[Federal Register Volume 85, Number 124 (Friday, June 26, 2020)]
[Notices]
[Pages 38361-38362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13813]



[[Page 38361]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-882]


Certain Cold-Rolled Steel Flat Products from the Republic of 
Korea: Final Results 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 
received countervailable subsidies that are above de minimis, and that 
Hyundai Steel Company (Hyundai Steel) received countervailable 
subsidies that are de minimis. The period of review (POR) is January 1, 
2017 through December 31, 2017.

DATES: Applicable June 26, 2020.

FOR FURTHER INFORMATION CONTACT: Moses Song or Yasmin Bordas, 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) 482-7885 or (202) 482-3813, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Results of this review on 
November 8, 2019.\1\ In addition, Commerce issued a post-preliminary 
determination on the upstream allegation on electricity and the debt 
workout/restructuring program of POSCO Plantec Co., Ltd. (POSCO 
Plantec), which is a POSCO affiliated entity, on April 14, 2020.\2\ For 
a history of events that occurred since the Preliminary Results, see 
the Issues and Decision Memorandum.\3\
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    \1\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Preliminary Results of Countervailing Duty 
Administrative Review; 2017, 84 FR 60377 (November 8, 2020) 
(Preliminary Results) and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Post-Preliminary Analysis Memorandum,'' 
dated April 14, 2020 (Post-Prelim Analysis Memorandum).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2017 Administrative Review: Certain Cold-Rolled 
Steel Flat Products from Republic of Korea,'' dated concurrently 
with, and hereby adopted by, this notice (Issues and Decision 
Memorandum, or IDM).
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    On March 3, 2020, we postponed the final results of this review 
until May 6, 2020.\4\ On April 24, 2020, Commerce tolled all deadlines 
in administrative reviews by 50 days, thereby extending the deadline 
for these results until June 25, 2020.\5\
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    \4\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products 
from the Republic of Korea: Extension of Deadline for Final Results 
of Countervailing Duty Administrative Review,'' dated March 3, 2020.
    \5\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews in Response to 
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
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Scope of the Order

    The merchandise covered by this order is certain cold-rolled steel 
flat products. For a complete description of the scope of this order, 
see the Issues and Decision Memorandum.

Analysis of Comments Received

    All issues raised in interested parties' case briefs are addressed 
in the Issues and Decision Memorandum. The issues are identified 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 http://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 Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on the comments received from interested parties and record 
information, we have made no changes to the net subsidy rates 
calculated for POSCO, Hyundai Steel and for those companies not 
selected for individual review. 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 countervailable, we find that there is a 
subsidy, i.e., a government-provided financial contribution that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\ For a description of the methodology underlying all of 
Commerce's conclusions, see the Issues and Decision Memorandum.
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    \6\ 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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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not directly address the 
establishment of rates to be applied to companies not selected for 
individual examination where Commerce limits its examination in an 
administrative review pursuant to section 777A(e)(2) of the Act. 
However, Commerce normally determines the rates for non-selected 
companies in reviews in a manner that is consistent with section 
705(c)(5) of the Act, which provides instructions for calculating the 
all-others rate in an investigation.
    Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general 
rule, to calculate an all-others rate equal to the weighted average of 
the countervailable subsidy rates established for exporters and 
producers individually investigated, excluding any zero, de minimis, or 
rates based entirely on facts available. Commerce looks to that 
provision as guidance in determining a rate for companies in which a 
review was requested, but which were not selected as mandatory 
respondents. In this review, the only subsidy rate above de minimis is 
the rate calculated for POSCO. Therefore, for the companies for which a 
review was requested that were not selected as mandatory respondents, 
we are applying the subsidy rate calculated for POSCO.

