Notice2022-18585
Certain Cold-Rolled Steel Flat Products and Certain Corrosion-Resistant Steel Products From the Republic of Korea: Notice of Initiation and Preliminary Results of Antidumping Duty and Countervailing Duty Changed Circumstances Reviews
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Published
August 30, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request for a changed circumstances review (CCR), the U.S. Department of Commerce (Commerce) is initiating a CCR of the antidumping duty (AD) and countervailing duty (CVD) orders on certain cold-rolled steel flat products (cold-rolled steel) and certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea). Additionally, Commerce preliminarily determines that KG Steel Corporation (dba KG Dongbu Steel Co., Ltd.) (KG Steel) is the successor-in-interest to KG Dongbu Steel Co., Ltd. (KG Dongbu Steel). Interested parties are invited to comment on these preliminary results.
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<title>Federal Register, Volume 87 Issue 167 (Tuesday, August 30, 2022)</title>
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[Federal Register Volume 87, Number 167 (Tuesday, August 30, 2022)]
[Notices]
[Pages 52905-52907]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18585]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-878, C-580-879, A-580-881, C-580-882]
Certain Cold-Rolled Steel Flat Products and Certain Corrosion-
Resistant Steel Products From the Republic of Korea: Notice of
Initiation and Preliminary Results of Antidumping Duty and
Countervailing Duty Changed Circumstances Reviews
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request for a changed circumstances review
(CCR), the U.S. Department of Commerce (Commerce) is initiating a CCR
of the antidumping duty (AD) and countervailing duty (CVD) orders on
certain cold-rolled steel flat products (cold-rolled steel) and certain
corrosion-resistant steel products (CORE) from the Republic of Korea
(Korea). Additionally, Commerce preliminarily determines that KG Steel
Corporation (dba KG Dongbu Steel Co., Ltd.) (KG Steel) is the
successor-in-interest to KG Dongbu Steel Co., Ltd. (KG Dongbu Steel).
Interested parties are invited to comment on these preliminary results.
DATES: Applicable August 30, 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:
Background
On July 25, 2016, Commerce published the AD and CVD orders on CORE
from Korea in the Federal Register.\1\ In the most recent
administrative review of the CORE AD Order, covering the period July 1,
2019, through June 30, 2020, KG Dongbu Steel was assigned the cash
deposit rate of 0.59 percent as a company not selected for individual
review.\2\ In the most recent administrative review of the CORE CVD
Order, covering the period January 1, 2019, through December 31, 2019,
KG Dongbu Steel was assigned the subsidy rate of 10.51 percent as a
mandatory respondent.\3\
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\1\ See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016) (CORE AD Order); 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) (CORE CVD Order) (collectively, CORE Orders).
\2\ See Corrosion-Resistant Steel Products from the Republic of
Korea: Final Results of Antidumping Duty Administrative Review;
2019-2020, 86 FR 70111 (December 9, 2021).
\3\ 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 (January
19, 2022).
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On September 20, 2016, Commerce published the AD and CVD orders on
cold-rolled steel from Korea in the Federal Register.\4\ In the most
recent administrative review of the Cold-Rolled Steel AD Order,
covering the period September 1, 2019, through August 31, 2020, KG
Dongbu Steel was assigned the cash deposit rate of 0.00 percent as a
company not selected for individual review.\5\ In the most recent
administrative review of the Cold-Rolled Steel CVD Order, covering the
period January 1, 2019, through December 31, 2019, KG Dongbu Steel was
assigned a subsidy rate of 1.93 percent as a
[[Page 52906]]
company not selected for individual review.\6\
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\4\ See Cold-Rolled Steel Flat Products from Brazil, India, the
Republic of Korea, and the United Kingdom: Amended Final Affirmative
Antidumping Determinations for Brazil and the United Kingdom and
Antidumping Duty Orders, 81 FR 64432 (September 20, 2016) (Cold-
Rolled Steel AD Order); see also 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)
(Cold-Rolled Steel CVD Order) (collectively, Cold-Rolled Steel
Orders).
