[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55559-55561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22669]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review; 2017-2018

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that both Hyosung Heavy Industries Corporation (Hyosung) and Hyundai 
Electric & Energy Systems Co. (Hyundai) made sales of subject 
merchandise at less than normal value during the period of review (POR) 
August 1, 2017 through July 31, 2018. Interested parties are invited to 
comment on these preliminary results.

DATES: Applicable October 17, 2019.

FOR FURTHER INFORMATION CONTACT: Joshua DeMoss or John Drury, 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) 482-3362 or (202) 482-0195, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce initiated this review on October 4, 2018.\1\ We selected 
two mandatory respondents in this review, Hyosung and Hyundai. On 
January 29, 2019, Commerce exercised its discretion to toll all 
deadlines affected by the partial closure of the Federal Government 
from December 22, 2018, through January 25, 2019.\2\ On September 19, 
2019, we extended the deadline for issuing the preliminary results of 
the review to October 9, 2019. For a more detailed description of the 
events that followed the initiation of this review, see the Preliminary 
Decision Memorandum, dated concurrently with these results and hereby 
adopted by this notice.\3\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 50077 (October 4, 2018) (Initiation 
Notice).
    \2\ 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.
    \3\ See Memorandum, ``Decision Memorandum for Preliminary 
Results of Antidumping Duty Administrative Review: Large Power 
Transformers from the Republic of Korea; 2017-2018'' (Preliminary 
Decision Memorandum), dated concurrently with this notice.
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    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 to 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/index.html. A list of topics 
discussed in the Preliminary Decision Memorandum is attached as an 
Appendix to this notice. The signed Preliminary Decision Memorandum and 
the electronic versions of the Preliminary Decision Memorandum are 
identical in content.

Scope of the Order

    The scope of this order covers large liquid dielectric power 
transformers 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. This tariff classification 
is provided for convenience and Customs purposes; however, the written 
description of the scope of the order is dispositive. For a complete 
description of the scope of the order, see the Preliminary Decision 
Memorandum.

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(2) of the Tariff Act of 1930, as amended (the Act). For a full 
description of the methodology underlying our conclusions, see the 
Preliminary Decision Memorandum.

Facts Available

    Pursuant to section 776(a) of the Act, Commerce is preliminarily 
relying upon facts otherwise available to assign an estimated weighted-
average dumping margin to Hyundai in this review. Preliminarily, 
Commerce finds that Hyundai withheld necessary information that was 
requested by Commerce, significantly impeded the review, and provided 
information that could not be verified. Further, Commerce preliminarily 
determines that Hyundai failed to cooperate by not acting to the best 
of its ability to comply with requests for information and, thus, 
Commerce is applying adverse facts available (AFA) to Hyundai, in 
accordance with section 776(b) of the Act. For a full description of 
the methodology underlying our conclusions regarding the application of 
AFA, see the Preliminary Decision Memorandum.

Rate for Non-Selected Companies

    In accordance with the U.S. Court of Appeals for the Federal 
Circuit's decision in Albemarle Corp. v. United States,\4\ we are 
applying to the non-selected companies the rate preliminarily applied 
to Hyosung in this administrative review.\5\ This is the only rate 
determined in this review for individual respondents, and thus we are 
preliminarily applying it to the four non-selected companies. For a 
detailed

[[Page 55560]]

discussion, see the Preliminary Decision Memorandum.
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    \4\ See Albemarle Corp. v. United States, 821 F.3d 1345 (Fed. 
Cir. 2016).
    \5\ See, e.g., Certain Small Diameter Carbon and Alloy Seamless 
Standard, Line, and Pressure Pipe (Under 4\1/2\ Inches) from Japan: 
Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2014-2015, 81 FR 45124, 
45124 (July 12, 2016), unchanged in Certain Small Diameter Carbon 
and Alloy Seamless Standard, Line, and Pressure Pipe (Under 4\1/2\ 
Inches) from Japan: Final Results of Antidumping Duty Administrative 
Review and Final Determination of No Shipments; 2014-2015, 81 FR 
80640, 80641 (November 16, 2016).
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Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2017 
through July 31, 2018, the following weighted-average dumping margins 
exist:\6\
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    \6\ As AFA, we preliminarily assign Hyundai a dumping margin of 
60.81 percent, an AFA rate used in the previous review. See Large 
Power Transformers from the Republic of Korea: Final Results of 
Antidumping Duty Administrative Review; 2016-2017, 84 FR 16461 
(April 19, 2019). This rate achieves the purpose of applying an 
adverse inference, i.e., it is sufficiently adverse to ensure that 
the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated. According to 
776(c)(2) of the Act, this rate does not require corroboration.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Producer/exporter                     dumping margin
                                                             (percent)
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Hyosung Corporation.....................................           40.73
Hyosung Heavy Industries Corporation....................           40.73
Hyundai Heavy Industries Co., Ltd.\7\...................           60.81
Hyundai Electric & Energy Systems Co., Ltd..............           60.81
Iljin Electric Co., Ltd.................................           40.73
Iljin...................................................           40.73
LSIS Co., Ltd...........................................           40.73
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Disclosure and Public Comment

