Certain Corrosion-Resistant Steel Products From the Republic of Korea: Preliminary Results and Rescission, In Part, of Countervailing Duty Administrative Review; 2023
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Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were provided to producers and exporters of certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea). The period of review (POR) is January 1, 2023, through December 31, 2023. In addition, Commerce is rescinding this review, in part, with respect to two companies. Interested parties are invited to comment on these preliminary results.
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<title>Federal Register, Volume 91 Issue 5 (Thursday, January 8, 2026)</title>
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[Federal Register Volume 91, Number 5 (Thursday, January 8, 2026)]
[Notices]
[Pages 689-691]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00192]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-879]
Certain Corrosion-Resistant Steel Products From the Republic of
Korea: Preliminary Results and Rescission, In Part, of Countervailing
Duty Administrative Review; 2023
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies were provided to producers
and exporters of certain corrosion-resistant steel products (CORE) from
the Republic of Korea (Korea). The period of review (POR) is January 1,
2023, through December 31, 2023. In addition, Commerce is rescinding
this review, in part, with respect to two companies. Interested parties
are invited to comment on these preliminary results.
DATES: Applicable January 8, 2026.
FOR FURTHER INFORMATION CONTACT: Shane Subler, 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) 482-6241.
SUPPLEMENTARY INFORMATION:
Background
On August 14, 2024, based on timely requests for review, Commerce
initiated this administrative review of the countervailing duty order
on CORE from Korea.\1\ On September 23, 2024, Commerce selected Hyundai
Steel Company (Hyundai Steel) and KG Dongbu Steel Co., Ltd. (KG Dongbu
Steel) as the mandatory respondents in this review.\2\
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\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 89 FR 66035, 66047 (August 14, 2024)
(Initiation Notice)); see also Certain Corrosion-Resistant Steel
Products from India, Italy, Republic of Korea and the People's
Republic of China: Countervailing Duty Order, 81 FR 48387 (July 25,
2016) (Order).
\2\ See Memorandum, ``Respondent Selection,'' dated September
23, 2024 (Respondent Selection Memorandum).
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On December 9, 2024, Commerce tolled the deadline to issue the
preliminary results in this administrative review by 90 days.\3\ On May
30, 2025, Commerce extended the deadline for the preliminary results of
this review by 120 days, in accordance with section 751(a)(3)(A) of
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.213(h)(2).\4\
Due to the lapse in appropriations and Federal Government shutdown, on
November 14, 2025, Commerce tolled all deadlines in administrative
proceedings by 47 days.\5\ Additionally, due to a backlog of documents
that were electronically filed via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS) during the Federal Government shutdown, on November 24,
2025, Commerce tolled all deadlines in administrative proceedings by an
additional 21 days.\6\ Accordingly, the deadline for these preliminary
results is now January 5, 2026.
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\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated December 9, 2024.
\4\ See Memorandum, ``Extension of Deadline for Preliminary
Results of Countervailing Duty Administrative Review,'' dated May
30, 2025.
\5\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\6\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 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 included in the Preliminary Decision Memorandum is
provided as the appendix to this notice. The Preliminary Decision
Memorandum is a public document and is on file electronically via
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 and Partial Rescission of the Administrative Review of the
Countervailing Duty Order on Certain Corrosion-Resistant Steel
Products 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 product covered by the Order is CORE from Korea. For a complete
description of the scope of the Order, see the Preliminary Decision
Memorandum.
Rescission of Administrative Review, In Part
In accordance with 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if all parties that
requested the review withdraw their requests within 90 days of the date
of publication of the notice of initiation of the requested review.
Commerce received timely-filed withdrawal requests with respect to NS
BlueScope Steel Vietnam Ltd. and Dongkuk Coated Metal Co., Ltd.
pursuant to 19 CFR 351.213(d)(1). Because the withdrawal requests were
timely filed, and no other parties requested a review of these
companies, in accordance with 19 CFR 351.213(d)(1), Commerce is
rescinding this review of the Order with respect to these two
companies.
Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) 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
[[Page 690]]
subsidy is specific.\8\ For a full description of the methodology
underlying our conclusions, see the Preliminary Decision Memorandum.
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\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.
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Rate for Non-Selected Companies Under Review
The Act and Commerce's regulations do not address the establishment
of a rate to apply to companies not selected for individual examination
when Commerce limits 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 entirely on facts available.
Accordingly, to determine the rate for companies not selected for
individual examination, Commerce's practice is to weight average the
net subsidy rates for the selected mandatory respondents, excluding
rates that are zero, de minimis, or based entirely on facts available.
