[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59056-59058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21181]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-913]


Oil Country Tubular Goods From the Republic of Korea: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of oil country tubular goods (OCTG) from the Republic of Korea (Korea). 
The period of investigation is January 1, 2020, through December 31, 
2020.

DATES: Applicable September 29, 2022.

FOR FURTHER INFORMATION CONTACT: Jacob Garten or Melissa Porpotage, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-3342 or (202) 
482-1413, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 14, 2022, Commerce published the Preliminary Determination 
in the Federal Register.\1\ For a complete description of the events 
that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\2\ 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 https://access.trade.gov. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------

    \1\ See Oil Country Tubular Goods from the Republic of Korea: 
Preliminary Negative Countervailing Duty Determination and Alignment 
of Final Determination with Final Antidumping Duty Determination, 87 
FR 14248 (March 14, 2022) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Final 
Determination of the Countervailing Duty Investigation of Oil 
Country Tubular Goods from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are OCTG from Korea. For 
a complete description of the scope of this investigation, see appendix 
I.

Scope Comments

    On March 7, 2022, concurrent with the issuance of the Preliminary 
Determination, we issued a Preliminary Scope Memorandum.\3\ In the 
Preliminary Scope Decision Memorandum, Commerce established the 
deadline for parties to submit scope case briefs.\4\ Commerce did not 
receive any comments from interested parties regarding the scope by the 
deadline. Consequently, we made no changes to the scope from the 
Preliminary Scope Decision Memorandum.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Antidumping Duty Investigations of Oil 
Country Tubular Goods from Argentina, Mexico, and the Russian 
Federation and Countervailing Duty Investigations of Oil Country 
Tubular Goods from the Republic of Korea, and the Russian 
Federation: Preliminary Scope Decision Memorandum,'' dated March 7, 
2022 (Preliminary Scope Memorandum).
    \4\ Id. at 4.
---------------------------------------------------------------------------

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs by parties in this investigation, are 
discussed in the Issues and Decision Memorandum. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see appendix II of this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found to be countervailable, Commerce determines that 
there is a subsidy, i.e., a financial contribution by an ``authority'' 
that gives rise to a benefit to the recipient and that the subsidy is 
specific.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    In making this final determination, Commerce relied, in part, on 
facts otherwise available, including adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of AFA, see the section ``Use of Facts Available and 
Adverse Inferences'' in the accompanying Issues and Decision 
Memorandum.

Verification

    As provided in section 782(i) of the Act, in August 2022, Commerce 
verified the subsidy information reported by Hyundai Steel Company 
(Hyundai Steel),\6\ SeAH Steel Corporation (SeAH Steel), and the 
Government of Korea. We used standard verification procedures, 
including an examination of relevant accounting records and original 
source documents provided by the respondents.
---------------------------------------------------------------------------

    \6\ Hyundai Steel Company is the same respondent from the 
Preliminary Determination, where we incorrectly stated the company's 
name as Hyundai Steel Corporation.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the information received at 
verification and comments received from parties, we made certain 
changes to the subsidy rate calculations for Hyundai Steel and SeAH 
Steel. As a result of these changes, Commerce also revised the all-
others rate. For a discussion of these changes, see the Issues and 
Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated an individual estimated countervailable subsidy rate for the 
two mandatory respondents, Hyundai Steel and SeAH Steel. Section 
705(c)(5)(A)(i) of the Act states that, for companies not individually 
investigated, Commerce will determine an all-others rate equal

[[Page 59057]]

to the weighted-average countervailable subsidy rates established for 
exporters and/or producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act.
    In this investigation, Commerce calculated a de minimis rate for 
Hyundai Steel. Therefore, the only rate that is not zero, de minimis, 
or based entirely on facts otherwise available is the rate calculated 
for SeAH Steel. Consequently, the rate calculated for SeAH Steel is 
also assigned as the rate for all other producers and exporters.

Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rates exist:
---------------------------------------------------------------------------

    \7\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with SeAH 
Steel Corporation: SeAH Steel Holding Corporation.

------------------------------------------------------------------------
                                                          Subsidy rate
                       Company                            (percent  ad
                                                            valorem)
------------------------------------------------------------------------
Hyundai Steel Company................................           0.25 (de
                                                               minimis).
SeAH Steel Corporation \7\...........................              1.33.
All Others...........................................              1.33.
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties its calculations 
performed in this final determination within five days of any public 
announcement, or if there is no public announcement, within five days 
of the date of publication of this notice in accordance with 19 CFR 
351.224(b).

