Notice2022-11941
Large Diameter Welded Pipe From the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review; 2020
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
June 3, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. 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 January 1, 2020, through December 31, 2020.
Full Text
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<title>Federal Register, Volume 87 Issue 107 (Friday, June 3, 2022)</title>
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[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Notices]
[Pages 33715-33717]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11941]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-898]
Large Diameter Welded Pipe From the Republic of Korea:
Preliminary Results and Partial Rescission of the Countervailing Duty
Administrative Review; 2020
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. 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
January 1, 2020, through December 31, 2020.
DATES: Applicable June 3, 2022.
FOR FURTHER INFORMATION CONTACT: Dennis McClure or Jonathan Schueler,
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) 482-5973
or (202) 482-9175, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 28, and June 1 and 3, 2021, we received multiple requests
for an administrative review \1\ of the countervailing duty (CVD) order
on welded pipe from Korea.\2\ On July 6, 2021, Commerce published a
notice of initiation of an administrative review of the Order.\3\ On
July 29, 2021, Commerce selected Hyundai RB Co., Ltd. (Hyundai RB) and
SeAH Steel Corporation (SeAH Steel) as the mandatory respondents in
this administrative review.\4\ On January 4, 2022, Commerce extended
the deadline for the preliminary results of this review to no later
than May 31, 2022.\5\
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\1\ See Hyundai RB Co., Ltd.'s Letter, ``Request for
Administrative Review,'' dated May 28, 2021; see also SeAH Steel
Corporation's Letter, ``Request for Administrative Review,'' dated
June 1, 2021; Hyundai Steel's Letter, ``Request for Administrative
Review,'' dated June 1, 2021; Domestic Interested Party's Letter,
``Request for Administrative Review,'' dated June 1, 2021; and
Hyundai Steel Company's and Husteel Co., Ltd.'s Letter, ``Request
for Administrative Review,'' dated June 3, 2021. The domestic
interested party is The American Line Pipe Producers Association
Trade Committee.
\2\ See Large Diameter Welded Pipe from the Republic of Korea:
Countervailing Duty Order, 84 FR 18773 (May 2, 2019) (Order).
\3\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 86 FR 35481 (July 6, 2021) (Initiation
Notice).
\4\ See Memorandum, ``Respondent Selection,'' dated July 29,
2021.
\5\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review; 2020,'' dated
January 4, 2022.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\6\
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="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\6\ See Memorandum, ``Decision Memorandum for the Preliminary
Results and Partial Rescission of the Countervailing Duty
Administrative Review; 2020: 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.
Final Rescission of Administrative Review
As noted in the Preliminary Decision Memorandum, the domestic
interested party timely withdrew their requests for administrative
review with respect to EM Solution Co., Ltd.; Hansol Metal Co., Ltd.;
Hawin; Hyosung; and POSCO.\7\ No other parties requested a review of
these companies. On February 23, 2022, Commerce notified interested
parties that we intended to rescind this administrative review of the
companies named above and the following companies in the absence of
suspended entries during the POR: (1) AJU Besteel Co., Ltd.; (2)
Daiduck Piping Co., Ltd.; (3) Dongbu Incheon Steel Co., Ltd.; (4) EEW
KHPC Co., Ltd.; (5) Husteel Co., Ltd.; \8\ (6) Hyundai Steel; (7)
Hyundai Steel Co., Ltd.; (8) Hyundai Steel Company; \9\ (9) Kiduck
Industries Co., Ltd.; (10) Kum Kang Kind. Co., Ltd.; (11) Kumsoo
Connecting Co., Ltd.; (12) Nexteel Co., Ltd.; (13) Samkang M&T Co.,
Ltd.; (14) SeAH Steel, Co., Ltd.; (15) Seonghwa Industrial Co., Ltd.;
(16) SIN-E B&P Co., Ltd.; (17) Steel Flower Co., Ltd.; and (18) WELTECH
Co., Ltd.\10\ No parties commented on the notification of intent to
rescind the review of the 23 companies named above. Therefore, we
determine that there were no entries of subject merchandise during the
POR by these companies. As a result, we are rescinding this review, in
part, pursuant to 19 CFR 351.213(d)(1) and 19 CFR 351.213(d)(3) with
respect to the 23 companies listed above.
