[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21827-21829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08302]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


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

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

SUMMARY: The Department of Commerce (Commerce) determines that Hyosung 
Heavy Industries Corporation (Hyosung) and Hyundai Electric & Energy 
Systems Co. (Hyundai) made sales of large power transformers from the 
Republic of Korea (Korea) at less than normal value during

[[Page 21828]]

the period of review (POR) August 1, 2017 through July 31, 2018.

DATES: Applicable April 20, 2020.

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

SUPPLEMENTARY INFORMATION:

Background

    On October 17, 2019, Commerce published the Preliminary Results.\1\ 
Commerce published the Amended Preliminary Results on November 27, 
2019, stating that Commerce preliminarily determined that LSIS Co., Ltd 
(LSIS) had no shipments during the POR.\2\ A summary of the events that 
occurred since Commerce published these Preliminary Results, as well as 
a full discussion of the issues raised by parties for this final 
determination, may be found in the Issues and Decision Memorandum.\3\
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    \1\ See Large Power Transformers from the Republic of Korea: 
Preliminary Results of Antidumping Duty Administrative Review; 2017-
2018, 84 FR 55559 (October 17, 2019) (Preliminary Results).
    \2\ See Large Power Transformers from the Republic of Korea: 
Correction to the Preliminary Results of Antidumping Duty 
Administrative Review; 2017-2018, 84 FR 65350 (November 27, 2019) 
(Amended Preliminary Results).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Administrative Review of the Antidumping Duty 
Order on Large Power Transformers from the Republic of Korea; 2017-
2018,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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    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. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/index.html. 
The signed and electronic versions of the Issues and 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. For a complete description of the scope of the order, see 
the accompanying Issues and Decision Memorandum.

Final Determination of No Shipments

    In the Amended Preliminary Results, Commerce determined that LSIS 
had no shipments of subject merchandise during the POR.\4\ As no party 
commented on this issue and because we have not received any 
information to contradict our preliminary finding, we continue to find 
that LSIS did not have any shipments of subject merchandise during the 
POR and intend to issue appropriate instructions to U.S. Customs and 
Border Protection (CBP) based on the final results of this review.
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    \4\ See Amended Preliminary Results.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Issues and Decision 
Memorandum. For a list of the issues raised by parties, see the 
appendix to this notice.

Changes Since the Preliminary Results

    Commerce has made no changes to the Preliminary Results with 
respect to Hyundai. As stated in the Preliminary Results, we found that 
the application of total facts otherwise available, with adverse 
inferences, to Hyundai's weighted-average dumping margin, pursuant to 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the 
Act), was warranted.
    Based on our review of the record and comments received from 
interested parties, we made certain changes to the margin calculations 
for Hyosung.\5\ As a result of these changes, the weighted-average 
dumping margin also changes for the companies not selected for 
individual examination.
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    \5\ See Issues and Decision Memorandum at Comment 5; see also 
Analysis of Data Submitted by Hyosung Corporation in the Final 
Results of the 2017-2018 Administrative Review of the Antidumping 
Duty Order on Large Power Transformers from the Republic of Korea, 
dated April 14, 2020.
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Final Results of the Review

    The final weighted-average dumping margins are as follows:

 
------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Heavy Industries Corporation........................       37.42
Hyundai Electric & Energy Systems Co., Ltd..................       60.81
Iljin Electric Co., Ltd.....................................       37.42
Iljin.......................................................       37.42
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed to parties in this 
proceeding within five days of the date of publication of this notice, 
in accordance with 19 CFR 351.224(b).

Assessment Rate

    Commerce shall determine, and CBP shall assess, antidumping duties 
on all appropriate entries.\6\ For any individually examined 
respondents whose weighted-average dumping margin is above de minimis, 
we calculated importer-specific ad valorem duty assessment rates based 
on the ratio of the total amount of dumping calculated for the 
importer's examined sales to the total entered value of those same 
sales, in accordance with 19 CFR 351.212(b)(1). Upon issuance of the 
final results of this administrative review, if any importer-specific 
assessment rates calculated in the final results are above de minimis 
(i.e., at or above 0.5 percent), Commerce will issue instructions 
directly to CBP to assess antidumping duties on appropriate entries.
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    \6\ In these final results, Commerce applied the assessment rate 
calculation method adopted in Antidumping Proceedings: Calculation 
of the Weighted-Average Dumping Margin and Assessment Rate in 
Certain Antidumping Proceedings: Final Modification, 77 FR 8101 
(February 14, 2012).
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    To determine whether the duty assessment rates covering the period 
were de minimis, in accordance with the requirement set forth in 19 CFR 
351.106(c)(2), for each respondent we calculated importer (or 
customer)-specific ad valorem rates by aggregating the amount of 
dumping calculated for all U.S. sales to that importer or customer and 
dividing this amount by the total entered value of the sales to that 
importer (or customer). Where an importer (or customer)-specific ad 
valorem rate is greater than de minimis, and the respondent has 
reported reliable entered values, we will apply the assessment rate to 
the entered value of the importer's/customer's entries during the POR.

