Notice2022-16825
Certain Corrosion-Resistant Steel Products From the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review, 2020
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Published
August 5, 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 certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea). The period of review (POR) is January 1, 2020, through December 31, 2020. Additionally, Commerce is rescinding the review with respect to 31 companies.
Full Text
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<title>Federal Register, Volume 87 Issue 150 (Friday, August 5, 2022)</title>
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[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 47973-47975]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16825]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-879]
Certain Corrosion-Resistant Steel Products From the Republic of
Korea: Preliminary Results and Partial Rescission of the Countervailing
Duty Administrative Review, 2020
AGENCY: Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain corrosion-resistant steel products
(CORE) from the Republic of Korea (Korea). The period of review (POR)
is January 1, 2020, through December 31, 2020. Additionally, Commerce
is rescinding the review with respect to 31 companies.
DATES: Applicable August 5, 2022.
FOR FURTHER INFORMATION CONTACT: Dennis McClure or Zachariah Hall, 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)
482-6261, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 21 and 29 and August 2, 2021, we received requests for
multiple administrative reviews.\1\ On September 7, 2021, Commerce
published a notice of initiation of an administrative review of the
countervailing duty (CVD) order on CORE from Korea.\2\ On September 28,
2021, Commerce selected KG Dongbu Steel Co., Ltd. (KG Dongbu Steel)/
Dongbu Incheon Steel Co., Ltd. (collectively, KG Dongbu) and Hyundai
Steel Company as mandatory respondents in this administrative
review.\3\ On March 10, 2022, Commerce extended the deadline for the
preliminary results of this review.\4\
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\1\ See Cleveland-Cliffs Inc., Steel Dynamics Inc., Nucor
Corporation, and United States Steel Corporation's Letter, ``Request
for Administrative Review,'' dated August 2, 2021; see also KG
Dongbu Steel's Letter, ``Request for Administrative Review,'' dated
July 29, 2021; Hyundai Steel's Letter, ``Request for Administrative
Review,'' dated July 20, 2021; SeAH Coated Metal's Letter, ``Request
for Administrative Review,'' dated August 2, 2021; and POSCO's and
POSCO C&C's Letter, ``Request for Administrative Review,'' dated
July 20, 2021.
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 86 FR 50034 (September 7, 2021); see also
Certain Corrosion-Resistant Steel Products from India, Italy
Republic of Korea and the People's Republic of China: Countervailing
Duty Order, 81 FR 48387 (July 25, 2016) (Order).
\3\ On March 27, 2020, KG Dongbu Steel's shareholders changed
its name from Dongbu Steel to KG Dongbu Steel. See Dongbu's Letter,
``Affiliated Companies Response,'' dated October 28, 2021.
\4\ See Memorandum, ``Extension of Deadline for the Preliminary
Results of the 2020 Countervailing Duty Administrative Review,''
dated March 10, 2022.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\5\
A list of topics discussed in the Preliminary Decision Memorandum is
included at the Appendix I 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
[[Page 47974]]
directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx/">https://access.trade.gov/public/FRNoticesListLayout.aspx/</a>.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Results and Partial Rescission of the Countervailing Duty
Administrative Review; 2020: Certain Corrosion-Resistant Steel
Products 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 certain corrosion-resistant
steel products. For a complete description of the scope of the Order,
see the Preliminary Decision Memorandum.
Rescission of Administrative Review, In Part
On February 11, 2022, Commerce notified interested parties that we
intended to rescind this administrative review with respect to the 31
companies listed in Appendix III, because there are no reviewable
suspended entries for these companies based on the POR entry data from
U.S. Customs and Border Protection (CBP).\6\ No parties commented on
the notification of intent to rescind the review, in part. Therefore,
we determine that there were no entries of subject merchandise, during
the POR, by these companies based on the CBP data. As a result of our
finding, we are rescinding this review, in part, pursuant to 19 CFR
351.213(d)(3) with respect to the 31 companies listed in Appendix III
to this notice.
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\6\ 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 financial contribution from
an authority that gives rise to a benefit to the recipient, and that
the subsidy is specific.\7\ For a full description of the methodology
underlying our conclusions, see the accompanying Preliminary Decision
Memorandum.
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\7\ 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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Preliminary Rate for Non-Selected Companies Under 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 KG Dongbu is the only mandatory
respondent that received countervailable subsidies that are above de
minimis. Therefore, we preliminarily determine to apply the net subsidy
rate calculated for KG Dongbu to the non-selected companies. For a list
of the six companies for which a review was requested but are not being
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.
