Notice2023-07537
Certain Cold-Rolled Steel Flat Products From the Republic of Korea: Final Results and Partial Rescission of Countervailing Duty Administrative Review; 2020
Primary source
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Published
April 11, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company (Hyundai Steel) and POSCO received de minimis net countervailable subsidies during the period of review (POR) January 1, 2020, through December 31, 2020, while other producers/exporters of certain cold- rolled steel flat products (cold-rolled steel) from the Republic of Korea (Korea) received countervailable subsidies during the producers/ exporters POR.
Full Text
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<title>Federal Register, Volume 88 Issue 69 (Tuesday, April 11, 2023)</title>
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[Federal Register Volume 88, Number 69 (Tuesday, April 11, 2023)]
[Notices]
[Pages 21606-21608]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-07537]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-882]
Certain Cold-Rolled Steel Flat Products From the Republic of
Korea: Final Results and Partial Rescission of Countervailing Duty
Administrative Review; 2020
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company
(Hyundai Steel) and POSCO received de minimis net countervailable
subsidies during the period of review (POR) January 1, 2020, through
December 31, 2020, while other producers/exporters of certain cold-
rolled steel flat products (cold-rolled steel) from the Republic of
Korea (Korea) received countervailable subsidies during the producers/
exporters POR.
DATES: Applicable April 11, 2023.
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 or (202)
482-7421, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this administrative
review on October 6, 2022.\1\ For a description of the events that
occurred since the Preliminary Results, see the Issues and Decision
Memorandum.\2\
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\1\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Preliminary Results and Partial Rescission of
Countervailing Duty Administrative Review; 2020, 87 FR 60653
(October 6, 2022) (Preliminary Results), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results and Partial Rescission of the 2020 Administrative
Review of the Countervailing Duty Order on Certain Cold-Rolled Steel
Products 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 Order \3\
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\3\ See 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) (Order).
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The merchandise covered by this Order is cold-rolled steel. For a
complete description of the scope of this Order, see the Issues and
Decision Memorandum.
Analysis of Comments Received
All issues raised in interested parties' case briefs are addressed
in the Issues and Decision Memorandum accompanying this notice. A list
of the issues raised by parties, and to which Commerce responded in the
Issues and Decision Memorandum, is provided in appendix I to this
notice. 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>.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in September 2022, Commerce conducted an on-site
verification of the subsidy information reported by Hyundai Steel.\4\
We used standard on-site verification procedures, including an
examination of relevant accounting records and original source
documents provided by the respondent.
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\4\ See Memorandum, ``Verification of the Questionnaire
Responses of Hyundai Steel Company,'' dated December 1, 2022.
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Changes Since the Preliminary Results
Based on the results of verification, we made certain changes to
Hyundai's countervailable subsidy rate calculations from the
Preliminary Results.
Methodology
Commerce conducted this review in accordance with section
751(a)(1)(A) of the Act. For each of the subsidy programs found
countervailable, we find that there is a subsidy, i.e., a government-
provided financial contribution that gives rise to a benefit to the
recipient, and that the subsidy is specific.\5\ For a description of
the methodology underlying all of Commerce's conclusions, 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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Companies Not Selected for Individual Review
The statute and Commerce's regulations do not directly address the
countervailing duty (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
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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 have 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 PDM, 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., Cold-
Rolled Steel from Korea AR 2018 Final Results), i.e., 1.93 percent.\9\
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.\10\
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\9\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2018, 86 FR 40465 (July 28, 2021) (Cold-
Rolled Steel from Korea AR 2018 Final Results).
\10\ In these final results, we are correcting the Preliminary
Results, at appendix II, to remove 41 companies for which all
requests for administrative review were timely withdrawn. See
appendix II of this notice. In addition, we identify these same 41
companies in appendix III, ``List of Rescinded Companies.'' See
appendix III.
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Recission 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 party or parties
that requested a review withdraw the request within 90 days of the
publication date of the notice of initiation of the requested review.
As noted above, all requests for administrative review were timely
withdrawn for certain companies.\11\ Therefore, in accordance with 19
CFR 351.213(d)(1), we are rescinding this administrative review with
respect to the companies listed in appendix III.
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\11\ Commerce received timely withdrawal of requests for
administrative review from KG Dongbu Steel Co., Ltd. (KG Dongbu
Steel), Dongbu Steel, and Dongbu Incheon Steel, as well as from
Nucor Corporation, Cleveland-Cliffs Inc., Steel Dynamics Inc., and
United States Steel Corporation (collectively, the petitioners). See
KG Dongbu Steel, Dongbu Steel, and Dongbu Incheon Steel's Letter,
``Withdrawal of Administrative Review Request,'' dated January 26,
2022; see also Petitioner's Letter, ``Partial Withdrawal of Request
for Administrative Review,'' dated February 3, 2022.
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Final Results of Review \12\
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\12\ Dongbu Steel/Dongbu Incheon Steel and the corresponding
9.18 percent subsidy rate listed in the Preliminary Results have
been removed for these final results, as we are rescinding this
review with respect to these companies.
