[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 47973-47975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16825]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-879]


Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Preliminary Results and Partial Rescission of the Countervailing 
Duty Administrative Review, 2020

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain corrosion-resistant steel products 
(CORE) from the Republic of Korea (Korea). The period of review (POR) 
is January 1, 2020, through December 31, 2020. Additionally, Commerce 
is rescinding the review with respect to 31 companies.

DATES: Applicable August 5, 2022.

FOR FURTHER INFORMATION CONTACT: Dennis McClure or Zachariah Hall, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-5973 or (202) 
482-6261, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 21 and 29 and August 2, 2021, we received requests for 
multiple administrative reviews.\1\ On September 7, 2021, Commerce 
published a notice of initiation of an administrative review of the 
countervailing duty (CVD) order on CORE from Korea.\2\ On September 28, 
2021, Commerce selected KG Dongbu Steel Co., Ltd. (KG Dongbu Steel)/
Dongbu Incheon Steel Co., Ltd. (collectively, KG Dongbu) and Hyundai 
Steel Company as mandatory respondents in this administrative 
review.\3\ On March 10, 2022, Commerce extended the deadline for the 
preliminary results of this review.\4\
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    \1\ See Cleveland-Cliffs Inc., Steel Dynamics Inc., Nucor 
Corporation, and United States Steel Corporation's Letter, ``Request 
for Administrative Review,'' dated August 2, 2021; see also KG 
Dongbu Steel's Letter, ``Request for Administrative Review,'' dated 
July 29, 2021; Hyundai Steel's Letter, ``Request for Administrative 
Review,'' dated July 20, 2021; SeAH Coated Metal's Letter, ``Request 
for Administrative Review,'' dated August 2, 2021; and POSCO's and 
POSCO C&C's Letter, ``Request for Administrative Review,'' dated 
July 20, 2021.
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 50034 (September 7, 2021); see also 
Certain Corrosion-Resistant Steel Products from India, Italy 
Republic of Korea and the People's Republic of China: Countervailing 
Duty Order, 81 FR 48387 (July 25, 2016) (Order).
    \3\ On March 27, 2020, KG Dongbu Steel's shareholders changed 
its name from Dongbu Steel to KG Dongbu Steel. See Dongbu's Letter, 
``Affiliated Companies Response,'' dated October 28, 2021.
    \4\ See Memorandum, ``Extension of Deadline for the Preliminary 
Results of the 2020 Countervailing Duty Administrative Review,'' 
dated March 10, 2022.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\5\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included at the Appendix I to this notice. 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 is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed

[[Page 47974]]

directly at https://access.trade.gov/public/FRNoticesListLayout.aspx/.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results and Partial Rescission of the Countervailing Duty 
Administrative Review; 2020: Certain Corrosion-Resistant Steel 
Products from the Republic of Korea,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Order

    The merchandise covered by the Order is certain corrosion-resistant 
steel products. For a complete description of the scope of the Order, 
see the Preliminary Decision Memorandum.

Rescission of Administrative Review, In Part

    On February 11, 2022, Commerce notified interested parties that we 
intended to rescind this administrative review with respect to the 31 
companies listed in Appendix III, because there are no reviewable 
suspended entries for these companies based on the POR entry data from 
U.S. Customs and Border Protection (CBP).\6\ No parties commented on 
the notification of intent to rescind the review, in part. Therefore, 
we determine that there were no entries of subject merchandise, during 
the POR, by these companies based on the CBP data. As a result of our 
finding, we are rescinding this review, in part, pursuant to 19 CFR 
351.213(d)(3) with respect to the 31 companies listed in Appendix III 
to this notice.
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    \6\ See Memorandum, ``Notice of Intent to Rescind Review, In 
Part,'' dated February 11, 2022.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a financial contribution from 
an authority that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\7\ For a full description of the methodology 
underlying our conclusions, see the accompanying Preliminary Decision 
Memorandum.
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    \7\ 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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Preliminary Rate for Non-Selected Companies Under Review

    The statute and Commerce's regulations do not directly address the 
CVD rates to be applied to companies not selected for individual 
examination where Commerce limited 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 777A(e)(2) of the Act provides that ``the 
individual countervailable subsidy rates determined under subparagraph 
(A) shall be used to determine the all-others rate under section 
705(c)(5) {of the Act{time} .'' Section 705(c)(5)(A) of the Act states 
that for companies not investigated, in general, we will determine an 
all-others rate by weight-averaging the countervailable subsidy rates 
established for each of the companies individually investigated, 
excluding zero and de minimis rates or any rates based solely on the 
facts available.
    We preliminarily determine that KG Dongbu is the only mandatory 
respondent that received countervailable subsidies that are above de 
minimis. Therefore, we preliminarily determine to apply the net subsidy 
rate calculated for KG Dongbu to the non-selected companies. For a list 
of the six companies for which a review was requested but are not being 
rescinded, and which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent, see Appendix II to 
this notice.

