Silicon Metal From Australia: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE International Trade Administration [C-602-814] Silicon Metal From Australia: Final Affirmative Countervailing Duty Determination AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of silicon metal from Australia. The period of investigation is January 1, 2024, through December 31, 2024. DATES: Applicable June 30, 2026. FOR FURTHER INFORMATION CONTACT: Kyle Clahane, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5449. SUPPLEMENTARY INFORMATION: Background On September 26, 2025, Commerce published the Preliminary Determination of this investigation in the Federal Register and aligned the final determination with the final determination in the less-than-fair-value (LTFV) investigation of silicon metal from Australia, in accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.210(b)(4). 1 Commerce invited interested parties to comment on the Preliminary Determination. 2 On February 9, 2026, Commerce published the preliminary determination in the LTFV investigation of silicon metal from Australia and postponed the deadline for the final determination. 3 1   See Silicon Metal from Australia: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination, 90 FR 46390 (September 26, 2025) ( Preliminary Determination ), and accompanying Preliminary Decision Memorandum (PDM). 2   See Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Silicon Metal from Australia,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 3   See Silicon Metal from Australia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures, 91 FR 5711 (February 9, 2026). Due to the lapse in appropriations and Federal Government shutdown, on November 14, 2025, Commerce tolled all deadlines in administrative proceedings by 47 days. 4 Additionally, due to a backlog of documents that were electronically filed via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) during the Federal Government shutdown, on November 24, 2025, Commerce tolled all deadlines in administrative proceedings by an additional 21 days. 5 Consequently, the deadline for the final determination of this investigation is now June 24, 2026. 4   See Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” dated November 14, 2025. 5   See Memorandum, “Tolling of all Case Deadlines,” dated November 24, 2025. For a complete description of the events that followed the Preliminary Determination, see the Issues and Decision Memorandum. The Issues and Decision Memorandum is a public document and is on file electronically via ACCESS. ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/frnotices. Scope of the Investigation The product covered by this investigation is silicon metal from Australia. For a complete description of the scope of this investigation, see Appendix I. Verification Consistent with section 782(i) of the Act, in February 2026, Commerce verified all information reported by the mandatory respondent, Simcoa Operations Pty, Ltd. (Simcoa), and the Government of Australia (GOA). We used standard verification procedures, including an examination of relevant account records and original source documents provided by Simcoa and the GOA. 6 6   See Memoranda, “Verification of the Questionnaire Responses of Simcoa Operations,” dated March 19, 2026; and “Verification of the Questionnaire Responses of the Government of Australia,” dated March 19, 2026. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs that were submitted by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, see Appendix II to this notice. Methodology Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce determines that there is a subsidy, i.e., a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific. 7 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum. 7   See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. Changes Since the Preliminary Determination Based on our analysis of the comments received from interested parties and our verification findings, we made certain changes to the subsidy rate calculations for Simcoa. For a discussion of these changes, see the Issues and Decision Memorandum. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act. Commerce calculated an individual estimated countervailable subsidy rate for Simcoa, the only individually examined exporter/producer in this investigation. Because the only individually calculated rate is not zero, de minimis, or based entirely on facts otherwise available, the estimated weighted-average rate calculated for Simcoa is the rate assigned to all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act. Final Determination Commerce determines that the following estimated net countervailable subsidy rates exist: 8  As discussed in the Preliminary Determination PDM, Commerce found the following companies to be cross-owned with Simcoa: Silicon Metal Company of Australia Pty Ltd.; Simcoa Mines Pty Ltd.; and Microsilica Pty Ltd.   Company Subsidy rate (percent ad valorem ) Simcoa Operations Pty, Ltd  8 32.57 All Others 32.57 Disclosure Commerce intends to disclose its calculations performed to interested parties in this final determination within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice in the Federal Register , in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after September 26, 2025, the date of publication of the Preliminary Determination in the Federal Register . In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered or withdrawn from warehouse, on or after January 24, 2026, the first day provisional measures were no longer in effect, but to continue the suspension of liquidation of all entries of subject merchandise on or before January 23, 2026. If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for such entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. ITC Notification In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of silicon metal from Australia. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of silicon metal from Australia. In addition, we are making available to the ITC all non-privileged and non-proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed in the “Continuation of Suspension of Liquidation” section, above. Administrative Protective Order In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO, in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. Notification to Interested Parties This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c). Dated: June 24, 2026. Scot Fullerton, Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. Appendix I Scope of the Investigation The scope of this investigation 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. Semiconductor grade silicon (merchandise containing at least 99.99 percent silicon by actual weight and classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2804.61.0000) is excluded from the scope of these investigations. Silicon metal is currently classifiable under subheadings 2804.69.1000 and 2804.69.5000 of the HTSUS. While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive. Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Changes Since the Preliminary Determination IV. Subsidies Valuation V. Analysis of Programs VI. Discussion of the Issues Comment 1: Whether the Tier-Three Benchmark for the Silicon Mining Rights for Less-Than-Adequate-Remuneration (LTAR) Should Change Comment 2: Whether Commerce Erred in its Specificity Analysis for Silicon Mining Rights for LTAR Program Comment 3: How to Countervail the Exemption from RET Program Liability Comment 4: Whether Commerce Erred in its Specificity Analysis for the RET Program Liability Comment 5: Whether Electricity for LTAR is a Countervailable Subsidy Comment 6: Whether Payments Under CRR Service Replacing the Ancillary Service (Spinning Reserve) Scheme is Countervailable Comment 7: Whether the Payments Under the DSM Program are Specific and Countervailable Comment 8: Whether the R&D Tax Incentive Benefitted Simcoa During the POI Comment 9: Whether Commerce Erred in its Specificity Analysis for the R&D Tax Incentive Program Comment 10: Whether Commerce Erred in its Specificity Analysis for the Fuel Tax Credits Program VII. Recommendation [FR Doc. 2026-13119 Filed 6-29-26; 8:45 am] BILLING CODE 3510-DS-P