[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Pages 16461-16463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07909]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Final 
Results of Antidumping Duty Administrative Review; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that Hyosung 
Corporation (Hyosung) and Hyundai Heavy Industries Co., Ltd. and 
Hyundai Electric & Energy Systems Co. (collectively, Hyundai) made 
sales of large power transformers from the Republic of Korea (Korea) at 
less than normal value during the period of review (POR) August 1, 
2016, through July 31, 2017.

DATES: Applicable April 19, 2019.

FOR FURTHER INFORMATION CONTACT: John Drury (Hyosung) or Joshua DeMoss 
(Hyundai), AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0195 
or (202) 482-3362, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On September 7, 2018, Commerce published the Preliminary 
Results.\1\ A summary of the events that occurred since Commerce 
published these preliminary results, as well as a full discussion of 
the issues raised by parties for this final determination, may be found 
in the Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\
---------------------------------------------------------------------------

    \1\ See Large Power Transformers from the Republic of Korea: 
Preliminary Results of Antidumping Duty Administrative Review; 2016-
2017, 83 FR 45415 (September 7, 2018) (Preliminary Results).
    \2\ See Memorandum to Gary Taverman, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, entitled 
``Issues and Decision Memorandum for the Final Results of the 
Administrative Review of the Antidumping Duty Order on Large Power 
Transformers from the Republic of Korea; 2016-2017,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

    The Issues and 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 https://access.trade.gov and 
it 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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.
    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. The revised 
deadline for the final results of this review is now April 12, 2019.
---------------------------------------------------------------------------

    \3\ See memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
---------------------------------------------------------------------------

Scope of the Order

    The scope of this order covers large liquid dielectric power 
transformers (LPTs) 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. For a complete description of the scope 
of the order, see the accompanying Issues and Decision Memorandum.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Issues and Decision 
Memorandum. For a list of the issues raised by parties, see the 
Appendix to this notice.

[[Page 16462]]

Changes Since the Preliminary Results

    Commerce has made no changes to the Preliminary Results with 
respect to Hyundai. As stated in the Preliminary Results, we found that 
the application of total facts otherwise available with adverse 
inferences to Hyundai's weighted-average dumping margin, pursuant to 
sections 776(a) and (b) of the Tariff Act of 1930, as amended, (the 
Act), was warranted.
    Based on our review of the record and comments received from 
interested parties, we made certain changes to the margin calculations 
for Hyosung. For Hyosung, Commerce has relied on partial adverse facts 
available under section 776(a)(1) of the Act with respect to general 
and administrative (G&A) expenses, indirect selling expenses, and 
document acceptance charges. As a result of these changes, the 
weighted-average dumping margin also changes for the three companies 
not selected for individual examination.

Final Results of the Review

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Corporation.........................................       15.74
Hyundai Heavy Industries Co., Ltd./Hyundai Electric & Energy       60.81
 Systems Co., Ltd...........................................
Iljin Electric Co., Ltd.....................................       15.74
Iljin.......................................................       15.74
LSIS Co., Ltd...............................................       15.74
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed to parties in this 
proceeding within five days of the date of publication of this notice, 
in accordance with 19 CFR 351.224(b).

Assessment Rate

    The Department shall determine and U.S. Customs and Border 
Protection (CBP) shall assess antidumping duties on all appropriate 
entries.\4\ For any individually examined respondents whose weighted-
average dumping margin is above de minimis, we calculated importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the importer's examined sales to 
the total entered value of those same sales in accordance with 19 CFR 
351.212(b)(1). Upon issuance of the final results of this 
administrative review, if any importer-specific assessment rates 
calculated in the final results are above de minimis (i.e., at or above 
0.5 percent), the Department will issue instructions directly to CBP to 
assess antidumping duties on appropriate entries.
---------------------------------------------------------------------------

    \4\ In these final results, the Department applied the 
assessment rate calculation method adopted in Antidumping 
Proceedings: Calculation of the Weighted-Average Dumping Margin and 
Assessment Rate in Certain Antidumping Proceedings: Final 
Modification, 77 FR 8101 (February 14, 2012).
---------------------------------------------------------------------------