Preliminary Results of Review

    As a result of this review, we preliminarily determine the net 
countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                     Producer/exporter                         (percent
                                                             ad valorem)
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KG Dongbu Steel Co., Ltd. and its Cross-Owned Affiliate,            9.51
 Dongbu Incheon Steel Co., Ltd \8\.........................
Hyundai Steel Company, and its Cross-Owned Affiliate,             * 0.27
 Hyundai Green Power.......................................
Non-Selected Companies Under Review \9\....................         9.51
------------------------------------------------------------------------
* (de minimis).

Verification
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    \8\ Note to importers: in the previous administrative review, 
Commerce found that KG Dongbu Steel Co., Ltd. is the successor-in-
interest to Dongbu Steel Co., Ltd. See Certain Corrosion-Resistant 
Steel Products from the Republic of Korea: Final Results and Partial 
Rescission of Countervailing Duty Administrative Review; 2019, 87 FR 
2759, 2760 (January 19, 2022). The name Dongbu Steel Co., Ltd. 
should no longer be used on entry documentation.
    \9\ See Appendix II.
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    As provided in section 782(i)(3) of the Act, Commerce intends to 
verify the information relied upon for its final results.

Disclosure and Public Comment

    We intend to disclose to interested parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). A 
timeline for the submission of case and rebuttal briefs and written 
comments will be provided to interested parties at a later date.\10\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information, 
until further notice.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this review are 
encouraged to submit with each argument: (1) a statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
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    \10\ See 19 CFR 351.309(c) and (d).
    \11\ See 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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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. 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, time, and 
location of the hearing two days before the scheduled date.
    Unless the deadline is extended, we intend to issue the final 
results of this administrative review, which will include the results 
of our analysis of the issues raised in the case briefs, within 120 
days of publication of these preliminary results in the Federal 
Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 
351.213(h).

Assessment Rate

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and CBP shall assess, countervailing duties 
on all appropriate entries covered by this review.
    For the companies for which this review is rescinded, we will 
instruct CBP to assess CVDs on all appropriate entries at a rate equal 
to the cash deposit

[[Page 47975]]

of estimated CVDs required at the time of entry, or withdrawal from 
warehouse, for consumption, during the period January 1, 2020, through 
December 31, 2020, in accordance with 19 CFR 351.212(c)(l)(i). We 
intend to issue assessment instructions to CBP for these companies no 
earlier than 35 days after the date of publication of this notice in 
the Federal Register.
    For the companies remaining in the review, we will instruct CBP to 
assess CVDs on all appropriate entries at the subsidy rates calculated 
in the final results of this review. We intend 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).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above 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 
administrative review. For all non-reviewed firms, we will instruct CBP 
to continue to collect cash deposits at the most recent company-
specific or all others rate applicable to the company. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: July 29, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation

Appendix II

List of Non-Selected Companies

1. POSCO Coated & Color Steel Co., Ltd.
2. POSCO
3. Samsung Electronics Co., Ltd.
4. SeAH Coated Metal
5. SeAH Steel Corporation
6. SY Co., Ltd.

Appendix III

List of Rescinded Companies

1. Ajin H & S Co., Ltd.
2. AJU Steel Co. Ltd.
3. B&N International
4. CDS Global Logistics
5. Daewon SD Co., Ltd.
6. Dong A Hwa Sung Co., Ltd.
7. Dongkuk International, Inc.
8. Jawon Korea Co., Ltd.
9. Kima Steel Corporation
10. Korea Clad Tech. Co., Ltd.
11. Pantos Logistics Co., Ltd.
12. PL Special Steel Co., Ltd.
13. POSCO Daewoo Corp.
14. Prosperity Tieh Enterprise Co., Ltd.
15. Samsung C&T Corporation
16. Sanglim Steel Co., Ltd.
17. Seajin St. Industry, Ltd.
18. Segye Chemical Industry Co., Ltd.
19. Sejung Shipping Co., Ltd.
20. Seun Steel Co., Ltd.
21. Shengzhou Hanshine Import and Export Trade
22. Soon Hong Trading Co., Ltd.
23. SSangyong Manufacturing
24. Sung A Steel Co., Ltd.
25. SW Co., Ltd.
26. Syon
27. TCC Steel. Co., Ltd.
28. Young Steel Co.
29. Young Steel Korea Co., Ltd.
30. Young Sun Steel Co.
31. Yuchang Air Con Co., Ltd.

[FR Doc. 2022-16825 Filed 8-4-22; 8:45 am]
BILLING CODE 3510-DS-P