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\7\ See Domestic Interested Party's Letter, ``Partial Withdrawal
of Request for Administrative Review,'' dated October 4, 2021.
\8\ As stated in the Initiation Notice, subject merchandise both
produced and exported by Husteel Co., Ltd. (Husteel) is excluded
from the CVD 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.
\9\ 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 CVD 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.
\10\ See Memorandum, ``Notice of Intent to Rescind Review, In
Part,'' dated February 11, 2022.
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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 confers a benefit to the recipient, and
that the subsidy is specific.\11\ For a full
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description of the methodology underlying our conclusions, see the
Preliminary Decision Memorandum.
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\11\ 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.
In this review, we preliminarily determine that only Hyundai RB
received countervailable subsidies at a rate above de minimis.
Therefore, we are preliminarily applying the net subsidy rate
calculated for Hyundai RB to the non-selected companies.
Preliminary Results of the 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:
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\12\ 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.
\13\ This rate is based on the rates for the respondents that
were selected for individual review, excluding rates that are zero,
de minimis, or based entirely on facts available. See section
735(c)(5)(A) of the Act.
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Subsidy rate (percent ad
Producer/exporter valorem)
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Hyundai RB Co., Ltd................... 1.66
SeAH Steel Corporation \12\........... 0.31 (de minimis)
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Review-Specific Average Rate Applicable to the Following Companies \13\
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Chang Won Bending Co., Ltd............ 1.66
Dong Yang Steel Pipe Co., Ltd......... 1.66
EEW Korea Co., Ltd.................... 1.66
Histeel Co., Ltd...................... 1.66
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Disclosure and Public Comment
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.\14\ Interested parties
may submit case briefs no later than 30 days after the date of
publication of these preliminary results.\15\ Rebuttal briefs, limited
to issues raised in case briefs, may be filed no later than seven days
after the date for filing case briefs.\16\ 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.
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\14\ See 19 CFR 351.224(b).
\15\ See 19 CFR 351.309(c)(1)(ii).
\16\ See 19 CFR 351.309(d)(1); see also See Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of
Effective Period, 85 FR 41363 (July 10, 2020) (Temporary Rule).
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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.\17\ 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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\17\ See 19 CFR 351.310(c).
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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.\18\
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\18\ See Temporary Rule.
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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 Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review,
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2),
Commerce shall determine, and U.S. Customs and Border Protection (CBP)
shall assess, CVDs on all appropriate entries covered by this review.
For the companies for which this review is rescinded, we will instruct
CBP to assess CVDs on all appropriate entries at a rate equal to the
cash deposit of estimated CVDs required at the time of entry, or
withdrawal from warehouse, for consumption, during the period January
1, 2020, through December 31, 2020, in accordance with 19 CFR
351.212(c)(l)(i). We intend to issue assessment instructions to CBP for
these companies no earlier than 35 days after the date of publication
of the preliminary results of this review in the Federal Register.
For the companies remaining in the review, 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 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 CVDs in the amounts calculated in the final
results of this review for each of the reviewed companies listed above
on shipments of subject merchandise entered, or
[[Page 33717]]
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 CVDs at the all-others rate as established in the Order
(i.e., 9.29 percent) \19\ or the most recent company-specific rate
applicable to the company, as appropriate. These cash deposit
instructions, when imposed, shall remain in effect until further
notice.
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\19\ See Order at 84 FR 18775.
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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: May 27, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Partial Rescission of Administrative Review
VI. Diversification of Korea's Economy
VII. Subsidies Valuation Information
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2022-11941 Filed 6-2-22; 8:45 am]
BILLING CODE 3510-DS-P
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