    Commerce will disclose to parties to the proceeding any 
calculations performed in connection with these preliminary results of 
review within five days after the date of publication of this 
notice.\8\ Commerce will announce the briefing schedule to interested 
parties at a later date. Interested parties may submit case briefs on 
the deadline that Commerce will announce.\9\ Rebuttal briefs, the 
content of which is limited to the issues raised in the case briefs, 
must be filed within five days from the deadline date for the 
submission of case briefs.\10\
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    \7\ See Large Power Transformers from the Republic of Korea: 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, 83 FR 45094 (September 5, 2018), and accompanying Issues and 
Decision Memorandum.
    \8\ See 19 CFR 351.224(b).
    \9\ See 19 CFR 351.309(c)(1)(ii) and (d)(1).
    \10\ See 19 CFR 351.309(d)(1) and (d)(2).
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    Parties who submit case or rebuttal briefs in this proceeding are 
requested to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of 
authorities.\11\ Case and rebuttal briefs should be filed using 
ACCESS.\12\ Case and rebuttal briefs must be served on interested 
parties.\13\ Executive summaries should be limited to five pages total, 
including footnotes.
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    \11\ See 19 CFR 351.309(c)(2).
    \12\ See generally 19 CFR 351.303.
    \13\ See 19 CFR 351.303(f).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance within 30 days of the date of 
publication of this notice. Requests should contain: (1) The party's 
name, address and telephone number; (2) the number of participants; and 
(3) a list of issues parties intend to discuss. Issues raised in the 
hearing will be limited to those raised in the respective case and 
rebuttal briefs. If a request for a hearing is made, Commerce intends 
to hold the hearing at the U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230, at a date and time to be 
determined.\14\ Parties should confirm the date, time, and location of 
the hearing two days before the scheduled date.
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    \14\ See 19 CFR 351.310(d).
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    Commerce intends to publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief, no later than 120 days after 
publication of these preliminary results, unless extended.\15\
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    \15\ See section 751(a)(3)(A) of the Act; 19 CFR 351.213(h).
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Assessment Rates

    Upon completion of this administrative review, Commerce shall 
determine, and U.S. Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries. If a respondent's 
weighted-average dumping margin is not zero or de minimis in the final 
results of this review and the respondent reported reliable entered 
values, we will calculate importer-specific ad valorem assessment rates 
for the merchandise based on the ratio of the total amount of dumping 
calculated for the examined sales made during the period of review to 
each importer to the total entered value of those same sales in 
accordance with 19 CFR 351.212(b)(1). If the respondent has not 
reported reliable entered values, we will calculate a per-unit 
assessment rate for each importer by dividing the total amount of 
dumping for the examined sales made during the period of review to that 
importer by the total sales quantity associated with those 
transactions. Where an importer-specific ad valorem assessment rate is 
zero or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties in accordance with 19 CFR 
351.106(c)(2). If the respondent's weighted-average dumping margin is 
zero or de minimis in the final results of review, we will instruct CBP 
not to assess duties on any of its entries in accordance with the Final 
Modification for Reviews, i.e., ``{w{time} here the weighted-average 
margin of dumping for the exporter is determined to be zero or de 
minimis, no antidumping duties will be assessed.'' \16\
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    \16\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 
2012) (Final Modification for Reviews).
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    If the preliminary results are unchanged for the final results, we 
will instruct CBP to apply an ad valorem assessment rate of 60.81 
percent to all entries of subject merchandise during the period of 
review which were produced and/or exported by Hyundai.
    Regarding entries of subject merchandise during the period of 
review that were produced by Hyosung and Hyundai and for which they did 
not know that the merchandise was destined for the United States, we 
will instruct CBP to liquidate un-reviewed entries at the all-others 
rate of 22.00 percent, as established in the less-than-fair-value 
investigation of the order, if there is no rate for the intermediate 
company(ies) involved in the transaction.\17\ For a full discussion of 
this matter, see Assessment Policy Notice.\18\
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    \17\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
    \18\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
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    We intend to issue liquidation instructions 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 the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for Hyosung and 
Hyundai and other companies listed above will be equal to the weighted-
average dumping margin established in the final results of this 
administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for

[[Page 55561]]

the most recently completed segment of this proceeding in which they 
were reviewed; (3) if the exporter is not a firm covered in this 
review, a prior review, or in the 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 
merchandise; and (4) the cash deposit rate for all other producers or 
exporters will continue to be the all-others rate of 22.00 percent, the 
rate established in the investigation of this proceeding.\19\ These 
cash deposit requirements, when imposed, shall remain in effect until 
further notice.
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    \19\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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Notification to Importers

    This notice also serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in Commerce's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

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.

    Dated: October 9, 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. Deadline for Submission of Updated Sales and Cost Information
IV. Scope of the Order
V. Discussion of the Methodology
VI. Affiliation
VII. Application of Facts Available and Use of Adverse Inference
VIII. Rate for Non-Selected Companies
IX. Recommendation
[FR Doc. 2019-22669 Filed 10-16-19; 8:45 am]
 BILLING CODE 3510-DS-P