2025-05301NoticeWallet

Brazil's Ferrosilicon Gets Taxed for Unfair Government Handouts

Published Date: 3/28/2025

Notice

Summary

The U.S. Department of Commerce found that Brazilian ferrosilicon producers got unfair government help, so they’re adding extra taxes to level the playing field. This change starts March 28, 2025, and affects companies importing ferrosilicon from Brazil, making it costlier to bring in. It’s a big move to protect U.S. businesses and keep trade fair.

Analyzed Economic Effects

5 provisions identified: 0 benefits, 5 costs, 0 mixed.

LIASA imports face very large 61.73% duty

Commerce assigned Ligas de Aluminio S.A. (LIASA) an estimated countervailable subsidy rate of 61.73 percent ad valorem (rate based on adverse facts available) for the period January 1, 2023 through December 31, 2023. If the ITC finds injury, imports produced and/or exported by LIASA would be subject to duties equal to this 61.73% rate when a countervailing duty order is issued.

FERBASA imports hit with 5.25% duty

Commerce determined an estimated countervailable subsidy rate of 5.25 percent ad valorem for Companhia de Ferro Ligas da Bahia (FERBASA) for the period January 1, 2023 through December 31, 2023. If the U.S. International Trade Commission (ITC) finds the U.S. industry was injured, imports produced and/or exported by FERBASA would be subject to duties equal to this 5.25% rate when the countervailing duty order is issued.

Minasligas imports hit with 4.44% duty

Commerce determined an estimated countervailable subsidy rate of 4.44 percent ad valorem for Minasligas S.A. for the period January 1, 2023 through December 31, 2023. If the ITC finds injury, imports produced and/or exported by Minasligas would be subject to duties equal to this 4.44% rate when a countervailing duty order is issued.

All‑other Brazilian producers: 5.01% rate

Commerce established an 'all-others' estimated countervailable subsidy rate of 5.01 percent ad valorem for producers and exporters of ferrosilicon from Brazil that were not individually investigated (period January 1, 2023 through December 31, 2023). If the ITC finds injury, imports from those other Brazilian producers would be subject to duties at this 5.01% rate when a countervailing duty order is issued.

Possible retroactive deposits and suspension dates

Commerce will notify the U.S. International Trade Commission (ITC), which must decide within 45 days whether U.S. industry was materially injured. If the ITC issues a final affirmative injury determination, Commerce will issue a countervailing duty order, reinstate suspension of liquidation, and require cash deposits of the estimated duties at the rates listed. Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation for entries entered or withdrawn for consumption on or after September 10, 2024 for all other producers/exporters, and for entries entered or withdrawn for consumption on or after June 12, 2024 for the companies for which critical circumstances were preliminarily found; the notice is applicable March 28, 2025.

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Key Dates

Published Date
3/28/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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