Notice2023-19042
Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Notice of Court Decision Not in Harmony With the Results of Countervailing Duty Administrative Review; Notice of Amended Final Results
Primary source
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Published
September 5, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
On August 21, 2023, the U.S. Court of International Trade (CIT) issued its final judgment in Hyundai Steel Company v. United States, Court No. 21-00536, sustaining the U.S. Department of Commerce (Commerce)'s remand results pertaining to the administrative review of the countervailing duty (CVD) order on certain hot-rolled steel flat products (HRS) from the Republic of Korea (Korea) covering the period January 1, 2018, through December 31, 2018. Commerce is notifying the public that the CIT's final judgement is not in harmony with Commerce's final results of the administrative review, and that Commerce is amending the final results with respect to the countervailable subsidy rate assigned to Hyundai Steel Company (Hyundai Steel).
Full Text
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<title>Federal Register, Volume 88 Issue 170 (Tuesday, September 5, 2023)</title>
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[Federal Register Volume 88, Number 170 (Tuesday, September 5, 2023)]
[Notices]
[Pages 60638-60639]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-19042]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-884]
Certain Hot-Rolled Steel Flat Products From the Republic of
Korea: Notice of Court Decision Not in Harmony With the Results of
Countervailing Duty Administrative Review; Notice of Amended Final
Results
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On August 21, 2023, the U.S. Court of International Trade
(CIT) issued its final judgment in Hyundai Steel Company v. United
States, Court No. 21-00536, sustaining the U.S. Department of Commerce
(Commerce)'s remand results pertaining to the administrative review of
the countervailing duty (CVD) order on certain hot-rolled steel flat
products (HRS) from the Republic of Korea (Korea) covering the period
January 1, 2018, through December 31, 2018. Commerce is notifying the
public that the CIT's final judgement is not in harmony with Commerce's
final results of the administrative review, and that Commerce is
amending the final results with respect to the countervailable subsidy
rate assigned to Hyundai Steel Company (Hyundai Steel).
DATES: Applicable August 31, 2023.
FOR FURTHER INFORMATION CONTACT: Nathan James, 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.
SUPPLEMENTARY INFORMATION:
Background
On August 26, 2021, Commerce published its Final Results of the
2018 CVD administrative review of HRS from Korea.\1\ Commerce
determined that Hyundai Steel received countervailable subsidies from
the Government of Korea (GOK) under various programs, including the
Reduction for Sewerage Fees program and the Provision of Port Usage
Rights at the Port of Incheon program.\2\ With respect to the sewerage
fees program, we found that Hyundai Steel's reduced sewerage bill
reflected revenue forgone, and we calculated a 0.01 percent ad valorem
subsidy rate for the program.\3\ With respect to the Port of Incheon
program, we found that Hyundai Steel received a financial contribution
in the form of revenue forgone, because the GOK gave Hyundai Steel the
right to collect berthing income and harbor facility usage fees which
otherwise would have been collected by the GOK.\4\
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\1\ See Certain Hot-Rolled Steel Flat Products from the Republic
of Korea: Final Results of Countervailing Duty Administrative
Review; 2018, 86 FR 47621 (August 26, 2021) (Final Results), and
accompanying Issues and Decision Memorandum (IDM).
\2\ See Final Results IDM at Comments 2 and 3.
\3\ Id. at 7 and Comment 3.
\4\ Id. at 7 and Comment 2.
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Hyundai Steel appealed Commerce's Final Results. On February 10,
2023, the CIT remanded Commerce's determination that the Port of
Incheon program conferred a benefit; the CIT also, at Commerce's
request, remanded Commerce's determination related to the sewerage fees
program.\5\
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\5\ See Hyundai Steel Company v. United States, Court No. 21-
00536, Slip Op. 23-15 (CIT 2023).
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In its final remand redetermination, issued in April 2023, Commerce
reexamined the Reduction for Sewerage Fees program and determined that
the program was not countervailable. We also provided further
explanation for our determination that the Port of Incheon program
should be analyzed as a revenue forgone subsidy program and that it
conferred a benefit. We adjusted the final subsidy rate calculation
from the previous rate of 0.51 percent for Hyundai Steel to a new
subsidy rate of 0.50 percent.\6\ The CIT sustained Commerce's final
results of redetermination.\7\
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\6\ See Final Results of Redetermination Pursuant to Court
Remand, Hyundai Steel Company v. United States, Court No. 21-00536,
Slip Op. 23-15 (CIT February 10, 2023), dated April 7, 2023,
available at <a href="https://access.trade.gov/resources/remands/23-15.pdf">https://access.trade.gov/resources/remands/23-15.pdf</a>.
\7\ See Hyundai Steel Company v. United States, Court No. 21-
00536, Slip. Op. 23-121, at 13.
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Timken Notice
In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\
the U.S. Court of Appeals for the Federal Circuit held that, pursuant
to sections 516A(c) and (e) of the Tariff Act of 1930, as amended (the
Act), Commerce must publish a notice of court decision that is not ``in
harmony'' with a Commerce determination and must suspend liquidation of
entries pending a ``conclusive'' court decision. The CIT's August 21,
2023, judgment constitutes a final decision of the CIT that is not in
harmony with Commerce's Final Results. Thus, this notice is published
in fulfillment of the publication requirements of Timken.
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\8\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\9\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Results
Because there is now a final court judgment, Commerce is amending
its Final Results with respect to the subsidy rate assigned to Hyundai
Steel as follows:
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Subsidy rate
Company (percent ad
valorem)
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Hyundai Steel Company \10\............................. 0.50
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Cash Deposit Requirements
Because Hyundai Steel has a superseding cash deposit rate, i.e.,
there have been final results published in a subsequent administrative
review, we will not issue revised cash deposit instructions to U.S.
Customs and Border Protection (CBP). This notice will not affect the
current cash deposit rate for Hyundai Steel.
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\10\ This company is also known as Hyundai Steel Co., Ltd.
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Liquidation of Suspended Entries
At this time, Commerce remains enjoined by CIT order from
liquidating entries that: were produced and/or exported by Hyundai
Steel Co., Ltd., (a/k/a Hyundai Steel Company or Hyundai Steel), and
were entered, or withdrawn from warehouse, for consumption during the
period January 1, 2018, through December 31, 2018. These entries will
remain enjoined pursuant to the terms of the injunction during the
pendency of any appeals process.
In the event the CIT's ruling is not appealed, or, if appealed,
upheld by a final and conclusive court decision, Commerce intends to
instruct CBP to assess countervailing duties on unliquidated entries of
subject
[[Page 60639]]
merchandise produced and/or exported by Hyundai Steel in accordance
with 19 CFR 351.212(b). We will instruct CBP to assess countervailing
duties on all appropriate entries covered by this review when the ad
valorem rate is not zero or de minimis. Where an ad valorem subsidy
rate is zero or de minimis,\11\ we will instruct CBP to liquidate the
appropriate entries without regard to countervailing duties.
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\11\ See 19 CFR 351.106(c)(2).
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Notification to Interested Parties
This notice is issued and published in accordance with sections
516A(c) and (e) and 777(i)(1) of the Act.
Dated: August 29, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-19042 Filed 9-1-23; 8:45 am]
BILLING CODE 3510-DS-P
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