[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Notices]
[Pages 59695-59696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23465]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]


Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: 
Notice of Court Decision Not in Harmony With Final Results of 
Administrative Review of the Antidumping Duty Order and Notice of 
Amended Final Results of Review

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

SUMMARY: On October 19, 2021, the U.S. Court of International Trade 
(the CIT) issued its final judgment in Husteel Co., Ltd. v. United 
States, Consol. Court no. 19-00107, sustaining the Department of 
Commerce (Commerce)'s second remand results pertaining to the 
administrative review of the antidumping duty (AD) order on circular 
welded non-alloy steel pipe (CWP) from the Republic of Korea (Korea). 
Commerce is notifying the public that the CIT's final judgment is not 
in harmony with Commerce's final results of the administrative review, 
and that Commerce is amending the final results with respect to the 
dumping margin assigned to Husteel Co., Ltd., Hyundai Steel Company, 
and the non-examined companies (SeAH Steel Corporation and NEXTEEL Co., 
Ltd.).

DATES: Applicable October 29, 2021.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2631.

SUPPLEMENTARY INFORMATION:

Background

    On June 6, 2019, Commerce published its Final Results in the 2016-
2017 AD administrative review of CWP from Korea.\1\ Commerce determined 
in the Final Results that a particular market situation (PMS) existed 
in Korea with regard to the respondents' purchases of hot-rolled coil, 
the primary input for the production of subject merchandise and, 
accordingly, we made an adjustment to the cost of production for the 
purposes calculating normal value when based upon home market sales and 
for the purposes of the sales-below-cost test.\2\ Husteel Co., Ltd., 
Hyundai Steel Company, SeAH Steel Corporation, and NEXTEEL Co., Ltd. 
appealed Commerce's Final Results. On October 19, 2020, the CIT 
remanded the Final Results to Commerce, holding that Commerce does not 
have statutory authority to address a PMS when determining normal value 
using home market sales by adjusting the cost of production for 
purposes of the sales-below-cost test.\3\
---------------------------------------------------------------------------

    \1\ See Circular Welded Non-Alloy Steel Pipe from the Republic 
of Korea: Final Results of Antidumping Duty Administrative Review; 
2016-2017, 84 FR 26401 (June 6, 2019) (Final Results), and 
accompanying Issues and Decision Memorandum (IDM).
    \2\ See Final Results IDM at Comment 1.
    \3\ See Husteel Co., Ltd. v. United States, 476 F. Supp. 3d 1363 
(CIT 2020) (Husteel I).
---------------------------------------------------------------------------

    In its First Remand Redetermination, issued in December 2020, to 
address the PMS, rather than basing normal value on home market sales, 
Commerce based normal value on constructed value and continued to make 
PMS adjustments to calculate the respondents' costs when calculating 
constructed value.\4\ The CIT remanded for a second time, after 
granting Commerce's request for a partial voluntary remand to 
reconsider its approach of basing normal value on constructed value and 
making certain PMS adjustments to address the PMS.\5\
---------------------------------------------------------------------------

    \4\ See Final Results of Redetermination Pursuant to Court Order 
Husteel Co., Ltd., et al. v. United States, Court No. 19-00107, Slip 
Op. 20-147 (CIT October 19, 2020), dated December 17, 2020 (First 
Remand Redetermination).
    \5\ See Husteel Co., Ltd. v. United States, 517 F. Supp. 3d 
1342, 1348 (CIT 2021) (Husteel II). Commerce requested a partial 
voluntary remand in light of the Court's decision in Saha Thai II. 
See Saha Thai Steel Pipe Pub. Co. Ltd. v. United States, 487 F. 
Supp. 3d 1323 (CIT 2020) (Saha Thai II). In that case, the CIT found 
that ``Commerce's exclusion of home market sales due to distortions 
in the cost of production is not authorized by statute,'' and found 
that ``Commerce had not met the precondition of calculating 
constructed value when it made a particular market situation 
determination based on distorted cost of production.'' Saha Thai II, 
487 F. Supp. 3d at 1331-34. The methodology that the Court rejected 
in Saha Thai II was the same methodology Commerce had applied in the 
First Remand Redetermination.
---------------------------------------------------------------------------

