[Federal Register Volume 88, Number 69 (Tuesday, April 11, 2023)]
[Notices]
[Pages 21606-21608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07537]


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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 and Partial Rescission of Countervailing Duty 
Administrative Review; 2020

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
Hyundai Steel Co., Ltd., also referred to as Hyundai Steel Company 
(Hyundai Steel) and POSCO received de minimis net countervailable 
subsidies during the period of review (POR) January 1, 2020, through 
December 31, 2020, while other producers/exporters of certain cold-
rolled steel flat products (cold-rolled steel) from the Republic of 
Korea (Korea) received countervailable subsidies during the producers/
exporters POR.

DATES: Applicable April 11, 2023.

FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Harrison Tanchuck, 
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) 482-1121 or (202) 
482-7421, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Results of this administrative 
review on October 6, 2022.\1\ For a description of the events that 
occurred since the Preliminary Results, see the Issues and Decision 
Memorandum.\2\
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    \1\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Preliminary Results and Partial Rescission of 
Countervailing Duty Administrative Review; 2020, 87 FR 60653 
(October 6, 2022) (Preliminary Results), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results and Partial Rescission of the 2020 Administrative 
Review of the Countervailing Duty Order on Certain Cold-Rolled Steel 
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 \3\
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    \3\ See Certain Cold-Rolled Steel Flat Products from Brazil, 
India, and the Republic of Korea: Amended Final Affirmative 
Countervailing Duty Determination and Countervailing Duty Order (the 
Republic of Korea) and Countervailing Duty Orders (Brazil and 
India), 81 FR 64436 (September 20, 2016) (Order).
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    The merchandise 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 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.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in September 2022, Commerce conducted an on-site 
verification of the subsidy information reported by Hyundai Steel.\4\ 
We used standard on-site verification procedures, including an 
examination of relevant accounting records and original source 
documents provided by the respondent.
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    \4\ See Memorandum, ``Verification of the Questionnaire 
Responses of Hyundai Steel Company,'' dated December 1, 2022.
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Changes Since the Preliminary Results

    Based on the results of verification, we made certain changes to 
Hyundai's countervailable subsidy rate calculations from the 
Preliminary Results.

Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of 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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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not directly address the 
countervailing duty (CVD) rates to be applied to companies not selected 
for individual examination where Commerce limits 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.
    Accordingly, to determine the rate for companies not selected for 
individual examination, Commerce's practice is to

[[Page 21607]]

