Notice2024-12352
Large Diameter Welded Pipe From the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review; 2022
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
June 6, 2024
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 large diameter welded pipe (welded pipe) from the Republic of Korea (Korea). The period of review (POR) is January 1, 2022, through December 31, 2022. Additionally, we are rescinding this review with respect to 17 companies. We invite interested parties to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 89 Issue 110 (Thursday, June 6, 2024)</title>
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[Federal Register Volume 89, Number 110 (Thursday, June 6, 2024)]
[Notices]
[Pages 48382-48384]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12352]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-898]
Large Diameter Welded Pipe From the Republic of Korea:
Preliminary Results and Partial Rescission of the Countervailing Duty
Administrative Review; 2022
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 large diameter welded pipe (welded pipe)
from the Republic of Korea (Korea). The period of review (POR) is
January 1, 2022, through December 31, 2022. Additionally, we are
rescinding this review with respect to 17 companies. We invite
interested parties to comment on these preliminary results.
DATES: Applicable June 6, 2024.
FOR FURTHER INFORMATION CONTACT: Faris Montgomery or Jonathan Schueler,
AD/CVD Operations, Office VIII, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1537
or (202) 482-9175, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 12, 2023, Commerce initiated an administrative review of
the countervailing duty order on welded pipe from Korea.\1\ Commerce
selected Hyundai RB Co., Ltd. (Hyundai RB) and SeAH Steel Corporation
(SeAH Steel) as the mandatory respondents in this administrative
review.\2\ On December 20, 2023, Commerce extended the deadline for
these preliminary results to no later than May 30, 2024.\3\
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\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 88 FR 44262 (July 12, 2023); see also Large
Diameter Welded Pipe from the Republic of Korea: Countervailing Duty
Order, 84 FR 18773 (May 2, 2019).
\2\ See Memorandum, ``Respondent Selection,'' dated August 9,
2023.
\3\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review,'' dated
December 20, 2023.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\4\
A list of topics discussed in the Preliminary Decision Memorandum is
included at Appendix I 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>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Administrative Review of the Countervailing Duty
Order on Large Diameter Welded Pipe from the Republic of Korea;
2022,'' dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Order
The merchandise covered by the Order is welded pipe. For a complete
description of the scope of the Order, see the Preliminary Decision
Memorandum.
Rescission of Administrative Review, in Part
On September 14, 2023, Commerce notified interested parties that it
intended to rescind this administrative review with respect to the
companies listed in Appendix II because they had no entries of subject
merchandise during the POR.\5\ No party commented on the notification
of intent to rescind the review with respect to the 17 companies listed
in Appendix II. Therefore, we determine that there were no entries of
subject merchandise during the POR by these companies. As a result, we
are rescinding this review, in part, with respect to the 17 companies
listed in Appendix II, pursuant to 19 CFR 351.213(d)(3).
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\5\ See Memorandum, ``Notice of Intent to Rescind Review, In
Part,'' dated September 14, 2023.
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Methodology
Commerce is conducting this review in accordance with section
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found countervailable, we preliminarily
determine that there is a subsidy, i.e., a government-provided
financial contribution that confers a
[[Page 48383]]
benefit to the recipient, and that the subsidy is specific.\6\ For a
full description of the methodology underlying our conclusions, see the
Preliminary Decision Memorandum.
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\6\ 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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Preliminary Rate for Non-Selected Companies
The statute and Commerce's regulations do not directly address the
countervailing duty rates to be applied to companies not selected for
individual examination where Commerce limited 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.