    In its Second Remand Redetermination, issued in June 2021, 
Commerce, under protest, determined normal value once again using home 
market sales, removed the PMS adjustments it applied in both the Final 
Results and the First Remand Redetermination, and recalculated the 
dumping margins.\6\ The CIT sustained Commerce's Second Remand 
Redetermination.\7\
---------------------------------------------------------------------------

    \6\ See Final Results of Redetermination Pursuant to Court Order 
Husteel Co., Ltd., et al. v. United States, Court No. 19-00107, Slip 
Op. 21-51 (CIT May 3, 2021), dated June 22, 2021 (Second Remand 
Redetermination).
    \7\ See Husteel Co., Ltd. v. United States, Consol. Court No. 
19-00107, Slip Op. 21-147 (CIT October 19, 2021) (Husteel III).
---------------------------------------------------------------------------

Timken Notice

    In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\ 
the Court of Appeals for the Federal Circuit held that, pursuant to 
section 516A(c) and (e) of the Tariff Act of 1930, as amended (the 
Act), Commerce must publish a notice of court decision that is not ``in 
harmony'' with a Commerce determination and must suspend liquidation of 
entries pending a ``conclusive'' court decision. The CIT's October 19, 
2021, judgment constitutes a final decision of the CIT that is not in 
harmony with Commerce's Final Results. Thus, this notice is published 
in fulfillment of the publication requirements of Timken.
---------------------------------------------------------------------------

    \8\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \9\ See Diamond Sawblades Manufacturers Coalition v. United 
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
---------------------------------------------------------------------------

Amended Final Results

    Because there is now a final court judgment, Commerce is amending 
its Final Results with respect to Husteel Co., Ltd., Hyundai Steel 
Company, and the non-examined companies (SeAH Steel Corporation and 
NEXTEEL Co., Ltd.) as follows:

[[Page 59696]]



------------------------------------------------------------------------
                                                               Weighted
                                                                average
                           Company                              dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Husteel Co., Ltd............................................        6.44
Hyundai Steel Company.......................................        4.82
Non-Examined Companies (SeAH Steel Corporation and NEXTEEL          5.63
 Co., Ltd.).................................................
------------------------------------------------------------------------

Amended Cash Deposit Rates

    Because Husteel Co., Ltd., Hyundai Steel Company, and the non-
examined companies (SeAH Steel Corporation and NEXTEEL Co., Ltd.) have 
a superseding cash deposit rate, i.e., there have been final results 
published in a subsequent administrative review,\10\ we will not issue 
revised cash deposit instructions to U.S. Customs and Border Protection 
(CBP). This notice will not affect the current cash deposit rate.
---------------------------------------------------------------------------

    \10\ See, e.g., Circular Welded Non-Alloy Steel Pipe from the 
Republic of Korea: Final Results of Antidumping Duty Administrative 
Review and Final Determination of No Shipments; 2018-2019, 86 FR 
53631 (September 28, 2021).
---------------------------------------------------------------------------

Liquidation of Suspended Entries

    At this time, Commerce remains enjoined by CIT order from 
liquidating entries that: Were produced and/or exported by Husteel Co., 
Ltd., Hyundai Steel Company or Hyundai Steel (Pipe Division), NEXTEEL 
Co., Ltd., or SeAH Steel Corporation, and were entered, or withdrawn 
from warehouse, for consumption during the period November 1, 2016, 
through October 31, 2017. These entries will remain enjoined pursuant 
to the terms of the injunction during the pendency of any appeals 
process.
    In the event the CIT's ruling is not appealed, or, if appealed, 
upheld by a final and conclusive court decision, Commerce intends to 
instruct CBP to assess antidumping duties on unliquidated entries of 
subject merchandise produced and/or exported by Husteel Co., Ltd., 
Hyundai Steel Company, and the non-examined companies (SeAH Steel 
Corporation and NEXTEEL Co., Ltd.) in accordance with 19 CFR 
351.212(b). We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review when the importer-specific 
ad valorem assessment rate is not zero or de minimis. Where an import-
specific ad valorem assessment rate is zero or de minimis,\11\ we will 
instruct CBP to liquidate the appropriate entries without regard to 
antidumping duties.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.106(c)(2).
---------------------------------------------------------------------------

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(e)(1), 751(b), and 777(i)(1) of the Act.

    Dated: October 22, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2021-23465 Filed 10-27-21; 8:45 am]
BILLING CODE 3510-DS-P