August 6, 2002
News Release 02-067
Invs. Nos. 303-TA-23, 731-TA-566-570 and 731-TA-641 (Final) (Reconsideration) (Remand)

ITC DETERMINES ON REMAND THAT FERROSILICON FROM BRAZIL, CHINA, KAZAKHSTAN, RUSSIA, UKRAINE, AND VENEZUELA DOES NOT INJURE U.S. INDUSTRY

The United States International Trade Commission (ITC) today made negative determinations in connection with the remand of its reconsideration proceedings pertaining to its final countervailing duty and antidumping duty investigations of imports of ferrosilicon from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela.

The Commission found on remand that a U.S. industry was not materially injured or threatened with material injury by reason of imports of ferrosilicon from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela that the Department of Commerce determined were being sold in the United States at less than fair value, and those from Venezuela that were being subsidized, at the time of the Commission's original investigations. All five Commissioners voted in the negative. The Commission found that the record lacks a sufficient evidentiary basis to conclude that either Globe or AIMCOR was culpable of material misrepresentations or omissions during the original investigations.

The Commission will transmit its determinations on remand to the U.S. Court of International Trade by September 13, 2002.

The cases were remanded to the ITC by the U.S. Court of International Trade (CIT) on February 21, 2002, and concerned the Commission's August 1999 negative determinations upon reconsideration of earlier affirmative determinations regarding these imports.

On April 28, 1998, the Commission received a request to review its affirmative determination as it applied to imports of ferrosilicon from Brazil in light of changed circumstances. The request concerned only imports from Brazil; however, as the alleged changed circumstances predominantly related to the domestic industry, the Commission solicited comments from interested parties on the possibility of initiating reviews of the outstanding orders from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela. After reviewing the comments it received, the Commission determined on July 28, 1998, that certain of the alleged changed circumstances were sufficient to warrant review investigations. Among the issues that were briefed by the parties to the investigations was the fact that, between 1995 and 1997, two domestic producers pleaded guilty to conspiring to fix prices of commodity ferrosilicon products during certain portions of the periods of the Commission's original investigations, and a third producer, and an officer of that producer, were convicted of conspiring to fix prices of commodity ferrosilicon products during certain portions of the periods of the Commission's original investigations. The Commission held a hearing in the changed circumstance investigations on April 13, 1999. On May 21, 1999, the Commission issued a Federal Register notice indicating that it had decided to suspend its changed circumstances review investigations and instead reconsider the original Commission determinations.

On August 6, 1999, the Commission made negative determinations upon reconsideration in these investigations. The Commission's determinations were appealed to the U.S. Court of International Trade (CIT). On February 21, 2002, the CIT issued an opinion finding the Commission's proceedings on reconsideration defective because they did not accord the parties an opportunity to participate in a hearing specifically concerning the reconsideration proceeding. The CIT accordingly remanded the matter to the Commission for further proceedings. As part of these proceedings, the Commission held a hearing on June 6, 2002.

The ITC's public report Ferrosilicon from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela (Views on Remand) (Invs. Nos. 303-TA-23, 731-TA-566-570, and 731-TA-641 (Final) (Reconsideration) (Remand), USITC Publication 3531, September 2002) will contain the views of the Commission. Copies of the report are expected to be available after October 4, 2002, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

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