Notice2022-21803
Certain Cold-Rolled Steel Flat Products From the Republic of Korea: Preliminary Results of 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
October 6, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain producers/exporters of certain cold-rolled steel flat products (cold-rolled steel) from the Republic of Korea (Korea) received countervailable subsidies during the period of review (POR) January 1, 2020, through December 31, 2020, while other producers/exporters (i.e., Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company (Hyundai Steel) and POSCO) received de minimis net countervailable subsidies during the POR. Interested parties are invited to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 87 Issue 193 (Thursday, October 6, 2022)</title>
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[Federal Register Volume 87, Number 193 (Thursday, October 6, 2022)]
[Notices]
[Pages 60653-60656]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21803]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-882]
Certain Cold-Rolled Steel Flat Products From the Republic of
Korea: Preliminary Results of 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 certain producers/exporters of certain cold-rolled
steel flat products (cold-rolled steel) from the Republic of Korea
(Korea) received countervailable subsidies during the period of review
(POR) January 1, 2020, through December 31, 2020, while other
producers/exporters (i.e., Hyundai Steel Co., Ltd., also referred to as
Hyundai Steel Company (Hyundai Steel) and POSCO) received de minimis
net countervailable subsidies during the POR. Interested parties are
invited to comment on these preliminary results.
DATES: Applicable October 6, 2022.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Harrison Tanchuck,
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) 482-1121 and (202)
482-7421, respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 5, 2021, Commerce published a notice of initiation of
administrative review of the countervailing duty (CVD) order on cold-
rolled steel from Korea.\1\ On December 1, 2021, Commerce selected
Hyundai Steel and POSCO as mandatory respondents in this administrative
review.\2\ On April 12, 2022, Commerce extended the deadline
[[Page 60654]]
for the preliminary results of this review.\3\
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\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 86 FR 61121 (November 5, 2021).
\2\ See Memorandum, ``Countervailing Duty Administrative Review
of Cold-Rolled Steel Flat Products from the Republic of Korea:
Selection of Respondents,'' dated December 1, 2021. The petitioners
requested a review of ``Hyundai Steel Co., Ltd.,'' while Hyundai
Steel requested a review of ``Hyundai Steel Company.'' We selected
Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company
as a mandatory respondent, based on the entry volume of exports of
subject merchandise during the POR. We combined the entry quantities
of Hyundai Steel Co., Ltd., based on the company specific case
number which appears in the CBP data.
\3\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products
from the Republic of Korea: Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review; 2020,'' dated
April 12, 2022.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\4\
A list of topics discussed in the Preliminary Decision Memorandum is
included at 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 directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Countervailing Duty Administrative Review; 2020:
Certain Cold-Rolled Steel Flat 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 cold-rolled steel. For a
complete description of the scope of the order, see the Preliminary
Decision Memorandum.
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.\5\ For a full description of the methodology
underlying our conclusions, see the Preliminary 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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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 limits 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.
Accordingly, to determine the rate for companies not selected for
individual examination, Commerce's practice is to weight average the
net subsidy rates for the selected mandatory companies, excluding rates
that are zero, de minimis, or based entirely on facts available.\6\ In
this review, we preliminarily calculated de minimis subsidy rates for
each of the mandatory respondents (i.e., Hyundai Steel and POSCO)
during the POR. In CVD proceedings where the number of respondents
being individually examined has been limited, Commerce has determined
that a ``reasonable method'' to use to determine the rate applicable to
companies that were not individually examined when all the rates of
selected mandatory respondents are zero or de minimis or based entirely
on facts available, is to assign to the non-selected respondents the
average of the most recently determined rates for the mandatory
respondents (i.e., Hyundai Steel and POSCO) that are not zero, de
minimis, or based entirely on facts available.\7\ However, where a non-
selected respondent has its own calculated rate in a prior segment of
the proceeding, Commerce has found it appropriate to apply the prior
rate that represents the most recently calculated rate for that
respondent, unless Commerce determines that prior rate to be obsolete .
. .\8\
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\6\ See, e.g., Certain Pasta from Italy: Final Results of the
13th (2008) Countervailing Duty Administrative Review, 75 FR 37386,
37387 (June 29, 2010).