Commerce initiated this administrative review with respect to 25
producers/exporters. We are rescinding the review with respect to the
17 companies listed in Appendix II. Commerce selected two mandatory
respondents, Hyundai RB and SeAH Steel, for individual examination. For
the remaining non-selected companies subject to this review, i.e.,
Chang Won Bending Co., Ltd.; Dong Yang Steel Pipe Co., Ltd.; EEW Korea
Co., Ltd.; HiSteel Co., Ltd.; Husteel Co., Ltd.; and Kumsoo Connecting
Co., Ltd., because the rates calculated for mandatory respondents
Hyundai RB and SeAH Steel are above de minimis and not based entirely
on facts available, we are applying a preliminary subsidy rate based on
a weighted average of the rates calculated for the two mandatory
respondents using the publicly-ranged sales data they submitted on the
record.\7\ This methodology is consistent with our practice for
establishing an all-others subsidy rate pursuant to section
705(c)(5)(A) of the Act.
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\7\ See Memorandum, ``Calculation of the Non-Selected Company
Rate for the Preliminary Results,'' dated concurrently with this
notice.
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Preliminary Results of the Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual net countervailable subsidy rate for Hyundai RB and SeAH.
Commerce preliminarily finds that, during the POR, the net
countervailable subsidy rates for the producers/exporters under review
are as follows:
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Subsidy rate (percent
Company ad valorem)
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Hyundai RB Co., Ltd.; and Shinchang 0.72
Construction Co., Ltd.\8\.....................
SeAH Steel Corporation; and SeAH Steel Holdings 0.54
Corporation \9\...............................
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Review-Specific Average Rate Applicable to the Following Companies \10\
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Chang Won Bending Co., Ltd..................... 0.57
Dong Yang Steel Pipe Co., Ltd.................. 0.57
EEW Korea Co., Ltd............................. 0.57
HiSteel Co., Ltd............................... 0.57
Husteel Co., Ltd.\11\.......................... 0.57
Kumsoo Connecting Co., Ltd..................... 0.57
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Disclosure and Public Comment
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\8\ Commerce previously found Shinchang Construction Co., Ltd.
to be cross-owned with Hyundai RB. See Large Diameter Welded Pipe
from the Republic of Korea: Preliminary Results and Partial
Rescission of the Countervailing Duty Administrative Review; 2021,
88 FR 37200 (June 7, 2023), and accompanying Preliminary Decision
Memorandum at 6-7, unchanged in Large Diameter Welded Pipe from the
Republic of Korea: Final Results of Countervailing Duty
Administrative Review; 2021, 88 FR 85236 (December 7, 2023), and
accompanying Issues and Decision Memorandum.
\9\ Commerce finds SeAH Steel Holdings Corporation to be cross-
owned with SeAH Steel. See Preliminary Decision Memorandum at 7-8.
\10\ This rate is based on the rates for the respondents that
were selected for individual review, excluding rates that are zero,
de minimis, or based entirely on facts available. See section
735(c)(5)(A) of the Act.
\11\ Subject merchandise both produced and exported by Husteel
Co., Ltd. (Husteel) is excluded from the order. See Large Diameter
Welded Pipe from the Republic of Korea: Countervailing Duty Order,
84 FR 18773 (May 2, 2019). Thus, Husteel's inclusion in this
administrative review is limited to entries for which Husteel was
not both the producer and exporter of the subject merchandise.
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We intend to disclose to parties to this proceeding the
calculations performed in reaching the preliminary results within five
days after public announcement of the preliminary results or, if there
is no public announcement, within five days of the date of publication
of this notice.\12\
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\12\ See 19 CFR 351.224(b).
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Interested parties may submit case briefs no later than 30 days
after the publication of this notice.\13\ Rebuttal briefs, limited to
issues raised in case briefs, may be filed no later than five days
after the date for filing case briefs.\14\ Interested parties who
submit case briefs or rebuttal briefs in this proceeding must submit:
(1) a table of contents listing each issue; and (2) a table of
authorities.\15\
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\13\ See 19 CFR 351.309(c).
