[Federal Register Volume 85, Number 244 (Friday, December 18, 2020)]
[Notices]
[Pages 82439-82441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27913]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review, 2018-2019; 
Preliminary Determination of No Shipments; and Preliminary Successor-
in-Interest Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Hyosung Heavy Industries Corporation (Hyosung) made sales of 
subject merchandise at less than normal value during the period of 
review (POR), August 1, 2018 through July 31, 2019. Interested parties 
are invited to comment on these preliminary results.

DATES: Applicable December 18, 2020.

FOR FURTHER INFORMATION CONTACT: John Drury, 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.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce initiated this review on October 7, 2019.\1\ We selected 
one mandatory respondent in this review, Hyosung. On April 24, 2020, 
Commerce

[[Page 82440]]

exercised its discretion to toll all deadlines for administrative 
reviews conducted pursuant to section 751(a)(1) of the Tariff Act of 
1930, as amended (the Act), by 50 days.\2\ Additionally, on July 21, 
2020, Commerce exercised its discretion to toll the deadlines for all 
preliminary and final results in administrative reviews conducted 
pursuant to section 751(a)(1) of the Act, by a total of 60 days.\3\ For 
a more detailed description of the events that followed the initiation 
of this review, see the Preliminary Decision Memorandum, dated 
concurrently with these results and hereby adopted by this notice.\4\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 84 FR 53411 (October 7, 2019).
    \2\ 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.
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
    \4\ See Memorandum, ``Decision Memorandum for Preliminary 
Results of Antidumping Duty Administrative Review: Large Power 
Transformers from the Republic of Korea; 2018-2019'' (Preliminary 
Decision Memorandum), dated concurrently with this notice.
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    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 to ACCESS is available to registered users at http://access.trade.gov. 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 topics discussed in the 
Preliminary Decision Memorandum is attached as an Appendix to this 
notice. The signed Preliminary Decision Memorandum and the electronic 
versions of the Preliminary 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. This tariff classification is provided for convenience 
and Customs purposes; however, the written description of the scope of 
the order is dispositive.\5\
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    \5\ The full text of the scope of the order is contained in 
Preliminary Decision Memorandum.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(2) of the Act. For a full description of the methodology 
underlying our conclusions, see the Preliminary Decision Memorandum.

Preliminary Determination of No Shipments

    On October 23, 2019, LSIS Co., Ltd (LSIS) timely notified Commerce 
that it had no exports, sales, or entries of subject merchandise during 
the POR.\6\ Commerce issued a no shipment inquiry to U.S. Customs and 
Border Protection (CBP), and CBP found no evidence of shipments from 
LSIS during the POR.\7\ Thus, based on record evidence, we preliminary 
determine that LSIS had no shipments during the POR. Consistent with 
Commerce's practice, we find that it is not appropriate to rescind the 
review with respect to LSIS but, rather, to complete the review and 
issue appropriate instructions to CBP based on the final results of 
this review.\8\
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    \6\ See Letter, ``Large Power Transformers from the Republic of 
Korea: LSIS Co., Ltd.'s No Shipment Letter,'' dated October 23, 
2019.
    \7\ See Memorandum, ``Large Power Transformers from the Republic 
of Korea; 2018-2019 Administrative Review: No Shipment Inquiry with 
Respect to LSIS,'' dated November 21, 2019.
    \8\ See, e.g., Certain Frozen Warmwater Shrimp From Thailand; 
Preliminary Results of Antidumping Duty Administrative Review, 
Partial Rescission of Review, Preliminary Determination of No 
Shipments; 2012-2013, 79 FR 15951, 15952 (March 24, 2014), unchanged 
in Certain Frozen Warmwater Shrimp From Thailand: Final Results of 
Antidumping Duty Administrative Review, Final Determination of No 
Shipments, and Partial Rescission of Review; 2012-2013, 79 FR 51306 
(August 28, 2014); Magnesium Metal From the Russian Federation: 
Preliminary Results of Antidumping Duty Administrative Review, 75 FR 
26922, 26923 (May 13, 2010), unchanged in Magnesium Metal From the 
Russian Federation: Final Results of Antidumping Duty Administrative 
Review, 75 FR 56989 (September 17, 2010).
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Preliminary Results of Successor-in-Interest Analysis

    On May 8, 2020, LS Electric Co., Ltd. (LS Electric) requested that 
Commerce initiate a successor-in-interest changed circumstances review, 
and also requested that Commerce combine the notice of initiation of a 
changed circumstances review with the preliminary results of review.\9\ 
LS Electric stated that changed circumstances are sufficient to warrant 
such a review because LSIS had changed its name to LS Electric Co., 
Ltd., as of March 25, 2020.\10\
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    \9\ See Letter ``Large Power Transformers from the Republic of 
Korea: Request for Changed Circumstances Review Concurrent with 
Administrative Review (POR 08/01/2018--07/31/2019),'' dated May 8, 
2020 (LSIS Request).
    \10\ Id. at 1-2.
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    We are not initiating a separate changed circumstances review, but 
instead, evaluating LS Electric's request as part of this 
administrative review. Based on our analysis of the information on the 
record, we preliminarily determine that LS Electric is the successor-
in-interest to LSIS. See the Preliminary Decision Memorandum for 
further information.

Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2018 
through July 31, 2019, the following weighted-average dumping margins 
exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Heavy Industries Corporation.........................      52.75
Hyundai Electric & Energy Systems Co., Ltd...................      52.75
Iljin Electric Co., Ltd......................................      52.75
Iljin........................................................      52.75
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Disclosure and Public Comment

    Commerce will disclose to parties to the proceeding any 
calculations performed in connection with these preliminary results of 
review within five days after the date of publication of this 
notice.\11\ Interested parties are invited to comment on these 
preliminary results. Interested parties may submit case briefs no later 
than 30 days after the date of publication of this notice.\12\ Rebuttal 
briefs, the content of which is limited to the issues raised in the 
case briefs, must be filed within seven days from the deadline date for 
the submission of case briefs.\13\
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    \11\ See 19 CFR 351.224(b).
    \12\ See 19 CFR 351.309(c)(1)(ii).
    \13\ See 19 CFR 351.309(d)(1); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19; Extension of Effective 
Period, 85 FR 41363 (July 10, 2020).
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    Parties who submit case or rebuttal briefs in this proceeding are 
requested to submit with each argument: (1) a statement of the issue; 
(2) a brief summary of the argument; and (3) a table of 
authorities.\14\ Case and rebuttal briefs should be filed using 
ACCESS.\15\ Case and rebuttal briefs must be served on interested 
parties.\16\ Executive summaries should be limited to five pages total, 
including footnotes.
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    \14\ See 19 CFR 351.309(c)(2).
    \15\ See, generally, 19 CFR 351.303.
    \16\ 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 request to the Assistant Secretary for 
Enforcement and

[[Page 82441]]

Compliance within 30 days of the date of publication of this notice. 
Requests should contain: (1) The party's name, address and telephone 
number; (2) the number of participants; (3) whether any participant is 
a foreign national; and (4) 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 a time and date to be 
determined. Parties should confirm by telephone the date and time of 
the hearing two days before the scheduled date.
    Commerce intends to publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief, no later than 120 days after 
publication of these preliminary results, unless extended.\17\
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    \17\ See section 751(a)(3)(A) of the Act; see also 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. If a respondent's 
weighted-average dumping margin is not zero or de minimis 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 
to 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 for the examined sales made 
during the POR 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, we will instruct CBP to 
liquidate the appropriate entries, without regard to antidumping 
duties, in accordance with 19 CFR 351.106(c)(2). If the 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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    Regarding entries of subject merchandise during the POR that were 
produced by Hyosung and for which they did not know that the 
merchandise was destined for the United States, we will instruct CBP to 
liquidate un-reviewed entries at the all-others rate of 22.00 percent, 
as established in the less-than-fair-value investigation of the order, 
if there is no rate for the intermediate company(ies) involved in the 
transaction.\19\ For a full discussion of this matter, see Assessment 
Policy Notice.\20\
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    \19\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
    \20\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
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    We intend to issue liquidation instructions 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 the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for Hyosung and 
other companies listed above will be equal to the weighted-average 
dumping margin established in the final results of this administrative 
review; (2) for previously reviewed or investigated companies not 
listed above, 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 in the 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 merchandise; and (4) the cash deposit rate for all 
other producers or exporters will continue to be the all-others rate of 
22.00 percent, the rate established in the investigation of this 
proceeding.\21\ These cash deposit requirements, when imposed, shall 
remain in effect until further notice.
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    \21\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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Notification to Importers

    This notice also serves as a 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 review period. 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

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: December 14, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Deadline for Submission of Updated Sales and Cost Information
IV. Scope of the Order
V. Preliminary Determination of No Shipments
VI. Preliminary Results of Successor-in-Interest Analysis
VII. Discussion of the Methodology
VIII. Rate for Non-Selected Companies
IX. Recommendation

[FR Doc. 2020-27913 Filed 12-17-20; 8:45 am]
BILLING CODE 3510-DS-P