Notice2022-21181
Oil Country Tubular Goods From the Republic of Korea: Final Affirmative Countervailing Duty Determination
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 29, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of oil country tubular goods (OCTG) from the Republic of Korea (Korea). The period of investigation is January 1, 2020, through December 31, 2020.
Full Text
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<title>Federal Register, Volume 87 Issue 188 (Thursday, September 29, 2022)</title>
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[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59056-59058]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21181]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-913]
Oil Country Tubular Goods From the Republic of Korea: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of oil country tubular goods (OCTG) from the Republic of Korea (Korea).
The period of investigation is January 1, 2020, through December 31,
2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT: Jacob Garten or Melissa Porpotage, AD/
CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3342 or (202)
482-1413, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 14, 2022, Commerce published the Preliminary Determination
in the Federal Register.\1\ For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ 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>.
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\1\ See Oil Country Tubular Goods from the Republic of Korea:
Preliminary Negative Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping Duty Determination, 87
FR 14248 (March 14, 2022) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Decision Memorandum for the Final
Determination of the Countervailing Duty Investigation of Oil
Country Tubular Goods from the Republic of Korea,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are OCTG from Korea. For
a complete description of the scope of this investigation, see appendix
I.
Scope Comments
On March 7, 2022, concurrent with the issuance of the Preliminary
Determination, we issued a Preliminary Scope Memorandum.\3\ In the
Preliminary Scope Decision Memorandum, Commerce established the
deadline for parties to submit scope case briefs.\4\ Commerce did not
receive any comments from interested parties regarding the scope by the
deadline. Consequently, we made no changes to the scope from the
Preliminary Scope Decision Memorandum.
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\3\ See Memorandum, ``Antidumping Duty Investigations of Oil
Country Tubular Goods from Argentina, Mexico, and the Russian
Federation and Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the Russian
Federation: Preliminary Scope Decision Memorandum,'' dated March 7,
2022 (Preliminary Scope Memorandum).
\4\ Id. at 4.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see appendix II of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce determines that
there is a subsidy, i.e., a financial contribution by an ``authority''
that gives rise to a benefit to the recipient and that the subsidy is
specific.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ 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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In making this final determination, Commerce relied, in part, on
facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the section ``Use of Facts Available and
Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Verification
As provided in section 782(i) of the Act, in August 2022, Commerce
verified the subsidy information reported by Hyundai Steel Company
(Hyundai Steel),\6\ SeAH Steel Corporation (SeAH Steel), and the
Government of Korea. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided by the respondents.
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\6\ Hyundai Steel Company is the same respondent from the
Preliminary Determination, where we incorrectly stated the company's
name as Hyundai Steel Corporation.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information received at
verification and comments received from parties, we made certain
changes to the subsidy rate calculations for Hyundai Steel and SeAH
Steel. As a result of these changes, Commerce also revised the all-
others rate. For a discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, Hyundai Steel and SeAH Steel. Section
705(c)(5)(A)(i) of the Act states that, for companies not individually
investigated, Commerce will determine an all-others rate equal
[[Page 59057]]
to the weighted-average countervailable subsidy rates established for
exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act.
In this investigation, Commerce calculated a de minimis rate for
Hyundai Steel. Therefore, the only rate that is not zero, de minimis,
or based entirely on facts otherwise available is the rate calculated
for SeAH Steel. Consequently, the rate calculated for SeAH Steel is
also assigned as the rate for all other producers and exporters.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist:
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\7\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with SeAH
Steel Corporation: SeAH Steel Holding Corporation.
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Subsidy rate
Company (percent ad
valorem)
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Hyundai Steel Company................................ 0.25 (de
minimis).
SeAH Steel Corporation \7\........................... 1.33.
All Others........................................... 1.33.
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Disclosure
Commerce intends to disclose to interested parties its calculations
performed in this final determination within five days of any public
announcement, or if there is no public announcement, within five days
of the date of publication of this notice in accordance with 19 CFR
351.224(b).