\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\15\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their briefs that should be limited to five pages
total, including footnotes. In this review, we instead request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\16\ Further,
we request that interested parties limit their executive summary of
each issue to no more than 450 words, not including citations. We
intend to use the executive summaries as the basis of the comment
summaries included in the issues and decision memorandum that will
accompany the final results in this
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administrative review. We request that interested parties include
footnotes for relevant citations in the executive summary of each
issue. Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically via
ACCESS. Requests should contain: (1) the party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. Issues raised in the hearing will be limited to
those raised in the respective case briefs. If a request for a hearing
is made, Commerce intends to hold the hearing at a time and date to be
determined. A hearing request must be received successfully in its
entirety by Commerce's electronic records system, ACCESS, by 5 p.m.
Eastern Time within 30 days after the date of publication of this
notice.
Final Results
Unless the deadline is extended, we intend to issue the final
results of this administrative review, which will include the results
of our analysis of the issues raised in the case briefs, within 120
days of publication of these preliminary results in the Federal
Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR
351.213(h).
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review,
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2),
Commerce shall determine, and U.S. Customs and Border Protection (CBP)
shall assess, countervailing duties on all appropriate entries covered
by this review.
For the companies for which this review is rescinded, we will
instruct CBP to assess countervailing duties on all appropriate entries
at a rate equal to the cash deposit of estimated countervailing duties
required at the time of entry, or withdrawal from warehouse, for
consumption, during the period January 1, 2022, through December 31,
2022, in accordance with 19 CFR 351.212(c)(l)(i). We intend to issue
assessment instructions to CBP for these companies no earlier than 35
days after the date of publication of the preliminary results of this
review in the Federal Register.
For the companies remaining in the review, we intend 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 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 Rate
In accordance with section 751(a)(2)(C) of the Act, Commerce
intends, upon publication of the final results, to instruct CBP to
collect cash deposits of estimated countervailing duties in the amounts
calculated in the final results for each of the reviewed companies
listed above on shipments of subject merchandise entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
the final results of this review, except, where the rate calculated in
the final results is zero or de minimis, no cash deposit will be
required. For all non-reviewed firms, we will instruct CBP to continue
to collect cash deposits of estimated countervailing duties at the all-
others rate as established in the Order (i.e., 9.29 percent) \18\ or
the most recent company-specific rate applicable to the company, as
appropriate. These cash deposit instructions, when imposed, shall
remain in effect until further notice.
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\18\ See Order, 84 FR at 18775.
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Notification to Interested Parties
These preliminary results of review are issued and published
pursuant to sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR
351.213(d)(4) and 351.221(b)(4).
Dated: May 30, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Final Rescission of Administrative Review, In Part
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Benchmarks and Interest Rates
VIII. Analysis of Programs
IX. Recommendation
Appendix II
Companies Rescinded From Review
1. AJU Besteel Co., Ltd
2. Daiduck Piping Co., Ltd.
3. Dongbu Incheon Steel Co., Ltd.
4. EEW KHPC Co., Ltd.
5. Hansol Metal Co. Ltd.
6. Hyundai Steel Company \19\
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\19\ Subject merchandise both produced and exported by Hyundai
Steel Company (Hyundai Steel) and subject merchandise produced by
Hyundai Steel and exported by Hyundai Corporation are excluded from
the countervailing duty order. See Order, 84 FR 18773. Thus, Hyundai
Steel's inclusion in this administrative review is limited to
entries for which Hyundai Steel was not the producer and exporter of
the subject merchandise and for which Hyundai Steel was not the
producer and Hyundai Corporation was not the exporter of subject
merchandise.
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7. Il Jin Nts Co. Ltd.
8. Kem Solutions Co., Ltd.
9. Kiduck Industries Co., Ltd.
10. Kum Kang Kind. Co., Ltd.
11. Nexteel Co., Ltd.
12. POSCO International Corporation
13. Samkang M&T Co., Ltd.
14. Seonghwa Industrial Co., Ltd
15. SIN[hyphen]E B&P Co., Ltd.
16. Steel Flower Co., Ltd.
17. WELTECH Co., Ltd
[FR Doc. 2024-12352 Filed 6-5-24; 8:45 am]
BILLING CODE 3510-DS-P
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