\7\ See, e.g., Circular Welded Carbon Steel Pipes and Tubes from
Turkey: Final Results of Countervailing Duty Administrative Review;
Calendar Year 2012 and Rescission of Countervailing Duty
Administrative Review, in Part, 79 FR 51140, 51141 (August 27,
2014); and Cut-to-Length Carbon-Quality Steel Plate from the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2012, 79 FR 46770 (August 11, 2014), and
accompanying Issues and Decision Memorandum (IDM), at ``Non-Selected
Rate''; and Steel Concrete Reinforcing Bar from the Republic of
Turkey: Preliminary Results of Countervailing Duty Administrative
Review and Intent To Rescind the Review in Part; 2017, 85 FR 3030
(January 17, 2020), and accompanying Preliminary Decision
Memorandum, at ``Non-Selected Rate,'' unchanged in Steel Concrete
Reinforcing Bar from the Republic of Turkey: Final Results and
Partial Rescission of Countervailing Duty Administrative Review;
2017, 85 FR 42353 (July 14, 2020), and accompanying IDM, at ``Non-
Selected Rate.''
\8\ Id.
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We have determined that it is appropriate to assign to the
companies subject to the review, but not selected for individual
examination, the weighted average of the most recently calculated
countervailable subsidy rates that are not zero or de minimis rates, or
based solely on facts available from the prior review (i.e., CRS Third
Admin Review Final Results), i.e., 1.93 percent.\9\ Dongbu Steel Co.,
Ltd. and Dongbu Incheon Steel Co., Ltd. are non-selected respondents
for whom Commerce calculated a countervailable subsidy in the CRS Third
Review Final Results. Commerce has found it appropriate to apply that
calculated rate to Dongbu Steel Co., Ltd. and Dongbu Incheon Steel Co.,
Ltd. in this review. For a list of the companies for which a review was
requested and not 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.
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\9\ See Certain Cold-Rolled Steel Flat Products form the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2018, 86 FR 40465 (July 28, 2021) (CRS Third
Admin Review Final Results).
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Preliminary Results of the Review
As a result of this review, we preliminarily determine the net
countervailable subsidy rates to be:
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Producer/exporter Subsidy rate (percent ad valorem)
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Hyundai Steel Co., Ltd., also 0.27 (de minimis).
referred to as Hyundai Steel
Company \10\.
POSCO \11\.......................... 0.34 (de minimis).
Non-Selected Companies Under Review 1.93.
\12\.
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Dongbu Steel Co., Ltd./Dongbu 9.18.
Incheon Steel Co., Ltd \13\.
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Verification
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\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Hyundai Steel: Hyundai Green Power Co. Ltd.
\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
POSCO: Pohang Scrap Recycling Distribution Center Co. Ltd.; POSCO
Chemical; POSCO M-Tech; POSCO Nippon Steel RHF Joint Venture Co.,
Ltd.; and POSCO Terminal. The subsidy rate applies to all cross-
owned companies. We note that POSCO has an affiliated trading
company through which it exported certain subject merchandise, POSCO
International Corporation (POSCO International). POSCO International
was not selected as a mandatory respondent, but was examined in the
context of POSCO. Therefore, there is not an established rate for
POSCO International and POSCO International's subsidies are
accounted for in terms of POSCO's total subsidy rate. Instead,
entries of subject merchandise exported by POSCO International will
receive the rate of the producer listed on the entry form with CBP.
Thus, the subsidy rate applied to POSCO and POSCO's cross-owned
affiliated companies is also applied to POSCO International for
entries of merchandise produced by POSCO.
\12\ See Appendix II.
\13\ As described above, while Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd. are non-selected respondents, because each
received a calculated rate in a prior review (i.e., CRS Third Admin
Review Final Results), Commerce has found it appropriate to apply
that calculated rate to that to Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd. in this review.
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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.
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily assign
subsidy rates in the amounts shown above for the producer/exporters
shown above. Upon issuance of the final results, consistent with
section 751(a)(2)(C) of the Act and 19 CFR 351.212(b)(2), Commerce
shall determine, and U.S. Customs and Border Protection (CBP) shall
assess, countervailing duties on all appropriate entries covered by
this review. If the assessment rate calculated in the final results is
zero or de minimis, we will instruct CBP to liquidate all appropriate
entries without regard to countervailing duties. 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).
