Notice2022-07502
Certain Cold-Rolled Steel Flat Products From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2019
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 8, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) determines that certain producers/exporters of certain cold-rolled steel flat products (cold- rolled steel) from the Republic of Korea (Korea) received countervailable subsidies during the review period, while other producers/exporters (i.e., Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company (Hyundai Steel), and POSCO) received de minimis net countervailable subsidies during the review period. The period of review (POR) is January 1, 2019, through December 31, 2019.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 68 (Friday, April 8, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 68 (Friday, April 8, 2022)]
[Notices]
[Pages 20821-20824]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-07502]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-882]
Certain Cold-Rolled Steel Flat Products From the Republic of
Korea: Final Results of Countervailing Duty Administrative Review; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain
producers/exporters of certain cold-rolled steel flat products (cold-
rolled steel) from the Republic of Korea (Korea) received
countervailable subsidies during the review period, while other
producers/exporters (i.e., Hyundai Steel Co., Ltd., also referred to as
Hyundai Steel Company (Hyundai Steel), and POSCO) received de minimis
net countervailable subsidies during the review period. The period of
review (POR) is January 1, 2019, through December 31, 2019.
DATES: Applicable April 8, 2022.
FOR FURTHER INFORMATION CONTACT: Natasia Harrison, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1240.
SUPPLEMENTARY INFORMATION:
[[Page 20822]]
Background
Commerce published the Preliminary Results of this review on
October 6, 2021.\1\ On October 21, 2021, Commerce issued its post-
preliminary analysis.\2\ Subsequently, on January 18, 2022, Commerce
extended the deadline for the final results of this review to no later
than April 1, 2022.\3\ For a complete description of the events that
followed the Preliminary Results, see the Issues and Decision
Memorandum.\4\
---------------------------------------------------------------------------
\1\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Preliminary Results of Countervailing Duty
Administrative Review, 2019, 86 FR 55572 (October 6, 2021)
(Preliminary Results), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Countervailing Duty Administrative Review
of Certain Cold-Rolled Steel Flat Products from the Republic of
Korea; 2019: Post-Preliminary Analysis Memorandum,'' dated October
21, 2021.
\3\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products
from the Republic of Korea: Countervailing Duty Administrative
Review; 2019: Extension of Deadline for Final Results,'' dated
January 18, 2022.
\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the 2019 Administrative Review of the
Countervailing Duty Order on Certain Cold-Rolled Steel Flat Products
from the Republic of Korea,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Order \5\
---------------------------------------------------------------------------
\5\ See Certain Cold-Rolled Steel Flat Products from Brazil,
India, and the Republic of Korea: Amended Final Affirmative
Countervailing Duty Determination and Countervailing Duty Order (the
Republic of Korea) and Countervailing Duty Orders (Brazil and
India), 81 FR 64436 (September 20, 2016) (Order).
---------------------------------------------------------------------------
The merchandise covered by the Order is certain cold-rolled steel.
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' case briefs are addressed
in the Issues and Decision Memorandum accompanying this notice. A list
of the issues 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="https://access.trade.gov">https://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, we made certain changes to the subsidy rate
calculations for POSCO, the calculation of the non-selected rate, and
the draft customs instructions. For a discussion of these changes, see
the Issues and Decision Memorandum.
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.\6\ For a description of the methodology underlying all of
Commerce's conclusions, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\6\ 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.
---------------------------------------------------------------------------
Companies Not Selected for Individual Review
The statute and Commerce's regulations do not directly address the
establishment of rates to be applied to companies not selected for
individual examination where Commerce limits in examination in an
administrative review pursuant to section 777(A)(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. We also note that 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)(i) of the Act states that, in
general, for companies not investigated, we will determine an all-
others rate by using the weighted-average countervailable subsidy rates
established for exporters and producers individually investigated,
excluding zero and de minimis rates or any rates based solely on the
facts available. Additionally, section 705(c)(5)(A)(ii) of the Act
provides that when the countervailable subsidy rates established for
all exporters and producers individually investigated are zero or de
minimis rates, or based solely on facts available, Commerce may use any
reasonable method to establish a rate for the companies not
individually investigated, including averaging the weighted-average
countervailable subsidy rates determined for the exporters and
producers individually investigated.
