[Federal Register Volume 86, Number 142 (Wednesday, July 28, 2021)]
[Notices]
[Pages 40465-40467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16083]


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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; 2018

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain cold-rolled steel flat products (cold-rolled steel) from the 
Republic of Korea. The period of review (POR) is January 1, 2018, 
through December 31, 2018.

DATES: Applicable July 28, 2021.

FOR FURTHER INFORMATION CONTACT: Moses Song or Tyler Weinhold, 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) 482-1121, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Results of this review on 
January 26, 2021.\1\ On April 8, 2021, Commerce extended the deadline 
for the final results of this administrative review until July 23, 
2021.\2\ On May 25, 2021, Commerce issued a post-preliminary analysis 
on the electricity for less than adequate remuneration allegation and 
the equity infusions that Dongbu Steel Co., Ltd. (Dongbu Steel) 
received.\3\ For a description of the events that occurred since the 
Preliminary Results, see the Issues and Decision Memorandum.\4\
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    \1\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Preliminary Results of Countervailing Duty 
Administrative Review; 2018, 86 FR 7063 (January 26, 2021) 
(Preliminary Results), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products 
from the Republic of Korea; Countervailing Duty Administrative 
Review; 2018: Extension of Deadline for Final Results,'' dated April 
8, 2021.
    \3\ See Memorandum, ``Countervailing Duty Administrative Review 
of Certain Cold-Rolled Steel Flat Products from the Republic of 
Korea: Post-Preliminary Analysis Memorandum--Electricity for Less 
than Adequate Remuneration and Equity Infusions,'' dated May 25, 
2021.
    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2018 Administrative Review of the 
Countervailing Duty Order on Certain Cold-Rolled Steel Flat Products 
from the Republic of Korea,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Order

    The product covered by this order is cold-rolled steel. 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 accompanying this notice. A list 
of the issues raised by parties, and to which Commerce responded in the 
Issues and Decision Memorandum, is provided in Appendix I 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/.

Changes Since the Preliminary Results

    Based on the comments received and record evidence, we made certain 
changes to the Preliminary Results with

[[Page 40466]]

respect to the net subsidy calculated for Dongbu Steel/Dongbu Incheon 
Steel Co., Ltd. (collectively, Dongbu), and for companies not selected 
for individual review. These changes are explained in 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.\5\ For a description of the methodology underlying all of 
Commerce's conclusions, see the Issues and Decision Memorandum.
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    \5\ 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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    In making these final results, Commerce is relying, in part, on 
facts otherwise available, including an adverse inference, pursuant to 
section 776(a) and 776(b) of the Act. For a full discussion of our 
application of facts otherwise available, see the Preliminary 
Results.\6\
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    \6\ See Preliminary Results Preliminary Decision Memorandum at 
16-18.
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Companies Not Selected for Individual Review

    For the companies not selected for individual review, because the 
rates calculated for Dongbu and Hyundai Steel Co., Ltd. (Hyundai Steel) 
are above de minimis and not based entirely on facts available, we 
applied a subsidy rate based on the weighted-average of the subsidy 
rates calculated for Dongbu and Hyundai Steel using publicly ranged 
sales data submitted by the respondents.\7\ This is consistent with the 
methodology that we use in an investigation to establish the all-others 
rate, pursuant to section 705(c)(5)(A) of the Act.
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    \7\ With two respondents under review, Commerce normally 
calculates: (A) A weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly ranged U.S. 
sales values for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters.
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Final Results of Administrative Review

    We determine that, for the period January 1, 2018 through December 
31, 2018, the following net countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd....            9.18
Hyundai Steel Co., Ltd..................................            0.51
Non-Selected Companies Under Review \8\.................            1.93
------------------------------------------------------------------------

