Silicon Metal – Extension of Investigations & Initiation of Section 20 Inquiry

Silicon Metal – Notice of Extension of Investigations

The Canada Border Services Agency (CBSA) has today extended the investigations with respect to the dumping of certain silicon metal originating in or exported from the Federative Republic of Brazil (Brazil), the Republic of Kazakhstan (Kazakhstan), Lao People’s Democratic Republic, Malaysia, the Kingdom of Norway (Norway), the Russian Federation and the Kingdom of Thailand (Thailand), and the subsidizing of certain silicon metal originating in or exported from Brazil, Kazakhstan, Malaysia, Norway and Thailand.

The decision to issue preliminary determinations will be made on or before July 5, 2017. The CBSA will inform you of the decisions at that time.

Silicon Metal – Notice of Initiation of Section 20 Inquiry

On February 20, 2017, the Canada Border Services Agency (CBSA) initiated investigations, pursuant to subsection 31(1) of the Special Import Measures Act (SIMA), concerning the alleged injurious dumping of certain silicon metal originating in or exported from the Federative Republic of Brazil (Brazil), the Republic of Kazakhstan (Kazakhstan), Lao People’s Democratic Republic, Malaysia, the Kingdom of Norway (Norway), the Russian Federation and the Kingdom of Thailand (Thailand), and the alleged injurious subsidizing of certain silicon metal originating in or exported from Brazil, Kazakhstan, Malaysia, Norway and Thailand.

Information on the administrative record for the investigations indicates that there is reason to believe that the Government of Kazakhstan plays a significant role in the silicon metal sector in Kazakhstan. Information on the administrative record also indicates that all known silicon metal producers in Kazakhstan are state owned enterprises, wholly owned by the Government of Kazakhstan.

Furthermore, information available on the administrative record for the investigations indicates that domestic prices of silicon metal may be substantially determined by the Government of Kazakhstan.  The CBSA conducted a price analysis for the profitability analysis period, and the result of the analysis reveals that domestic prices in Kazakhstan were substantially different when they were compared to silicon metal prices in other competitive markets.  Therefore, the CBSA has reason to believe that the prices in the silicon metal sector in Kazkakhstan are not substantially the same as they would be if they were determined in a competitive market.

Accordingly, on May 16, 2017, the CBSA initiated an inquiry pursuant to paragraph 20(1)(b) of SIMA, respecting the alleged injurious dumping of certain silicon metal originating in or exported from Kazakhstan.  As such, the Government of Kazakhstan and all known silicon metal producers in Kazakhstan will be given the opportunity to provide information regarding the nature and extent of government involvement in exports and in determining pricing with respect to the silicon metal sector.