Preliminary Results of Review
As a result of this review, we preliminarily determine the net
countervailable subsidy rates to be:
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Subsidy
rate
Producer/exporter (percent
ad valorem)
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KG Dongbu Steel Co., Ltd. and its Cross-Owned Affiliate, 9.51
Dongbu Incheon Steel Co., Ltd \8\.........................
Hyundai Steel Company, and its Cross-Owned Affiliate, * 0.27
Hyundai Green Power.......................................
Non-Selected Companies Under Review \9\.................... 9.51
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* (de minimis).
Verification
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\8\ Note to importers: in the previous administrative review,
Commerce found that KG Dongbu Steel Co., Ltd. is the successor-in-
interest to Dongbu Steel Co., Ltd. See Certain Corrosion-Resistant
Steel Products from the Republic of Korea: Final Results and Partial
Rescission of Countervailing Duty Administrative Review; 2019, 87 FR
2759, 2760 (January 19, 2022). The name Dongbu Steel Co., Ltd.
should no longer be used on entry documentation.
\9\ See Appendix II.
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As provided in section 782(i)(3) of the Act, Commerce intends to
verify the information relied upon for its final results.
Disclosure and Public Comment
We intend to disclose to interested parties the calculations
performed for these preliminary results within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b). A
timeline for the submission of case and rebuttal briefs and written
comments will be provided to interested parties at a later date.\10\
Note that Commerce has temporarily modified certain of its requirements
for serving documents containing business proprietary information,
until further notice.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this review are
encouraged to submit with each argument: (1) a statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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\10\ See 19 CFR 351.309(c) and (d).
\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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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. 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 by telephone the date, time, and
location of the hearing two days before the scheduled date.
Unless the deadline is extended, we intend to issue the final
results of this administrative review, which will include the results
of our analysis of the issues raised in the case briefs, within 120
days of publication of these preliminary results in the Federal
Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR
351.213(h).
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. 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 CBP shall assess, countervailing duties
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
[[Page 47975]]
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 this notice in
the Federal Register.
For the companies remaining in the review, we will instruct CBP to
assess CVDs on all appropriate entries at the subsidy rates calculated
in the final results of this 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 Requirements
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
administrative review. For all non-reviewed firms, we will instruct CBP
to continue to collect cash deposits at the most recent company-
specific or all others rate applicable to the company. These cash
deposit requirements, when imposed, shall remain in effect until
further notice.
Notification to Interested Parties
These preliminary results are issued and published pursuant to
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
Dated: July 29, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation
Appendix II
List of Non-Selected Companies
1. POSCO Coated & Color Steel Co., Ltd.
2. POSCO
3. Samsung Electronics Co., Ltd.
4. SeAH Coated Metal
5. SeAH Steel Corporation
6. SY Co., Ltd.
Appendix III
List of Rescinded Companies
1. Ajin H & S Co., Ltd.
2. AJU Steel Co. Ltd.
3. B&N International
4. CDS Global Logistics
5. Daewon SD Co., Ltd.
6. Dong A Hwa Sung Co., Ltd.
7. Dongkuk International, Inc.
8. Jawon Korea Co., Ltd.
9. Kima Steel Corporation
10. Korea Clad Tech. Co., Ltd.
11. Pantos Logistics Co., Ltd.
12. PL Special Steel Co., Ltd.
13. POSCO Daewoo Corp.
14. Prosperity Tieh Enterprise Co., Ltd.
15. Samsung C&T Corporation
16. Sanglim Steel Co., Ltd.
17. Seajin St. Industry, Ltd.
18. Segye Chemical Industry Co., Ltd.
19. Sejung Shipping Co., Ltd.
20. Seun Steel Co., Ltd.
21. Shengzhou Hanshine Import and Export Trade
22. Soon Hong Trading Co., Ltd.
23. SSangyong Manufacturing
24. Sung A Steel Co., Ltd.
25. SW Co., Ltd.
26. Syon
27. TCC Steel. Co., Ltd.
28. Young Steel Co.
29. Young Steel Korea Co., Ltd.
30. Young Sun Steel Co.
31. Yuchang Air Con Co., Ltd.
[FR Doc. 2022-16825 Filed 8-4-22; 8:45 am]
BILLING CODE 3510-DS-P
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