[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]
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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\
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\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).
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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.
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\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.
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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:
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Weighted-
average
Producer or exporter dumping
margin
(percent)
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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
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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.
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\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).
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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.
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\5\ See Large Power Transformers from the Republic of Korea:
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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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