[[Page 21829]]

    As explained in the previous administrative review of this 
proceeding,\7\ above, we find that Hyosung has provided sufficient 
evidence, based on the totality of the circumstances under Commerce's 
successor-in-interest criteria, to demonstrate that Hyosung Heavy 
Industries Corporation is the successor-in-interest to Hyosung 
Corporation. Accordingly, after the publication of these final results, 
we intend to issue liquidation instructions covering entries made by 
Hyosung Heavy Industries Corporation and Hyosung Corporation during the 
POR at the rate established in these final results.\8\
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    \7\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2016-2017, 
84 FR 16461 (April 19, 2019) (LPTs 16-17 Final), and accompanying 
Issues and Decision Memorandum (IDM) at Comment 22.
    \8\ See Issues and Decision Memorandum at Comment 7.
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    We intend to issue assessment instructions directly 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 this notice for all shipments of subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
publication of these final results, as provided by section 751(a)(2) of 
the Act: (1) The cash deposit rate for respondents noted above will be 
equal to the weighted-average dumping margins established in the final 
results of this administrative review; (2) for merchandise exported by 
producers or exporters not covered in this administrative 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; (3) if the exporter is 
not a firm covered in this review, a prior review, or the original 
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 subject merchandise; and (4) the 
cash deposit rate for all other producers or exporters will continue to 
be 22.00 percent, the all-others rate established in the less-than-
fair-value investigation.\9\ These cash deposit requirements, when 
imposed, shall remain in effect until further notice.
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    \9\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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    As explained in the previous administrative review of this 
proceeding,\10\ above, we find that Hyosung has provided sufficient 
evidence, based on the totality of the circumstances under Commerce's 
successor-in-interest criteria, to demonstrate that Hyosung Heavy 
Industries Corporation is the successor-in-interest to Hyosung 
Corporation. Accordingly, we intend to instruct CBP to continue 
collecting deposits from Hyosung Heavy Industries Corporation, and any 
entries of merchandise produced by Hyosung Corporation, at the rate 
assigned to Hyosung pursuant to these final results.\11\
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    \10\ See LPTs 16-17 Final IDM at Comment 22.
    \11\ See Issues and Decision Memorandum at Comment 7.
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Notification to Importers Regarding the Reimbursement of Duties

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

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction 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/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.

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, and 19 CFR 351.213(h) and 
19 CFR 351.221(b)(5). Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until May 19, 2020, unless extended.\12\
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    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020).

    Dated: April 14, 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. Scope of the Order
IV. Application of Adverse Facts Available
V. Discussion of the Issues

Hyundai-Specific Issues

Comment 1: Application of AFA
    (A) Hyundai's Completeness Failure at Verification
    (B) Hyundai's Reporting of Sales Documentation
    (C) Hyundai's Understatement of its Home Market Gross Unit 
Prices
    (D) Application of Total AFA
Comment 2: Selection of AFA Rate
Comment 3: Reliability of Hyundai's Cost Data
Comment 4: Moot Issue

Hyosung-Specific Issues

Comment 5: Ministerial Errors/Programming Changes
    (A) Revenue Capping in the Home Market--Indirect Selling 
Expenses
    (B) Installation Revenue
    (C) Revenue Capping in the U.S. Market--Storage Revenue
    (D) Other Expenses in the U.S. Market
Comment 6: Warranty Expenses
Comment 7: U.S. Customs and Border Protection (CBP) Instructions

General Issues

Comment 8: Rate for Non-selected Respondents
VI. Recommendation

[FR Doc. 2020-08302 Filed 4-17-20; 8:45 am]
BILLING CODE 3510-DS-P