Notice2022-02138

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

Primary source

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Published
February 2, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The Department of Commerce (Commerce) determines that producers and/or exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea) received countervailable subsidies during the period of review (POR), June 29, 2018, through December 31, 2019.

Full Text

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<title>Federal Register, Volume 87 Issue 22 (Wednesday, February 2, 2022)</title>
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[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Notices]
[Pages 5780-5782]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02138]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-898]


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

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

SUMMARY: The Department of Commerce (Commerce) determines that 
producers and/or exporters of large diameter welded pipe (welded pipe) 
from the Republic of Korea (Korea) received countervailable subsidies 
during the period of review (POR), June 29, 2018, through December 31, 
2019.

DATES: Applicable February 2, 2022.

FOR FURTHER INFORMATION CONTACT: George Ayache, 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.

[[Page 5781]]


SUPPLEMENTARY INFORMATION:

Background

    On August 5, 2021, Commerce published the Preliminary Results of 
this administrative review.\1\ On November 18, 2021, Commerce extended 
the deadline for the final results of this review to no later than 
January 28, 2022.\2\ For a complete description of the events that 
followed the Preliminary Results, see the Issues and Decision 
Memorandum.\3\
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    \1\ See Large Diameter Welded Pipe from the Republic of Korea: 
Preliminary Results of Countervailing Duty Administrative Review; 
2018-2019, 86 FR 42779 (August 5, 2021) (Preliminary Results).
    \2\ See Memorandum, ``Extension of Deadline for Final Results,'' 
dated November 18, 2021.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review of 
Large Diameter Welded Pipe from the Republic of Korea; 2018-2019,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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    We are conducting this review in accordance with section 751 of the 
Tariff Act of 1930, as amended (the Act).
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    \4\ See Large Diameter Welded Pipe from the Republic of Korea: 
Countervailing Duty Order, 84 FR 18773 (May 2, 2019) (Order).
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Scope of the Order \4\

    The merchandise covered by the Order is welded pipe. For a complete 
description of the scope of the Order, see the Issues and Decision 
Memorandum.

Analysis of Comments Received

    All issues raised in interested parties' briefs are addressed in 
the Issues and Decision Memorandum. A list of the issues addressed is 
attached to this notice at Appendix I. 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 our analysis of the case and rebuttal briefs and the 
evidence on the record, we made certain changes from the Preliminary 
Results. These changes are explained in the Issues and Decision 
Memorandum.

Companies Not Selected for Individual Review

    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. For the 
final results of this review, we determine that only Hyundai RB Co., 
Ltd. (Hyundai RB) received countervailable subsidies that are above de 
minimis in both 2018 and 2019. However, because the 2018 subsidy rate 
is based entirely on facts available, we are applying the 2019 subsidy 
rate calculated for Hyundai RB to the non-selected companies for 2018 
and 2019, as it is the only rate calculated for a mandatory respondent 
that was above de minimis and not based entirely on facts available.\5\ 
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.
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    \5\ See Issues and Decision Memorandum at Comment 7.
    \6\ Commerce has found the following companies to be cross-owned 
with SeAH Steel Corporation: SeAH Holdings Corporation and ESAB SeAH 
Corporation. SeAH Steel Corporation's subsidy rate applies to each 
of its cross-owned companies.
    \7\ See Appendix II.
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Final Results of Administrative Review

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

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                                     Subsidy rate for   Subsidy rate for
                                        June 29 to        January 1 to
              Company               December 31, 2018  December 31, 2019
                                       (percent ad        (percent ad
                                         valorem)           valorem)
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Hyundai RB Co., Ltd...............               0.51              0.51.
SeAH Steel Corporation \6\........  0.24 (de minimis)           0.24 (de
                                                               minimis).
Non-Examined Companies Under                     0.51              0.51.
 Review \7\.......................
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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.\8\
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    \8\ See 19 CFR 351.224(b).
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Assessment Rates

    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 for the corresponding 
time period (i.e., June 29, 2018, to October 26, 2018, and April 19, 
2019, to December 31, 2019). For entries made during the gap period 
(i.e., on or after October 27, 2018, through April 18, 2019), we will 
continue to instruct CBP to liquidate the entries without regard to 
countervailing duties pursuant to section 703(d) of the Act. We intend 
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 Instructions

    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 2019, the second year covered by the period of the review, on 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date of

