[Federal Register Volume 84, Number 222 (Monday, November 18, 2019)]
[Notices]
[Pages 63615-63617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24900]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-870]


Certain Oil Country Tubular Goods 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 certain oil country tubular goods (OCTG) from the Republic of 
Korea (Korea) are being sold in the United States at prices below 
normal value. The period of review (POR) is September 1, 2017 through 
August 31, 2018. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable November 18, 2019.

FOR FURTHER INFORMATION CONTACT: Davina Friedmann or Julie Geiger, 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) 482-0698 or (202) 
482-2057, respectively.

SUPPLEMENTARY INFORMATION:

Background

    These preliminary results are made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this administrative review on 
November 15, 2018.\1\ 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.\2\ Commerce selected Hyundai Steel Company (Hyundai Steel) and 
SeAH Steel Corporation (SeAH) as the two mandatory respondents in this 
review.\3\ Commerce extended the time limit for completing the 
preliminary results of this administrative review, and the revised 
deadline is now November 8, 2019.\4\ On August 6, 2019, Commerce 
received a timely filed allegation that a particular market situation 
(PMS) existed with respect to Hyundai Steel's and SeAH's costs of 
production of

[[Page 63616]]

OCTG in Korea during the POR. \5\ For a complete description of the 
events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum, dated concurrently with these 
preliminary results and hereby adopted by this notice.\6\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 57411 (November 15, 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, ``2017-2018 Administrative Review of the 
Antidumping Duty Order on Oil Country Tubular Goods from the 
Republic of Korea: Respondent Selection,'' dated February 15, 2019.
    \4\ See Memoranda, ``Certain Oil Country Tubular Goods from the 
Republic of Korea: Extension of Time Limit for Preliminary Results 
of Antidumping Duty Administrative Review'' dated July 1, 2019; 
``Certain Oil Country Tubular Goods from the Republic of Korea: 
Extension of Time Limit for Preliminary Results of Antidumping Duty 
Administrative Review,'' dated September 6, 2019; and ``Certain Oil 
Country Tubular Goods from the Republic of Korea: Extension of Time 
Limit for Preliminary Results of Antidumping Duty Administrative 
Review,'' dated October 31, 2019.
    \5\ See Domestic Interested Parties' Letter, ``Oil Country 
Tubular Goods from the Republic of Korea: Particular Market 
Situation Allegation,'' dated August 6, 2019 (PMS Allegation).
    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results in the 2017-2018 Administrative Review of Oil Country 
Tubular Goods from the Republic of Korea'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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    A list of topics included in the Preliminary Decision Memorandum is 
included as Appendix I 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 https://access.trade.gov, and 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 the electronic versions of the Preliminary Decision Memorandum are 
identical in content.

Scope of the Order

    The product covered by the Order \7\ is OCTG from Korea. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.
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    \7\ See Certain Oil Country Tubular Goods from India, the 
Republic of Korea, Taiwan, the Republic of Turkey, and the Socialist 
Republic of Vietnam: Antidumping Duty Orders; and Certain Oil 
Country Tubular Goods from the Socialist Republic of Vietnam: 
Amended Final Determination of Sales at Less Than Fair Value, 79 FR 
53691 (September 10, 2014) (Order).
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Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(2) of the Act. Commerce has calculated export 
prices in accordance with section 772(a) of the Act. Constructed export 
prices have been calculated in accordance with section 772(b) of the 
Act. Normal value (NV) is calculated in accordance with section 773 of 
the Act. For the reasons more fully explained in the proprietary PMS 
Memorandum, Commerce preliminarily finds that a cost-based PMS existed 
in Korea during the POR concerning the cost of hot-rolled coil (HRC) as 
a component of the cost of production for the OCTG that Hyundai Steel 
and SeAH produced.\8\ Specifically, we quantified the impact of the PMS 
on the material cost of HRC, and derived a corresponding adjustment 
factor that, when applied to the costs of HRC, accounts for the 
distortions induced by the observed PMS.\9\ For a full description of 
the methodology underlying our conclusions, see the Preliminary 
Decision Memorandum.
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    \8\ For a complete discussion, see Memorandum, ``2017-2018 
Administrative Review of Antidumping Duty Order on Certain Oil 
Country Tubular Goods from the Republic of Korea: Decisions on 
Particular Market Situation Allegations,'' dated concurrently with 
this Federal Register Notice (PMS Memorandum).
    \9\ See PMS Memorandum.
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Rates for Non-Examined Companies

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
examination when Commerce limits its examination in an administrative 
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce 
looks to section 735(c)(5) of the Act, which provides instructions for 
calculating the all-others rate in a market economy investigation, for 
guidance when calculating the rate for companies which were not 
selected for individual examination in an administrative review. Under 
section 735(c)(5)(A) of the Act, the all-others rate is normally ``an 
amount equal to the weighted average of the estimated weighted-average 
dumping margins established for exporters and producers individually 
investigated, excluding any zero or de minimis margins, and any margins 
determined entirely {on the basis of facts available{time} .''
    In this review, we have preliminarily calculated weighted-average 
dumping margins for Hyundai Steel and SeAH that are not zero, de 
minimis, or determined entirely on the basis of facts available. 
Accordingly, Commerce preliminarily has assigned to the companies not 
individually examined (see Appendix II for a full list of these 
companies) a margin of 13.16 percent, which is the weighted average of 
Hyundai Steel's and SeAH's calculated weighted-average dumping 
margins.\10\
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    \10\ For more information regarding the calculation of this 
margin, see Memorandum, ``Preliminary Results of the 2017-2018 
Administrative Review of Certain Oil Country Tubular Goods from the 
Republic of Korea; Calculation of the Margin for Non-Examined 
Companies,'' dated concurrently with this memorandum. As the 
weighting factor, we relied on the publicly ranged sales data 
reported in Hyundai Steel's and SeAH's quantity and value charts.
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Preliminary Results of Review