weight average the net subsidy rates for the selected mandatory 
companies, excluding rates that are zero, de minimis, or based entirely 
on facts available.\6\ In this review, we have calculated de minimis 
subsidy rates for each of the mandatory respondents (i.e., Hyundai 
Steel and POSCO) during the POR. In CVD proceedings where the number of 
respondents being individually examined has been limited, Commerce has 
determined that a ``reasonable method'' to use to determine the rate 
applicable to companies that were not individually examined when all 
the rates of selected mandatory respondents are zero or de minimis or 
based entirely on facts available, is to assign to the non-selected 
respondents the average of the most recently determined rates for the 
mandatory respondents (i.e., Hyundai Steel and POSCO) that are not 
zero, de minimis, or based entirely on facts available.\7\ However, 
where a non-selected respondent has its own calculated rate in a prior 
segment of the proceeding, Commerce has found it appropriate to apply 
the prior rate that represents the most recently calculated rate for 
that respondent, unless Commerce determines that prior rate to be 
obsolete.\8\
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    \6\ See, e.g., Certain Pasta from Italy: Final Results of the 
13th (2008) Countervailing Duty Administrative Review, 75 FR 37386, 
37387 (June 29, 2010).
    \7\ See, e.g., Circular Welded Carbon Steel Pipes and Tubes from 
Turkey: Final Results of Countervailing Duty Administrative Review; 
Calendar Year 2012 and Rescission of Countervailing Duty 
Administrative Review, in Part, 79 FR 51140, 51141 (August 27, 
2014); and Cut-to-Length Carbon-Quality Steel Plate from the 
Republic of Korea: Final Results of Countervailing Duty 
Administrative Review; 2012, 79 FR 46770 (August 11, 2014), and 
accompanying Issues and Decision Memorandum (IDM), at ``Non-Selected 
Rate''; and Steel Concrete Reinforcing Bar from the Republic of 
Turkey: Preliminary Results of Countervailing Duty Administrative 
Review and Intent To Rescind the Review in Part; 2017, 85 FR 3030 
(January 17, 2020), and accompanying PDM, at ``Non-Selected Rate,'' 
unchanged in Steel Concrete Reinforcing Bar from the Republic of 
Turkey: Final Results and Partial Rescission of Countervailing Duty 
Administrative Review; 2017, 85 FR 42353 (July 14, 2020), and 
accompanying IDM, at ``Non-Selected Rate.''
    \8\ Id.
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    We have determined that it is appropriate to assign to the 
companies subject to the review, but not selected for individual 
examination, the weighted average of the most recently calculated 
countervailable subsidy rates that are not zero or de minimis rates, or 
based solely on facts available from the prior review (i.e., Cold-
Rolled Steel from Korea AR 2018 Final Results), i.e., 1.93 percent.\9\ 
For a list of the companies for which a review was requested and not 
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.\10\
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    \9\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Final Results of Countervailing Duty 
Administrative Review; 2018, 86 FR 40465 (July 28, 2021) (Cold-
Rolled Steel from Korea AR 2018 Final Results).
    \10\ In these final results, we are correcting the Preliminary 
Results, at appendix II, to remove 41 companies for which all 
requests for administrative review were timely withdrawn. See 
appendix II of this notice. In addition, we identify these same 41 
companies in appendix III, ``List of Rescinded Companies.'' See 
appendix III.
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Recission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the party or parties 
that requested a review withdraw the request within 90 days of the 
publication date of the notice of initiation of the requested review. 
As noted above, all requests for administrative review were timely 
withdrawn for certain companies.\11\ Therefore, in accordance with 19 
CFR 351.213(d)(1), we are rescinding this administrative review with 
respect to the companies listed in appendix III.
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    \11\ Commerce received timely withdrawal of requests for 
administrative review from KG Dongbu Steel Co., Ltd. (KG Dongbu 
Steel), Dongbu Steel, and Dongbu Incheon Steel, as well as from 
Nucor Corporation, Cleveland-Cliffs Inc., Steel Dynamics Inc., and 
United States Steel Corporation (collectively, the petitioners). See 
KG Dongbu Steel, Dongbu Steel, and Dongbu Incheon Steel's Letter, 
``Withdrawal of Administrative Review Request,'' dated January 26, 
2022; see also Petitioner's Letter, ``Partial Withdrawal of Request 
for Administrative Review,'' dated February 3, 2022.
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Final Results of Review \12\
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    \12\ Dongbu Steel/Dongbu Incheon Steel and the corresponding 
9.18 percent subsidy rate listed in the Preliminary Results have 
been removed for these final results, as we are rescinding this 
review with respect to these companies.
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    We determine that, for the period January 1, 2020, through December 
31, 2020, the following total net countervailable subsidy rates exist:
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    \13\ As discussed in the Preliminary Results PDM, Commerce has 
found the following company to be cross-owned with Hyundai Steel: 
Hyundai Green Power Co. Ltd.
    \14\ As discussed in the Preliminary Results PDM, Commerce has 
found the following companies to be cross-owned with POSCO: Pohang 
Scrap Recycling Distribution Center Co. Ltd.; POSCO Chemical; POSCO 
M-Tech; POSCO Nippon Steel RHF Joint Venture Co., Ltd.; POSCO 
Terminal, and POSCO Steel Processing and Service. In the Preliminary 
Results, POSCO Steel Processing and Service was omitted from the 
list of companies that are cross-owned with POSCO. The subsidy rate 
applies to all cross-owned companies. We note that POSCO has an 
affiliated trading company through which it exported certain subject 
merchandise, POSCO International Corporation (POSCO International). 
POSCO International was not selected as a mandatory respondent but 
was examined in the context of POSCO. Therefore, we are not 
establishing a rate for POSCO International and POSCO 
International's subsidies are accounted for in POSCO's total subsidy 
rate. Instead, entries of subject merchandise exported by POSCO 
International will receive the rate of the producer listed on the 
entry form with U.S. Customs and Border Protection. Thus, the 
subsidy rate applied to POSCO and POSCO's cross-owned affiliated 
companies is also applied to POSCO International for entries of 
merchandise produced by POSCO.
    \15\ See appendix II.

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                                               Subsidy rate (percent ad
             Producer/exporter                         valorem)
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Hyundai Steel Co., Ltd., also referred to    0.27 (de minimis).
 as Hyundai Steel Company \13\.
POSCO \14\.................................  0.20 (de minimis).
Non-Selected Companies \15\................  1.93.
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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).