Cash Deposit Requirements
Pursuant to section 751(a)(2)(C) 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 indicated
above with regard to shipments of the subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of the final results of this review, except, where the rate
calculated in the final results is zero or de minimis, no cash deposit
will be required. For all non-reviewed firms, CBP will continue to
collect cash deposits at the most recent company-specific or all-others
rate applicable to the company, as appropriate. These cash deposit
requirements, when imposed, shall remain in effect until further
notice.
Disclosure and Public Comment
We intend to disclose to interested parties the calculations for
these preliminary results within five days of the date of publication
of this notice.\14\ A timeline for the submission of case and rebuttal
briefs and written comments will be provided to interested parties at a
later date.\15\ Note that Commerce has temporarily modified certain of
its requirements for serving documents containing business proprietary
information, until further notice.\16\ 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.\17\ All briefs must be filed electronically using
Enforcement and Compliance's ACCESS system.
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\14\ See 19 CFR 351.224(b).
\15\ See 19 CFR 351.309(c) and (d).
\16\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
\17\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
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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, using
Enforcement and Compliance's ACCESS system within 30 days after the
date of publication of this notice.\18\ Requests should contain: (1)
the party's name, address, and telephone number; (2) the number of
participants; and (3) 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 to be determined. Parties should confirm time and date of
the hearing two days before the scheduled date.
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\18\ See 19 CFR 351.310(c).
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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 by interested parties in any
written briefs, within 120 days after the date of publication of these
preliminary results, pursuant to section 751(a)(3)(A) of the Act and 19
CFR 351.213(h).
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 351.213 and 19
CFR 351.221(b)(4).
Dated: September 30, 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. Rate for Non-Examined Companies
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation
Appendix II
List of Non-Selected Companies
1. AJU Steel Co., Ltd.
2. Amerisource Korea
3. Amerisource International
4. BC Trade
5. Busung Steel Co., Ltd.
6. Cenit Co., Ltd.
7. Daewoo Logistics Corp.
8. Dai Yang Metal Co., Ltd.
9. DK GNS Co., Ltd
10. Dongbu Incheon Steel Co., Ltd.\19\
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\19\ As described above, while Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd. are non-selected respondents, because each
received a calculated rate in a prior review (i.e., CRS Third Admin
Review Final Results), Commerce has found it appropriate to apply
that calculated rate to that to Dongbu Steel Co., Ltd. and Dongbu
Incheon Steel Co., Ltd.
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11. Dongbu Steel Co., Ltd.\20\
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\20\ See footnote 24.
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12. KG Dongbu Steel Co., Ltd. (formerly Dongbu Steel Co., Ltd.)
13. Dong Jin Machinery
14. Dongkuk Industries Co., Ltd.
15. Dongkuk Steel Mill Co., Ltd.
16. Eunsan Shipping and Air Cargo Co., Ltd.
17. Euro Line Global Co., Ltd.
18. Golden State Corp.
19. GS Global Corp.
20. Hanawell Co., Ltd.
21. Hankum Co., Ltd.
22. Hyosung TNC Corp.
23. Hyuk San Profile Co., Ltd.
24. Hyundai Group
25. Iljin NTS Co., Ltd.
26. Iljin Steel Corp.
27. Jeen Pung Industrial Co., Ltd.
28. JT Solution
29. Kolon Global Corporation
30. Nauri Logistics Co., Ltd.
31. Okaya (Korea) Co., Ltd.
32. PL Special Steel Co., Ltd.
33. POSCO C&C Co., Ltd.
34. POSCO Daewoo Corp.
35. POSCO International Corporation.
36. Samsung C&T Corp.
37. Samsung STS Co., Ltd.
38. SeAH Steel Corp.
39. SM Automotive Ltd.
40. SK Networks Co., Ltd.
41. Taihan Electric Wire Co., Ltd.
42. TGS Pipe Co., Ltd.
43. TI Automotive Ltd.
44. Xeno Energy
45. Young Steel Co., Ltd.
[FR Doc. 2022-21803 Filed 10-5-22; 8:45 am]
BILLING CODE 3510-DS-P
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