    To determine whether the duty assessment rates covering the period 
were de minimis, in accordance with the requirement set forth in 19 CFR 
351.106(c)(2), for each respondent we calculated importer (or 
customer)-specific ad valorem rates by aggregating the amount of 
dumping calculated for all U.S. sales to that importer or customer and 
dividing this amount by the total entered value of the sales to that 
importer (or customer). Where an importer (or customer)-specific ad 
valorem rate is greater than de minimis, and the respondent has 
reported reliable entered values, we will apply the assessment rate to 
the entered value of the importer's/customer's entries during the POR.
    With regard to Hyosung, as explained in our Issues and Decision 
Memorandum, we find that Hyosung has provided sufficient evidence, 
based on the totality of the circumstances under Commerce's successor-
in-interest criteria, to demonstrate that Hyosung Heavy Industries 
Corporation (HIIC) is the successor-in-interest to Hyosung. After the 
publication of these final results, we intend to issue liquidation 
instructions covering entries made by Hyosung during the POR at the 
rate established in these final results.
    We intend to issue assessment instructions directly 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 this notice for all shipments of subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
publication of these final results, as provided by section 751(a)(2) of 
the Act: (1) The cash deposit rate for respondents noted above will be 
equal to the weighted-average dumping margins established in the final 
results of this administrative review; (2) for merchandise exported by 
producers or exporters not covered in this administrative review but 
covered in a prior segment of the proceeding, the cash deposit rate 
will continue to be the company specific rate published for the most 
recently completed segment of this proceeding; (3) if the exporter is 
not a firm covered in this review, a prior review, or the original 
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 subject merchandise; and (4) the 
cash deposit rate for all other producers or exporters will continue to 
be 22.00 percent, the all-others rate established in the less-than-
fair-value investigation.\5\ These cash deposit requirements, when 
imposed, shall remain in effect until further notice.
---------------------------------------------------------------------------

    \5\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
---------------------------------------------------------------------------

    As explained above, we find that Hyosung has provided sufficient 
evidence, based on the totality of the circumstances under Commerce's 
successor-in-interest criteria, to demonstrate that HIIC is the 
successor-in-interest to Hyosung. Accordingly, effective the date of 
publication of these final results, we intend to instruct CBP to begin 
collecting deposits from HHIC at the rate assigned to Hyosung pursuant 
to these final results.

Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping and/or countervailing duties prior to 
liquidation of the relevant entries during the POR. Failure to comply 
with this requirement could result in Commerce's presumption that 
reimbursement of antidumping and/or countervailing duties did occur and 
the subsequent assessment of doubled antidumping duties.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. Timely written notification of the return/destruction 
of APO materials, or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a sanctionable violation.

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, and 19

[[Page 16463]]

CFR 351.213(h) and 19 CFR 351.221(b)(5).

    Dated: April 12, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. List of Issues
III. Background
IV. Scope of the Order
V. Application of Adverse Facts Available
VI. Discussion of the Issues

A. Hyundai-Specific Issues

Comment 1: Reliability of Hyundai's Cost Data
Comment 2: Hyundai's Cost Reconciliation
Comment 3: An Adverse Inference is Not Warranted
Comment 4: Moot Issues

B. Hyosung-Specific Issues

Comment 5: Ministerial Errors
Comment 6: Service Related Revenue Capping and Order Acknowledgement 
Form
Comment 7: U.S. Indirect Selling and General and Administrative 
Expenses
Comment 8: Whether Commerce's Preliminary Results G&A Expense 
Adjustment was Appropriate
Comment 9: Variable Overhead Expenses
Comment 10: Costs of Spare Parts
Comment 11: Packing Costs
Comment 12: Scrapped Materials
Comment 13: Product Codes and Home Market Sales
Comment 14: Product Codes and U.S. Sales
Comment 15: Product Codes and ``VOH3B'' Cost Variances
Comment 16: Warranty Expenses
Comment 17: Depreciation Costs
Comment 18: Document Acceptance Charge
Comment 19: Interest Expense Ratio
Comment 20: Brokerage Expenses
Comment 21: Effective Date of the Deposit Rate
Comment 22: Successor in Interest
Comment 23: Cost Variances
Comment 24: Constructed Export Price Offset
Comment 25: Constructed Value for Normal Value

C. General Issues

Comment 26: Rate for Non-selected Respondents
VII. Recommendation

[FR Doc. 2019-07909 Filed 4-18-19; 8:45 am]
 BILLING CODE 3510-DS-P