Certain Corrosion-Resistant Steel Products From the Republic of Korea: Notice of Court Decision Not in Harmony With the Final Results of Countervailing Duty Administrative Review; Notice of Amended Final Results
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Abstract
On February 20, 2024, the U.S. Court of International Trade (CIT) issued its final judgment in Hyundai Steel Co. v. United States, Court No. 21-00304, sustaining the U.S. Department of Commerce (Commerce)'s remand results pertaining to the administrative review of the countervailing duty (CVD) order on certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea) covering the period January 1, 2018, through December 31, 2018 (POR). Commerce is notifying the public that the CIT's final judgment 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).
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<title>Federal Register, Volume 89 Issue 49 (Tuesday, March 12, 2024)</title>
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[Federal Register Volume 89, Number 49 (Tuesday, March 12, 2024)]
[Notices]
[Pages 17813-17814]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-05170]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-879]
Certain Corrosion-Resistant Steel Products From the Republic of
Korea: Notice of Court Decision Not in Harmony With the Final Results
of Countervailing Duty Administrative Review; Notice of Amended Final
Results
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On February 20, 2024, the U.S. Court of International Trade
(CIT) issued its final judgment in Hyundai Steel Co. v. United States,
Court No. 21-00304, sustaining the U.S. Department of Commerce
(Commerce)'s remand results pertaining to the administrative review of
the countervailing duty (CVD) order on certain corrosion-resistant
steel products (CORE) from the Republic of Korea (Korea) covering the
period January 1, 2018, through December 31, 2018 (POR). Commerce is
notifying the public that the CIT's final judgment 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).
DATES: Applicable March 1, 2024.
FOR FURTHER INFORMATION CONTACT: Myrna Lobo, AD/CVD Operations, Office
VII, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-2371.
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2021, Commerce published its Final Results of the 2018
CVD administrative review of CORE from Korea.\1\ Commerce determined
that Hyundai 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'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 received a financial contribution in the form of revenue
forgone, because the GOK gave Hyundai the right to collect berthing
income and harbor facility usage fees which otherwise would have been
collected by the GOK. We calculated a 0.01 percent ad valorem subsidy
rate for the Port of Incheon program.\4\
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\1\ See Certain Corrosion-Resistant Steel Products from the
Republic of Korea: Final Results and Partial Rescission of
Countervailing Duty Administrative Review; 2018, 86 FR 29237 (June
1, 2021) (Final Results), and accompanying Issues and Decision
Memorandum (IDM).
\2\ See Final Results IDM at Comments 2 and 3.
\3\ Id. at 6-7 and Comment 3.
\4\ Id. at 7 and Comment 2.
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Hyundai appealed Commerce's Final Results. On January 11, 2022, the
CIT, at Commerce's request, remanded Commerce's determination related
to the sewerage fees program.\5\ Thus, in its first remand
redetermination, issued April 11, 2022, Commerce reexamined the
Reduction for Sewerage Fees program and determined that the program was
not countervailable. On September 26, 2023, the CIT sustained
Commerce's first remand determination, and further remanded Commerce's
final determination that the Port of Incheon program conferred a
benefit.\6\ In its second remand redetermination, issued January 24,
2024, Commerce reexamined the Port of Incheon program and determined
that the program does not provide a measurable benefit. As a result of
these two remand redeterminations, we adjusted the final subsidy rate
calculation from the previous rate of 0.51 percent for Hyundai to a new
subsidy rate of 0.49 percent.\7\ On February 20, 2024, the CIT
sustained Commerce's second remand redetermination.\8\
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\5\ See Hyundai Steel Co. v. United States, Court No. 21-00304,
ECF No. 26 (CIT January 11 2022).
\6\ Hyundai Steel Co. v. United States, 658 F. Supp. 3d 1331
(CIT September 26, 2023).
\7\ See Final Results of Redetermination Pursuant to Court
Remand, Hyundai Steel Co. v. United States, Court No. 21-00304 (CIT
January 11, 2022), dated April 11, 2022; see also, Final Results of
Redetermination Pursuant to Court Remand, Hyundai Steel Co. v.
United States, Court No. 21-00304, Slip Op. 23-142 (CIT September
26, 2023), dated January 23, 2024.
\8\ See Hyundai Steel Company v. United States, Court No. 21-
00304, ECF No. 60 (CIT Feb. 20, 2024).
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Timken Notice
In its decision in Timken,\9\ as clarified by Diamond
Sawblades,\10\ 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 February 20, 2024, 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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\9\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\10\ 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
as follows:
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Subsidy rate
Company (percent ad
valorem)
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Hyundai Steel Company................................... * 0.49
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* De minimis.
Cash Deposit Requirements
Because Hyundai 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.
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 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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[[Page 17814]]
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: March 6, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2024-05170 Filed 3-11-24; 8:45 am]
BILLING CODE 3510-DS-P
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