[Federal Register Volume 81, Number 171 (Friday, September 2, 2016)]
[Notices]
[Pages 60672-60674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21211]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review; 2014-2015

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on large power 
transformers (LPTs) from the Republic of Korea (Korea). The period of 
review is August 1, 2014, through July 31, 2015. The review covers five 
producers/exporters of the subject merchandise. We preliminarily 
determine that sales of subject merchandise by Hyosung Corporation 
(Hyosung) and Hyundai Heavy Industries Co., Ltd. (Hyundai), the two 
companies selected for individual examination, were made at less than 
normal value during the period of review. Interested parties are 
invited to comment on these preliminary results.

DATES: Effective September 2, 2016.

FOR FURTHER INFORMATION CONTACT: John Drury or Edythe Artman, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0195 or (202) 482-3931, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Order

    The scope of this order covers large liquid dielectric power 
transformers having a top power handling capacity greater than or equal 
to 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or 
unassembled, complete or incomplete. The merchandise subject to the 
order is currently classified in the Harmonized Tariff Schedule of the 
United States at subheadings 8504.23.0040, 8504.23.0080 and 
8504.90.9540. This tariff classification is provided for convenience 
and Customs purposes; however, the written description of the scope of 
the order is dispositive.\1\
---------------------------------------------------------------------------

    \1\ The full text of the scope of the order is contained in the 
memorandum to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, from Gary Taverman, Associate Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, entitled 
``Decision Memorandum for Preliminary Results of Antidumping Duty 
Administrative Review: Large Power Transformers from the Republic of 
Korea; 2014-2015'' (Preliminary Decision Memorandum), which is 
issued concurrent with and hereby adopted by 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 to ACCESS is available to registered users at http://access.trade.gov and is available to all

[[Page 60673]]

parties in the Central Records Unit, Room B8024 of the main Department 
of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly on the 
Internet at http://enforcement.trade.gov/frn/index.html. A list of 
topics discussed in the Preliminary Decision Memorandum is attached as 
an Appendix to this notice. The signed Preliminary Decision Memorandum 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.

Tolling of Deadline

    As explained in the memorandum from the Acting Assistant Secretary 
for Enforcement and Compliance, the Department exercised its discretion 
to toll all administrative deadlines due to a closure of the Federal 
Government. All deadlines in this segment of the proceeding have been 
extended by four business days. The revised deadline for the 
preliminary results of this review is now August 26, 2016.\2\
---------------------------------------------------------------------------

    \2\ See Memorandum to the File from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement and Compliance, regarding 
``Tolling of Administrative Deadlines As a Result of the Government 
Closure During Snowstorm Jonas,'' dated January 27, 2016.
---------------------------------------------------------------------------

Methodology

    The Department is conducting this review in accordance with section 
751(a)(2) of the Tariff Act of 1930, as amended (the Act). Constructed 
export price is calculated in accordance with section 772 of the Act. 
Normal value is calculated in accordance with section 773 of the Act. 
For a full description of the methodology underlying our conclusions, 
see the Preliminary Decision Memorandum.

Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2014, 
through July 31, 2015, the following weighted-average dumping margins 
exist: \3\
---------------------------------------------------------------------------

    \3\ As we did not have a publicly-ranged total U.S. sales value 
for Hyosung for the period August 1, 2014, through July 31, 2015, to 
calculate a weighted-average dumping margin for the non-examined 
companies (i.e., Iljin, Iljin Electric Co., Ltd, and LSIS Co., 
Ltd.), the rate applied to these companies is a simple average of 
the weighted-average dumping margins calculated for Hyosung and 
Hyundai.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Producer or exporter                    dumping margin
                                                             (percent)
------------------------------------------------------------------------
Hyosung Corporation.....................................            1.76
Hyundai Heavy Industries Co., Ltd.......................            3.09
Iljin Electric Co., Ltd.................................            2.43
Iljin...................................................            2.43
LSIS Co., Ltd...........................................            2.43
------------------------------------------------------------------------

Disclosure and Public Comment

    The Department will disclose to parties to the proceeding any 
calculations performed in connection with these preliminary results of 
review within five days after the date of publication of this 
notice.\4\ The Department will announce the briefing schedule to 
interested parties at a later date. Interested parties may submit case 
briefs on the deadline that the Department will announce.\5\ Rebuttal 
briefs, the content of which is limited to the issues raised in the 
case briefs, must be filed within five days from the deadline date for 
the submission of case briefs.\6\
---------------------------------------------------------------------------

    \4\ See 19 CFR 351.224(b)
    \5\ See 19 CFR 351.309(c)(1)(ii) and (d)(1).
    \6\ See 19 CFR 351.309(d)(1) and (2).
---------------------------------------------------------------------------

