[Federal Register Volume 85, Number 11 (Thursday, January 16, 2020)]
[Notices]
[Pages 2710-2712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00644]


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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: Final Results and Partial Rescission of 
Countervailing Duty Administrative Review, 2017

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

SUMMARY: The Department of Commerce (Commerce) determines that POSCO, a 
producer and/or exporter of certain carbon and alloy cut-to-length 
plate (CTL plate) from the Republic of Korea (Korea), received net 
countervailable subsidies during the period of review (POR), April 4, 
2017 through December 31, 2017.

DATES: Applicable January 16, 2020.

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.

SUPPLEMENTARY INFORMATION:

Background

    On July 17, 2019, Commerce published the Preliminary Results of 
this administrative review in the Federal Register, and invited 
interested parties to comment.\1\ On September 18, 2019, Nucor 
Corporation (Nucor) submitted pre-verification comments on the record 
of this administrative review.\2\ Between September 23, 2019 and 
September 27, 2019, we conducted verifications of the questionnaire 
responses submitted by POSCO and the Government of Korea (GOK). We 
released verification reports on November 13, 2019.\3\ On October 10, 
2019, Commerce postponed the final results of review by 57 days until 
January 10, 2020.\4\ On December 2, 2019, Nucor, POSCO, and the GOK 
submitted timely case briefs.\5\ Nucor and POSCO also submitted timely 
rebuttal briefs on December 9, 2019.\6\
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    \1\ See 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, 84 FR 34123 (July 17, 2019) (Preliminary Results), and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Nucor's Letter, ``Comments Regarding Verification of 
POSCO's Questionnaire Responses,'' dated September 18, 2019.
    \3\ See Memoranda, ``Verification of the Questionnaire Reponses 
of POSCO'' and ``Verification of the Questionnaire Responses of the 
Government of the Republic of Korea,'' dated November 13, 2019.
    \4\ See Memorandum, ``Extension of Deadline for Final Results of 
Countervailing Duty Administrative Review,'' dated October 10, 2019.
    \5\ See Nucor's Letter, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate from the Republic of Korea: Case Brief,'' dated 
December 2, 2019; POSCO's Letter, ``Certain Carbon and Alloy Steel 
Cut-to-Length Plate from the Republic of Korea, Case No. C-580-888: 
POSCO's Case Brief,'' dated December 2, 2019; and GOK's Letter, 
``Certain Carbon and Alloy Steel Cut-to-Length Plate from the 
Republic of Korea, 04/04/2017-12/31/2017 Administrative Review, Case 
No. C-580-888: Case Brief of the Government of Korea,'' dated 
December 2, 2019.
    \6\ See Nucor's Letter, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate from the Republic of Korea: Rebuttal Brief,'' dated 
December 9, 2019; and POSCO's Letter, ``Certain Carbon and Alloy 
Steel Cut-to-Length Plate from the Republic of Korea, Case No. C-
580-888: POSCO's Rebuttal Brief,'' dated December 9, 2019.

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[[Page 2711]]

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.
    A full description of the scope of the order is contained in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\7\
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    \7\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review: 
Certain Carbon and Alloy Steel Cut-to-Length Plate from the Republic 
of Korea; 2017,'' dated concurrently with this notice (Issues and 
Decision Memorandum).
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Analysis of Comments Received

    All issues raised in interested parties' case and rebuttal briefs 
are addressed in the Issues and Decision Memorandum. A list of the 
issues raised by interested parties and to which we responded in the 
Issues and Decision Memorandum is provided in the Appendix to this 
notice. The Issues and 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 Issues and 
Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

Changes Since the Preliminary Results

    Based on the comments received from the interested parties, we made 
changes to the net subsidy rate calculated for the mandatory 
respondent. For a discussion of these issues, see the Issues and 
Decision Memorandum.

Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found to be countervailable, we find that there 
is a subsidy, i.e., a financial contribution from a government or 
public entity that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\8\ For a full description of the methodology 
underlying all of Commerce's conclusions, see the Issues and Decision 
Memorandum.
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    \8\ 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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Partial Rescission of Administrative Review

    In the Preliminary Results, Commerce announced its intent to 
rescind the review of Hyundai Steel Company (Hyundai) based on 
Hyundai's certified claim of no shipments of subject merchandise during 
the POI, as confirmed with U.S. Customs and Border Protection (CBP).\9\ 
No interested party submitted comments on Commerce's intent to rescind 
the review of Hyundai. 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, we are rescinding the 
administrative review of Hyundai pursuant to 19 CFR 351.213(d)(3).\10\
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    \9\ See Preliminary Results, 84 FR at 34124; and PDM at 4.
    \10\ See Issues and Decision Memorandum for further discussion.
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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 countervailable 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 used in an investigation to establish the all-others 
rate, pursuant to section 705(c)(5)(A) of the Act.

Final Results of Administrative Review

    We determine that, for the period of April 4, 2017 through December 
31, 2017, the following total net countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                   Net countervailable
                    Company                      subsidy rate  (percent
                                                       ad valorem)
------------------------------------------------------------------------
POSCO \11\....................................                     0.50
BDP International.............................                     0.50
Blue Track Equipment..........................                     0.50
Boxco.........................................                     0.50
Bukook Steel Co., Ltd.........................                     0.50
Buma CE Co., Ltd..............................                     0.50
Daelim Industrial Co., Ltd....................                     0.50
Daesam Industrial Co., Ltd....................                     0.50
Daesin Lighting Co., Ltd......................                     0.50
Daewoo International Corp.....................                     0.50
Dong Yang Steel Pipe..........................                     0.50
Dongkuk Industries Co., Ltd...................                     0.50
Dongkuk Steel Mill Co., Ltd...................                     0.50
Dongbu Steel Co., Ltd.........................                     0.50
EAE Automotive Equipment......................                     0.50
EEW KHPC Co., Ltd.............................                     0.50
Eplus Expo Inc................................                     0.50
GS Global Corp................................                     0.50
Haem Co., Ltd.................................                     0.50

[[Page 2712]]

 
Han Young Industries..........................                     0.50
Hyosung Corp..................................                     0.50
Jinmyung Frictech Co., Ltd....................                     0.50
Korean Iron and Steel Co., Ltd................                     0.50
Kyoungil Precision Co., Ltd...................                     0.50
Samsun C&T Corp...............................                     0.50
SK Netwoks Co., Ltd...........................                     0.50
Steel N People Ltd............................                     0.50
Summit Industry...............................                     0.50
Sungjin Co., Ltd..............................                     0.50
Young Sun Steel...............................                     0.50
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Disclosure
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    \11\ Commerce has determined 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. See Preliminary 
Results, 84 FR at 34124; and PDM at 11.
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    Commerce intends to disclose the calculations performed for these 
final results of review within five days of the date of publication of 
this notice in the Federal Register, in accordance with 19 CFR 
351.224(b).

Assessment Rate

    Pursuant to 19 CFR 351.212(b)(2), Commerce intends to issue 
assessment instructions to CBP 15 days after publication of the final 
results of this review. We will instruct CBP to liquidate shipments of 
subject merchandise produced and/or exported by the companies listed 
above, entered, or withdrawn from warehouse for consumption, from April 
4, 2017 through December 31, 2017, at the ad valorem rates listed.

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 the companies listed in these final results will 
be equal to the subsidy rates established in the final results of this 
review; (2) for all non-reviewed firms, we will instruct CBP to 
continue to collect cash deposits at the most recent company-specific 
or all-others rate applicable to the company, as appropriate. These 
cash deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification Regarding Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written notification of the return or destruction of APO 
materials, or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a sanctionable violation.
    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).

    Dated: January 10, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Partial Rescission of Administrative Review
IV. Scope of the Order
V. Rate for Non-Examined Companies
VI. Subsidies Valuation Information
VII. Use of Facts Otherwise Available
VIII. Analysis of Programs
IX. Discussion of Comments
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
for Industrial Technology Innovation Promotion Act Grants Received 
During the Average Useful Life Period
    Comment 2: Whether Tax Deductions Under Restriction of Special 
Taxation Act Article 10-2 Are Countervailable
    Comment 3: Whether Tax Credits Under Article 57 of the Corporate 
Tax Act Are Countervailable
X. Recommendation

[FR Doc. 2020-00644 Filed 1-15-20; 8:45 am]
 BILLING CODE 3510-DS-P