others......................................... 16.76
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* Rate based on facts available with adverse inferences.
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 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 entries of subject merchandise as described in
the scope of the investigation section 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 Kazakhstan.
Additionally, pursuant to section 705(c)(1)(B)(ii) of the Act and
19 CFR 351.210(d), where appropriate, Commerce will instruct CBP to
require a cash deposit equal to the estimated individual
countervailable subsidy rate or the estimated all-others rate, as
indicated in the chart above, effective on the date of publication of
this final determination.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order 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, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of ferrosilicon
from Kazakhstan. 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 Kazakhstan no later than 45 days after our
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 the 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 final 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
[[Page 14110]]
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. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Whether Commerce Should Apply AFA to TELF
Comment 2: Whether Commerce Erred in Selecting TELF as a
Mandatory Respondent in this Investigation
Comment 3: Whether Commerce Should Apply AFA to Kazchrome
Comment 4: Whether Commerce Should Revise its Selection of Loan
Benchmarks
Comment 5: Whether Commerce Erred in the Calculation of Benefits
Under the Compensation Rules Grants by Treating the Program as a
Recurring Subsidy
Comment 6: Whether Commerce Should Revise the Calculation of
Benefits for the Loan Interest Rate Subsidies under the Business
Road Map 2025 (BRM) Program by Comparing the Interest Rate Paid by
YDD with the Loan Benchmark Interest Rate
Comment 7: Whether Commerce Should Revise the Calculation of
Benefits for YDD's Tax Programs by Using the Tax Returns for the POI
Rather than the Tax Returns Filed During the POI
Comment 8: Whether Kazchrome's Benefits Under the Corporate
Income Tax Exemption for Priority Investment Projects under the
Entrepreneur Code is Tied to Non-Subject Merchandise
VII. Recommendation
[FR Doc. 2025-05304 Filed 3-27-25; 8:45 am]
BILLING CODE 3510-DS-P