Notice2021-16726

Large Diameter Welded Pipe From the Republic of Korea: Preliminary Results of Countervailing Duty Administrative Review; 2018-2019

Primary source

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Published
August 5, 2021

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea). The period of review (POR) is June 29, 2018, through December 31, 2019.

Full Text

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<title>Federal Register, Volume 86 Issue 148 (Thursday, August 5, 2021)</title>
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[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Notices]
[Pages 42779-42781]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-16726]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-898]


Large Diameter Welded Pipe From the Republic of Korea: 
Preliminary Results of Countervailing Duty Administrative Review; 2018-
2019

AGENCY: Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of large diameter welded pipe (welded pipe) from the Republic 
of Korea (Korea). The period of review (POR) is June 29, 2018, through 
December 31, 2019.

DATES: Applicable August 5, 2021.

FOR FURTHER INFORMATION CONTACT: George Ayache or Joseph Dowling, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2623 and (202) 
482-1646, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 10, 2020, Commerce published a notice of initiation of an 
administrative review of the countervailing duty (CVD) order on welded 
pipe from Korea.\1\ On July 21, 2020, Commerce tolled all deadlines in 
administrative reviews by 60 days.\2\ On March 9, 2021, Commerce 
extended the deadline for the preliminary results of this review to no 
later than July 30, 2021.\3\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 41540 (July 10, 2020) (Initiation 
Notice).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
    \3\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review; 2018-2019,'' 
dated March 9, 2021.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\4\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included at the appendix to this notice. The Preliminary Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at <a href="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review; 2018-2019: 
Large Diameter Welded Pipe from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Order

    The merchandise covered by the order is welded pipe. For a complete 
description of the scope of the order, see the Preliminary Decision 
Memorandum.

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a government-provided 
financial contribution that gives rise to a benefit to the recipient, 
and that the subsidy is specific.\5\ For a full description of the 
methodology underlying our conclusions, see the Preliminary Decision 
Memorandum.
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    \5\ 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.
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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not directly address the 
CVD rates to be applied to companies not selected for individual 
examination where Commerce limited its examination in an administrative 
review pursuant to section 777A(e)(2) of the Act. However, Commerce 
normally determines the rates for non-selected companies in reviews in 
a manner that is consistent with section 705(c)(5) of the Act, which 
provides instructions for calculating the all-others rate in an 
investigation. Section 777A(e)(2) of the Act provides that ``the 
individual countervailable subsidy rates determined under subparagraph 
(A) shall be used to determine the all-others rate under section 
705(c)(5) {of the Act{time} .'' Section 705(c)(5)(A) of the Act states 
that for companies not investigated, in general, we will determine an 
all-others rate by weight-averaging the countervailable subsidy rates 
established for each of the companies individually investigated, 
excluding zero and de minimis rates or any rates based solely on the 
facts available.
    We preliminarily determine that Hyundai RB Co., Ltd. (Hyundai RB) 
and

[[Page 42780]]

SeAH Steel Corporation (SeAH Steel) received countervailable subsidies 
that are above de minimis. Therefore, we preliminarily determine to 
apply the weighted average of the net subsidy rates calculated for 
Hyundai RB and SeAH Steel using publicly ranged sales data submitted by 
the respondents to the non-selected companies. For a list of the 19 
companies for which a review was requested, and which were not selected 
as mandatory respondents or found to be cross-owned with a mandatory 
respondent, see Appendix II to this notice.

Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual net countervailable subsidy rate for Hyundai RB and SeAH. 
Commerce preliminarily determines that, during the POR, the net 
countervailable subsidy rates for the producers/exporters under review 
are as follows:

------------------------------------------------------------------------
                                                              Net
                                                        countervailable
                       Company                           subsidy rate
                                                          (percent ad
                                                           valorem)
------------------------------------------------------------------------
Hyundai RB Co., Ltd.................................                1.88
SeAH Steel Corporation \6\..........................                0.97
Non-Examined Companies Under Review \7\.............                1.10
------------------------------------------------------------------------