Suspension of Liquidation

    In the Preliminary Determination, the total net countervailable 
subsidy rates for the individually examined respondents were de 
minimis, and, therefore, we did not suspend liquidation of entries of 
OCTG from Korea. However, as the estimated subsidy rate for one 
examined company, SeAH Steel, as well as the all-others rate is above 
de minimis in this final determination, we are directing U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of OCTG 
from Korea, other than those produced and exported by Hyundai Steel 
Company, that are entered, or withdrawn from warehouse, for consumption 
on or after the date of publication of this notice in the Federal 
Register, and to require a cash deposit for such entries of merchandise 
in the amounts indicated above, pursuant to section 705(c)(1)(B)(ii) of 
the Act. The suspension of liquidation will remain in effect until 
further notice.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and require a cash deposit of estimated countervailing duties for 
such entries of subject merchandise in the amounts indicated above, in 
accordance with section 706(a) of the Act. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated, and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of OCTG from 
Korea. As Commerce's final determination is affirmative, in accordance 
with section 705(b) of the Act, the ITC will determine, within 45 days, 
whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
OCTG from Korea. In addition, we are making available to the ITC all 
non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance. If 
the ITC determines that material injury or threat of material injury 
does not exist, this proceeding will be terminated, and all cash 
deposits will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue a countervailing duty order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise that are entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the 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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is certain OCTG, 
which are hollow steel products of circular cross-section, including 
oil well casing and tubing, of iron (other than case iron) or steel 
(both carbon and alloy), whether seamless or welded, regardless of 
end finish (e.g., whether or not plain end, threaded, or threaded 
and coupled) whether or not conforming to American Petroleum 
Institute (API) or non-API specifications, whether finished 
(including limited service OCTG products) or unfinished (including 
green tubes and limited service OCTG products), whether or not 
thread protectors are attached. The scope of this investigation also 
covers OCTG coupling stock.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise processed 
in a third country, including by performing any heat treatment, 
cutting, upsetting, threading, coupling, or any other finishing, 
packaging, or processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the OCTG.
    Excluded from the scope of the investigation are: Casing, 
tubing, or coupling stock containing 10.5 percent or more by weight 
of chromium; drill pipe; unattached couplings; and unattached thread 
protectors.
    The merchandise subject to this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020, 
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060, 
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030, 
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080, 
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140, 
7304.29.3150, 7304.29.3160, 7304.29.3180, 7304.29.4110, 
7304.29.4120, 7304.29.4130, 7304.29.4140, 7304.29.4150, 
7304.29.4160, 7304.29.4180, 7304.29.5015, 7304.29.5030, 
7304.29.5045, 7304.29.5060, 7304.29.5075, 7304.29.6115, 
7304.29.6130, 7304.29.6145, 7304.29.6160, 7304.29.6175, 
7305.20.2000, 7305.20.4000, 7305.20.6000, 7305.20.8000, 
7306.29.1030, 7306.29.1090, 7306.29.2000, 7306.29.3100, 
7306.29.4100, 7306.29.6010, 7306.29.6050, 7306.29.8110, and 
7306.29.8150.

[[Page 59058]]

    The merchandise subject to this investigation may also enter 
under the following HTSUS item numbers: 7304.39.0024, 7304.39.0028, 
7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062, 
7304.39.0068, 7304.39.0072, 7304.39.0076, 7304.39.0080, 
7304.59.6000, 7304.59.8015, 7304.59.8020, 7304.59.8025, 
7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045, 
7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065, 
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090, 
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
    The HTSUS subheadings and specifications above are provided for 
convenience and customs purposes only. The written description of 
the scope of this investigation is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether the Provision of Korea Emissions Trading 
System (K-ETS) Permit Program is Countervailable
    Comment 2: Whether the Preliminary Benefit Calculation for the 
Provision of K-ETS Permit Program is Incorrect
    Comment 3: Whether Commerce Should Apply Adverse Facts Available 
(AFA) Regarding the Reduction Rate Applied to Participants in the 
Provision of K-ETS Permits Program
    Comment 4: Whether Commerce Should Correct Its Calculations for 
Programs Preliminarily Found to Provide No Measurable Benefit to 
SeAH
    Comment 5: Whether Commerce Should Correct an Error in the 
Short-Term Loan Interest Rate Benchmark
    Comment 6: Whether the Discount of Electricity Fee for Energy 
Storage System (ESS) Program Is Countervailable
    Comment 7: Whether the Demand Response Resources (DRR) Program 
is Countervailable
    Comment 8: Whether Tax Credits Under Restriction of Special 
Taxation Act (RSTA) Article 25(1)(6) are Countervailable
    Comment 9: Whether the Insurance Claim Disbursements by Seoul 
Guarantee Insurance (SGI) are Countervailable
    Comment 10: Whether the Provision of Port Usage Rights at the 
Port of Incheon Are Countervailable
    Comment 11: Whether Commerce Should Apply AFA to SeAH Steel for 
Failure to Report Usage of the Korean Export-Import Bank (KEXIM) 
Performance Guarantee Program
    Comment 12: Whether the KEXIM Performance Guarantee Provides a 
Countervailable Benefit
VII. Recommendation

[FR Doc. 2022-21181 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P