\5\ See Certain Cold Rolled Steel Flat Products from the
Republic of Korea: Final Results of Antidumping Duty Administrative
Review; 2019-2020, 87 FR 15371 (March 18, 2022).
\6\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2019, 87 FR 20821 (April 8, 2022).
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On May 27, 2022, KG Steel informed Commerce that KG Dongbu Steel
had officially changed its Korean name from KG Dongbu Steel Co., Ltd.
to KG Steel Corporation for purposes of its operations and sales in
Korea, while at the same time maintaining its English name of KG Dongbu
Steel Co., Ltd. for purposes of its sales in overseas markets.\7\ KG
Steel requested the initiation of a CCR to find that KG Steel (dba KG
Dongbu Steel in the United States) is the successor-in-interest to KG
Dongbu Steel.\8\ On July 8, 2022, Commerce extended the time period by
45 days, until August 25, 2022, for determining whether to initiate and
whether to issue simultaneous preliminary determinations.\9\ On July
14, 2022, Commerce issued a deficiency letter requesting additional
information and documentation from KG Steel,\10\ to which KG Steel
timely responded.\11\ We did not receive comments from other interested
parties concerning these requests.
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\7\ See KG Steel's Letter, ``Notification of Company Name Change
and Request for Changed Circumstances Review, If Deemed Necessary:
Name Change of KG Dongbu Steel Co., Ltd.,'' dated May 27, 2022 (CCR
Request).
\8\ Id. at 3.
\9\ See Commerce's Letter, ``Request for Changed Circumstances
Reviews of the Antidumping Duty and Countervailing Duty Orders on
Certain Cold-Rolled Steel Flat Products and Certain Corrosion-
Resistant Steel Products from the Republic of Korea: Extension of
Initiation Deadline,'' dated July 8, 2022.
\10\ See Commerce's Letters, ``Request for Changed Circumstances
Review for Certain Cold-Rolled Steel Flat Products and Certain
Corrosion-Resistant Steel Products from the Republic of Korea
Antidumping Orders: Deficiency Questionnaire,'' dated July 14, 2022;
and ``Request for Changed Circumstances Review for Certain Cold-
Rolled Steel Flat Products and Certain Corrosion-Resistant Steel
Products from the Republic of Korea Countervailing Duty Orders:
Deficiency Questionnaire,'' dated July 14, 2022.
\11\ See KG Steel's Letters, ``Certain Corrosion Resistant Steel
Products and Cold-Rolled Steel Flat Products from the Republic of
Korea Changed Circumstance Review, Case Nos. A-580-878 and A-580-
881: Deficiency Questionnaire Response,'' dated July 21, 2022 (KG
Steel's AD DQR); and ``Certain Corrosion Resistant Steel Products
and Cold-Rolled Steel Flat Products from the Republic of Korea
Changed Circumstance Review, Case Nos. C-580-879 and C-580-882: KG
Steel Deficiency Questionnaire Response,'' dated August 2, 2022 (KG
Steel's CVD DQR) (collectively, KG Steel's DQRs). KG Steel explained
that KG Dongbu Steel Co., Ltd. changed its Korean name to KG Steel
Corporation, however, both ``Corporation'' and ``Co., Ltd.'' in
English are translated as the same phrase in Korean. KG Steel
explained that, in order to avoid confusion when expressing the
company's name in English, they have referred to the English
translation of the new KG Dongbu Steel as KG Steel ``Corporation.''
See KG Steel's CVD DQR at 8.
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Scope of the Orders
The merchandise covered by the Cold-Rolled Steel Orders is cold-
rolled steel from Korea. The merchandise covered by the CORE Orders is
CORE from Korea. For a full description of the merchandise covered by
the scope of each order, see the Preliminary Decision Memorandum.\12\
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\12\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products
and Certain Corrosion-Resistant Steel Products from the Republic of
Korea: Initiation and Preliminary Results of the Changed
Circumstances Reviews,'' dated concurrently with, and hereby adopted
by, this notice (Preliminary Decision Memorandum).
