MESSAGE NO: 3138111 DATE: 05 18 1993
CATEGORY: CVD TYPE: ORD
REFERENCE: REFERENCE DATE:
CASES: C - 307 - 808 - -
C - 307 - 201 - -
- - - -

PERIOD COVERED: TO

LIQ SUSPENSION DATE: 05 10 1993

TO: REGIONAL DIRECTORS, COMMERCIAL OPERATIONS
DISTRICT DIRECTORS, AREA AND PORT DIRECTORS

FROM: DIRECTOR, IMPORT SPECIALIST DIVISION

RE: NOTICE OF COUNTERVAILING DUTY ORDER AND FINAL
DETERMINATION OF FERROSILICON FROM VENEZUELA


1. THE DEPARTMENT OF COMMERCE PUBLISHED IN THE FEDERAL REGISTER
ON MAY 10, 1993, NOTICE OF ITS COUNTERVAILING DUTY ORDER AND
FINAL DETERMINATION IN THE INVESTIGATION OF FERROSILICON FROM
VENEZUELA.

2. THE PRODUCT COVERED BY THIS INVESTIGATION IS FERROSILICON, A
FERROALLOY GENERALLY CONTAINING, BY WEIGHT, NOT LESS THAN FOUR
PERCENT IRON, MORE THAN EIGHT PERCENT BUT NOT MORE THAN 96
PERCENT SILICON, NOT MORE THAN 10 PERCENT CHROMIUM, NOT MORE THAN
30 PERCENT MANGANESE, NOT MORE THAN THREE PERCENT PHOSPHOROUS,
LESS THAN 2.75 PERCENT MAGNESIUM, AND NOT MORE THAN 10 PERCENT
CALCIUM OR ANY OTHER ELEMENT.

FERROSILICON IS A FERROALLOY PRODUCED BY COMBINING SILICON AND
IRON THROUGH SMELTING IN A SUBMERGED-ARC FURNACE. FERROSILICON
IS USED PRIMARILY AS AN ALLOYING AGENT IN THE PRODUCTION OF STEEL
AND CAST IRON. IT IS ALSO USED IN THE STEEL INDUSTRY AS A
DEOXIDIZER AND A REDUCING AGENT, AND BY CAST IRON PRODUCERS AS AN
INOCULANT.

FERROSILICON IS DIFFERENTIATED BY SIZE AND BY GRADE. THE SIZES
EXPRESS THE MAXIMUM AND MINIMUM DIMENSIONS OF THE LUMPS OF
FERROSILICON FOUND IN A GIVEN SHIPMENT. FERROSILICON GRADES ARE
DEFINED BY THE PERCENTAGES BY WEIGHT OF CONTAINED SILICON AND
OTHER MINOR ELEMENTS. FERROSILICON IS MOST COMMONLY SOLD TO THE
IRON AND STEEL INDUSTRIES IN STANDARD GRADES OF 75 PERCENT AND 50
PERCENT FERROSILICON.
CALCIUM SILICON, FERROCALCIUM SILICON, AND MAGNESIUM FERROSILICON
ARE SPECIFICALLY EXCLUDED FROM THE SCOPE OF THIS INVESTIGATION.
CALCIUM SILICON IS AN ALLOY CONTAINING, BY WEIGHT, NOT MORE THAN
FIVE PERCENT IRON, 60 TO 65 PERCENT SILICON AND 28 TO 32 PERCENT
CALCIUM. FERROCALCIUM SILICON IS A FERROALLOY CONTAINING, BY
WEIGHT, NOT LESS THAN FOUR PERCENT IRON, 60 TO 65 PERCENT
SILICON, AND MORE THAN 10 PERCENT CALCIUM. MAGNESIUM
FERROSILICON IS A FERROALLOY CONTAINING, BY WEIGHT, NOT LESS THAN
FOUR PERCENT IRON, NOT MORE THAN 55 PERCENT SILICON AND NOT LESS
THAN 2.75 PERCENT MAGNESIUM. PRODUCTS COVERED IN THIS
INVESTIGATION INCLUDED THE FOLLOWING SUBHEADINGS OF THE
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS):
7202.21.1000, 7202.21.5000, 7202.21.7500, 7202.21.9000,
7202.29.0010, AND 7202.29.0050.
ALTHOUGH THE HTSUS SUBHEADINGS ARE PROVIDED FOR CONVENIENCE AND
CUSTOMS PURPOSES, OUR DESCRIPTION OF THE SCOPE OF THESE
PROCEEDINGS IS DISPOSITIVE.

