Notice2022-19768

Large Power Transformers From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 2020-2021

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
September 13, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily finds that large power transformers from the Republic of Korea were not sold in the United States at less than normal value during the period of review (POR), August 1, 2020, through July 31, 2021. Interested parties are invited to comment on these preliminary results.

Full Text

<html>
<head>
<title>Federal Register, Volume 87 Issue 176 (Tuesday, September 13, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 55993-55995]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19768]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review, 2020-2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily finds 
that large power transformers from the Republic of Korea were not sold 
in the United States at less than normal value during the period of 
review (POR), August 1, 2020, through July 31, 2021. Interested parties 
are invited to comment on these preliminary results.

DATES: Applicable September 13, 2022.

FOR FURTHER INFORMATION CONTACT: John Drury, AD/CVD Operations, Office 
VI, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401

[[Page 55994]]

Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
0195.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the antidumping duty order on large power 
transformers on August 31, 2012.\1\ Commerce provided an opportunity to 
request an administrative review on August 2, 2021.\2\ Between August 
17 and 31, 2021, we received requests to conduct an administrative 
review from Hyosung,\3\ Hyundai,\4\ ABB Inc. and SPX Transformer 
Solutions Inc (the petitioners),\5\ and Iljin Electric Co., Ltd.\6\
---------------------------------------------------------------------------

    \1\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (Order).
    \2\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Review, 86 FR 41436 (August 2, 2021).
    \3\ See Hyosung's Letter, ``Large Power Transformers from the 
Republic of Korea: Hyosung's Request for Administrative Review,'' 
dated August 17, 2021.
    \4\ See Hyundai's Letter, ``Large Power Transformers from South 
Korea: Administrative Review Request,'' dated August 17, 2021.
    \5\ See the petitioners' Letter, ``Large Power Transformers from 
Republic of Korea--Petitioners' Request for 2020/2021 Administrative 
Review,'' dated August 31, 2021. On January 20, 2022, counsel for 
the petitioners filed an amended entry of appearance, stating that 
ABB Enterprise Software Inc. changed its name to Hitachi Energy USA, 
Inc. On February 11, 2022, counsel for the petitioners filed an 
amended entry of appearance, stating that SPX Transformer Solutions, 
Inc. changed its name to Prolec-GE Waukesha, Inc.
    \6\ See Iljin Electric Co., Ltd.'s Letter, ``Antidumping Order 
on Large Power Transformers from Korea--Request for Administrative 
Review,'' dated August 31, 2021.
---------------------------------------------------------------------------

    Commerce initiated this review on October 7, 2021.\7\ We selected 
one mandatory respondent in this review, Hyosung Heavy Industries 
Corporation (Hyosung). For a more detailed description of the events 
that followed the initiation of this review, see the Preliminary 
Decision Memorandum.\8\
---------------------------------------------------------------------------

    \7\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 55811 (October 7, 2021).
    \8\ See Memorandum, ``Decision Memorandum for Preliminary 
Results of Antidumping Duty Administrative Review: Large Power 
Transformers from the Republic of Korea; 2020-2021,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
---------------------------------------------------------------------------

    On January 18, 2022, the petitioners requested the Commerce conduct 
on-site (or other) verifications of Hyosung. As provided in section 
782(i)(3) of the Act, Commerce intends to verify the information relied 
upon in determining the final results of review.

Scope of the Order

    The scope of this Order covers large liquid dielectric power 
transformers having a top power handling capacity greater than or equal 
to 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or 
unassembled, complete or incomplete. The merchandise subject to the 
Order is currently classified in the Harmonized Tariff Schedule of the 
United States at subheadings 8504.23.0040, 8504.23.0080 and 
8504.90.9540. This tariff classification is provided for convenience 
and Customs purposes; however, the written description of the scope of 
the Order is dispositive.\9\
---------------------------------------------------------------------------

    \9\ The full text of the scope of the Order is contained in 
Preliminary Decision Memorandum.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(2) of the Tariff Act of 1930, as amended (the Act). For a full 
description of the methodology underlying our conclusions, see the 
Preliminary Decision Memorandum. A list of the 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 
made available to the public 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>.

Rate for Non-Selected Respondents

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
individual examination when Commerce limits its examination in an 
administrative review pursuant to section 777A(c)(2) of the Act. 
Generally, Commerce looks to section 735(c)(5) of the Act, which 
provides instructions for calculating the all-others rate in a market 
economy investigation, for guidance when calculating the rate for 
companies which were not selected for individual examination in an 
administrative review. Under section 735(c)(5)(A) of the Act, the all-
others rate is normally ``an amount equal to the weighted average of 
the estimated weighted average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
or de minimis margins, and any margins determined entirely {on the 
basis of facts available{time} .'' Hyosung is the only mandatory 
respondent. Accordingly, we have applied a rate of 2.38 percent from 
Hyosung to the non-selected companies.

Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2020, 
through July 31, 2021, the following weighted-average dumping margins 
exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Heavy Industries Corporation........................        2.38
Hyundai Electric & Energy Systems Co., Ltd..................        2.38
Iljin Electric Co., Ltd.....................................        2.38
ILJIN.......................................................        2.38
LSIS Co., Ltd.\10\..........................................        2.38
------------------------------------------------------------------------

Disclosure and Public Comment

    We intend to disclose the calculations performed to parties in this 
administrative review within five days after public announcement of the 
preliminary results, in accordance with 19 CFR 351.224(b).
---------------------------------------------------------------------------

    \10\ Commerce determined that LS Electric Co., Ltd. is the 
successor-in-interest to LSIS Co., Ltd. See Large Power Transformers 
from the Republic of Korea: Final Results of Antidumping Duty 
Administrative Review, Final Determination of No Shipments, and 
Final Successor-in-Interest Determination; 2018-2019, 86 FR 30915 
(June 10, 2021).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.309(c)(1)(ii), interested parties may submit 
case briefs according to the timeline Commerce establishes after the 
issuance of the final verification report. Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed not later than seven 
days after the date for filing case briefs.\11\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\12\ 
Parties who submit case briefs or rebuttal briefs in this 
administrative 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.\13\
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309(d); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19, 85 FR 17006, 17007 
(March 26, 2020) (``To provide adequate time for release of case 
briefs via ACCESS, E&C intends to schedule the due date for all 
rebuttal briefs to be 7 days after case briefs are filed (while 
these modifications remain in effect).'')
    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
    \13\ See 19 CFR 351.303 (for general filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a

[[Page 55995]]

hearing must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, filed electronically via ACCESS. 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 briefs. If a request for a hearing is made, Commerce 
intends to hold the hearing at a time and date to be determined. An 
electronically filed hearing request must be received successfully in 
its entirety by Commerce's electronic records system, ACCESS, by 5:00 
p.m. Eastern Time within 30 days after the date of publication of this 
notice.\14\
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.310(c).
---------------------------------------------------------------------------

    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of the issues raised in 
any written briefs, no later than 120 days after the date of 
publication of this notice, unless extended, pursuant to section 
751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuing the final results, Commerce shall determine, and U.S. 
Customs and Border Protection (CBP) shall assess, antidumping duties on 
all appropriate entries. If the weighted-average dumping margin for 
Hyosung is not zero or de minimis (i.e., less than 0.50 percent) in the 
final results of this review, we will calculate importer-specific 
assessment rates on the basis of the ratio of the total amount of 
dumping calculated for each importer's examined sales and the total 
entered value of such sales in accordance with 19 CFR 
351.212(b)(1).\15\ We will instruct CBP to assess antidumping duties on 
all appropriate entries covered by this review when the importer-
specific assessment rate calculated in the final results of this review 
is above de minimis (i.e., 0.50 percent). If Hyosung's weighted-average 
dumping margin is zero or de minimis in the final results of review, or 
if an importer-specific assessment rate is zero or de minimis, Commerce 
will instruct CBP to liquidate appropriate entries without regard to 
antidumping duties.\16\
---------------------------------------------------------------------------

    \15\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8103 (February 14, 
2012).
    \16\ Id., 77 FR at 8102-03; see also 19 CFR 351.106(c)(2).
---------------------------------------------------------------------------

    In accordance with Commerce's ``automatic assessment'' 
practice,\17\ for entries of subject merchandise during the review 
period produced by each respondent for which it did not know its 
merchandise was destined for the United States, we will instruct CBP to 
liquidate unreviewed entries at the all-others rate of 22.00 percent 
established in the investigation.\18\
---------------------------------------------------------------------------

    \17\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003).
    \18\ See Large Power Transformers from the Republic of Korea: 
Final Determination of Sales at Less Than Fair Value, 77 FR 40857 
(July 11, 2012).
---------------------------------------------------------------------------

    For the companies which were not selected for individual review 
(i.e., Hyundai Electric & Energy Systems Co., Ltd., Iljin Electric Co., 
Ltd., ILJIN, and LSIS Co., Ltd.), we will assign an assessment rate 
based on the cash deposit rate calculated for the company selected for 
mandatory review (i.e., Hyosung).\19\ The final results of this review 
shall be the basis for the assessment of antidumping duties on entries 
of merchandise covered by the final results of this review and for 
future deposits of estimated duties, where applicable.\20\
---------------------------------------------------------------------------

    \19\ See section 735(c)(5)(A) of the Act; see also Preliminary 
Decision Memorandum at Section VII, ``Rate for Non-Selected 
Companies.
    \20\ See section 751(a)(2)(C) of the Act.
---------------------------------------------------------------------------

    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). The final results of this administrative 
review shall be the basis for the assessment of antidumping duties on 
entries of merchandise under review and for future cash deposits of 
estimated antidumping duties, where applicable.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) the cash deposit rate for Hyosung and 
other companies listed above will be equal to the weighted-average 
dumping margin established in the final results of this administrative 
review; (2) for previously reviewed or investigated companies not 
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recently completed segment of this 
proceeding in which they were reviewed; (3) if the exporter is not a 
firm covered in this review, a prior review, or in the investigation 
but the producer is, the cash deposit rate will be the rate established 
for the most recently completed segment of this proceeding for the 
producer of the merchandise; and (4) the cash deposit rate for all 
other producers or exporters will continue to be the all-others rate of 
22.00 percent, the rate established in the investigation of this 
proceeding.\21\ These cash deposit requirements, when imposed, shall 
remain in effect until further notice.
---------------------------------------------------------------------------

    \21\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
---------------------------------------------------------------------------

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in Commerce's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    Commerce is issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, 19 CFR 351.213(h)(2), and 
19 CFR 351.221(b)(4).

    Dated: August 31, 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. Deadline for Submission of Updated Sales and Cost Information
IV. Scope of the Order
V. Discussion of the Methodology
VI. Rate for Non-Selected Companies
VII. Recommendation

[FR Doc. 2022-19768 Filed 9-12-22; 8:45 am]
BILLING CODE 3510-DS-P


</pre></body>
</html>
Indexed from Federal Register on September 13, 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.