U.S. Department of Commerce Initiates Antidumping Duty Investigations of Silicon Metal from Bosnia and Herzegovina, Iceland, and Malaysia, and a Countervailing Duty Investigation of Imports from Kazakhstan
For Immediate Release
July 21, 2020
Contact: ITA Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) investigations to determine whether imports of silicon metal from Bosnia and Herzegovina, Iceland, and Malaysia are being dumped in the United States, and a countervailing duty (CVD) investigation to determine whether producers from Kazakhstan are receiving unfair subsidies.
The petitions were filed by Globe Specialty Metals, Inc. (Beverly, Ohio) and Mississippi Silicon LLC (Burnsville, Miss.).
In the AD investigations, Commerce will determine whether imports of silicon metal from Bosnia and Herzegovina, Iceland, and Malaysia are being dumped in the U.S. market at less-than-fair value. The alleged dumping margins are 21.41 percent for Bosnia and Herzegovina, 28.12-47.54 percent for Iceland, and 11.49-16.92 percent for Malaysia.
In the CVD investigation, Commerce will determine whether Kazakhstani producers of silicon metal are receiving unfair government subsidies. Commerce will investigate eight subsidy programs, including: income tax, property tax, land tax, and customs duty exemptions; the provision of electricity, water, and drainage system services for less than adequate remuneration; and debt forgiveness.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized imports of silicon metal from Bosnia and Herzegovina, Iceland, Kazakhstan, and/or Malaysia materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2019, imports of silicon metal from Bosnia and Herzegovina, Iceland, Kazakhstan, and Malaysia were valued at approximately $19.5 million, $11.6 million, $14.9 million, and $6 million, respectively.
During Commerce’s investigations into whether silicon metal from Bosnia and Herzegovina, Iceland, Kazakhstan, and Malaysia are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by August 14. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for September 23, and the preliminary AD determinations scheduled for December 7, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing silicon metal from Bosnia and Herzegovina, Iceland, Kazakhstan, and Malaysia, as appropriate.
Final determinations by Commerce in these cases are scheduled for December 7, for the CVD investigation, and February 22, 2021, for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 273 new AD and CVD investigations – a 250 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 531 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.