[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.
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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