A petition filed April 24 could result in the imposition of antidumping and/or countervailing duties on imports of silicon metal from Angola, Australia, Laos, Norway, and Thailand.
Scope
Silicon metal is principally used as an alloying agent in the production of both primary and secondary aluminum. In the chemical industry it is used as the basis for the production of silanes, fluids from which silicone resins, lubricants, plastomers, antifoaming agents, and water-repellent compounds are formulated. Silicon metal also serves as the base material for making polysilicon and is used in die casting and copper, magnesium, and steel manufacture.
The petition 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. Silicon metal is currently classifiable under HTSUS subheadings 2804.69.1000 and 2804.69.5000.
Semiconductor-grade silicon (merchandise containing at least 99.99 percent silicon by actual weight and classifiable under HTSUS 2804.61.0000) is excluded from the scope of this petition.
AD/CV Duty Rates
The petition alleges that subject goods are being sold in the U.S. market at less than normal value, specifically at margins of 67.78 to 323.84 percent for Angola, 337.84 percent for Australia, 92.99 to 304.51 percent for Laos, and 69.15 percent for Norway.
However, importers are typically liable for the payment of AD duties at the alleged rates only when importing from foreign producers or exporters that fail to cooperate with AD investigations by the Department of Commerce and International Trade Commission. Lower rates are often assigned to imports from cooperative entities.
The petition also argues that subject goods are being subsidized by the governments of Australia, Laos, Norway, and Thailand but does not assert specific rates.
Next Steps
The Department of Commerce and the International Trade Commission will consider this petition and quickly launch investigations to determine dumping margins/net subsidy rates and potential injury to the U.S. domestic industry, respectively. Preliminary determinations are due around June 7 for the ITC and July 17 (CV) and Sept. 30 (AD) for the DOC, although these dates may be extended.
If these preliminary determinations are affirmative, U.S. importers will be required to post AD and/or CV duty cash deposits for all entries of subject goods entered on or after the date those determinations are published. However, in certain circumstances duties could be owed three months prior to that date. In addition, preliminary cash deposit rates can change in the final DOC determinations.
Many important issues affecting coverage, duty rates, other considerations are argued and decided in the early stages of AD/CV proceedings before preliminary determinations are issued. Companies that strategically engage in these early stages are thus best positioned to protect their interests and mitigate any potential duty liability. For more information, please contact Sandler, Travis & Rosenberg.
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