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We determine that, for the period January 1, 2020, through December
31, 2020, the following total net countervailable subsidy rates exist:
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\13\ As discussed in the Preliminary Results PDM, Commerce has
found the following company to be cross-owned with Hyundai Steel:
Hyundai Green Power Co. Ltd.
\14\ As discussed in the Preliminary Results PDM, 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
Terminal, and POSCO Steel Processing and Service. In the Preliminary
Results, POSCO Steel Processing and Service was omitted from the
list of companies that are cross-owned with POSCO. 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, we are not
establishing a rate for POSCO International and POSCO
International's subsidies are accounted for in 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 U.S. Customs and Border Protection. 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.
\15\ See appendix II.
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Subsidy rate (percent ad
Producer/exporter valorem)
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Hyundai Steel Co., Ltd., also referred to 0.27 (de minimis).
as Hyundai Steel Company \13\.
POSCO \14\................................. 0.20 (de minimis).
Non-Selected Companies \15\................ 1.93.
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Disclosure
Commerce intends to disclose the calculations performed for these
final results of review within five days of the date of publication of
this notice in the Federal Register, in accordance with 19 CFR
351.224(b).
Assessment Rate
Pursuant to section 751(a)(2)(C) of the Act and 19 CFR
351.212(b)(2), Commerce has determined, and U.S. Customs and Border
Protection (CBP) shall assess, countervailing duties on all appropriate
entries of subject merchandise in accordance with the final results of
this review, for the above-listed companies at the applicable ad
valorem assessment rates listed. 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
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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 Rates
In accordance with section 751(a)(1) of the Act, Commerce intends
to instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts shown for each of the respective companies listed
above on 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 administrative review. For all non-reviewed
firms, we will instruct CBP to continue to collect cash deposits of
estimated countervailing duties at the most recent company-specific or
all-others rate applicable to the company, as appropriate. These cash
deposits, effective upon the publication of the final results of this
review, shall remain in effect until further notice.
Administrative Protective Order
This notice also serves as a final reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the return or 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 sanctionable
violation.
Notification to Interested Parties
These final results are issued and published in accordance with
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(5).
Dated: April 4, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Discussion of Comments
Comment 1: Whether the Provision of Carbon Emissions Permits is
Countervailable
Comment 2: Whether the Provision of Port Usage Rights at the
Port of Incheon is Countervailable
Comment 3: Whether Hyundai Green Power is Cross-Owned With
Hyundai Steel
Comment 4: Whether POSCO Chemicals' Local Tax Exemptions Under
Restriction of Special Local Taxation Act Article 78 Are Tied to
Non-Subject Merchandise
Comment 5: Whether POSCO Steel Processing Service's Local Tax
Exemptions under Restriction of Special Local Taxation Act Article
57-2 Constitute a Financial Contribution and a Benefit
Comment 6: Whether Quota and Tariff Import Duty Exemptions
Received On Items Are Tied to Non-Subject Merchandise
Comment 7: Whether Commerce May Rely on Information Submitted by
the Government of Korea and POSCO that Commerce Did Not Verify
Comment 8: Whether Electricity is Subsidized by the Government
of Korea
Comment 9: Whether Draft Customs Instructions Issued by Commerce
Require Revisions
VIII. Recommendation
Appendix II
List of Non-Selected Companies
1. Hyundai Group
2. POSCO C&C Co., Ltd.
3. POSCO Daewoo Corp.
4. POSCO International Corporation
Appendix III
List of Rescinded 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.
11. Dongbu Steel Co., Ltd.
12. KG Dongbu Steel Co., Ltd.\16\
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\16\ See Preliminary Results at appendix II; see also Initiation
of Antidumping and Countervailing Duty Administrative Reviews, 86 FR
61121 (November 5, 2021) (Initiation Notice); 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) (Cold-Rolled Steel from Korea AR 2019 Final Results), and
accompanying IDM, at Comment 8. Appendix II of the Preliminary
Results lists company name ``KG Dongbu Steel Co., Ltd. (formerly
Dongbu Steel Co., Ltd.).'' The company name should be amended, per
the Initiation Notice and Cold-Rolled Steel from Korea AR 2019 Final
Results IDM at Comment 8, to delete ``(formerly Dongbu Steel Co.,
Ltd.).'' ``KG Dongbu Steel Co., Ltd.'' and ``Dongbu Steel Co.,
Ltd.'' are listed separately here.
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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. Iljin NTS Co., Ltd.
25. Iljin Steel Corp.
26. Jeen Pung Industrial Co., Ltd.
27. JT Solution
28. Kolon Global Corporation
29. Nauri Logistics Co., Ltd.
30. Okaya (Korea) Co., Ltd.
31. PL Special Steel Co., Ltd.
32. Samsung C&T Corp.
33. Samsung STS Co., Ltd.
34. SeAH Steel Corp.
35. SM Automotive Ltd.
36. SK Networks Co., Ltd.
37. Taihan Electric Wire Co., Ltd.
38. TGS Pipe Co., Ltd.
39. TI Automotive Ltd.
40. Xeno Energy
41. Young Steel Co., Ltd.
[FR Doc. 2023-07537 Filed 4-10-23; 8:45 am]
BILLING CODE 3510-DS-P
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