[Federal Register Volume 84, Number 118 (Wednesday, June 19, 2019)]
[Notices]
[Pages 28461-28462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12991]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-884]


Certain Hot-Rolled Steel Flat Products From the Republic of 
Korea: Final Results of Countervailing Duty Administrative Review, 2016

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

SUMMARY: The Department of Commerce (Commerce) determines that Hyundai 
Steel Co., Ltd. (Hyundai Steel) and POSCO, producers and/or exporters 
of certain hot-rolled steel flat products (hot-rolled steel) from the 
Republic of Korea (Korea), received countervailable subsidies during 
the period of review (POR), August 12, 2016 through December 31, 2016.

DATES: Applicable June 19, 2019.

FOR FURTHER INFORMATION CONTACT: Kabir Archuletta, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2593.

SUPPLEMENTARY INFORMATION:

Background

    On November 6, 2018, Commerce published the Preliminary Results of 
this administrative review.\1\ On December 18, 2018, Commerce postponed 
the final results of review by 58 days until May 3, 2019.\2\ 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\ Accordingly, the 
revised deadline for these final results is June 12, 2019.
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    \1\ See Certain Hot-Rolled Steel Flat Products from the Republic 
of Korea: Preliminary Results of Countervailing Duty Administrative 
Review, 2016, 83 FR 55517 (November 6, 2018) (Preliminary Results), 
and accompanying Decision Memorandum (Preliminary Decision 
Memorandum).
    \2\ See Memorandum, ``Extension of Deadline for Final Results of 
Countervailing Duty Administrative Review,'' dated December 18, 
2018.
    \3\ See Memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive 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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    On March 4, 2019, Nucor Corporation (Nucor) submitted pre-
verification comments on the record of this administrative review.\4\ 
Between March 7, 2019 and March 12, 2019, we conducted verifications of 
the questionnaire responses submitted by Hyundai Steel Co., Ltd. 
(Hyundai Steel) and POSCO. We released verification reports on April 9, 
2019.\5\
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    \4\ See Nucor's Letter, ``Pre-Verification Comments,'' dated 
March 4, 2019.
    \5\ See Memoranda, ``Verification of the Questionnaire Reponses 
of Hyundai Steel Company'' (April 9, 2019) (Hyundai Steel VR); 
``Verification of Questionnaire Responses of POSCO, POSCO Daewoo 
Corporation, POSCO Chemtech, and POSCO M-Tech'' (April 9, 2019).
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    On April 19, 2019, Nucor, POSCO, and Hyundai Steel submitted timely 
case briefs.\6\ Each also submitted timely rebuttal briefs on April 24, 
2019.\7\
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    \6\ See Nucor's Case Brief, ``Case Brief,'' dated April 19, 
2019; see also POSCO's Case Brief, ``POSCO's Letter,'' dated April 
19, 2019; Hyundai Steel's Case Brief, ``Hyundai Steel Case Brief,'' 
dated April 19, 2019.
    \7\ See Nucor's Rebuttal Brief, ``Rebuttal Brief,'' dated April 
24, 2019; POSCO's Rebuttal Brief, ``POSCO's Letter,'' dated April 
24, 2019; Hyundai Steel's Rebuttal Brief, ``Hyundai Steel Rebuttal 
Brief,'' dated April 24, 2019.
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    Commerce conducted this review in accordance with section 751 of 
the Tariff Act of 1930, as amended (the Act).

Scope of the Order

    The merchandise covered by the order is certain hot-rolled steel 
flat products. For a complete description of the scope of the order, 
see attachment to the Issues and Decision Memorandum.

Analysis of Comments Received

    All issues raised in interested parties' case briefs are addressed 
in the Issues and Decision Memorandum. The issues are identified in the 
Appendix to this notice. 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 is available to all parties in the Central Records 
Unit, Room B8024 of the main Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the internet at http://enforcement.trade.gov/frn/index.html. The 
signed and electronic versions of the Issues and Decision Memorandum 
are identical in content.

