[Federal Register Volume 88, Number 109 (Wednesday, June 7, 2023)]
[Notices]
[Pages 37200-37202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12113]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-898]


Large Diameter Welded Pipe From the Republic of Korea: 
Preliminary Results and Partial Rescission of the Countervailing Duty 
Administrative Review; 2021

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 large diameter welded pipe (welded pipe) 
from the Republic of Korea (Korea). The period of review (POR) is 
January 1, 2021, through December 31, 2021. Additionally, we are 
rescinding this review with respect to 22 companies. We invite 
interested parties to comment on these preliminary results.

DATES: Applicable June 7, 2023.

FOR FURTHER INFORMATION CONTACT: Dennis McClure or Jonathan Schueler, 
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) 482-9175, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On May 31, 2022, we received multiple requests for an 
administrative review \1\ of the countervailing duty (CVD) order on 
welded pipe from Korea for the POR.\2\ On July 14, 2022, Commerce 
published the initiation of this administrative review for 25 
producers/exporters of welded pipe from Korea.\3\ On August 29, 2022, 
Commerce selected Hyundai RB Co., Ltd. (Hyundai RB) and SeAH Steel 
Corporation (SeAH Steel) as the mandatory respondents in this

[[Page 37201]]

administrative review.\4\ On January 6, 2023, Commerce extended the 
deadline for these preliminary results to no later than May 31, 
2023.\5\
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    \1\ See Hyundai RB Co., Ltd.'s Letter, ``Request for 
Administrative Review,'' dated May 31, 2022; see also SeAH Steel 
Corporation's Letter, ``Request for Administrative Review,'' dated 
May 31, 2022; HiSteel Co., Ltd., ``Request for Administrative 
Review,'' dated May 31, 2022; and Domestic Interested Party's 
Letter, ``Request for Administrative Review,'' dated May 31, 2022. 
The domestic interested party is the American Line Pipe Producers 
Association Trade Committee.
    \2\ See Large Diameter Welded Pipe from the Republic of Korea: 
Countervailing Duty Order, 84 FR 18773 (May 2, 2019) (Order).
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 42144 (July 14, 2022).
    \4\ See Memorandum, ``Respondent Selection,'' dated August 29, 
2022.
    \5\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review; 2020,'' dated 
January 6, 2023.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\6\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included at 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 directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results and Partial Rescission of the Countervailing Duty 
Administrative Review; 2021: Large Diameter Welded Pipe 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 welded pipe. For a complete 
description of the scope of the Order, see the Preliminary Decision 
Memorandum.

Rescission of Administrative Review, In Part

    On October 12, 2022, the domestic interested party timely withdrew 
its request for administrative review in its entirety.\7\ However, 
Hyundai RB, SeAH Steel, and HiSteel Co., Ltd. continue to have 
outstanding review requests. As such, because there were no other 
active review requests for the 22 companies listed in Appendix II, we 
are rescinding this review, in part, with respect to these 22 
companies, pursuant to 19 CFR 351.213(d)(1).
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    \7\ See Domestic Interested Party's Letter, ``Withdrawal of 
Request for Administrative Review,'' dated October 12, 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 government-provided 
financial contribution that confers a benefit to the recipient, and 
that the subsidy is specific.\8\ For a full description of the 
methodology underlying our conclusions, see the Preliminary Decision 
Memorandum.
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    \8\ 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

    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.
    As discussed above, we initiated an administrative review of 25 
companies and are rescinding the review with respect to the 22 
companies listed in Appendix II. In addition, Commerce selected Hyundai 
RB and SeAH Steel as mandatory respondents. As such, HiSteel Co., Ltd., 
is the only company subject to this review not selected for individual 
examination. Because we preliminarily determine that only Hyundai RB 
received countervailable subsidies at a rate above de minimis, we are 
preliminarily applying the net subsidy rate calculated for Hyundai RB 
to HiSteel Co., Ltd., as the non-selected rate.

Preliminary Results of the Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual net countervailable subsidy rate for Hyundai RB and SeAH. 
Commerce preliminarily determines that, during the POR, the net 
countervailable subsidy rates for the producers/exporters under review 
are as follows:

------------------------------------------------------------------------
                                             Net countervailable subsidy
                  Company                     rate (percent ad valorem)
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Hyundai RB Co., Ltd.; and its cross-owned    1.54.
 affiliate Shinchang Construction Co., Ltd.
SeAH Steel Corporation; and its cross-owned  0.17 (de minimis).
 affiliates SeAH Holdings Corporation; and
 ESAB SeAH Corporation.
HiSteel Co., Ltd...........................  1.54.
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Verification

    As provided in section 782(i)(3) of the Act, Commerce intends to 
verify the information relied upon for its final results of this 
review.

