[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:
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Subsidy rate
Company (percent ad
valorem)
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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