Changes Since the Preliminary Results

    Based on the comments received from the interested parties and 
information received from Hyundai Steel after the Preliminary Results, 
we made changes to the net subsidy rates calculated for the mandatory 
respondents. For a discussion of these issues, see the Issues and 
Decision Memorandum.

Companies Not Selected for Individual Review

    For the companies not selected for individual review, because the 
rates calculated for Hyundai Steel and POSCO 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 Hyundai Steel 
and POSCO using publicly ranged sales data submitted by the 
respondents. This is consistent with the methodology that we would use 
in an investigation to establish the all-others rate, pursuant to 
section 705(c)(5)(A) of the Act.

Final Results of Administrative Review

    We determine that, for the period of August 12, 2016 through 
December 31, 2016, the following total estimated net countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
POSCO...................................................            0.55
Hyundai Steel Co., Ltd..................................            0.58
DCE Inc.................................................            0.56
Dong Chuel America Inc..................................            0.56
Dongbu Steel Co., Ltd...................................            0.56
Dongkuk Industries Co., Ltd.............................            0.56
Hyewon Sni Corporation (H.S.I.).........................            0.56
Soon Hong Trading Co., Ltd..............................            0.56
Sung-A Steel Co., Ltd...................................            0.56
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Disclosure

    Commerce intends to disclose the calculations performed for these 
final results of review within five days of the

[[Page 28462]]

date of publication of this notice in the Federal Register, in 
accordance with 19 CFR 351.224(b).

Assessment Rate

    Pursuant to 19 CFR 351.212(b)(2), Commerce intends to issue 
appropriate instructions to U.S. Customs and Border Protection (CBP) 15 
days after publication of the final results of this review. We will 
instruct CBP to liquidate shipments of subject merchandise produced 
and/or exported by the companies listed above, entered, or withdrawn 
from warehouse for consumption, from August 12, 2016 through December 
31, 2016, at the ad valorem rates listed above.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the notice of final results of this administrative 
review for all shipments of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication, as provided by section 751(a)(2)(C) of the Act: (1) The 
cash deposit rate for the companies listed in these final results will 
be equal to the subsidy rates established in the final results of this 
review; (2) for all non-reviewed firms, we will instruct CBP to 
continue to collect cash deposits at the most-recent company-specific 
or all-others rate applicable to the company, as appropriate. These 
cash deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification Regarding Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition 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 or 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

    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).

    Dated: June 11, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Subsidies Valuation Information
VI. Use of Facts Otherwise Available
VII. Analysis of Programs
VIII. Discussion of Comments
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) for POSCO and Hyundai Steel's Failure to Retain AUL Records 
for Acquired Companies
    Comment 2: Whether POSCO Energy is POSCO's Cross-Owned Input 
Supplier
    Comment 3: Whether to Treat POSCO Chemtech's Deferred Tax 
Liabilities Under Restriction of Special Taxation Act (RSTA) Article 
9 as an Interest-Free Contingent Liability Loan
    Comment 4: Which of POSCO's Reported Benchmark Loans to Use as 
Benchmarks for POSCO's KEXIM Loans
    Comment 5: Whether POSCO's Equipment Loans from the KDB are 
Covered by the Previously Countervailed Program ``Korea Development 
Bank (KDB) and Other Policy Banks' Short-Term Discounted Loans for 
Export Receivables''
    Comment 6: Whether to Use the GOK Short-Term Bond Interest Rate 
or IMF Statistic as a Short-Term Interest Rate Benchmark for POSCO's 
Short-Term KDB Loans
    Comment 7: Various Alleged Errors in the Preliminary 
Calculations for POSCO
    Comment 8: Whether Hyundai Green Power is Hyundai Steel's Cross-
Owned Input Supplier
    Comment 9: Whether Commerce Should Countervail Benefits Received 
by SPP Yulchon Energy
    Comment 10: Whether Suncheon Harbor Usage Fee Exemptions Under 
the Harbor Act are Countervailable
IX. Recommendation

[FR Doc. 2019-12991 Filed 6-18-19; 8:45 am]
BILLING CODE 3510-DS-P