Notice2022-00939
Certain Corrosion-Resistant Steel Products From the Republic of Korea: Final Results and Partial Rescission of Countervailing Duty Administrative Review; 2019
Primary source
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Published
January 19, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain corrosion-resistant steel products from the Republic of Korea. The period of review (POR) is January 1, 2019, through December 31, 2019. Commerce is also rescinding the review with respect to Dongkuk Steel Mill Co., Ltd. (Dongkuk).
Full Text
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<title>Federal Register, Volume 87 Issue 12 (Wednesday, January 19, 2022)</title>
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[Federal Register Volume 87, Number 12 (Wednesday, January 19, 2022)]
[Notices]
[Pages 2759-2761]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00939]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-879]
Certain Corrosion-Resistant Steel Products From the Republic of
Korea: Final Results and Partial Rescission of Countervailing Duty
Administrative Review; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
[[Page 2760]]
countervailable subsidies are being provided to producers and exporters
of certain corrosion-resistant steel products from the Republic of
Korea. The period of review (POR) is January 1, 2019, through December
31, 2019. Commerce is also rescinding the review with respect to
Dongkuk Steel Mill Co., Ltd. (Dongkuk).
DATES: Applicable January 19, 2022.
FOR FURTHER INFORMATION CONTACT: Joshua Simondis or Dennis McClure, 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) 482-0608 or (202)
482-5973, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this review on July
16, 2021.\1\ For a description of the events that occurred since the
Preliminary Results, see the Issues and Decision Memorandum.\2\
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\1\ See Certain Corrosion-Resistant Steel Products from the
Republic of Korea: Preliminary Results of Countervailing Duty
Administrative Review; 2019, 86 FR 37740 (July 16, 2021)
(Preliminary Results), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results and Partial Rescission of the 2019 Administrative
Review of the Countervailing Duty Order on Certain Corrosion-
Resistant Steel Products from the Republic of Korea,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Order
The products covered by this order are certain corrosion-resistant
steel products. For a complete description of the scope of this order,
see the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised in interested parties' case briefs are addressed
in the Issues and Decision Memorandum accompanying this notice. A list
of the issued raised by parties, and to which Commerce responded in the
Issues and Decision Memorandum, is provided in Appendix I to this
notice. The Issues and 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 Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
Changes Since the Preliminary Results
Based on a review of the record and comments received from
interested parties, and for the reasons explained in the Issues and
Decision Memorandum, we made changes to the Preliminary Results.
Methodology
Commerce conducted this review in accordance with section
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found countervailable, we find 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.\3\ For a description of the methodology underlying all of
Commerce's conclusions, see the Issues and Decision Memorandum.
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\3\ 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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Rescission of Administrative Review, in Part
As noted in the Issues and Decision Memorandum, Commerce
inadvertently included Dongkuk as a respondent company in this
administrative review. Accordingly, we are rescinding the review with
respect to Dongkuk. For further discussion, see ``Rescission of
Administrative Review, in Part'' section in the Issues and Decision
Memorandum.
Companies Not Selected for Individual Review
There are 35 companies for which a review was requested, but which
were not selected as mandatory respondents or found to be cross-owned
with a mandatory respondent. For these 35 companies, we applied the
subsidy rate calculated for KG Dongbu Steel Co., Ltd. (KG Dongbu Steel)
(formerly Dongbu Steel Co., Ltd.) and its cross-owned affiliate, Dongbu
Incheon Steel Co., Ltd., as the only rate calculated for a mandatory
respondent that was above de minimis and not based entirely on facts
available. This methodology for establishing the subsidy rate for the
non-selected companies is consistent with our practice and with section
705(c)(5)(A) of the Act.
Final Results of Administrative Review
We determine that, for the period January 1, 2019, through December
31, 2019, the following total estimated net countervailable subsidy
rates exist:
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Subsidy rate
Company (percent ad
valorem)
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KG Dongbu Steel Co., Ltd. (formerly Dongbu Steel Co., 10.51
Ltd.) \4\/Dongbu Incheon Steel Co., Ltd................
Hyundai Steel Company................................... * 0.47
Non-Selected Companies Under Review \5\................. 10.51
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* (de minimis).