    Parties who submit case or rebuttal briefs in this proceeding are 
requested to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.\7\ 
Case and rebuttal briefs should be filed using ACCESS.\8\ Case and 
rebuttal briefs must be served on interested parties.\9\ Executive 
summaries should be limited to five pages total, including footnotes.
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.309(c)(2).
    \8\ See generally 19 CFR 351.303.
    \9\ See 19 CFR 351.303(f).
---------------------------------------------------------------------------

    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 within 30 days of the date of 
publication of this notice. Requests should contain: (1) The party's 
name, address and telephone number; (2) the number of participants; and 
(3) a list of issues parties intend to discuss. Issues raised in the 
hearing will be limited to those raised in the respective case and 
rebuttal briefs. If a request for a hearing is made, the Department 
intends to hold the hearing at the U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230, at a date and 
time to be determined.\10\ Parties should confirm the date, time, and 
location of the hearing two days before the scheduled date.
---------------------------------------------------------------------------

    \10\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------

    The Department intends to publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief, no later than 120 days after 
publication of these preliminary results, unless extended.\11\
---------------------------------------------------------------------------

    \11\ See section 751(a)(3)(A) of the Act; 19 CFR 351.213(h).
---------------------------------------------------------------------------

Assessment Rates

    Upon completion of this administrative review, the Department shall 
determine, and Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries. If a respondent's 
weighted-average dumping margin is not zero or de minimis in the final 
results of this review and the respondent reported reliable entered 
values, we will calculate importer-specific ad valorem assessment rates 
for the merchandise based on the ratio of the total amount of dumping 
calculated for the examined sales made during the period of review to 
each importer to the total entered value of those same sales in 
accordance with 19 CFR 351.212(b)(1). If the respondent has not 
reported reliable entered values, we will calculate a per-unit 
assessment rate for each importer by dividing the total amount of 
dumping for the examined sales made during the period of review to that 
importer by the total sales quantity associated with those 
transactions. Where an importer-specific ad valorem assessment rate is 
zero or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties in accordance with 19 CFR 
351.106(c)(2). If the respondent's weighted-average dumping margin is 
zero or de minimis in the final results of review, we will instruct CBP 
not to assess duties on any of its entries in accordance with the Final 
Modification for Reviews, i.e., ``{w{time} here the weighted-average 
margin of dumping for the exporter is determined to be zero or de 
minimis, no antidumping duties will be assessed.'' \12\
---------------------------------------------------------------------------

    \12\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 
2012) (Final Modification for Reviews).
---------------------------------------------------------------------------

    Regarding entries of subject merchandise during the period of 
review that were produced by Hyosung and Hyundai and for which they did 
not know that the merchandise was destined for the United States, we 
will instruct CBP to liquidate un-reviewed entries at the all-others 
rate of 22.00 percent, as established in the less-than-fair-value 
investigation of the order, if there is no rate for the intermediate 
company(ies) involved in the

[[Page 60674]]

transaction.\13\ For a full discussion of this matter, see Assessment 
Policy Notice.\14\
---------------------------------------------------------------------------

    \13\ See Large Power Transformers From the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
    \14\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
---------------------------------------------------------------------------

    We intend to issue liquidation instructions to CBP 15 days after 
publication of the final results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for Hyosung and 
Hyundai and other companies listed above will be equal to the weighted-
average dumping margin established in the final results of this 
administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recently completed 
segment of this proceeding in which they were reviewed; (3) if the 
exporter is not a firm covered in this review, a prior review, or in 
the investigation but the producer is, the cash deposit rate will be 
the rate established for the most recently completed segment of this 
proceeding for the producer of the merchandise; and (4) the cash 
deposit rate for all other producers or exporters will continue to be 
the all-others rate of 22.00 percent, the rate established in the 
investigation of this proceeding.\15\ These cash deposit requirements, 
when imposed, shall remain in effect until further notice.
---------------------------------------------------------------------------

    \15\ See Large Power Transformers From the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
---------------------------------------------------------------------------

Notification to Importers

    This notice also serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: August 26, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Background
2. Companies Not Selected for Individual Examination
3. Deadline for Submission of Updated Sales and Cost Information
4. Scope of the Order
5. Comparisons to Normal Value
    A. Determination of Comparison Method
    B. Results of the Differential Pricing Analysis
6. Product Comparisons
7. Date of Sale
8. Constructed Export Price
9. Normal Value
    A. Home Market Viability as Comparison Market
    B. Level of Trade
    C. Sales to Affiliates
    D. Cost of Production
    1. Calculation of Cost of Production
    2. Test of Comparison Market Sales Prices
    3. Results of the Cost of Production Test
    E. Calculation of Normal Value Based on Comparison Market Prices
    F. Price-to-Constructed Value Comparison
10. Currency Conversion
11. Recommendation

[FR Doc. 2016-21211 Filed 9-1-16; 8:45 am]
 BILLING CODE 3510-DS-P