Disclosure and Public Comment

    We intend to disclose to parties to this proceeding the 
calculations performed in reaching the preliminary results within five 
days of the date of publication of this notice.\9\ Interested parties 
will be notified of the timeline for the submission of case briefs at a 
later date.\10\ Rebuttal briefs, limited to issues raised in case 
briefs, may be filed no later than seven days after the date for filing 
case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties 
who submit arguments are requested to submit with the argument: (1) a 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \9\ See 19 CFR 351.224(b).
    \10\ See 19 CFR 351.309(c)(1)(ii).
    \11\ See 19 CFR 351.309(d)(1); see also Temporary Rule Modifying 
AD/CVD Service Requirements Due to COVID-19, 85 FR 17006, 17007 
(March 26, 2020).
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, using Enforcement and 
Compliance's ACCESS

[[Page 37202]]

system within 30 days of publication of this notice.\12\ Requests 
should contain: (1) the party's name, address, and telephone number; 
(2) the number of participants; (3) whether any participant is a 
foreign national; and (4) a list of issues to be discussed. Issues 
raised in the hearing will be limited to those raised in the respective 
case and rebuttal briefs. 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 the date and time of the hearing two days before 
the scheduled date.
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    \12\ See 19 CFR 351.310(c).
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    Parties are reminded that all briefs and hearing requests must be 
filed electronically using ACCESS and received successfully in their 
entirety by 5:00 p.m. Eastern Time on the due date. Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information, until further 
notice.\13\
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    \13\ 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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    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act and 19 CFR 351.213(h)(2), Commerce intends to issue the final 
results of this administrative review, including the results of our 
analysis of the issues raised by the parties in any written briefs, no 
later than 120 days after the date of publication of these preliminary 
results.

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producers/
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 U.S. Customs and Border Protection (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 countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period January 1, 2021, through December 31, 
2021, 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 the preliminary results of this 
review in the Federal Register.
    For the companies remaining in the 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 Rate

    In accordance with section 751(a)(2)(C) 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 
calculated in the final results for each of the reviewed 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 review, except, where the rate calculated in 
the final results is zero or de minimis, no cash deposit will be 
required. For all non-reviewed firms, we will instruct CBP to continue 
to collect cash deposits of estimated countervailing duties at the all-
others rate as established in the Order (i.e., 9.29 percent) \14\ or 
the most recent company-specific rate applicable to the company, as 
appropriate. These cash deposit instructions, when imposed, shall 
remain in effect until further notice.
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    \14\ See Order, 84 FR at 18775.
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Notification to Interested Parties

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

    Dated: May 31, 2023.
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. Scope of the Order
IV. Period of Review
V. Partial Rescission of Administrative Review
VI. Diversification of Korea's Economy
VII. Subsidies Valuation Information
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation

Appendix II

1. AJU Besteel Co., Ltd.
2. Chang Won Bending Co., Ltd.
3. Daiduck Piping Co., Ltd.
4. Dong Yang Steel Pipe Co., Ltd.
5. Dongbu Incheon Steel Co., Ltd.
6. EEW KHPC Co., Ltd.
7. EEW Korea Co., Ltd.
8. Hansol Metal Co. Ltd.
9. Husteel Co., Ltd.\15\
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    \15\ Subject merchandise both produced and exported by Husteel 
Co., Ltd. (Husteel) is excluded from the countervailing duty order. 
See Large Diameter Welded Pipe from the Republic of Korea: 
Countervailing Duty Order, 84 FR 18773 (May 2, 2019). Thus, 
Husteel's inclusion in this administrative review is limited to 
entries for which Husteel was not both the producer and exporter of 
the subject merchandise.
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10. Hyundai Steel Company \16\
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    \16\ Subject merchandise both produced and exported by Hyundai 
Steel Company (Hyundai Steel) and subject merchandise produced by 
Hyundai Steel and exported by Hyundai Corporation are excluded from 
the countervailing duty order. See Large Diameter Welded Pipe from 
the Republic of Korea: Countervailing Duty Order, 84 FR 18773 (May 
2, 2019). Thus, Hyundai Steel's inclusion in this administrative 
review is limited to entries for which Hyundai Steel was not the 
producer and exporter of the subject merchandise and for which 
Hyundai Steel was not the producer and Hyundai Corporation was not 
the exporter of subject merchandise.
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11. Il Jin Nts Co. Ltd.
12. Kem Solutions Co., Ltd.
13. Kiduck Industries Co., Ltd.
14. Kum Kang Kind. Co., Ltd.
15. Kumsoo Connecting Co., Ltd.
16. Nexteel Co., Ltd.
17. POSCO International Corporation.
18. Samkang M&T Co., Ltd.
19. Seonghwa Industrial Co., Ltd.
20. SIN-E B&P Co., Ltd.
21. Steel Flower Co., Ltd.
22. WELTECH Co., Ltd.

[FR Doc. 2023-12113 Filed 6-6-23; 8:45 am]
BILLING CODE 3510-DS-P