Assessment Rate

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce has determined, 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. 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

[[Page 21608]]

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 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 respective companies listed 
above on shipments of the 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 of 
estimated countervailing duties at the most recent company-specific or 
all-others rate applicable to the company, as appropriate. These cash 
deposits, effective upon the publication of the final results of this 
review, 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.

Notification 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: April 4, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Discussion of Comments
    Comment 1: Whether the Provision of Carbon Emissions Permits is 
Countervailable
    Comment 2: Whether the Provision of Port Usage Rights at the 
Port of Incheon is Countervailable
    Comment 3: Whether Hyundai Green Power is Cross-Owned With 
Hyundai Steel
    Comment 4: Whether POSCO Chemicals' Local Tax Exemptions Under 
Restriction of Special Local Taxation Act Article 78 Are Tied to 
Non-Subject Merchandise
    Comment 5: Whether POSCO Steel Processing Service's Local Tax 
Exemptions under Restriction of Special Local Taxation Act Article 
57-2 Constitute a Financial Contribution and a Benefit
    Comment 6: Whether Quota and Tariff Import Duty Exemptions 
Received On Items Are Tied to Non-Subject Merchandise
    Comment 7: Whether Commerce May Rely on Information Submitted by 
the Government of Korea and POSCO that Commerce Did Not Verify
    Comment 8: Whether Electricity is Subsidized by the Government 
of Korea
    Comment 9: Whether Draft Customs Instructions Issued by Commerce 
Require Revisions
VIII. Recommendation

Appendix II

List of Non-Selected Companies

1. Hyundai Group
2. POSCO C&C Co., Ltd.
3. POSCO Daewoo Corp.
4. POSCO International Corporation

Appendix III

List of Rescinded Companies

1. AJU Steel Co., Ltd.
2. Amerisource Korea
3. Amerisource International
4. BC Trade
5. Busung Steel Co., Ltd.
6. Cenit Co., Ltd.
7. Daewoo Logistics Corp.
8. Dai Yang Metal Co., Ltd.
9. DK GNS Co., Ltd
10. Dongbu Incheon Steel Co., Ltd.
11. Dongbu Steel Co., Ltd.
12. KG Dongbu Steel Co., Ltd.\16\
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    \16\ See Preliminary Results at appendix II; see also Initiation 
of Antidumping and Countervailing Duty Administrative Reviews, 86 FR 
61121 (November 5, 2021) (Initiation Notice); Certain Cold-Rolled 
Steel Flat Products from the Republic of Korea: Final Results of 
Countervailing Duty Administrative Review; 2019, 87 FR 20821 (April 
8, 2022) (Cold-Rolled Steel from Korea AR 2019 Final Results), and 
accompanying IDM, at Comment 8. Appendix II of the Preliminary 
Results lists company name ``KG Dongbu Steel Co., Ltd. (formerly 
Dongbu Steel Co., Ltd.).'' The company name should be amended, per 
the Initiation Notice and Cold-Rolled Steel from Korea AR 2019 Final 
Results IDM at Comment 8, to delete ``(formerly Dongbu Steel Co., 
Ltd.).'' ``KG Dongbu Steel Co., Ltd.'' and ``Dongbu Steel Co., 
Ltd.'' are listed separately here.
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13. Dong Jin Machinery
14. Dongkuk Industries Co., Ltd.
15. Dongkuk Steel Mill Co., Ltd.
16. Eunsan Shipping and Air Cargo Co., Ltd.
17. Euro Line Global Co., Ltd.
18. Golden State Corp.
19. GS Global Corp.
20. Hanawell Co., Ltd.
21. Hankum Co., Ltd.
22. Hyosung TNC Corp.
23. Hyuk San Profile Co., Ltd.
24. Iljin NTS Co., Ltd.
25. Iljin Steel Corp.
26. Jeen Pung Industrial Co., Ltd.
27. JT Solution
28. Kolon Global Corporation
29. Nauri Logistics Co., Ltd.
30. Okaya (Korea) Co., Ltd.
31. PL Special Steel Co., Ltd.
32. Samsung C&T Corp.
33. Samsung STS Co., Ltd.
34. SeAH Steel Corp.
35. SM Automotive Ltd.
36. SK Networks Co., Ltd.
37. Taihan Electric Wire Co., Ltd.
38. TGS Pipe Co., Ltd.
39. TI Automotive Ltd.
40. Xeno Energy
41. Young Steel Co., Ltd.

[FR Doc. 2023-07537 Filed 4-10-23; 8:45 am]
BILLING CODE 3510-DS-P