In the final results of this review, we calculated de minimis net
countervailable subsidy rates for both Hyundai Steel and POSCO, the
mandatory respondents. As a result, for the reasons discussed in the
Issues and Decision Memorandum, we have determined that it is
appropriate to assign to the companies subject to the review, but not
selected for individual examination, the weighted-average of the most
recently calculated countervailable subsidy rates that are not zero or
de minimis rates, or based solely on facts available from the prior
review (i.e., CRS Third Admin Review Final Results).\7\ While Dongbu
Steel Co., Ltd. and Dongbu Incheon Steel Co., Ltd. are non-selected
respondents, because each received a calculated rate in the prior
review (i.e., CRS Third Admin Review Final Results), Commerce has found
it appropriate to apply that calculated rate to Dongbu Steel Co., Ltd.
and Dongbu Incheon Steel Co., Ltd. in this review. For a list of the 45
companies for which a review was requested and not rescinded, and which
were not selected as mandatory respondents or found to be cross-owned
with a mandatory respondent, see Appendix II to this notice.
---------------------------------------------------------------------------
\7\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2018, 86 FR 40465 (July 28, 2021) (CRS Third
Admin Review Final Results).
---------------------------------------------------------------------------
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:
---------------------------------------------------------------------------
\8\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
POSCO: Pohang Scrap Recycling Distribution Center Co. Ltd.; POSCO
Chemical Co., Ltd.; POSCO M-Tech; POSCO Nippon Steel RHF Joint
Venture Co., Ltd.; and POSCO Terminal. The subsidy rate applies to
all cross-owned companies. We note that POSCO has an affiliated
trading company through which it exported certain subject
merchandise, POSCO International Corporation (POSCO International).
POSCO International was not selected as a mandatory respondent, but
was examined in the context of POSCO. Therefore, there is not an
established rate for POSCO International and POSCO International's
subsidies are accounted for in terms of POSCO's total subsidy rate.
Instead, entries of subject merchandise exported by POSCO
International will receive the rate of the producer listed on the
entry form with CBP. Thus, the subsidy rate applied to POSCO and
POSCO's cross-owned affiliated companies is also applied to POSCO
International for entries of merchandise produced by POSCO.
\9\ See Appendix II.
\10\ As described above, while Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd. are non-selected respondents, because each
received a calculated rate in the prior review (i.e., CRS Third
Admin Review Final Results), Commerce has found it appropriate to
apply that calculated rate to Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd. in this review.
[[Page 20823]]
------------------------------------------------------------------------
Subsidy rate
Producer/exporter ad valorem
(percent)
------------------------------------------------------------------------
Hyundai Steel Co., Ltd.................................. * 0.46
POSCO \8\............................................... * 0.22
Non-Selected Companies Under Review \9\................. 1.93
Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., 9.18
Ltd.\10\...............................................
------------------------------------------------------------------------
* de minimis.
Assessment Rate
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). Because we have calculated de minimis countervailable
subsidy rates for certain companies under review, we will instruct CBP
to liquidate shipments of subject merchandise produced and/or exported
by the companies listed above, entered, or withdrawn from warehouse for
consumption, from January 1, 2019, through December 31, 2019, without
regard to countervailing duties in accordance with 19 CFR 351.212(b)(2)
and 19 CFR 351.106(c).
Cash Deposit Rates
In accordance with section 751(a)(2)(C) of the Act, Commerce
intends to instruct CBP to continue to suspend liquidation but not to
collect cash deposits of estimated countervailing duties on shipments
of subject merchandise by the companies under review entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of the final results of this administrative review. 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 (3.89
percent), as appropriate.\11\ These cash deposit requirements,
effective upon publication of these final results, shall remain in
effect until further notice.