Suspension of Liquidation
In the Preliminary Determination, the total net countervailable
subsidy rates for the individually examined respondents were de
minimis, and, therefore, we did not suspend liquidation of entries of
OCTG from Korea. However, as the estimated subsidy rate for one
examined company, SeAH Steel, as well as the all-others rate is above
de minimis in this final determination, we are directing U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of OCTG
from Korea, other than those produced and exported by Hyundai Steel
Company, that are entered, or withdrawn from warehouse, for consumption
on or after the date of publication of this notice in the Federal
Register, and to require a cash deposit for such entries of merchandise
in the amounts indicated above, pursuant to section 705(c)(1)(B)(ii) of
the Act. The suspension of liquidation will remain in effect until
further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above, in
accordance with section 706(a) of the Act. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of OCTG from
Korea. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
OCTG from Korea. In addition, we are making available to the ITC all
non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the 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 violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is certain OCTG,
which are hollow steel products of circular cross-section, including
oil well casing and tubing, of iron (other than case iron) or steel
(both carbon and alloy), whether seamless or welded, regardless of
end finish (e.g., whether or not plain end, threaded, or threaded
and coupled) whether or not conforming to American Petroleum
Institute (API) or non-API specifications, whether finished
(including limited service OCTG products) or unfinished (including
green tubes and limited service OCTG products), whether or not
thread protectors are attached. The scope of this investigation also
covers OCTG coupling stock.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by performing any heat treatment,
cutting, upsetting, threading, coupling, or any other finishing,
packaging, or processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the OCTG.
Excluded from the scope of the investigation are: Casing,
tubing, or coupling stock containing 10.5 percent or more by weight
of chromium; drill pipe; unattached couplings; and unattached thread
protectors.
The merchandise subject to this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020,
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030,
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080,
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160, 7304.29.3180, 7304.29.4110,
7304.29.4120, 7304.29.4130, 7304.29.4140, 7304.29.4150,
7304.29.4160, 7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075, 7304.29.6115,
7304.29.6130, 7304.29.6145, 7304.29.6160, 7304.29.6175,
7305.20.2000, 7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000, 7306.29.3100,
7306.29.4100, 7306.29.6010, 7306.29.6050, 7306.29.8110, and
7306.29.8150.
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The merchandise subject to this investigation may also enter
under the following HTSUS item numbers: 7304.39.0024, 7304.39.0028,
7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062,
7304.39.0068, 7304.39.0072, 7304.39.0076, 7304.39.0080,
7304.59.6000, 7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045,
7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065,
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
The HTSUS subheadings and specifications above are provided for
convenience and customs purposes only. The written description of
the scope of this investigation is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether the Provision of Korea Emissions Trading
System (K-ETS) Permit Program is Countervailable
Comment 2: Whether the Preliminary Benefit Calculation for the
Provision of K-ETS Permit Program is Incorrect
Comment 3: Whether Commerce Should Apply Adverse Facts Available
(AFA) Regarding the Reduction Rate Applied to Participants in the
Provision of K-ETS Permits Program
Comment 4: Whether Commerce Should Correct Its Calculations for
Programs Preliminarily Found to Provide No Measurable Benefit to
SeAH
Comment 5: Whether Commerce Should Correct an Error in the
Short-Term Loan Interest Rate Benchmark
Comment 6: Whether the Discount of Electricity Fee for Energy
Storage System (ESS) Program Is Countervailable
Comment 7: Whether the Demand Response Resources (DRR) Program
is Countervailable
Comment 8: Whether Tax Credits Under Restriction of Special
Taxation Act (RSTA) Article 25(1)(6) are Countervailable
Comment 9: Whether the Insurance Claim Disbursements by Seoul
Guarantee Insurance (SGI) are Countervailable
Comment 10: Whether the Provision of Port Usage Rights at the
Port of Incheon Are Countervailable
Comment 11: Whether Commerce Should Apply AFA to SeAH Steel for
Failure to Report Usage of the Korean Export-Import Bank (KEXIM)
Performance Guarantee Program
Comment 12: Whether the KEXIM Performance Guarantee Provides a
Countervailable Benefit
VII. Recommendation
[FR Doc. 2022-21181 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 29, 2022.
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