[Federal Register Volume 82, Number 155 (Monday, August 14, 2017)]
[Pages 37841-37843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17117]



International Trade Administration


Silicon Metal From Brazil: Preliminary Affirmative Countervailing 
Duty Determination, and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
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: Effective August 14, 2017.

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.



    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on April 4, 
2017.\1\ On May 16, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
August 7, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary 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 Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 

    \1\ See Silicon Metal from Australia, Brazil, and Kazakhstan: 
Initiation of Countervailing Duty Investigations, 82 FR 16356 (April 
4, 2017) (Initiation Notice).
    \2\ See Silicon Metal from Australia, Brazil and Kazakhstan: 
Notice of Postponement of Preliminary Determinations of Antidumping 
Duty Investigations, 82 FR 22490 (May 16, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination: Countervailing Duty Investigation of Silicon Metal 
from Brazil,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).

Scope of the Investigation

    The product covered by this investigation is silicon metal from 
Brazil. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ The 
Department preliminarily is not modifying the scope language as it 
appeared in the Initiation Notice. See Appendix I.

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Silicon Metal from Australia, Brazil, 
Kazakhstan, and Norway: Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated June 27, 2017 (Preliminary Scope 
Decision Memorandum).


[[Page 37842]]


    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily 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 

    \7\ 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.

    In making these findings, the Department relied, in part, on facts 
available and, because it finds that one or more respondents did not 
act to the best of their ability to respond to the Department's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.

    \8\ See sections 776(a) and (b) of the Act.


    On March 28, 2017, the Department initiated this countervailing 
duty (CVD) investigation of silicon metal from Brazil.\9\ On the same 
day, the Department also initiated antidumping duty (AD) investigations 
of silicon metal from Australia, Brazil, and Norway.\10\ This CVD 
investigation and the AD investigations of Australia, Brazil, and 
Norway cover the same class or kind of merchandise.

    \9\ See Initiation Notice, 82 FR 16356.
    \10\ See Silicon Metal from Australia, Brazil, and Norway: 
Initiation of Less-Than-Fair-Value Investigations, 82 FR 16352 
(April 4, 2017).

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), the Department 
is aligning the final CVD determination in this investigation with the 
final determinations in the companion AD investigations of silicon 
metal from Australia, Brazil, and Norway, based on a request made by 
the petitioner.\11\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determinations, which are 
currently scheduled to be issued no later than December 18, 2017, 
unless postponed.

    \11\ See Letter from the petitioner, ``Silicon Metal from 
Australia, Brazil, and Kazakhstan; Countervailing Duty 
Investigations; Request for Alignment of Final Determinations,'' 
dated July 10, 2017.

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department 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.
    In this investigation, the Department preliminarily assigned a rate 
based entirely on facts available to Ligas de Aluminio S.A.--LIASA 
(LIASA). Therefore, the only rate for an individually-examined 
respondent that is not zero, de minimis or based entirely on facts 
otherwise available is the rate calculated for Dow Corning Silicio do 
Brasil Ind[uacute]stria e Com[eacute]rcio Ltda. (DC Silicio). 
Consequently, the rate calculated for DC Silicio is also assigned as 
the rate for all-other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:

                                                           Subsidy rate
                         Company                             (percent)
Dow Corning Silicio do Brasil Ind[uacute]stria e                    3.69
 Com[eacute]rcio Ltda\12\...............................
Ligas de Aluminio S.A.--LIASA...........................           52.07
All-Others..............................................            3.69

Suspension of Liquidation

    \12\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Dow Corning Silicio do Brasil Ind[uacute]stria e Com[eacute]rcio 
Ltda.: Palmyra Recursos Naturais Explora[ccedil][atilde]o e 
Com[eacute]rcio Ltda. and Dow Corning Metais do Par[aacute] IND.

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department will direct 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 this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.


    The Department intends to disclose to interested parties its 
calculations and analysis performed in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the publication date of this notice 
in accordance with 19 CFR 351.224(b).


    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\13\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 

    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its determination. 
If the final determination is affirmative, the ITC will make its final 
injury determination before the later of 120 days after the date of 
this preliminary determination or 45 days after the final 

[[Page 37843]]

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: August 7, 2017.
Carole Showers,
Executive Director, Office of Policy, performing the duties of 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Alignment
V. Injury Test
VI. Use of Facts Otherwise Available
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Conclusion

[FR Doc. 2017-17117 Filed 8-11-17; 8:45 am]