Notice2024-08457
Brass Rod From the Republic of Korea: Final Affirmative Countervailing 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
April 22, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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.
Full Text
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<title>Federal Register, Volume 89 Issue 78 (Monday, April 22, 2024)</title>
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[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29290-29292]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08457]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-917]
Brass Rod From the Republic of Korea: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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.
DATES: Applicable April 22, 2024.
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
On September 29, 2023, Commerce published the Preliminary
Determination in the Federal Register and invited interested parties to
comment on it.\1\ For a complete description of the events that
followed the Preliminary Determination, see the Issues and Decision
Memorandum.\2\ 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="http://access.trade.gov">http://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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\1\ See Brass Rod from the Republic of Korea: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 88 FR 67233
(September 29, 2023), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Brass Rod 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 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
During this investigation, Commerce received scope comments from
parties. Commerce issued a Preliminary Scope Decision Memorandum to
address these comments and set aside a period for parties to address
scope issues in scope-specific case and rebuttal briefs.\3\ We did not
receive timely comments from any interested parties on the Preliminary
Scope Decision Memorandum. Thus, we did not make any changes to the
scope of the investigation from the scope published in the Preliminary
Determination, as noted in Appendix I.
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\3\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated September 25, 2023 (Preliminary Scope Decision Memorandum).
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[[Page 29291]]
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties are discussed in the Issues and
Decision Memorandum. For a list of topics discussed, and the issues
raised by parties to which we responded in the Issues and Decision
Memorandum, see Appendix II.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), between January 15 and February 2, 2024, Commerce conducted
verification of the subsidy information reported by the Government of
the Republic of Korea (GOK), Booyoung Industry (BYI), and Daechang Co.
Ltd. (Daechang).\4\ We used standard verification procedures, including
an examination of relevant accounting records and original source
documents provided by the respondents.
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\4\ See Memoranda, ``Verification of the Questionnaire Response
of the Government of Korea,'' dated February 29, 2024;
``Verification of Questionnaire Responses of Booyoung Industry,''
dated February 27, 2024; and ``Verification of Questionnaire
Responses of Daechang Co., Ltd.,'' dated March 1, 2024.
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Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\3\ 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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In making this final determination, Commerce relied, in part, on
facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the section ``Use of Facts Available and
Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification and comments received from parties, for this final
determination, we made certain changes to the countervailable subsidy
rate calculations for BYI, Daechang, and for all other producers/
exporters. For a discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted average
countervailable subsidy rates established for those exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates and any rates based entirely under
section 776 of the Act.
In this investigation, Commerce calculated rates for BYI and
Daechang that are above de minimis and are not based entirely on facts
available. For the all-others rate we are using the simple average of
the subsidy rates calculated for BYI and Daechang. This is consistent
with the methodology that we use in an investigation to establish the
all-others rate, pursuant to section 705(c)(5)(A) of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period of January 1, 2022, through December
31, 2022:
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\6\ Commerce has found the following companies to be cross-owned
with Daechang Co. Ltd.: Essentech Co., Ltd., IN Steel Industry Co.,
Ltd., Seowon Co., Ltd., Taewoo Co., Ltd., and IMI Co., Ltd.
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Subsidy rate
Company (percent ad
valorem)
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Booyoung Industry.................................... 2.04
Daechang Co. Ltd \6\................................. 3.70
All Others........................................... 2.87
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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
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 September 29, 2023, the date of
publication of the Preliminary Determination in the Federal Register.
Additionally, pursuant to section 705(c)(1)(B)(ii) of the Act and
19 CFR 351.210(d), where appropriate, Commerce will instruct CBP to
require a cash deposit equal to the estimated individual
countervailable subsidy rate or the estimated all-others rate, as
indicated in the chart above, effective on the date of publication of
this final determination.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above, in
accordance with section 706(a) of the Act. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final 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).
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of brass rod
from Korea. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports of brass rod from Korea. In addition, we are making available
to the ITC all non-privileged and non-proprietary information related
to this investigation. We will allow the ITC access to all privileged
and business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO, in accordance with 19
CFR 351.305(a)(3). Timely
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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 violation which is
subject to sanction.
Notification to Interested Parties
This final determination is issued and published pursuant to
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: April 15, 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.
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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether to Revise Preliminary Determination on
Provision of Electricity for Less Than Adequate Remuneration (LTAR)
Comment 2: Whether to Apply Adverse Facts Available (AFA) to
BYI's Reported Loan
Comment 3: Whether to Apply AFA to Essentech's Loans
Comment 4: Whether Daechang Received Benefits from the Provision
of Carbon Emission Permits by the GOK-Korea Emission Trading System
(K-ETS)
Comment 5: Whether to Treat Seowon as a Cross-Owned Producer of
Subject Merchandise for Purposes of Attribution
Comment 6: Whether to Allocate the Benefit Received Over Total
Sales for the Energy Efficiency Utilizing Artificial Intelligence
Program
Comment 7: Whether to Revise Daechang's Benefit Calculation for
the Facility Improvement Fund to Reduce Air Pollutants in Sihwa
Banwol Industrial Complex Program
Comment 8: Whether the Hwaseong City Export Logistics Support
Program is Countervailable
VIII. Recommendation
[FR Doc. 2024-08457 Filed 4-19-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on April 22, 2024.
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