[Federal Register Volume 83, Number 155 (Friday, August 10, 2018)]
[Notices]
[Pages 39671-39673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17156]


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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 of Countervailing Duty Administrative 
Review, Rescission of Review, in Part, and Intent To Rescind, in Part; 
2015-16

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

SUMMARY: The Department of Commerce (Commerce) is conducting an 
administrative review of the countervailing duty (CVD) order on certain 
corrosion-resistant steel products (CORE) from the Republic of Korea 
(Korea). The period of review (POR) is November 6, 2015, through 
December 31, 2016. We preliminarily determine that Dongbu Steel Co., 
Ltd/Dongbu Incheon Steel Co., Ltd. (Dongbu) and Hyundai Steel Company 
(Hyundai Steel) received countervailable subsidies during the POR. 
Interested parties are invited to comment on these preliminary results.

DATES: Applicable August 10, 2018.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo or Jun Jack Zhao, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2371 and (202) 482-1396, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On September 13, 2017, Commerce published a notice of initiation of 
an administrative review of the CVD order on CORE from Korea.\1\ On 
June 20, 2018, Commerce extended the deadline for the preliminary 
results to August 3, 2018.\2\ For a complete description of the events 
that followed the initiation of this review, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included at the Appendix 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 http://access.trade.gov and 
is available to all 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 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 42974 (September 13, 2017) (Initiation 
Notice). See also Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 48051 (October 16, 2017) (Initiation 
Notice Correction), at footnote 8.
    \2\ See Memorandum regarding Corrosion-Resistant Steel Products 
from the Republic of Korea: Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review--2015-2016, 
dated March 23, 2018; see also Memorandum, ``Extension of Deadline 
for Preliminary Results of Countervailing Administrative Review--
2015-2016,'' dated June 20, 2018.
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review, Rescission 
of Review, in Part, and Intent to Rescind, in Part; 2015-2016: 
Certain Corrosion-Resistant Steel Products from the Republic of 
Korea,'' 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 certain corrosion-resistant 
steel products. For a complete description of the scope of the order, 
see the Preliminary Decision Memorandum.

Rescission of Administrative Review, in Part

    Commerce initiated a review of 22 companies in this segment of the 
proceeding.\4\ Two of these companies, Dongkuk Steel Mill Co., Ltd. and 
Union Steel Manufacturing Co. Ltd. are not subject to the CVD order on 
CORE from Korea.\5\ Accordingly, we are rescinding the review with 
respect to these two companies.
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    \4\ See Initiation Notice and Initiation Notice Correction. The 
22 companies were: Bukook Steel Co., Ltd.; CJ Korea Express; DK 
Dongshin Co., Ltd.; Dongbu Steel Co., Ltd., Dongbu Incheon 
(collectively, Dongbu) Steel Co., Ltd.; Dongbu Express; Dongkuk 
Steel Mill Co., Ltd.; Hongyi (HK) Hardware Products Co., Ltd.; 
Hyundai Steel; Jeil Sanup Co., Ltd.; Mitsubishi International Corp.; 
POSCO; POSCO C&C POSCO Daewoo Corp.; Sejung Shipping Co., Ltd.; 
SeAH Steel, Seil Steel Co., Ltd.; Soon Hong Trading Co., Ltd.; 
Taisan Construction Co., Ltd.; TCC Steel Co., Ltd.; Union Steel 
Manufacturing Co., Ltd.; and Young Sun Steel Co.
    \5\ See Preliminary Decision Memorandum.
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Intent To Rescind Administrative Review, in Part

    Based on information submitted by Mitsubishi International 
Corporation after the initiation of this administrative review, and 
because there is no evidence on the record to indicate that

[[Page 39672]]

this company had entries of subject merchandise during the POR, we 
preliminarily intend to rescind the review with respect to Mitsubishi 
International Corporation.\6\ A final decision regarding whether to 
rescind the review of this company will be issued with the final 
results of review.
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    \6\ Id.
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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 gives rise to a benefit to the recipient, 
and that the subsidy is specific.\7\ For a full description of the 
methodology underlying our conclusions, see the accompanying 
Preliminary Decision Memorandum.
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    \7\ 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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Companies Not Selected for Individual Review

    For the companies not selected for individual review, because the 
rates calculated for Dongbu and Hyundai Steel were above de minimis and 
not based entirely on facts available, we applied a subsidy rate based 
on a weighted-average of the subsidy rates calculated for Dongbu and 
Hyundai Steel using publicly ranged sales data submitted by 
respondents. This is consistent with the methodology that we would use 
in an investigation to establish the all-others rate, consistent with 
section 705(c)(5)(A) of the Act.

