[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49440-49442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16200]


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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, 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 certain corrosion-resistant steel products 
(CORE) from the Republic of Korea (Korea). The period of review (POR) 
is January 1, 2021, through December 31, 2021. Additionally, Commerce 
intends to rescind the review with respect to four companies.

DATES: Applicable July 31, 2023.

FOR FURTHER INFORMATION CONTACT: Janae Martin 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) 482-0238 or (202) 
482-6261, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Between July 21 and August 1, 2022, we received multiple requests 
for administrative review \1\ of the countervailing duty order on CORE 
from Korea.\2\ On September 6, 2022, Commerce published a notice of 
initiation of an administrative review of the Order. On October 20, 
2022, Commerce selected KG Dongbu Steel Co., Ltd. (KG Dongbu) and 
Hyundai Steel Company as mandatory respondents in this administrative 
review. On March 16, 2023, Commerce extended the deadline for the 
preliminary results of this review.\3\
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    \1\ See Hyundai Steel's Letter, ``Request for Administrative 
Review,'' dated July 21, 2022; see also POSCO, POSCO International, 
POSCO C&C, and POSCO Steeleon's Letter, ``Request for Administrative 
Review,'' dated July 27, 2022; see also KG Dongbu Steel's Letter, 
``Request for Administrative Review,'' dated July 27, 2022; see also 
Petitioners' Letter, ``Request for Administrative Review,'' dated 
July 29, 2022; see also SeAH CM's and SeAH's Letter, ``Request for 
Administrative Review,'' dated August 1, 2022.
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 54463 (September 6, 2022) (Initiation 
Notice); see also Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 61278 (October 11, 2022); 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\ See Memorandum, ``Extension of Deadline for the Preliminary 
Results of the 2021 Countervailing Duty Administrative Review,'' 
dated March 16, 2023.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\4\ 
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 directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx/.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results and Partial Rescission of the Countervailing Duty 
Administrative Review; 2021: 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.

Preliminary Intent To Rescind Administrative Review, in Part

    Based on our analysis of U.S. Customs and Border Protection (CBP) 
data, we preliminarily determine that four companies, SeAH Steel 
Corporation, POSCO International, POSCO Steeleon, and Hyundai Steel 
Co., Ltd. had no reviewable shipments, sales, or entries of subject 
merchandise during the POR.
    Absent any comments to the contrary from interested parties, 
pursuant to 19 CFR 351.213(d)(3), we intend to rescind the 
administrative review of these companies in the final results of 
review. For further information, see ``Preliminary Intent to Rescind 
Administrative Review, in Part'' in the Preliminary Decision 
Memorandum.

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

[[Page 49441]]

benefit to the recipient, and that the subsidy is specific.\5\ For a 
full description of the methodology underlying our conclusions, see the 
accompanying Preliminary 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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Preliminary Rate for Non-Selected Companies Under Review

    The statute and Commerce's regulations do not directly address the 
countervailing duty 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.
    Because the rates for KG Dongbu Steel and Hyundai Steel are above 
de minimis and not based entirely on facts available, we applied a 
subsidy rate to the non-selected companies under review based on a 
weighted average of the subsidy rates calculated for these mandatory 
respondents using the publicly ranged sales data they submitted on the 
record.

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)
------------------------------------------------------------------------
KG Dongbu Steel Co., Ltd..................................          6.71
Hyundai Steel Company \6\.................................          0.59
POSCO.....................................................          1.43
POSCO Coated and Color Steel Co., Ltd.....................          1.43
SeAH Coated Metal.........................................          1.43
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Disclosure and Public Comment
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    \6\ We note that Hyundai Steel and Hyundai Steel Company were 
treated as being minor variations of the same name at respondent 
selection. See Memorandum, ``Respondent Selection,'' dated October 
20, 2022, at Attachment.
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    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). 
Interested parties may submit written comments (case briefs) within 30 
days of publication of the preliminary results and rebuttal comments 
(rebuttal briefs) within seven days after the time limit for filing 
case briefs.\7\ Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information, until further notice.\8\ 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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    \7\ See 19 CFR 351.309(c) and (d).
    \8\ 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 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 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 final results of this review 
in the Federal Register.
    For the companies remaining in the review, we will instruct CBP to 
assess countervailing duties 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).


[[Page 49442]]


    Dated: July 25, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Preliminary Intent to Rescind Administrative Review, In Part
IV. Scope of the Order
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2023-16200 Filed 7-28-23; 8:45 am]
BILLING CODE 3510-DS-P