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Russia Ferrovanadium: Initiation of AD Anti-Circumvention Inquiry

The International Trade Administration is initiating an anti-circumvention inquiry to determine whether imports of an intermediate product by an entity in Russia that is converted into ferrovanadium in the U.S. are circumventing the antidumping duty order on ferrovanadium and nitrided vanadium (ferrovanadium) from Russia (A-821-807).

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(Ferrovanadium is a ferroalloy used in the production of steels and alloys as a raw material.)

ITA to Determine if Vanadium Pentoxide Imported by Russia Entity, Processed in U.S. is Circumventing

The ITA will determine whether imports of vanadium pentoxide, an intermediate product used in the production of ferrovanadium, from Russia that is processed into ferrovanadium in the U.S. are circumventing the AD duty order on ferrovanadium from Russia, and whether such imports should be included in the scope.

Specifically, the petitioner alleges that the Evraz Group1 is importing vanadium pentoxide from its Russian affiliate OAO Vanady-Tula. The imported vanadium pentoxide is then toll-converted into ferrovanadium in the U.S. by an unaffiliated processor prior to sale in the U.S. The petitioner alleges that this trade pattern is circumventing the subject AD duty order.

The petitioner requests that the ITA include within the scope of the ferrovanadium order vanadium pentoxide manufactured in Russia, regardless of form, that is produced, exported, or imported by the Evraz Group or any of its affiliates.

(The ITA notes that it is focusing its analysis of the significance of the ferrovanadium production process in the U.S. based on the entries of vanadium pentoxide produced in Russia by OAO Vanady-Tula that are imported by or consigned to any company in the Evraz Group. However, if the ITA receives a request from an interested party regarding potential circumvention by other companies involved in processing Russian vanadium pentoxide into ferrovanadium in the U.S. within sufficient time, it will consider conducting the inquiries concurrently.)

If Prelim Affirmative Determination, Suspension of Liquidation, Cash Deposit

If the ITA issues a preliminary affirmative determination, it will then instruct U.S. Customs and Border Protection to suspend liquidation and require a cash deposit of estimated AD duties at the applicable rate for each unliquidated entry of the merchandise at issue, with a time of entry on or after the date of initiation of the inquiry.

1The Evraz Group includes OAO Vanady-Tula, East Metals S.A., and East Metals N.A.

(See ITA notice for more information, including the scope of the order, etc.)

Contact -- David Goldberger (202) 482-4136

(FR Pub 05/06/11, ITA Case Nos. A-821-807)