Silicon Metal from Argentina: Notice of Court Decision

DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-804]

Silicon Metal from Argentina: Notice of Court Decision

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Court Decision.

-----------------------------------------------------------------------

SUMMARY: On March 28, 1997, the United States Court of International

Trade (CIT) affirmed the International Trade Administration's remand

determination that energy is physically incorporated into silicon metal

during the production process and its consequent upward adjustment to

U.S. price for those taxes imposed on the incorporated energy.

EFFECTIVE DATE: April 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Carole Showers or Elizabeth Graham, Office of Antidumping/

Countervailing Enforcement I, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-

3217 or (202) 482-4105.

SUPPLEMENTARY INFORMATION:

Background

On December 14, 1993, in Silicon Metal From Argentina; Final

Results of Antidumping Duty Administrative Review, 58 FR 65336, the

International Trade Administration (ITA) made an upward adjustment to

U.S. price for the rebate of various taxes under the Reembolso program,

including taxes on electrical energy. In American Alloys, Inc. versus

United States, 30 F.3d 1469, 1474 (Fed. Cir. 1994) (American Alloys

III), the Federal Circuit reversed the lower court's holding in

American Alloys, Inc. versus United States, 810 F. Supp. 1294 (CIT

1993) (American Alloys I), and held that U.S. price may not be adjusted

for a rebated tax unless it is determined that the rebated tax bears a

direct relationship to the exported product or a physically

incorporated component of that product. Pursuant to the Federal

Circuit's opinion, the CIT remanded the case to Commerce to make such a

determination with respect to the taxes in question. On August 17,

1995, Commerce submitted the results of its redetermination on remand

to the CIT wherein it made an upward adjustment to U.S. price for taxes

paid on energy which it found to be physically incorporated into the

subject merchandise. The CIT affirmed those remand results in American

Alloys, Inc. versus United States, Slip Op. 97-37 (CIT Mar. 28, 1997)

(American Alloys IV).

In its decision in Timken Co. versus United States, 893 F.2d 337

(Fed. Cir. 1990), the United States Court of Appeals for the Federal

Circuit held that, pursuant to 19 U.S.C. section 1516a(e), the

Department must publish a notice of a court decision which is not ``in

harmony'' with a Department determination, and must suspend liquidation

of entries pending a ``conclusive'' court decision. The CIT's opinion

in American Alloys IV on March 28, 1997, constitutes a decision not in

harmony with the Department's final results of administrative review.

Publication of this notice fulfills the Timken requirement.

Accordingly, the Department will continue to suspend liquidation

pending the expiration of the period of appeal, or, if appealed, upon a

``conclusive'' court decision.

Dated: April 8, 1997.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 97-9658 Filed 4-14-97; 8:45 am]

BILLING CODE 3510-DS-M