SM2 2017 IN
Certain Silicon Metal
Notice of Initiation of Section 20 Inquiry
Ottawa, May 16, 2017
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.
SIMA has special provisions concerning the treatment of products where the government of the country of export has a monopoly of its export trade, where domestic prices are substantially determined by the government and there is reason to believe that they may not be the same as they would be if they were determined in a competitive market.
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.
If there is sufficient reason to believe that conditions described in paragraph 20(1)(b) of SIMA exist, normal values will be determined, pursuant to paragraphs 20(1)(c) of SIMA, where such information is available, on the basis of the domestic selling price or full cost plus a reasonable amount for profits of the like goods sold by producers in any country designated by the CBSA and adjusted for price comparability, or pursuant to paragraph 20(1)(d) of SIMA, on the basis of the selling price in Canada of like goods imported from any country designated by the CBSA and adjusted for price comparability.
- Matthew Lerette: 613-954-7398
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