Large Diameter Welded Pipe From the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review; 2023
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Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to certain producers and exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea). The period of review (POR) is January 1, 2023, through December 31, 2023. Additionally, we are rescinding this review with respect to 16 companies. Interested parties are invited to comment on these preliminary results of review.
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<title>Federal Register, Volume 90 Issue 174 (Thursday, September 11, 2025)</title>
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[Federal Register Volume 90, Number 174 (Thursday, September 11, 2025)]
[Notices]
[Pages 44017-44019]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17463]
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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; 2023
AGENCY: Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to certain
producers and exporters of large diameter welded pipe (welded pipe)
from the Republic of Korea (Korea). The period of review (POR) is
January 1, 2023, through December 31, 2023. Additionally, we are
rescinding this review with respect to 16 companies. Interested parties
are invited to comment on these preliminary results of review.
DATES: Applicable September 11, 2025.
FOR FURTHER INFORMATION CONTACT: Brandon James, 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) 482-7472.
SUPPLEMENTARY INFORMATION:
Background
On May 2, 2019, Commerce published a countervailing duty (CVD)
order on welded pipe from Korea.\1\ On July 5, 2024, Commerce initiated
an administrative review of the Order.\2\ Commerce selected Hyundai RB
Co., Ltd. (Hyundai RB) and SeAH Steel Corporation (SeAH Steel) as the
mandatory respondents in this administrative review.\3\ On July 22,
2024, Commerce tolled certain deadlines in this administrative
proceeding by seven days.\4\ On December 9, 2024, Commerce tolled the
deadline to issue the preliminary results in this administrative review
by an additional 90 days.\5\ On April 3, 2025, Commerce extended the
deadline for these preliminary results to no later than September 5,
2025.\6\
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\1\ See Large Diameter Welded Pipe from the Republic of Korea:
Countervailing Duty Order, 84 FR 18773 (May 2, 2019) (Order).
\2\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 89 FR 55567 (July 5, 2024) (Initiation
Notice).
\3\ See Memorandum, ``Respondent Selection,'' dated August 5,
2024.
\4\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\5\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated December 9, 2024.
\6\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review,'' dated April
3, 2025.
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For a complete description of the events that followed the
initiation of this review, see the Preliminary Decision Memorandum.\7\
A list of topics discussed in the Preliminary Decision Memorandum is
included in 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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\7\ 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;
2023,'' 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
It is Commerce's practice to rescind an administrative review of a
CVD order, pursuant to 19 CFR 351.213(d)(3), when there are no
reviewable entries of subject merchandise during the POR for which
liquidation is suspended.\8\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the CVD
assessment rate calculated for the review period.\9\ Therefore, for an
administrative review of a company to be conducted, there must be a
reviewable, suspended entry that Commerce can instruct CBP to liquidate
at the CVD assessment rate calculated for the POR.\10\
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\8\ See, e.g., Lightweight Thermal Paper from the People's
Republic of China: Notice of Rescission of Countervailing Duty
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); see also
Circular Welded Carbon Quality Steel Pipe from the People's Republic
of China: Rescission of Countervailing Duty Administrative Review;
2017, 84 FR 14650 (April 11, 2019).
\9\ See 19 CFR 351.212(b)(2).
\10\ See 19 CFR 351.213(d)(3).
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On August 21, 2024, Commerce notified interested parties that it
intended to rescind this administrative review with respect to the 16
companies, listed in Appendix II, in the absence of suspended entries
of subject merchandise during the POR.\11\ No party commented on our
Intent to Rescind Memorandum and there is no other information on the
record indicating that these companies had POR entries of the subject
merchandise. Absent any evidence of shipments placed on the record,
pursuant to 19 CFR 351.213(d)(3), we are rescinding the administrative
review of these companies (see Appendix II).
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\11\ See Memorandum, ``Notice of Intent to Rescind Review, In
Part,'' dated August 21, 2024 (Intent to Rescind Memorandum).