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Initiation of Changed Circumstances Reviews
Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.216, Commerce will conduct a CCR of an order
upon receipt of information or a review request from an interested
party for a review of an order which shows changed circumstances
sufficient to warrant a review of the order.\13\ In the past, Commerce
has used CCRs to address the applicability of cash deposit rates after
there have been changes in the name or structure of a respondent, such
as a merger or spinoff (``successor-in-interest,'' or
``successorship,'' determinations).\14\ The information submitted by KG
Steel supporting its claim that it is the successor-in-interest to KG
Dongbu Steel demonstrates changed circumstances sufficient to warrant
such a review.\15\
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\13\ See 19 CFR 351.216(c).
\14\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606
(November 7, 2017), unchanged in Diamond Sawblades and Parts Thereof
from the People's Republic of China: Final Results of Antidumping
Duty Changed Circumstances Review, 82 FR 60177 (December 19, 2017)
(Diamond Sawblades Final).
\15\ See 19 CFR 351.216(d).
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The information submitted by KG Steel demonstrates that its request
is based solely on a change in the Korean name of the company from ``KG
Dongbu Steel Co., Ltd.'' to ``KG Steel Corporation,'' approved March
24, 2022.\16\ Moreover, the evidence submitted in support of KG Steel's
request demonstrates that KG Steel is otherwise the same business
entity as KG Dongbu Steel. Therefore, in accordance with the regulation
referenced above, Commerce is initiating a CCR to determine whether KG
Steel is the successor-in-interest to KG Dongbu Steel.
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\16\ See CCRs Request at 3.
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Preliminary Results
Commerce is permitted by 19 CFR 351.221(c)(3)(ii) to combine the
notice of initiation of a CCR and the preliminary results if Commerce
concludes that expedited action is warranted. In this instance, because
the record contains information necessary to make a preliminary
finding, we find that expedited action is warranted and have combined
the notice of initiation and the preliminary results.
Accordingly, pursuant to section 751(b) of the Act, we have
conducted a successor-in-interest analysis in response to KG Steel's
request. In making a successor-in-interest determination in an AD CCR,
Commerce examines several factors, including, but not limited to,
changes in the following: (1) management and ownership; (2) production
facilities; (3) supplier relationships; and (4) customer base.\17\ In a
CVD CCR, Commerce will make an affirmative successorship finding (i.e.,
that the respondent company is the same subsidized entity for CVD cash
deposit purposes as the predecessor company) where there is no evidence
of significant changes in the respondent's: (1) operations; (2)
ownership; and (3) corporate and legal structure during the relevant
period (i.e., the ``look-back window'') that could have affected the
nature and extent of the respondent's subsidy levels. While no single
factor or combination of factors will necessarily provide a dispositive
indication of a successor-in-interest relationship, generally, Commerce
will consider the new company to be the successor to the previous
company if the new company's resulting operation is not materially
dissimilar to that of its predecessor.\18\ Thus, if the evidence
demonstrates that, with respect to the production and sales of the
subject merchandise, the new company operates as essentially the same
business entity as the former company, Commerce will assign the new
company the cash deposit rate of its predecessor.\19\
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\17\ See, e.g., Diamond Sawblades Final; see also Certain Frozen
Warmwater Shrimp from India: Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review, 83 FR 37784 (August
2, 2018), unchanged in Certain Frozen Warmwater Shrimp from India:
Notice of Final Results of Antidumping Duty Changed Circumstances
Review, 83 FR 49909 (October 3, 2018) (Shrimp from India).
\18\ See, e.g., Diamond Sawblades Final; and Shrimp from India.
\19\ See, e.g., Notice of Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review: Certain Frozen
Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012),
unchanged in Final Results of Antidumping Duty Changed Circumstances
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619
(December 11, 2012); see also Notice of Initiation and Preliminary
Results of Changed Circumstances Reviews: Certain Passenger Vehicle
and Light Truck Tires from the People's Republic of China, 85 FR
5193 (January 29, 2020), unchanged in Certain Passenger Vehicle and
Light Truck Tires from the People's Republic of China: Final Results
of Changed Circumstances Reviews, 85 FR 14638 (March 13, 2020).