Final Results of Administrative Review

    In accordance with section 751(a)(1)(A) of the Act and 19 CFR 
351.221(b)(5), we determine the total estimated net countervailable 
subsidy rates for the period January 1, 2017 through December 31, 2017 
to be as follows:
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    \7\ We note that cross-ownership exists between POSCO, POSCO 
Chemtech (also known as POSCO Chemical Co., Ltd.), POSCO Nippon 
Steel RHF Joint Venture Co., Ltd., POSCO Processing and Service, 
Pohang Scrap Recycling Distribution Center Co., Ltd., and POSCO M-
Tech. This rate applies to all cross-owned companies. See 
Preliminary Results and accompanying PDM at 9.

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                                             Subsidy rate (percent ad
                 Company                             valorem)
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POSCO \7\...............................  0.59
Hyundai Steel Co., Ltd..................  0.45
                                          (de minimis)
Dongbu Steel Co., Ltd...................  0.59
Dongbu Incheon Steel Co., Ltd...........  0.59
Dongkuk Steel Mill Co., Ltd.............  0.59
Dongkuk Industries Co., Ltd.............  0.59
Euro Line Global Co., Ltd...............  0.59
Hanawell Co., Ltd.......................  0.59
Hankum Co., Ltd.........................  0.59
Hyuk San Profile Co., Ltd...............  0.59
Nauri Logistics Co., Ltd................  0.59

[[Page 38362]]

 
Taihan Electric Wire Co., Ltd...........  0.59
Union Steel Co., Ltd....................  0.59
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Assessment and Cash Deposit Requirements

    In accordance with 19 CFR 351.212(b)(2), Commerce intends to issue 
appropriate instructions to U.S. Customs and Border Protection (CBP) 15 
days after publication of these final results to liquidate shipments of 
subject merchandise. Because we have calculated a de minimis 
countervailable subsidy rate for Hyundai Steel, we will instruct CBP to 
liquidate the appropriate entries without regard to countervailing 
duties in accordance with 19 CFR 351.212. We will instruct CBP to 
liquidate shipments of subject merchandise produced and/or exported by 
POSCO and the above listed companies, entered or withdrawn from 
warehouse for consumption from January 1, 2017 through December 31, 
2017, at the ad valorem rates listed above for each respective company.
    In accordance with section 751(a)(2)(C) of the Act, we intend also 
to instruct CBP to collect cash deposits of estimated countervailing 
duties, in the amounts shown above, with the exception of Hyundai 
Steel, on shipments of subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this review. Because the countervailable subsidy rate 
for Hyundai Steel is de minimis, Commerce will instruct CBP to collect 
cash deposits at a rate of zero for Hyundai Steel for all shipments of 
the subject merchandise that are entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of the final 
results of this administrative review. For all non-reviewed firms, we 
will instruct CBP to continue to collect cash deposits of estimated 
countervailing duties 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.

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
an administrative protective order (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 
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 terms of an APO 
is a violation which is subject to sanction.

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding, in 
accordance with 19 CFR 351.224(b).
    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: June 22, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. List of Issues
III. Background
IV. Changes Since the Preliminary Results
V. Scope of the Order
VI. Period of Review
VII. Rate for Non-Examined Companies
VIII. Subsidies Valuation Information
IX. Use of Facts Otherwise Available
X. Analysis of Programs
XI. Discussion of Comments
    Comment 1: Whether the Electricity for Less Than Adequate 
Remuneration Upstream Subsidy Allegation Confers a Benefit
    Comment 2: Whether POSCO Plantec Co., Ltd. (POSCO Plantec) is 
POSCO's Cross-Owned Input Supplier
    Comment 3: Whether POSCO Plantec Received Countervailable 
Benefits Through Its Debt Restructuring Program
    Comment 4: Whether the Application of Adverse Facts Available is 
Warranted for Sungjin Geotec Co., Ltd.'s Non-Recurring Subsidies 
Received During the Average Useful Life Period
XII. Recommendation

[FR Doc. 2020-13813 Filed 6-25-20; 8:45 am]
BILLING CODE 3510-DS-P