In this review, Commerce calculated preliminary individual
countervailable subsidy rates for Hyundai Steel and KG Dongbu Steel
that are not zero, de minimis, or based entirely on facts otherwise
available. Accordingly, Commerce calculated the rate assigned to the
companies under review that were not selected for individual
examination using a weighted average of the individual subsidy rates
calculated for the examined respondents, using each company's publicly-
ranged values for the merchandise under consideration.\9\
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\9\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
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 Review
As a result of this review, we preliminarily determine the
following net countervailable subsidy rates exist for the POR, January
1, 2023, through December 31, 2023:
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\10\ 10 We treated Hyundai Steel, Hyundai Steel Company, and
Hyundai Steel Co., Ltd. as minor variations of the same name at
respondent selection. See Respondent Selection Memorandum at 4 and
Attachment; see also Initiation Notice, 88 FR at 62333. Further, as
discussed in the Preliminary Decision Memorandum, Commerce has found
the following companies to be cross-owned with Hyundai Steel:
Hyundai Green Power and Hyundai ITC. See Preliminary Decision
Memorandum at 8-9.
\11\ KG Dongbu Steel's official name in English is KG Dongbu
Steel Co., Ltd. Its name in Korean is KG Steel Corporation. See
Certain Corrosion-Resistant Steel Products from the Republic of
Korea: Final Results and Rescission, in Part, of the Countervailing
Duty Administrative Review; 2022, 90 FR 21002-21003 (May 16, 2025);
see also KG Dongbu Steel's Letter, '' KG Dongbu Steel's Affiliated
Companies Response,'' dated October 23, 2024, at Exhibit 1.
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Subsidy rate
Company (percent ad
valorem)
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Hyundai Steel Company \10\.............................. 1.28
KG Dongbu Steel Co., Ltd.; KG Steel Corporation \11\.... 4.11
POSCO................................................... 2.39
POSCO Coated & Color Steel Co., Ltd..................... 2.39
POSCO International..................................... 2.39
POSCO Steeleon Co., Ltd................................. 2.39
SeAH Coated Metal....................................... 2.39
SeAH Steel Corporation.................................. 2.39
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Disclosure
Commerce intends to disclose its calculations and analysis
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).
Verification
As provided in section 782(i)(3) of the Act, from July 21 through
24, 2025, Commerce conducted a verification of Hyundai Steel's
questionnaire responses.\12\ Commerce intends to verify the information
in KG Dongbu Steel's questionnaire responses after these preliminary
results.
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\12\ See Memorandum, ``Verification of the Questionnaire
Responses of Hyundai Steel Company and Its Cross-owned Companies,''
dated August 4, 2025.
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Public Comment
Pursuant to 19 CFR 351.309(c), interested parties may submit case
briefs to Commerce no later than seven days after the date of the last
verification report issued in this administrative review.\13\ 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.\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\ All briefs must be filed electronically
using ACCESS. An electronically filed document must be received
successfully in its entirety in ACCESS by 5:00 p.m. Eastern Time on the
established deadline.
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\13\ See 19 CFR 351.303 for general filing requirements.
\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 Procedures).
\15\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
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 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 Procedures.
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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 by 5:00 p.m. Eastern Time within 30 days after the date of
publication of this notice. Requests
[[Page 691]]
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. Oral presentations at the hearing will be limited to issues
raised in the briefs. If a request for a hearing is made, Commerce will
inform parties of the scheduled date for the hearing.\18\
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\18\ See 19 CFR 351.310(d).
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Assessment Rates
Consistent with section 751(a)(1) of the Act and 19 CFR
351.212(b)(2), upon issuance of the final results, 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 listed above for which the review is being
rescinded, Commerce 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)(1)(i). Commerce intends to issue rescission instructions to
CBP no earlier than 35 days after the date of publication of this
notice in the Federal Register.
For the companies remaining in the review, Commerce will instruct
CBP to assess countervailing duties on all appropriate entries at the
subsidy rates calculated in the final results of this review. Commerce
intends 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 Requirements
Pursuant to section 751(a)(2)(C) of the Act, Commerce intends to
instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts indicated above with regard to 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. For all non-reviewed firms, we will instruct CBP to
continue to collect cash deposits of estimated countervailing duties at
the most recent company-specific or all-others rate applicable to the
company, as appropriate. These cash deposit instructions, when imposed,
shall remain in effect until further notice.
Final Results of Review
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.
Notification to Interested Parties
We are issuing and publishing these preliminary results in
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR
351.221(b)(4).
Dated: January 5, 2026.
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
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Partial Rescission of Review
IV. Scope of the Order
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2026-00192 Filed 1-7-26; 8:45 am]
BILLING CODE 3510-DS-P
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