Notice2022-24024

Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review, 2020

Primary source

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Published
November 4, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that certain producers/exporters of certain hot-rolled steel flat products (hot-rolled steel) from the Republic of Korea (Korea) received de minimis countervailable subsidies during the period of review (POR) January 1, 2020, through December 31, 2020. Additionally, Commerce is rescinding this review with respect to 13 companies. We invite interested parties to comment on these preliminary results.

Full Text

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<title>Federal Register, Volume 87 Issue 213 (Friday, November 4, 2022)</title>
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[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Notices]
[Pages 66648-66650]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24024]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-884]


Certain Hot-Rolled Steel Flat Products From the Republic of 
Korea: Preliminary Results and Partial Rescission 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 hot-rolled steel 
flat products (hot-rolled steel) from the Republic of Korea (Korea) 
received de minimis countervailable subsidies during the period of 
review (POR) January 1, 2020, through December 31, 2020. Additionally, 
Commerce is rescinding this review with respect to 13 companies. We 
invite interested parties to comment on these preliminary results.

DATES: Applicable November 4, 2022.

FOR FURTHER INFORMATION CONTACT: Nathan James or Kelsie Hohenberger, 
AD/CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-5305 or (202) 
482-2517, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 29, 2021, Commerce published a notice of initiation of 
an administrative review of the countervailing duty (CVD) order on hot-
rolled steel from Korea.\1\ On December 13, 2021, Commerce selected 
Hyundai Steel Company (Hyundai Steel) and POSCO as mandatory 
respondents in this administrative review.\2\ On June 24, 2022, 
Commerce extended the deadline for the preliminary results of this 
review to no later than October 28, 2022.\3\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 67685 (November 29, 2021); see also 
Certain Hot-Rolled Steel Flat Products from Brazil and the Republic 
of Korea: Amended Final Affirmative Countervailing Duty 
Determinations and Countervailing Duty Orders, 81 FR 67960 (October 
3, 2016) (Order).
    \2\ See Memorandum, ``Administrative Review of the 
Countervailing Duty Order on Certain Hot-Rolled Steel Flat Products 
from the Republic of Korea: Respondent Selection,'' dated December 
13, 2021.
    \3\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated June 
24, 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 as an 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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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review, 2020: 
Certain Hot-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 hot-rolled steel from 
Korea. For a complete description of the scope of the Order, see the 
Preliminary Decision Memorandum.

Rescission of Administrative Review, In Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. Commerce received

[[Page 66649]]

a timely-filed withdrawal request from the petitioners.\5\ Because the 
withdrawal request was timely filed, and no other party requested a 
review of these companies, in accordance with 19 CFR 351.213(d)(1), 
Commerce is rescinding this review with respect to the following 
companies: DCE Inc; Dong Chuel America Inc.; Dong Chuel Industrial Co., 
Ltd.; Dongbu Incheon Steel Co., Ltd.; Dongbu Steel Co., Ltd.; Dongkuk 
Industries Co., Ltd.; Dongkuk Steel Mill Co., Ltd.; Hyewon Sni 
Corporation (H.S.I.); JFE Shoji Trade Korea Ltd.; POSCO Coated & Color 
Steel Co., Ltd.; POSCO Daewoo Corporation; Soon Hong Trading Co., Ltd.; 
and Sung-A Steel Co., Ltd.\6\
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    \5\ The petitioners are: Cleveland-Cliffs Inc.; Nucor 
Corporation (Nucor); SSAB Enterprises, LLC; Steel Dynamics; Inc.; 
and United States Steel Corporation.
    \6\ See Petitioners' Letter, ``Partial Withdrawal of Request for 
Administrative Review,'' dated February 28, 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 Results of 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 Company \8\...........  0.32 (de minimis).
POSCO \9\...........................  0.33 (de minimis).
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Verification 
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    \8\ Hyundai Steel Company is also known as ``Hyundai Steel Co., 
Ltd.'' As discussed in the Preliminary Decision Memorandum, Commerce 
has found the following company to be cross-owned with Hyundai 
Steel: Hyundai Green Power Co. Ltd.
    \9\ 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.; POSCO Steel Processing and Service; and POSCO Terminal. The 
POSCO subsidy rate applies to all cross-owned companies. We note 
that POSCO has an affiliated trading company through which it 
exported certain subject merchandise, i.e., 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 individually-established rate 
for POSCO International; POSCO International's subsidies are 
accounted for in terms of POSCO's total subsidy rate. Entries of 
subject merchandise exported by POSCO International will receive the 
rate of the producer listed on the entry form with U.S. Customs and 
Border Protection (CBP). Thus, the subsidy rate applied to POSCO 
(and POSCO's cross-owned affiliates) is also applied to POSCO 
International for entries of subject merchandise produced by POSCO.
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    Commerce received a timely request from Nucor to verify the 
information submitted in this administrative review.\10\ As provided in 
section 782(i)(3) of the Act, Commerce intends to verify the 
information submitted by Hyundai Steel in advance of the final results 
of this review.
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    \10\ See Nucor's Letter, ``Request for Verification,'' dated 
March 4, 2021; see also 19 CFR 351.307(b)(1)(v).
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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 will be 
provided to interested parties at a later date.\11\ Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information, until further 
notice.\12\ 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. All briefs 
must be filed electronically using Enforcement and Compliance's ACCESS 
system.
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    \11\ See 19 CFR 351.309(c) and (d).
    \12\ 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: 
(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 date to be determined. Parties should confirm the date and 
time 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

    Pursuant to section 751(a)(2)(C) of the Act, upon issuance of the 
final results, Commerce shall determine, and CBP shall assess, 
countervailing duties on all appropriate entries of subject merchandise 
in accordance with the final results of 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

    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 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, 
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, 
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 351.213 and 19 
CFR 351.221(b)(4).


[[Page 66650]]


    Dated: October 28, 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. Period of Review
IV. Partial Rescission of Administrative Review
V. Scope of the Order
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2022-24024 Filed 11-3-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on November 4, 2022.

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