    Commerce preliminarily determines that, for the period September 1, 
2017 through August 31, 2018, the following weighted-average dumping 
margins exist:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Hyundai Steel Company...................................            0.77
SeAH Steel Corporation..................................           17.04
Non-examined companies..................................           13.16
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Disclosure, Public Comment, and Opportunity To Request a Hearing

    We intend to disclose the calculations performed for these 
preliminary results of review to interested parties within five days of 
the date of publication of this notice in accordance with 19 CFR 
351.224(b). Pursuant to 19 CFR 351.309(c), interested parties may 
submit case briefs no later than 30 days after the date of publication 
of this notice. Rebuttal briefs, the content of which is limited to 
issues raised in the case briefs, may be filed no later than five days 
after the date for filing case briefs.\11\ Parties who submit case 
briefs or rebuttal briefs in this proceeding are encouraged to submit 
with each argument: (1) A statement of the issue; (2) a brief summary 
of the argument; and (3) a table of authorities.\12\ Case and rebuttal 
briefs should be filed using ACCESS \13\ and must be served on 
interested parties.\14\ Executive summaries should be limited to five 
pages total, including footnotes.
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    \11\ See 19 CFR 351.309(d).
    \12\ See 19 CFR 351.309(c)(2) and (d)(2).
    \13\ See generally 19 CFR 351.303.
    \14\ 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, filed electronically via 
Commerce's electronic records system, ACCESS. An electronically filed 
request must be received successfully in its entirety by 5:00 p.m. 
Eastern Time within 30 days of the date of publication of this 
notice.\15\ 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

[[Page 63617]]

Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a date 
and time to be determined.\16\ Parties should confirm the date, time, 
and location of the hearing two days before the scheduled date.
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    \15\ See 19 CFR 351.310(c).
    \16\ See 19 CFR 351.310(d).
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    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of the issues raised in 
any case or rebuttal briefs, no later than 120 days after the date of 
publication of this notice, unless extended.\17\
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    \17\ See section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
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Assessment Rates

    Upon completion of this administrative review, Commerce shall 
determine, and CBP shall assess, antidumping duties on all appropriate 
entries. We intend to issue liquidation instructions to CBP 15 days 
after publication of the final results of this review.
    For any individually examined respondent whose weighted-average 
dumping margin is not zero or de minimis (i.e., less than 0.5 percent) 
in the final results of this review, if 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 to each 
importer and 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 calculated for the 
examined sales made 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 in the final results of 
review, we will instruct CBP to liquidate the appropriate entries 
without regard to antidumping duties in accordance with 19 CFR 
351.106(c)(2). If a 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.'' \18\
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    \18\ 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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    For entries of subject merchandise during the POR produced by 
Hyundai Steel or SeAH for which the producer did not know its 
merchandise was destined for the United States, or for any respondent 
for which we have a final determination of no shipments, we will 
instruct CBP to liquidate unreviewed entries at the all-others rate if 
there is no rate for the intermediate company(ies) involved in the 
transaction.\19\
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    \19\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003).
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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) of the Act: (1) The cash 
deposit rate for the companies listed in the final results of review 
will be equal to the weighted-average dumping margin established in the 
final results of this administrative review; (2) for merchandise 
exported by producers or exporters not covered in this review but 
covered in a prior segment of the proceeding, the cash deposit rate 
will continue to be the company-specific rate published for 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 the original investigation but the producer is, then 
the cash deposit rate will be the rate established for the most 
recently completed segment of this proceeding for the producer of the 
merchandise; (4) the cash deposit rate for all other producers or 
exporters will continue to be 5.24 percent,\20\ the all-others rate 
established in the less-than-fair-value investigation. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.
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    \20\ See Certain Oil Country Tubular Goods from the Republic of 
Korea: Notice of Court Decision Not in Harmony With Final 
Determination, 81 FR 59603 (August 30, 2016).
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Notification to Importers

    This notice serves as a preliminary 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 POR. 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

    The results of this review are issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(4).

    Dated: November 8, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Rates for Non-Examined Companies
V. Duty Absorption
VI. Affiliation
VII. Discussion of the Methodology
VIII. Currency Conversion
IX. Recommendation

Appendix II

List of Companies Not Individually Examined

AJU Besteel Co., Ltd.
BDP International
Daewoo America
Daewoo International Corporation
Dong Yang Steel Pipe.
Dong-A Steel Co. Ltd.
Dongbu Incheon Steel.
DSEC.
Emdtebruecker Eisenwerk and Company
Hansol Metal.
Husteel Co., Ltd.
Hyundai RB
ILJIN Steel Corporation.
Jim And Freight Co., Ltd.
Kia Steel Co. Ltd.
KSP Steel Company
Kukje Steel
Kumkang Kind Co., Ltd.
Kurvers
NEXTEEL Co., Ltd.
POSCO Daewoo America
POSCO Daewoo Corporation
Samsung
Samsung C and T Corporation.
SeAH Besteel Corporation
Steel Canada
Sumintomo Corporation
TGS Pipe
Yonghyun Base Materials
ZEECO Asia

[FR Doc. 2019-24900 Filed 11-15-19; 8:45 am]
 BILLING CODE 3510-DS-P