NEW YORK, April 22, 2013 (GLOBE NEWSWIRE) -- Globe Specialty Metals, Inc. (Nasdaq:GSM) (the "Company"), confirms the earlier announcement today of the Canadian Border Services Agency ("CBSA") that CBSA has initiated an anti-dumping and countervailing duties action in response to dumped and subsidized Chinese imports of silicon metal sold into Canada. Globe operates Canada's only producer of silicon metal, Quebec Silicon LP, which filed the complaint with the CBSA.
Canadian trade laws provide for the application of duties against unfairly traded products.The CBSA has initiated a proceeding to determine if imports of silicon metal from China have been dumped into Canada and/or have benefitted from countervailable subsidies. The Canadian International Trade Tribunal (CITT) will be conducting a parallel inquiry to determine whether these dumped and subsidized imports have caused material injury to the Canadian industry.
The products covered by this investigation are: "Silicon metal containing at least 96.00% but less than 99.99% silicon by weight, and silicon metal containing between 89.00% and 96.00% silicon by weight that contains aluminum greater than 0.20% by weight, of all forms and sizes, from China."
Duties are expected to take effect on July 22, 2013. However, duties could be applied retroactively to imports arriving after April 22, 2013. The decision on whether duties will apply retroactively to imports between April 22 and July 22, 2013 will not be made until late 2013 by the CITT.
The party that is "in reality the importer of the goods" is liable to pay the duties. It should be noted that this means that a party that is not the "importer of record" for customs purposes may be liable for the duties. For example, a Canadian purchaser can be treated as the importer, even if they are not directly involved in arranging for the physical importation of the goods. Further, the Chinese exporter cannot reimburse the Canadian importer for the amount of the duties.
The specific amount of duty that will be levied on Chinese imports will be determined by CBSA and varies from case to case. For example, in a 2012 anti-dumping and countervailing duty case involving piling pipe from China, the combined average rate of dumping and countervailing duty was 101.3%.
The CBSA is responsible for determining the amount of the anti-dumping and countervailing duties. CBSA is expected to issue its preliminary determination on July 22, 2013 and its final determination on October 21, 2013. Separately, CITT will conduct an inquiry to determine whether the dumped and subsidized imports have caused or are threatening to cause material injury to the Canadian industry. It will hold a public hearing in the fall of 2013 and issue its decision in late 2013. If the CBSA determines that there has been dumping and/or subsidization, and the CITT determines that this has caused or is threatening to cause material injury to the domestic industry, the duties will be put into place for an initial five-year period. The duties can be renewed thereafter for subsequent five-year periods.
Jeff Bradley, CEO of Globe Specialty Metals said: "For years, Chinese exporters have targeted Canada and sold silicon metal at prices that decimated the market. Globe has a policy of defending its investments and workers by pursuing, when appropriate, trade measures in response to companies that sell their products at dumped prices and countries that subsidize their exports in violation of WTO obligations and commitments. We look forward to competing for sales in Canada on a level playing field and stabilizing the local market for Quebec Silicon. Perhaps with actions like this, the countries and exporters who act inconsistently with trade laws will get the message that free trade must be fair trade."
Alan Kestenbaum, Executive Chairman of Globe Specialty Metals added: "Since our involvement with Globe, we have consistently stayed vigilant against violation of trade laws whether in the form of state sponsored violations or in the form of individual companies using unfair and unlawful practices to target the markets we serve. This case once again demonstrates our commitment to protecting our investments and our workers so that they can enjoy a stable work environment and fair wages and we can compete on a level playing field."
About Globe Specialty Metals
Globe Specialty Metals, Inc. is among the world's largest producers of silicon metal and silicon-based specialty alloys, critical ingredients in a host of industrial and consumer products with growing markets. Customers include major silicone chemical, aluminum and steel manufacturers, auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers. The Company is headquartered in New York City. For further information please visit our web site at www.glbsm.com.
This release may contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the current expectations and assumptions of Globe Specialty Metals, Inc. (the "Company") regarding its business, financial condition, the economy and other future conditions.
Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the forward-looking statements. The Company cautions you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions including, among others, changes in metals prices; increases in the cost of raw materials or energy; competition in the metals and foundry industries; environmental and regulatory risks; ability to identify liabilities associated with acquired properties prior to their acquisition; ability to manage price and operational risks including industrial accidents and natural disasters; ability to manage foreign operations; changes in technology; ability to acquire or renew permits and approvals; and, other factors identified in the Company's periodic reports filed with the SEC.
Any forward-looking statement made by the Company or management in this release speaks only as of the date on which it or they make it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, unless otherwise required to do so under the law or the rules of the NASDAQ Global Market.
CONTACT: Globe Specialty Metals, Inc. Jeff Bradley, 212-798-8122 Chief Executive Officer Email: email@example.comSource:Globe Specialty Metals