---------------------------------------------------------------------------
\11\ See Order, 81 FR at 64438.
---------------------------------------------------------------------------
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.
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: April 1, 2022.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.
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. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Whether Electricity is Subsidized by the Government
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 Miscalculated the Benefit Conferred
by the Industrial Technology Innovation Promotion Act (ITIPA)
Program
Comment 4: Whether Commerce Should Continue to Include Benefits
from Certain Industrial Technology Innovation Promotion Act Projects
Comment 5: Whether Commerce Should Exclude Quota Tariff Import
Duty Exemptions Received on Certain Items Used to Produce Non-
Subject Merchandise
Comment 6: Whether Commerce Should Modify the Trading Company
Methodology for POSCO International Corporation (POSCO
International)
Comment 7: Whether Commerce Made Certain Errors in the Draft
Customs Instructions for POSCO International
Comment 8: Whether Commerce Made Certain Errors in the Draft
Customs Instructions Related to Dongbu Steel Co., Ltd. (Dongbu
Steel), Dongbu Incheon Steel Co., Ltd. (Dongbu Incehon), and KG
Dongbu Steel Co., Ltd. (KG Dongbu Steel)
Comment 9: Whether Commerce Should Modify Its Selection of the
Rate for Non-Selected Companies
IX. Recommendation
Appendix II
List of Non-Selected Companies
1. AJU Steel Co., Ltd.
2. Amerisource Korea
3. Atlas Shipping Cp. Ltd.
4. BC Trade
5. Busung Steel Co., Ltd.
6. Cenit Co., Ltd.
7. Daewoo Logistics Corp.
8. Dai Yang Metal Co., Ltd.
9. DK GNS Co., Ltd
10. Dongbu Incheon Steel Co., Ltd.\12\
---------------------------------------------------------------------------
\12\ While Dongbu Steel Co., Ltd. and Dongbu Incheon Steel Co.,
Ltd. are non-selected respondents, because each received a
calculated rate in the prior review (i.e., CRS Third Admin Review
Final Results), Commerce has found it appropriate to apply that
calculated rate to Dongbu Steel Co., Ltd. and Dongbu Incheon Steel
Co., Ltd.
---------------------------------------------------------------------------
11. Dongbu Steel Co., Ltd.\13\
---------------------------------------------------------------------------
\13\ Id.
---------------------------------------------------------------------------
12. KG Dongbu Steel Co., Ltd.
13. Dongbu USA
14. Dong Jin Machinery
15. Dongkuk Industries Co., Ltd.
16. Dongkuk Steel Mill Co., Ltd.
17. Eunsan Shipping and Air Cargo Co., Ltd.
18. Euro Line Global Co., Ltd.
[[Page 20824]]
19. GS Global Corp.
20. Hanawell Co., Ltd.
21. Hankum Co., Ltd.
22. Hyosung TNC Corp.
23. Hyuk San Profile Co., Ltd.
24. Hyundai Group
25. Iljin NTS Co., Ltd.
26. Iljin Steel Corp.
27. Jeen Pung Industrial Co., Ltd.
28. JT Solution
29. Kolon Global Corporation
30. Nauri Logistics Co., Ltd.
31. Okaya (Korea) Co., Ltd.
32. PL Special Steel Co., Ltd.
33. POSCO C&C Co., Ltd.
34. POSCO Daewoo Corp.
35. POSCO International Corp. (POSCO International Corporation)
36. Samsung C&T Corp.
37. Samsung STS Co., Ltd.
38. SeAH Steel Corp.
39. SM Automotive Ltd.
40. SK Networks Co., Ltd.
41. Taihan Electric Wire Co., Ltd.
42. TGS Pipe Co., Ltd.
43. TI Automotive Ltd.
44. Xeno Energy
45. Young Steel Co., Ltd.
[FR Doc. 2022-07502 Filed 4-7-22; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on April 8, 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.