4. FOR FURTHER REPORTING PURPOSES, THIS CASE HAS BEEN ASSIGNED
THE FOLLOWING INVESTIGATION NUMBER: C-307-808. FOR CUSTOMS
PURPOSES ONLY, HTSUS ITEMS 7202.21.7500 AND 7202.21.9000 HAVE
ASSIGNED NUMBER C-307-201.

ON AUGUST 31, 1990, VENEZUELA BECAME A CONTRACTING PARTY TO THE
GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT). SINCE
QUALIFICATION AS A "COUNTRY UNDER THE AGREEMENT" UNDER SECTION
701(B)(3) REQUIRES A FINDING THAT THE GATT DOES NOT APPLY BETWEEN
THE UNITED STATES AND THE COUNTRY FROM WHICH THE SUBJECT
MERCHANDISE IS IMPORTED, VENEZUELA IS NO LONGER ELIGIBLE FOR
TREATMENT AS A "COUNTRY UNDER THE AGREEMENT" WITHIN THE MEANING
OF SECTION 701(B)(3). HOWEVER, BECAUSE VENEZUELA IS A GATT
CONTRACTING PARTY, AND MERCHANDISE WITHIN THE SCOPE OF THE
PETITION WHICH IS IMPORTED UNDER HTSUS SUBHEADINGS 7202.21.1000,
7202.21.5000, 7202.29.0010, AND 7202.29.0050 IS NONDUTIABLE, THE
ITC IS REQUIRED TO DETERMINE WHETHER, PURSUANT TO SECTION
303(A)(2), IMPORTS OF THIS NONDUTIABLE MERCHANDISE FROM VENEZUELA
MATERIALLY INJURE, OR THREATEN MATERIAL INJURY TO, A U.S.
INDUSTRY. THE REMAINING HTSUS ITEMS, AS DESCRIBED IN ITEM 2 ARE
DUTIABLE. ACCORDINGLY, WE ARE ISSUING AN ORDER WITH RESPECT TO
THIS MERCHANDISE. THEREFORE, FOR THESE ITEMS, THE ITC IS NOT
REQUIRED TO DETERMINE WHETHER, PURSUANT TO SECTION 303(A)(2),
IMPORTS FROM VENEZUELA OF THESE PRODUCTS MATERIALLY INJURE, OR
THREATEN MATERIAL INJURY TO, A U.S. INDUSTRY.

IF THE ITC DETERMINES THAT MATERIAL INJURY, OR THE THREAT OF
MATERIAL INJURY, DOES NOT EXIST FOR THE ABOVE REFERENCED
NONDUTIABLE MERCHANDISE, THE PROCEEDINGS WILL BE TERMINATED WITH
RESPECT TO THE NONDUTIABLE MERCHANDISE, AND ALL ESTIMATED DUTIES
DEPOSITED OR SECURITIES POSTED AS A RESULT OF THE SUSPENSION OF
LIQUIDATION WILL BE REFUNDED OR CANCELED. IF, HOWEVER, THE ITC
DETERMINES THAT SUCH INJURY DOES EXIST, WE WILL ISSUE A
COUNTERVAILING DUTY ORDER, DIRECTING CUSTOMS OFFICERS TO ASSESS
COUNTERVAILING DUTIES ON ENTRIES OF FERROSILICON FROM VENEZUELA.
5. ACCORDINGLY, THE U.S. CUSTOMS SERVICE SHALL SUSPEND
LIQUIDATION OF ENTRIES OF FERROSILICON UNDER HTSUS ITEMS
7202.21.7500 AND 7202.21.9000 THAT ARE ENTERED, OR WITHDRAWN FROM
WAREHOUSE FOR CONSUMPTION ON OR AFTER MAY 10, 1993, AND SHALL
REQUIRE A CASH DEPOSIT EQUAL TO THE MARGIN PERCENTAGES LISTED
BELOW:

COMPANY
ID NUMBER
AD VALOREM RATE

FESILVEN
C-307-201-001
22.08 PERCENT

COUNTRY-WIDE RATE
C-307-201-000
22.08 PERCENT

6. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, THEY SHOULD BE REFERRED TO THE IMPORT SPECIALIST
DIVISION, OTHER AGENCY BRANCH, VIA EMAIL TO ATTRIBUTE "HQ OAB".
THE IMPORTING PUBLIC AND OTHER INTERESTED PARTIES SHOULD CONTACT
THE FOLLOWING IMPORT COMPLIANCE SPECIALIST AT THE INTERNATIONAL
TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE: PAULO MENDES OFFICE
OF COUNTERVAILING INVESTIGATIONS (202) 482-5050.

7. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.

NANCY MCTIERNAN