[Federal Register Volume 84, Number 137 (Wednesday, July 17, 2019)]
[Notices]
[Pages 34123-34125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15190]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-888]


Certain Carbon and Alloy Steel Cut-to-Length Plate From the 
Republic of Korea: Preliminary Results of Countervailing Duty 
Administrative Review and Intent To Rescind the Review, in Part; 2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that POSCO, a producer/exporter of certain carbon and alloy steel cut-
to-length plate from the Republic of Korea (Korea), received 
countervailable subsidies during the period of review (POR), April 4, 
2017 through December 31, 2017. We invite interested parties to comment 
on these preliminary results.

DATES: Applicable July 17, 2019.

FOR FURTHER INFORMATION CONTACT: Bob Palmer or Jinny Ahn, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9068 and (202) 
482-0339, respectively.

Scope of the Order

    The products covered by the order are certain carbon and alloy 
steel hot-rolled or forged flat plate products not in coils, whether or 
not painted, varnished, or coated with plastics or other non-metallic 
substances from the Republic of Korea. Products subject to the order 
are currently classified in the Harmonized Tariff Schedule of the 
United States (HTSUS) under item numbers: 7208.40.3030, 7208.40.3060, 
7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 
7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 
7225.40.3050, 7226.20.0000, and 7226.91.5000. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise subject to this scope is 
dispositive.\1\
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    \1\ For a full description of the scope of the order see 
Memorandum, ``Decision Memorandum for the Preliminary Results of the 
Countervailing Duty Administrative Review, 2017: Certain Carbon and 
Alloy Steel Cut-to-Length Plate from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).

SUPPLEMENTARY INFORMATION: 

Background

    On July 12, 2018, Commerce published a notice of initiation of an 
administrative review of the countervailing duty (CVD) order on certain 
carbon and alloy steel cut-to-length plate from Korea.\2\ On December 
17, 2018, Commerce extended the deadline for the preliminary results of 
this review to no later than May 31, 2019.\3\ 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.\4\ Accordingly, the revised deadline 
for the preliminary results of this review is now July 10, 2019. For a 
complete description of the events that

[[Page 34124]]

followed the initiation of this review, see the Preliminary Decision 
Memorandum.\5\ 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 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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    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 32278 (July 12, 2018); see also 
Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, 83 FR 39688, 39690 n.10 (Correcting the POR for this 
review.).
    \3\ See Memorandum, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate from the Republic of Korea: Extension of Deadline for 
Preliminary Results of Countervailing Duty Administrative Review,'' 
dated December 17, 2018.
    \4\ 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.
    \5\ See Preliminary Decision Memorandum.
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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.\6\ For a full description of the 
methodology underlying our conclusions, see the accompanying 
Preliminary Decision Memorandum.
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    \6\ 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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Intent To Rescind Administrative Review, in Part

    On August 7, 2018, we received a timely filed a no-shipments 
certification from Hyundai Steel Company (Hyundai).\7\ U.S. Customs and 
Border Protection (CBP) did not provide Commerce with any contradictory 
information.\8\ Because there is no evidence on the record to indicate 
that Hyundai had entries, exports, or sales of subject merchandise to 
the United States during the POR, pursuant to 19 CFR 351.213(d)(3), we 
intend to rescind the review with respect to Hyundai.
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    \7\ See Hyundai's Letter, ``Carbon and Alloy Steel Cut-To-Length 
Plate from Korea: Notice of No Sales,'' dated August 7, 2018.
    \8\ See Memorandum,``Certain carbon and alloy steel cut-to-
length plate from the Republic of Korea (C-580-888),'' dated August 
16, 2018.
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Companies Not Selected for Individual Review

    Commerce calculated an individual estimated net countervailable 
subsidy rate for POSCO, the only individually examined exporter/
producer in this investigation. Because the only individually 
calculated rate is not zero, de minimis, or based entirely under 
section 776 of the Act, the estimated net countervailiable subsidy rate 
calculated for POSCO is the rate assigned to all-other producers and 
exporters not selected for individual review. This is consistent with 
the methodology that we would use in an investigation to establish the 
all-others rate.\9\
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    \9\ See section 705(c)(5)(A).
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Preliminary Results of Review

    In accordance with 19 CFR 351.224(b)(4)(i), we calculated an 
individual net countervailable subsidy rate for POSCO. For the POR, we 
preliminarily determine that the net countervailable subsidy rates for 
the producers/exporters under review to be as follows:

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
                        Company                            subsidy rate
                                                           (percent  ad
                                                             valorem)
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POSCO \10\.............................................           0.56
BDP International......................................           0.56
Blue Track Equipment...................................           0.56
Boxco..................................................           0.56
Bukook Steel Co., Ltd..................................           0.56
Buma CE Co., Ltd.......................................           0.56
Daelim Industrial Co., Ltd.............................           0.56
Daesam Industrial Co., Ltd.............................           0.56
Daesin Lighting Co., Ltd...............................           0.56
Daewoo International Corp..............................           0.56
Dong Yang Steel Pipe...................................           0.56
Dongkuk Industries Co., Ltd............................           0.56
Dongkuk Steel Mill Co., Ltd............................           0.56
Dongbu Steel Co., Ltd..................................           0.56
EAE Automotive Equipment...............................           0.56
EEW KHPC Co., Ltd......................................           0.56
Eplus Expo Inc.........................................           0.56
GS Global Corp.........................................           0.56
Haem Co., Ltd..........................................           0.56
Han Young Industries...................................           0.56
Hyosung Corp...........................................           0.56
Hyundai Steel Co.......................................           0.56
Jinmyung Frictech Co., Ltd.............................           0.56
Korean Iron and Steel Co., Ltd.........................           0.56
Kyoungil Precision Co., Ltd............................           0.56
Samsun C&T Corp........................................           0.56
SK Netwoks Co., Ltd....................................           0.56
Steel N People Ltd.....................................           0.56
Summit Industry........................................           0.56
Sungjin Co., Ltd.......................................           0.56
Young Sun Steel........................................           0.56
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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.\11\
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    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
POSCO: POSCO Chemtech, POSCO Nippon RHF Joint Venture Co., Ltd., 
POSCO Processing & Service, Pohang Scrap Recycling Distribution 
Center, and POSCO M-Tech.
    \11\ See 19 CFR 224(b).
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    Commerce will establish a deadline for interested parties to submit 
written comments (case briefs) and rebuttal comments (rebuttal briefs) 
at a later date.\12\ 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.\13\
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    \12\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1); see also 19 
CFR 351.303 (for general filing requirements).
    \13\ 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.\14\ 
Requests should contain the party's 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.\15\ Issues addressed during the hearing 
will be limited to those raised in the briefs.\16\ Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date.
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    \14\ See 19 CFR 351.310(c).
    \15\ See 19 CFR 351.310.
    \16\ 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.

[[Page 34125]]

Assessment Rate

    Consistent with section 751(a)(1) of the Act, upon issuance of the 
final results, Commerce shall determine, and 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.

Cash Deposit Rate

    Pursuant to section 751(a)(2)(C) 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. These cash deposit instructions, when imposed, shall remain in 
effect until further notice.

Notification to Interested Parties

    These preliminary results of review are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.213.

    Dated: July 10, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Intent to Rescind, In Part, the Administrative Review
V. Scope of the Order
VI. Rate for Non-Examined Companies
VII. Subsidies Valuation Information
VIII. Use of Facts Otherwise Available
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2019-15190 Filed 7-16-19; 8:45 am]
 BILLING CODE 3510-DS-P