Notice2023-21547
Brass Rod From the Republic of Korea: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping 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, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of brass rod from the Republic of Korea (Korea). The period of investigation is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 188 (Friday, September 29, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 188 (Friday, September 29, 2023)]
[Notices]
[Pages 67233-67235]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21547]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-917]
Brass Rod From the Republic of Korea: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Determination
With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of brass rod from the Republic of Korea
(Korea). The period of investigation is January 1, 2022, through
December 31, 2022. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable September 29, 2023.
FOR FURTHER INFORMATION CONTACT: Toni Page or Lingjun Wang, AD/CVD
Operations, Office OVII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-1398 or (202)
482-2316, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On May 24,
2023, Commerce published in the Federal Register the notice of
initiation of this investigation.\1\ On June 30, 2023, Commerce
postponed the preliminary determination of this investigation until
September 25, 2023.\2\
---------------------------------------------------------------------------
\1\ See Brass Rod from India, Israel, and the Republic of Korea:
Initiation of Countervailing Duty Investigations, 88 FR 33566 (May
24, 2023) (Initiation Notice).
\2\ See Brass Rod from India, Israel, and the Republic of Korea:
Postponement of Preliminary Determinations in the Countervailing
Duty Investigations, 88 FR 42300 (June 30, 2023).
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II 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>.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Brass Rod from the Republic of Korea,'' dated concurrently with,
and hereby adopted by, this notice (Preliminary Decision
Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is brass rod from Korea.
For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ We received
comments from several interested parties concerning the scope of the
antidumping duty (AD) and
[[Page 67234]]
countervailing duty (CVD) investigations as it appeared in the
Initiation Notice.\6\ For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\7\
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice, see Appendix I.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ Id.
\7\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated concurrently with this notice (Preliminary Scope Decision
Memorandum).
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\8\ Furthermore, pursuant to section 776(a) of the Act,
Commerce has preliminarily relied upon facts otherwise available, in
part, for Booyoung Industry (BYI) and Daechang Co. Ltd (Daechang). For
a full description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\8\ 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.
---------------------------------------------------------------------------
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of brass rod from
Korea based on a request made by the American Brass Rod Fair Trade
Coalition and its members, Mueller Brass Co. and Wieland Chase LLC
(collectively, the petitioners).\9\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
February 7, 2024, unless postponed.
---------------------------------------------------------------------------
\9\ See Petitioners' Letter, ``Petitioner's Request for
Alignment of the Countervailing Duty Investigations with the
Concurrent Antidumping Duty Investigations,'' dated September 18,
2023.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated a de
minimis rate for BYI. Therefore, the only rate that is not zero, de
minimis, or based entirely on facts otherwise available is the rate
calculated for Daechang. Consequently, the rate calculated for Daechang
is also assigned as the rate for all other producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Booyoung Industry....................................... 0.43 (de
minimis).
Daechang Co. Ltd.\10\................................... 2.57.
All Others.............................................. 2.57.
------------------------------------------------------------------------
Suspension of Liquidation
---------------------------------------------------------------------------
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Daechang Co. Ltd.: Essentech Co., Ltd.; Seowon Co., Ltd.; Taewoo
Co., Ltd.; IN Steel Industry Co., Ltd.; and Affiliate A. Daechang
requested business proprietary treatment for Affiliate A. Commerce
is continuing to evaluate the request for proprietary treatment and
intends to make a determination regarding the public disclosure of
this entity's name before the final determination.
---------------------------------------------------------------------------
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above. Because the subsidy rate for BYI is de minimis,
Commerce is directing CBP not to suspend liquidation of entries of the
merchandise from this company.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\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 investigation 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.
---------------------------------------------------------------------------
\11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\12\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
---------------------------------------------------------------------------
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
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and 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 by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will make its final
determination before the later of 120 days after the date of this
preliminary determination or 45 days
[[Page 67235]]
after the final determination whether imports of brass rod from Korea
are materially injuring, or threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: September 25, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are brass rod and bar
(brass rod), which is defined as leaded, low-lead, and no-lead solid
brass made from alloys such as, but not limited to the following
alloys classified under the Unified Numbering System (UNS) as
C27450, C27451, C27460, C34500, C35000, C35300, C35330, C36000,
C36300, C37000, C37700, C48500, C67300, C67600, and C69300, and
their international equivalents.
The brass rod subject to this investigation has an actual cross-
section or outside diameter greater than 0.25 inches but less than
or equal to 12 inches. Brass rod cross-sections may be round,
hexagonal, square, or octagonal shapes as well as special profiles
(e.g., angles, shapes), including hollow profiles.
Standard leaded brass rod covered by the scope contains, by
weight, 57.0-65.0 percent copper; 0.5-3.0 percent lead; no more than
1.3 percent iron; and at least 15 percent zinc. No-lead or low-lead
brass rod covered by the scope contains by weight 59.0-76.0 percent
copper; 0-1.5 percent lead; no more than 0.35 percent iron; and at
least 15 percent zinc. Brass rod may also include other chemical
elements (e.g., nickel, phosphorous, silicon, tin, etc.).
Brass rod may be in straight lengths or coils. Brass rod covered
by this investigation may be finished or unfinished, and may or may
not be heated, extruded, pickled, or cold-drawn. Brass rod may be
produced in accordance with ASTM B16, ASTM B124, ASTM B981, ASTM
B371, ASTM B453, ASTM B21, ASTM B138, and ASTM B927, but such
conformity to an ASTM standard is not required for the merchandise
to be included within the scope.
Excluded from the scope of this investigation is brass ingot,
which is a casting of unwrought metal unsuitable for conversion into
brass rod without remelting, that contains, by weight, at least 57.0
percent copper and 15.0 percent zinc.
The merchandise covered by this investigation is currently
classifiable under subheadings 7407.21.9000, 7407.21.7000, and
7407.21.1500 of the Harmonized Tariff Schedule of the United States
(HTSUS). Products subject to the scope may also enter under HTSUS
subheadings 7403.21.0000, 7407.21.3000, and 7407.21.5000. The HTSUS
subheadings and UNS alloy designations are provided for convenience
and customs purposes. The written description of the scope of the
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Subsidies Valuation Information
VII. Benchmark and Discount Rates
VIII. Diversification of Korea's Economy
IX. Use of Facts Otherwise Available
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2023-21547 Filed 9-28-23; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on September 29, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.