Disclosure and Public Comment
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    \6\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
SeAH Steel Corporation: SeAH Holdings Corporation and ESAB SeAH 
Corporation. The subsidy rates apply to all cross-owned companies.
    \7\ See Appendix II.
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    We intend to disclose to parties to this proceeding the 
calculations performed in reaching the preliminary results within five 
days of the date of publication of this notice.\8\ Interested parties 
may submit case briefs no later than 30 days after the date of 
publication of the preliminary results.\9\ Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed no later than seven days 
after the date for filing case briefs.\10\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit arguments are requested to 
submit with the argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities. Parties are 
reminded that all briefs and hearing requests must be filed 
electronically using ACCESS and received successfully in their entirety 
by 5:00 p.m. Eastern Time on the due date. Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\11\
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    \8\ See 19 CFR 351.224(b).
    \9\ See 19 CFR 351.309(c)(1)(ii).
    \10\ See 19 CFR 351.309(d)(1); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19, 85 FR 17006, 17007 
(March 26, 2020).
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, using Enforcement and 
Compliance's ACCESS system within 30 days of publication of this 
notice.\12\ Requests should contain: (1) The party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. Issues raised in the hearing will be limited to 
those raised in the respective case and rebuttal briefs. If a request 
for a hearing is made, Commerce intends to hold the hearing at a time 
and date to be determined. Parties should confirm the date and time of 
the hearing two days before the scheduled date.
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    \12\ See 19 CFR 351.310(c).
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    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act and 19 CFR 351.213(h)(2), Commerce intends to issue the final 
results of this administrative review, including the results of our 
analysis of the issues raised by the parties in any written briefs, no 
later than 120 days after the date of publication of these preliminary 
results.

Assessment Rate

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Consistent with section 751(a)(1) of the Act and 
19 CFR 351.212(b)(2), upon issuance of the final results, Commerce 
shall determine, and U.S. Customs and Border Protection (CBP) shall 
assess, countervailing duties on all appropriate entries covered by 
this review. Commerce intends to issue assessment instructions to CBP 
no earlier than 35 days after the date of publication of the final 
results of this review in the Federal Register. If a timely summons is 
filed at the U.S. Court of International Trade, the assessment 
instructions will direct CBP not to liquidate relevant entries until 
the time for parties to file a request for a statutory injunction has 
expired (i.e., within 90 days of publication).

Cash Deposit Rate

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above on shipments of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this review. For 
all non-reviewed firms, we will instruct CBP to continue to collect 
cash deposits of estimated countervailing duties at the most recent 
company-specific or all-others rate (9.29 percent) applicable to the 
company, as appropriate.\13\ These cash deposit instructions, when 
imposed, shall remain in effect until further notice.
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    \13\ See Large Diameter Welded Pipe from the Republic of Korea: 
Countervailing Duty Order, 84 FR 18773 (May 2, 2019) (Order).
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Notification to Interested Parties

    These preliminary results of review are issued and published 
pursuant to sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.213 and 351.221(b)(4).

    Dated: July 30, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Benchmarks and Interest Rates
VIII. Analysis of Programs
IX. Recommendation

[[Page 42781]]

Appendix II--Table of Rates for Non-Examined Companies Under Review

------------------------------------------------------------------------
                                                              Net
                                                        countervailable
                       Company                           subsidy rate
                                                          (percent ad
                                                           valorem)
------------------------------------------------------------------------
AJU Besteel Co., Ltd................................                1.10
Chang Won Bending Co., Ltd..........................                1.10
Daiduck Piping Co., Ltd.............................                1.10
Dong Yang Steel Pipe Co., Ltd.......................                1.10
Dongbu Incheon Steel Co., Ltd.......................                1.10
EEW KHPC Co., Ltd...................................                1.10
EEW Korea Co., Ltd..................................                1.10
HiSteel Co., Ltd....................................                1.10
Husteel Co., Ltd. \14\..............................                1.10
Hyundai Steel Company \15\..........................                1.10
Kiduck Industries Co., Ltd..........................                1.10
Kum Kang Kind. Co., Ltd.............................                1.10
Kumsoo Connecting Co., Ltd..........................                1.10
Nexteel Co., Ltd....................................                1.10
Samkang M&T Co., Ltd................................                1.10
Seonghwa Industrial Co., Ltd........................                1.10
SIN-E B&P Co., Ltd..................................                1.10
Steel Flower Co., Ltd...............................                1.10
WELTECH Co., Ltd....................................                1.10
------------------------------------------------------------------------

     
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    \14\ As stated in the Initiation Notice, subject merchandise 
both produced and exported by Husteel Co., Ltd. (Husteel) is 
excluded from the countervailing duty order. See Order. Thus, 
Husteel's inclusion in this administrative review is limited to 
entries for which Husteel was the producer or exporter of the 
subject merchandise, but not both the producer and exporter.
    \15\ As stated in the Initiation Notice, subject merchandise 
both produced and exported by Hyundai Steel Company (Hyundai Steel) 
and subject merchandise produced by Hyundai Steel and exported by 
Hyundai Corporation are excluded from the countervailing duty order. 
See Order. Thus, Hyundai Steel's inclusion in this administrative 
review is limited to entries for which Hyundai Steel was not the 
producer and exporter of the subject merchandise and for which 
Hyundai Steel was not the producer and Hyundai Corporation was not 
the exporter of subject merchandise.
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[FR Doc. 2021-16726 Filed 8-4-21; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on August 5, 2021.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.