Assessment Rate
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\4\ Dongbu Steel Co., Ltd. changed its name to KG Dongbu Steel
Co., Ltd. in 2020.
\5\ See Appendix II.
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Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and U.S.
Customs and Border Protection (CBP) shall assess, countervailing duties
on all appropriate entries of subject merchandise in accordance with
the final results of this review, for the above-listed companies at the
applicable ad valorem assessment rates listed. 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 Rates
In accordance with section 751(a)(1) of the Act, Commerce intends
to instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts shown for each of the respective companies listed
above. 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 applicable to the company,
as appropriate. These cash deposits, when imposed, shall remain in
effect until further notice.
Administrative Protective Order
This notice also serves as a final reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a sanctionable
violation.
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Disclosure
Commerce intends to disclose the calculations performed for these
final results of review within five days of the date of publication of
this notice in the Federal Register, in accordance with 19 CFR
351.224(b).
Notification to Interested Parties
These final results are issued and published in accordance with
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(5).
Dated: January 12, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Preliminary Results
IV. Scope of the Order
V. Period of Review
VI. Rescission of Administrative Review, in Part
VII. Subsidies Valuation Information
VIII. Analysis of Programs
IX. Discussion of Comments
Comment 1: Whether Electricity Is Subsidized by the Government
of the Republic of Korea (GOK)
Comment 2: Whether Commerce's Determination that Port Usage
Rights Provide a Countervailable Benefit Is Unsupported by Evidence
and Contrary to Law
Comment 3: Whether Commerce Incorrectly Countervailed the
Reduction for Sewerage Usage Fees
Comment 4: Whether the Restructuring of KG Dongbu Steel's
Existing Loans by GOK-Controlled Financial Institutions Constitutes
a Financial Contribution and a Benefit to KG Dongbu Steel
Comment 5: Whether the Restructured Loans Provided to KG Dongbu
Were Specific
Comment 6: Whether Commerce Should Use the Interest Rates From
Loans Provided by Private Banks Participating in the Creditor Bank
Committee as Benchmarks
Comment 7: Whether KG Dongbu Steel Is Equityworthy and the 2015-
2018 Debt-to-Equity Swaps Should Be Countervailed
Comment 8: Whether Subsidies Prior to Dongbu Steel's Change in
Ownership Pass Through to KG Dongbu Steel
Comment 9: Whether Commerce Incorrectly Calculated the
Uncreditworthy Discount Rate Used for Allocating the Benefits From
Long-Term Loans, Bonds, and Equity Infusions
Comment 10: Whether Commerce Incorrectly Calculated the Discount
Rate for the 2019 Government Equity Infusion
XI. Recommendation
Appendix II
List of Non-Selected Companies
1. Ajin H & S Co., Ltd.
2. AJU Steel Co., Ltd.
3. B&N International
4. CDS Global Logistics
5. Dong A Hwa Sung Co., Ltd.
6. Dongkuk International, Inc.
7. Korea Clad Tech. Co., Ltd.
8. Pantos Logistics Co., Ltd.
9. PL Special Steel Co., Ltd.
10. POSCO
11. POSCO C&C
12. POSCO Coated & Color Steel Co., Ltd.
13. POSCO Daewoo Corp.
14. Samsung C&T Corporation
15. Samsung Electronics Co., Ltd.
16. Sanglim Steel Co., Ltd.
17. SeAH Coated Metal
18. SeAH Steel Corporation
19. Seajin St. Industry, Ltd.
20. Sejung Shipping Co., Ltd.
21. Seun Steel Co., Ltd.
22. Segye Chemical Industry Co., Ltd.
23. Shandongsheng Cao Xian Yalu Mftd.
24. Shengzhou Hanshine Import and Export Trade
25. Soon Hong Trading Co., Ltd.
26. Southern Steel Sheet Co., Ltd.
27. SSangyong Manufacturing
28. Sung A Steel Co., Ltd.
29. SW Co., Ltd.
30. SY Co., Ltd.
31. Syon
32. TCC Steel. Co., Ltd.
33. Young Steel Korea Co., Ltd.
34. Young Sun Steel Co.
35. Young Steel Co.
[FR Doc. 2022-00939 Filed 1-18-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 19, 2022.
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