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[[Page 44018]]
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 by an ``authority'' that confers a benefit to
the recipient, and that the subsidy is specific.\12\ For a full
description of the methodology underlying our conclusions, see the
Preliminary Decision Memorandum.
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\12\ 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 26
producers/exporters. We are rescinding the review with respect to the
16 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., (1)
AJU Besteel Co., Ltd.; (2) Chang Won Bending Co., Ltd.; (3) Dong Yang
Steel Pipe Co., Ltd.; (4) EEW Korea Co., Ltd.; (5) Histeel Co., Ltd.;
(6) Husteel Co., Ltd., (7) Hyundai Steel Company; and (8) Nexteel Co.,
Ltd., because the rate calculated for mandatory respondent, Hyundai RB,
is above de minimis and not based entirely on facts available, we are
applying a preliminary subsidy rate based on net subsidy rate
calculated for Hyundai RB to the non-selected companies under review.
This methodology is consistent with our practice for establishing an
all-others subsidy rate pursuant to section 705(c)(5)(A) of the Act.
Preliminary Results of the Review
In accordance with 19 CFR 351.221(b)(4)(i), Commerce preliminarily
calculated the following net countervailable subsidy rates for the
period January 1, 2023, through December 31, 2023:
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Subsidy rate (percent ad
Company valorem)
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Hyundai RB Co., Ltd. \13\.................. 0.79
SeAH Steel Corporation \14\................ 0.41 (de minimis)
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Review-Specific Average Rate for Non-Selected Companies \15\
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AJU Besteel Co., Ltd....................... 0.79
Chang Won Bending Co., Ltd................. 0.79
Dong Yang Steel Pipe Co., Ltd.............. 0.79
EEW Korea Co., Ltd......................... 0.79
HiSteel Co., Ltd........................... 0.79
Husteel Co., Ltd.\16\...................... 0.79
Hyundai Steel Company \17\................. 0.79
Nexteel Co,. Ltd........................... 0.79
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Disclosure
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\13\ 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.
\14\ Commerce finds SeAH Steel Holdings Corporation to be cross-
owned with SeAH Steel. See Preliminary Decision Memorandum at 7.
\15\ 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.
\16\ 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.
\17\ 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 at 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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Commerce intends to disclose its calculations performed to
interested parties for these preliminary results within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of this notice in accordance with
19 CFR 351.224(b).
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance.\18\ Pursuant to 19
CFR 351.309(c)(1)(ii), we have modified the deadline for interested
parties to submit case briefs to Commerce no later than 21 days after
the date of the publication of this notice. Rebuttal briefs, limited to
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\19\ Interested
[[Page 44019]]
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.\20\
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\18\ See 19 CFR 351.309(c)(1)(ii).
\19\ 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).
\20\ See 19 CFR 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.\21\ 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 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).\22\
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\21\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\22\ 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 whether any of the
participants are foreign nationals; 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. An electronically filed 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, 2023, through December 31,
2023, 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) \23\ 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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\23\ 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: September 5, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the 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. Diversification of Korea's Economy
V. Subsidies Valuation Information
VI. Benchmarks and Interest Rates
VII. Analysis of Programs
VIII. Recommendation
Appendix II
Companies Rescinded From Review
1. Daiduck Piping Co., Ltd.
2. Dongbu Incheon Steel Co., Ltd.
3. EEW KHPC Co., Ltd.
4. Hansol Metal Co., Ltd.
5. Il Jin Nts Co. Ltd.
6. Iljin Nts Co. Ltd.
7. Kem Solutions Co., Ltd.
8. Kiduck Industries Co., Ltd.
9. Kum Kang Kind. Co., Ltd.
10. Kumsoo Connecting Co., Ltd.
11. POSCO International Corporation
12. Samkang M&T Co., Ltd.
13. Seonghwa Industrial Co., Ltd.
14. SIN-E B&P Co., Ltd.
15. Steel Flower Co., Ltd.
16. WELTECH Co., Ltd.
[FR Doc. 2025-17463 Filed 9-10-25; 8:45 am]
BILLING CODE 3510-DS-P
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