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[[Page 52907]]
In its CCR request, KG Steel provided evidence demonstrating that
KG Steel's operations are not materially dissimilar from those of KG
Dongbu Steel. Based on the record, we preliminarily determine that KG
Steel is the successor-in-interest to KG Dongbu Steel, as the change in
the business' Korean name was not accompanied by significant changes to
its management and ownership, production, facilities, supplier
relationships, or customer base. There is also no evidence of
significant changes between KG Dongbu Steel and the successor-in-
interest company KG Steel's operations, ownership, or corporate or
legal structure during the relevant period that could have impacted the
successor-in-interest company's subsidy levels.\20\ Thus, we
preliminarily determine that KG Steel operates as essentially the same
business entity as KG Dongbu Steel, that KG Steel is the successor-in-
interest to KG Dongbu Steel, and that KG Steel should receive the same
AD and CVD cash deposit rates with respect to subject merchandise as
its predecessor, KG Dongbu Steel.
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\20\ See CCR Request; see also KG Steel's DQRs.
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For a complete discussion of the information that KG Steel
provided, including business proprietary information, and the complete
successor-in-interest analysis, see the Preliminary Decision
Memorandum.\21\ A list of topics discussed in the Preliminary Decision
Memorandum is included as 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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\21\ See Preliminary Decision Memorandum.
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Should our final results remain unchanged from these preliminary
results, we will instruct U.S. Customs and Border Protection to assign
entries of subject merchandise exported by KG Steel the AD and CVD cash
deposit rates applicable to KG Dongbu Steel. Commerce will issue its
final results of the review in accordance with the time limits set
forth in 19 CFR 351.216(e).
Public Comment
In accordance with 19 CFR 351.309(c)(1)(ii), interested parties may
submit case briefs not later than seven days after the date of
publication of this notice.\22\ Rebuttal briefs, limited to issues
raised in the case briefs, may be filed no later than seven days after
the case briefs, in accordance with 19 CFR 351.309(d).\23\ Parties who
submit case or rebuttal briefs are encouraged to submit with each
argument: (1) a statement of the issue; (2) a brief summary of the
arguments; and (3) a table of authorities.\24\
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\22\ Commerce is exercising its discretion under 19 CFR
351.309(c)(1)(ii) to alter the time limit for the filing of case
briefs.
\23\ Commerce is exercising its discretion under 19 CFR
351.309(d)(1) to alter the time limit for the filing of rebuttal
briefs.
\24\ See 19 CFR 351.309(c)(2).
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Pursuant to 19 CFR 351.310(c), any interested party may request a
hearing within 14 days of publication of this notice.\25\ Hearing
requests should contain the following information: (1) the party's
name, address, and telephone number; (2) the number of participants;
and (3) a list of the issues to be discussed. Oral presentations at the
hearing will be limited to issues raised in the 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 the time
of the hearing two days before the scheduled date.
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\25\ Commerce is exercising its discretion under 19 CFR
351.310(c) to alter the time limit for requesting a hearing.
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All submissions are to be filed electronically using ACCESS, and
must also be served on interested parties. An electronically filed
document must be received successfully in its entirety by ACCESS by
5:00 p.m. Eastern Time on the day it is due.\26\ Note that Commerce has
temporarily modified certain requirements for serving documents
containing business proprietary information, until further notice.\27\
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\26\ See 19 CFR 351.303(b).
\27\ 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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Consistent with 19 CFR 351.216(e), we will issue the final results
of this changed circumstances review no later than 270 days after the
date on which this review was initiated, or within 45 days if all
parties agree to our preliminary finding.
Notification to Interested Parties
This initiation and preliminary results notice is published in
accordance with sections 751(b)(1) and 777(i)(1) of the Act, and 19 CFR
351.216(b), 351.221(b) and 351.221(c)(3).
Dated: August 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Initiation And Preliminary Results of the Changed Circumstances
Reviews
V. Successor-in-Interest Determination
VI. Recommendation
[FR Doc. 2022-18585 Filed 8-29-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 30, 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.