[Federal Register Volume 84, Number 222 (Monday, November 18, 2019)]
[Notices]
[Pages 63607-63609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24903]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-881]


Certain Cold Rolled Steel Flat Products 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 Hyundai Steel Company (Hyundai) and POSCO/POSCO Daewoo Co., Ltd. 
(POSCO/PDW), the two companies selected for individual examination, did 
not sell certain cold rolled steel flat products (cold-rolled steel) 
from the Republic of Korea (Korea) in the United States at prices below 
normal value during the period of review (POR) September 1, 2017 
through August 31, 2018. We invite interested parties to comment on 
these preliminary results.

DATES: Applicable November 18, 2019.

FOR FURTHER INFORMATION CONTACT: Michael J. Heaney, Paul Walker, or 
Marc Castillo, 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) 482-4475, (202) 482-0413, or (202) 482-5019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce initiated this administrative review on November 15, 
2018.\1\ We selected Hyundai Steel Company (Hyundai) and POSCO/POSCO 
Daewoo Co., Ltd. (POSCO/PDW) as mandatory respondents.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 57411 (November 15, 2018).
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    On January 28, 2019, 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\ On July 5, 2019, we extended the deadline for the preliminary 
results of this review by 90 days.\3\
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    \2\ See Memorandum, ``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, ``Certain Cold Rolled Steel Flat Products 
from the Republic of Korea: Extension of Time Limit for Preliminary 
Results of Antidumping Duty Administrative Review,'' dated July 5, 
2019.

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[[Page 63608]]

    Between August 15 and August 29, 2019, the petitioners \4\ filed 
timely allegations that a particular market situation (PMS) with 
respect to Hyundai's and POSCO/PDW's prices and costs of production of 
cold-rolled steel in Korea during the POR.\5\ On October 8, 2019, 
Hyundai and POSCO/PDW submitted comments on the PMS Allegations.\6\
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    \4\ The petitioners are ArcelorMittal USA LLC, AK Steel 
Corporation, Nucor Corporation, Steel Dynamics, Inc., and United 
States Steel Corporation (collectively, the petitioners).
    \5\ See Petitioners' Letters, ``Cold-Rolled Steel Flat Products 
from the Republic of Korea: Cost-Based Particular Market Situation 
Allegation,'' dated August 15, 2019; ``Cold-Rolled Steel Flat 
Products from the Republic of Korea: Cost Adjustments and Price-
Based Particular Market Situation Allegations for Hyundai,'' dated 
August 15, 2019; and ``Cold-Rolled Steel Flat Products from the 
Republic of Korea: Revised Price-Based Particular Market Situation 
Allegations for Hyundai,'' dated August 29, 2019. On September 23, 
2019, the petitioners submitted a clarification to the PMS 
Allegations. See Petitioners' Letter, ``Cold-Rolled Steel Flat 
Products from the Republic of Korea: Factual Information to Clarify 
Aspects of Domestic Interested Parties' Particular Market Situation 
Allegation,'' dated September 23, 2019 (collectively, PMS 
Allegations).
    \6\ See Hyundai's and POSCO/PDW's Letter, ``Cold-Rolled Steel 
Products from the Republic of Korea: Particular Market Situation 
Comments and Rebuttal Factual Information,'' dated October 8, 2019.
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    On October 4, 2019, we extended the deadline for the preliminary 
results of this review by an additional 29 days, resulting in a 
deadline of November 8, 2019 for these preliminary results.\7\
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    \7\ See Memorandum, ``Certain Cold Rolled Steel Flat Products 
from the Republic of Korea: Extension of Time Limit for Preliminary 
Results of Antidumping Duty Administrative Review,'' dated October 
4, 2019.
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    For a detailed description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\8\ 
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 
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 the topics discussed in 
the Preliminary Decision Memorandum is attached to this notice as an 
appendix. The signed Preliminary Decision Memorandum and the electronic 
version of the Preliminary Decision Memorandum are identical in 
content.
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    \8\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Antidumping Duty Administrative Review: Certain Cold 
Rolled Steel Flat Products from the Republic of Korea; 2017-2018,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order \9\ is cold-rolled steel flat 
products (cold-rolled steel) from the Republic of Korea. For the full 
text of the scope of the Order, see the Preliminary Decision 
Memorandum.
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    \9\ See Certain Cold Rolled Steel Flat Products from Brazil, 
India, the Republic of Korea, and the United Kingdom: Amended Final 
Affirmative Antidumping Determinations for Brazil and the United 
Kingdom and Antidumping Duty Orders, 81 FR 64432 (September 20, 
2016) (Order).
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Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a) of the Tariff Act of 1930, as amended (the Act). 
Constructed export price is calculated in accordance with section 772 
of the Act. Normal value 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 cold-rolled steel that 
Hyundai Steel and POSCO/PDW produced.\10\ 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.\11\ For a 
full description of the methodology underlying our conclusions, see the 
Preliminary Decision Memorandum.
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    \10\ For a complete discussion, see Memorandum, ``2017-2018 
Administrative Review of the Antidumping Duty Order on Cold-Rolled 
Steel from the Republic of Korea: Decisions on Particular Market 
Situation Allegations,'' dated concurrently with this memorandum 
(PMS Memorandum).
    \11\ 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 
individual 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 and POSCO/PDW that are zero. Accordingly, 
we have preliminarily assigned to the companies not individually 
examined (i.e., Dongbu Steel Co., Ltd. and Dongbu Steel Incheon Steel 
Co., Ltd.) a margin of 0.00 percent.

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:

------------------------------------------------------------------------
                                                       Weighted- average
                 Producer or exporter                    dumping margin
                                                           (percent)
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Hyundai Steel Company................................               0.00
POSCO/POSCO Daewoo Co., Ltd..........................               0.00
Non-Examined Companies...............................               0.00
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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.\12\ 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.\13\ Case and rebuttal 
briefs should be filed using ACCESS \14\ and must be served on 
interested parties.\15\ Executive

[[Page 63609]]

summaries should be limited to five pages total, including footnotes.
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    \12\ See 19 CFR 351.309(d).
    \13\ See 19 CFR 351.309(c)(2) and (d)(2).
    \14\ See generally 19 CFR 351.303.
    \15\ 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.\16\ 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.\17\ Parties 
should confirm the date, time, and location of the hearing two days 
before the scheduled date.
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    \16\ See 19 CFR 351.310(c).
    \17\ 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.\18\
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    \18\ 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 Customs and Border Protection (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 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 POR 
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.'' \19\
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    \19\ 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 and POSCO/PDW 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 (or companies) involved 
in the transaction.\20\
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    \20\ 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)(C) of the Act: (1) The 
cash deposit rate for Hyundai, POSCO/PDW, and other 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 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 20.33 percent,\21\ 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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    \21\ See Certain Cold Rolled Steel Flat Products from Brazil, 
India, the Republic of Korea, and the United Kingdom: Amended Final 
Affirmative Antidumping Determinations for Brazil and the United 
Kingdom and Antidumping Duty Orders, 81 FR 64432 (September 20, 
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

    Commerce is issuing and publishing these results 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--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Rates for Non-Examined Companies
5. Duty Absorption
6. Discussion of the Methodology
7. Adjustments to Cash Deposit Rates for Export Subsidies in 
Companion Countervailing Duty Review
8. Currency Conversion
9. Recommendation

[FR Doc. 2019-24903 Filed 11-15-19; 8:45 am]
 BILLING CODE 3510-DS-P