Preliminary Results of Review

    In accordance with 19 CFR 351.224(b)(4)(i), we preliminarily 
determine that the following subsidy rates exist for the 2015 and 2016 
periods. The 2015 rate applies to the November 6, 2015, through 
December 31, 2015, period when liquidation of entries was suspended. 
The 2016 rate applies to entries suspended during 2016 and to establish 
the cash deposit rate for exports of subject merchandise subsequent to 
the final results.

------------------------------------------------------------------------
                                             Subsidy rate (percent ad
                                                     valorem)
                 Company                 -------------------------------
                                               2015            2016
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Dongbu Steel Co., Ltd./Dongbu Incheon               7.63            8.47
 Steel Co., Ltd.........................
Hyundai Steel Company...................            0.55            0.57
Bukook Steel Co., Ltd...................            3.09            3.34
CJ Korea Express........................            3.09            3.34
DK Dongshin Co., Ltd....................            3.09            3.34
Dongbu Express..........................            3.09            3.34
Hongyi (HK) Hardware Products Co., Ltd..            3.09            3.34
Jeil Sanup Co., Ltd.....................            3.09            3.34
POSCO...................................            3.09            3.34
POSCO C&C...............................            3.09            3.34
POSCO Daewoo Corp.......................            3.09            3.34
Sejung Shipping Co., Ltd................            3.09            3.34
SeAH Steel..............................            3.09            3.34
Seil Steel Co., Ltd.....................            3.09            3.34
Soon Hong Trading Co., Ltd..............            3.09            3.34
Taisan Construction Co., Ltd............            3.09            3.34
TCC Steel Co., Ltd......................            3.09            3.34
Young Sun Steel Co......................            3.09            3.34
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Assessment Rate

    Consistent with section 751(a)(2)(C) of the Act, upon issuance of 
the final results, Commerce shall determine, and Customs and Border 
Protection (CBP) shall assess, countervailing duties on all appropriate 
entries covered by this review. We intend to issue instructions to CBP 
15 days after publication of the final results of this review. For 
companies for which this review is rescinded, Commerce will instruct 
CBP to liquidate entries without regard to countervailing duties. 
Commerce intends to issue appropriate assessment instructions directly 
to CBP 15 days after publication of this notice.

Cash Deposit Rate

    Pursuant to section 751(a)(1) of the Act, Commerce intends to 
instruct CBP to collect cash deposits of estimated countervailing 
duties in the amount 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.

Disclosure and Public Comment

    We will disclose to parties to this proceeding the calculations 
performed in reaching the preliminary results within five days of the 
date of publication of these preliminary results.\8\ Interested parties 
may submit written comments (case briefs) within 30 days of publication 
of the preliminary results and rebuttal comments (rebuttal briefs) 
within five days after the time limit for filing case briefs.\9\ 
Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be limited to 
issues raised in the case briefs. Parties who submit arguments are 
requested to submit with the argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of 
authorities.\10\
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    \8\ See 19 CFR 224(b).
    \9\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
    \10\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
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    Interested parties who wish to request a hearing must do so within 
30 days of publication of these preliminary results by submitting a 
written request to the Assistant Secretary for Enforcement and 
Compliance using Enforcement and Compliance's ACCESS system.\11\ 
Requests should contain the party's

[[Page 39673]]

name, address, and telephone number, the number of participants, 
whether any participant is a foreign national, and a list of the issues 
to be discussed. If a request for a hearing is made, Commerce will 
inform parties of the scheduled date of the hearing which will be held 
at the U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230, at a time and date to be determined.\12\ Issues 
addressed during the hearing will be limited to those raised in the 
briefs.\13\ Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
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    \11\ See 19 CFR 351.310(c).
    \12\ See 19 CFR 351.310.
    \13\ See 19 CFR 351.310(c).
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    Parties are reminded that all briefs and hearing requests must be 
filed electronically using ACCESS and received successfully in their 
entirety by 5 p.m. Eastern Time on the due date.
    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act, Commerce intends to issue the final results of this 
administrative review, including the results of our analysis of the 
issues raised by the parties in their comments, within 120 days after 
publication of these preliminary results.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.

    Dated: August 3, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Rescission of the 2015-2016 Administrative Review, in Part
VI. Intent To Rescind Administrative Review, in Part
VII. Rate for Non-Examined Companies
VIII. Subsidies Valuation Information
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2018-17156 Filed 8-9-18; 8:45 am]
 BILLING CODE 3510-DS-P