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 Department of Commerce International Trade Administration [C-351-861]
 AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce.
 SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of ferrosilicon from Brazil. The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
 DATES: Applicable September 10, 2024.
 FOR FURTHER INFORMATION CONTACT: Bob Palmer or Laurel Smalley, 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) 482-3456, respectively.


SUPPLEMENTARY INFORMATION:  Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 24, 2024.[1]
                    
                     On May 30, 2024, Commerce postponed the preliminary determination of this investigation until August 26, 2024.[2]
                    
                     On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.[3]
                    
                     The deadline for this preliminary determination is now September 3, 2024. For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.[4]
                    
                     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 
                    *https://access.trade.gov.*
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    *https://access.trade.gov/​public/​FRNoticesListLayout.aspx.* Scope of the Investigation The product covered by this investigation is ferrosilicon from Brazil. For a complete description of the scope of this investigation, 
                    *see*
                     Appendix I. Scope Comments In accordance with the preamble to Commerce's regulations,[5]
                    
                     the 
                    *Initiation Notice*
                     set aside a period of time for parties to raise issues regarding product coverage, (
                    *i.e.,*
                     scope).[6]
                    
                     As noted in the Preliminary Decision Memorandum, Commerce corrected a minor clerical error in the language of the scope.[7] Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce 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 specific.[8] Commerce notes that, in making these findings, it 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 Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.[9]
                    
                     For further information, 
                    *see*
                     the “Use of Facts Otherwise Available and Adverse Inferences” section in the Preliminary Decision Memorandum. Preliminary Affirmative Determination of Critical Circumstances, in Part In accordance with section 703(e)(1) of the Act, Commerce preliminarily determines that critical circumstances exist with respect to imports of Ferrosilicon from Brazil for Companhia de Ferro Ligas da Bahia—FERBASA (Ferbasa), Minasligas S.A. (Minasligas), and Ligas de Aluminio S.A. (LIASA), but do not exist with respect to all-other exporters or producers not individually examined. For a full description of the methodology and results of Commerce's analysis, 
                    *see*
                     the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty (CVD) determination in this investigation with the final determination in the companion antidumping duty (AD) investigation of Ferrosilicon from Brazil based on a request made by the petitioners.[10]
                    
                     Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than January 14, 2025, unless postponed. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary 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. In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Ferbasa and Minasligas that are not zero, 
                    *de minimis,*
                     or based entirely on facts otherwise available. Therefore, Commerce calculated the all-others rate using a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sales values for the merchandise under consideration.[11] Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist:
                    ( print page 73373) Company
Subsidy rate
                             (percent ad valorem)Companhia de Ferro Ligas da Bahia—FERBASA 12
5.36Minasligas S.A.13
4.44Ligas de Aluminio S.A
* 61.73All Others
5.09* Rate is based on an adverse inference.
 Suspension of Liquidation In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, Commerce 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), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the later of: (a) the date which is 90 days before the date on which the suspension of liquidation was first ordered; or (b) the date on which notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of subject merchandise produced and/or exported by Ferbasa, LIASA, and Minasligas. In accordance with section 703(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise from the exporters/producers identified in this paragraph that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice. Because Commerce preliminarily did not find critical circumstances exists for all other producers and exporters, Commerce will require a cash deposit equal to the rate indicated above on the date of publication of this notice in the 
                    **Federal Register**
                    . Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary 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 accordance with 19 CFR 351.224(b). Consistent with 19 CFR 351.224(e), Commerce will analyze and, if appropriate, correct any timely allegations of significant ministerial errors by amending the preliminary determination. However, consistent with 19 CFR 351.224(d), Commerce will not consider incomplete allegations that do not address the significance standard under 19 CFR 351.224(g) following the preliminary determination. Instead, Commerce will address such allegations in the final determination together with issues raised in the case briefs or other written comments. Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. 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. A timeline for the submission of case briefs and written comments will be notified to interested parties at a later date. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.[14]
                    
                     Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.[15] As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.[16]
                    
                     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 memorandum that will accompany the final determination in this investigation. 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).[17] 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, Commerce intends to hold the hearing 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 date. U.S. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of Ferrosilicon from Brazil are materially injuring, or threaten material injury to, the U.S. industry. 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: September 3, 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.
 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 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 Preliminary Decision Memorandum I. Summary II. Background III. Injury Test IV. Preliminary Affirmative Determination of Critical Circumstances, In Part V. Subsidies Valuation Information VI. New Subsidy Allegations VII. Use of Facts Otherwise Available and Adverse Inferences VIII. Analysis of Programs IX. Recommendation


# Footnotes

1.
    
                         
                        *See Ferrosilicon from Brazil, Kazakhstan, Malaysia, and the Russian Federation: Initiation of Countervailing Duty Investigations*, 89 FR 31133 (April 24, 2024) (Initiation Notice). Back to Citation
 2.
    
                         
                        *See Ferrosilicon from Brazil, Kazakhstan, and Malaysia: Postponement of Preliminary Determinations in the Countervailing Duty Investigations*, 89 FR 46860 (May 30, 2024). Back to Citation
 3.
    
                         
                        *See*
                         Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024. Because the current deadline for this preliminary determination falls on a Holiday (
                        *i.e.,*
                         September 2, 2024), the deadline became the next business day (
                        *i.e.,*
                         September 3, 2024). 
                        *See also*
                         Next Business Day Rule. Back to Citation
 4.
    
                         
                        *See*
                         Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination in the Countervailing Duty Investigation of Ferrosilicon from Brazil,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Back to Citation
 5.
    
                         
                        *See Antidumping Duties; Countervailing Duties, Final Rule*, 62 FR 27296, 27323 (May 19, 1997). Back to Citation
 6.
    
                         
                        *See Initiation Notice.* Back to Citation
 7.
    
                         
                        *See*
                         Preliminary Decision Memorandum. Back to Citation
 8.
    
                         
                        *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. Back to Citation
 9.
    
                         
                        *See*
                         sections 776(a) and (b) of the Act. Back to Citation
 10.
    
                         
                        *See*
                         Petitioners' Letter, “Petitioners' Request for Alignment of Final Determinations with Deadline in Concurrent AD Investigations,” dated August 15, 2024. Back to Citation
 11.
    
                         With two respondents under examination, Commerce normally calculates:  (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sales values for the merchandise under consideration.  Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. 
                        *See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom:  Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part,*75 FR 53661, 53662 (September 1, 2010), and accompanying Issues and Decision Memorandum at Comment 1.  As complete publicly ranged sales data were available, Commerce based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, see the All-Others Rate Calculation Memorandum. Back to Citation
 12.
    
                         As discussed in the Preliminary Decision Memorandum, Commerce has found the following company to be cross-owned with Ferbasa:  Fundação José Carvalho Foundation (Jose Carvalho Foundation). 13.
    
                         As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Minasligas:  Irmazi Participações S.A. (Irmazi), Participações SZ Ltd. (SZ), and Centrium Empreendimentos Ltda. (Centrium). Back to Citation
 14.
    
                         
                        *See*19 CFR 351.309(d); 
                        *see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings*, 88 FR 67069, 67077 (September 29, 2023) (
                        *APO and Service Final Rule*). Back to Citation
 15.
    
                         
                        *See*
                         19 351.309(c)(2) and (d)(2). Back to Citation
 16.
    
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum. Back to Citation
 17.
    
                         
                        *See APO and Service Final Rule.* Back to Citation


[FR Doc. 2024-20363 Filed 9-9-24; 8:45 am] BILLING CODE 3510-DS-P