[[Page 5782]]

publication of the final results of this administrative review.\9\ For 
all non-reviewed firms subject to the Order, we will instruct CBP to 
continue to collect cash deposits of estimated countervailing duties at 
the most recent company-specific rate or the all-others rate (9.29 
percent), as appropriate.\10\ These cash deposit requirements, 
effective upon publication of these final results, shall remain in 
effect until further notice.
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    \9\ See, e.g., Honey from Argentina: Results of Countervailing 
Duty Administrative Review, 69 FR 29518 (May 24, 2004), and 
accompanying Issues and Decision Memorandum at Issue 4.
    \10\ See Order, 84 FR at 18775.
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Notification Regarding Administrative Protective Order

    This notice also serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or 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.

Notification to Interested Parties

    We are issuing and publishing these final results in accordance 
with sections 751(a)(1) and 777(i) of the Act.

    Dated: January 27, 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. Scope of the Order
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Discussion of Comments
    Comment 1: Whether the Government of Korea (GOK) Provided 
Electricity for Less than Adequate Remuneration (LTAR)
    Comment 2: Whether the Demand Response Resources (DRR) Program 
Is Countervailable
    Comment 3: Whether the Discount Electricity Charges for Energy 
Storage Systems (ESS) Program Is Specific
    Comment 4: Whether Restriction of Special Taxation Act (RSTA) 
Article 25(1)(6) Is Specific
    Comment 5: Whether Restriction of Special Local Taxation Act 
(RSLTA) Article 57(2) Is Specific
    Comment 6: Whether to Adjust the Calculated Benefit under RSLTA 
Article 57(2) to Account for the Payment of the Special Rural 
Development Tax (SRDT)
    Comment 7: Whether Commerce Should Calculate Separate Ad Valorem 
Subsidy Rates for 2018 and 2019
    Comment 8: Whether Commerce Should Allocate the Benefits of the 
Busan Investment Promotion (BIP) Fund over the AUL
    Comment 9: Whether Commerce Erred in Its Allocation Calculation 
for the 2007 Grant Programs
    Comment 10: Whether Commerce Should Allocate the Benefits 
Received Under the Overseas Standard Certification Acquisition 
Support (OSCAS) Project over Hyundai RB's Export Sales
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    \11\ 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 Initiation of 
Antidumping and Countervailing Duty Administrative Reviews, 85 FR 
41540, 41551 n.9 (July 10, 2020) (Initiation Notice). 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.
    \12\ 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 Initiation Notice, 85 FR at 41551 n.10. 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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VII. Recommendation

Appendix II

                             Table of Rates for Non-Examined Companies Under Review
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                                                                 Net countervailable       Net countervailable
                                                              subsidy rate for June 29  subsidy rate for January
                           Company                              to December 31, 2018     1 to December 31, 2019
                                                                (percent ad valorem)      (percent ad valorem)
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AJU Besteel Co., Ltd........................................                     0.51                      0.51
Chang Won Bending Co., Ltd..................................                     0.51                      0.51
Daiduck Piping Co., Ltd.....................................                     0.51                      0.51
Dong Yang Steel Pipe Co., Ltd...............................                     0.51                      0.51
Dongbu Incheon Steel Co., Ltd...............................                     0.51                      0.51
EEW KHPC Co., Ltd...........................................                     0.51                      0.51
EEW Korea Co., Ltd..........................................                     0.51                      0.51
HiSteel Co., Ltd............................................                     0.51                      0.51
Husteel Co., Ltd \11\.......................................                     0.51                      0.51
Hyundai Steel Company \12\..................................                     0.51                      0.51
Kiduck Industries Co., Ltd..................................                     0.51                      0.51
Kum Kang Kind. Co., Ltd.....................................                     0.51                      0.51
Kumsoo Connecting Co., Ltd..................................                     0.51                      0.51
Nexteel Co., Ltd............................................                     0.51                      0.51
Samkang M&T Co., Ltd........................................                     0.51                      0.51
Seonghwa Industrial Co., Ltd................................                     0.51                      0.51
SIN[hyphen]E B&P Co., Ltd...................................                     0.51                      0.51
Steel Flower Co., Ltd.......................................                     0.51                      0.51
WELTECH Co., Ltd............................................                     0.51                      0.51
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[FR Doc. 2022-02138 Filed 2-1-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on February 2, 2022.

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.