Assessment Rate 
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    \8\ See Appendix II.
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    Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and U.S. 
Customs and Border Protection (CBP) shall assess, countervailing duties 
on all appropriate entries of subject merchandise in accordance with 
the final results of this review, for the above-listed companies at the 
applicable ad valorem assessment rates listed. Consistent with its 
recent notice,\9\ Commerce intends to issue assessment instructions to 
CBP no earlier than 35 days after the date of publication of the final 
results of this review in the Federal Register. If a timely summons is 
filed at the U.S. Court of International Trade, the assessment 
instructions will direct CBP not to liquidate relevant entries until 
the time for parties to file a request for a statutory injunction has 
expired (i.e., within 90 days of publication).
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    \9\ See Notice of Discontinuation of Policy to Issue Liquidation 
Instructions After 15 Days in Applicable Antidumping and 
Countervailing Duty Administrative Proceedings, 86 FR 3995 (January 
15, 2021).
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Cash Deposit Rates

    In accordance with section 751(a)(1) of the Act, Commerce intends 
to instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for each of the companies listed above. 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 deposits, when imposed, shall remain in effect 
until further notice.

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
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). 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 sanctionable 
violation.

Disclosure

    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).

Notice to Interested Parties

    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: July 22, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

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. Subsidies Valuation Information
VIII. Use of Facts Otherwise Available
IX. Analysis of Programs
X. Discussion of Comments
    Comment 1: Whether Electricity for Less Than Adequate 
Remuneration Confers a Benefit
    Comment 2: Whether Commerce's Determination that Port Usage 
Rights Provide a Countervailable Benefit is Unsupported by Evidence 
and Contrary to Law
    Comment 3: Whether the Reduction for Sewerage Usage Fees is 
Countervailable
    Comment 4: Whether the Restructuring of Dongbu's Existing Loans 
by GOK-Controlled Financial Institutions Constitutes a Financial 
Contribution and a Benefit to Dongbu
    Comment 5: Whether the Restructured Loans Provided to Dongbu 
were Specific
    Comment 6: Whether Commerce Should Use the Interest Rates from 
Loans Provided by Private Banks Participating in the Creditor Bank 
Committee as Benchmarks
    Comment 7: Whether Dongbu Steel's Debt-to-Equity Conversions are 
Countervailable
    Comment 8: Whether Commerce Incorrectly Calculated the Discount 
Rate for Allocating the Benefits from the Debt-to-Equity Conversions
    Comment 9: Whether Commerce Made a Ministerial Error in Its 
Calculation of the Benefit Conferred by Dongbu's Debt Restructuring 
Program by Omitting Certain Benefit Amounts
XI. Recommendation

Appendix II

List of Non-Selected Companies

1. AJU Steel Co., Ltd.

[[Page 40467]]

2. Amerisource Korea
3. BC Trade
4. Busung Steel Co., Ltd.
5. Cenit Co., Ltd
6. Daewoo Logistics Corporation
7. Dai Yang Metal Co., Ltd.
8. DK GNS Co., Ltd.
9. Dong Jin Machinery
10. Dongkuk Steel Mill Co., Ltd.
11. Dongkuk Industries Co., Ltd.
12. Eunsan Shipping and Air Cargo Co., Ltd.
13. Euro Line Global Co., Ltd.
14. GS Global Corp.
15. Hanawell Co., Ltd.
16. Hankum Co., Ltd.
17. Hyosung TNC Corp.
18. Hyuk San Profile Co., Ltd.
19. Hyundai Group
20. Iljin NTS Co., Ltd.
21. Iljin Steel Corp.
22. Jeen Pung Industrial Co., Ltd.
23. Kolon Global Corporation
24. Nauri Logistics Co., Ltd.
25. Okaya Korea Co., Ltd.
26. PL Special Steel Co., Ltd.
27. POSCO
28. POSCO C&C Co., Ltd.
29. POSCO Daewoo Corp.
30. POSCO International Corp.
31. Samsung C&T Corp.
32. Samsung STS Co., Ltd.
33. SeAH Steel Corp.
34. SK Networks Co., Ltd.
35. Taihan Electric Wire Co., Ltd.
36. TGS Pipe Co., Ltd.
37. TI Automotive Ltd.
38. Xeno Energy

[FR Doc. 2021-16083 Filed 7-27-21; 8:45 am]
BILLING CODE 3510-DS-P