[Federal Register Volume 88, Number 152 (Wednesday, August 9, 2023)]
[Notices]
[Pages 53866-53868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17070]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Initiation 
and Preliminary Results of Antidumping Duty Changed Circumstances 
Review

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

SUMMARY: In response to a request for a changed circumstances review 
(CCR), the U.S. Department of Commerce (Commerce) is initiating a CCR 
of the antidumping duty (AD) order on large power transformers (LPTs) 
from the Republic of Korea (Korea). Additionally, Commerce 
preliminarily determines that HD Hyundai Electric Co., Ltd. (HDHE) is 
the successor-in-interest to Hyundai Electric & Energy Systems Co., 
Ltd. (HEES). Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable August 9, 2023.

FOR FURTHER INFORMATION CONTACT: John K. Drury, 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) 482-0195.

SUPPLEMENTARY INFORMATION: 

Background

    On August 31, 2012, Commerce published the AD order on LPTs from 
Korea in the Federal Register.\1\ In the most recently completed 
administrative review, covering the period August 1, 2020, through July 
31, 2021, HEES was assigned the cash deposit rate of 4.32 percent as a 
company not selected for individual review.\2\
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    \1\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (Order).
    \2\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2020-2021, 
88 FR 16236 (March 16, 2023).
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    On May 15, 2023, HDHE informed Commerce that HEES had officially 
changed its Korean name from Hyundai Electric & Energy Systems Co., 
Ltd. to HD Hyundai Electric Co., Ltd.\3\ HDHE requested the initiation 
of a CCR to find that HDHE is the successor-in-interest to HEES.\4\ On 
June 16, 2023, Commerce extended the time period by 35 days, until 
August 3, 2023, for determining whether to initiate and whether to 
issue a simultaneous preliminary determination.\5\ On July 28, 2023, 
HDHE filed a copy of its first quarter 2023 financial statements in 
Korean, with a partial translation into English.\6\ On August 2, 2023, 
HDHE filed a copy of its first quarter 2023 financial statements which 
were fully translated into English.\7\ We did not receive comments from 
other interested parties concerning this request.
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    \3\ See HDHE's Letter, ``Request for Changed Circumstances 
Review and Successor-in Interest Determination,'' dated May 15, 2023 
(CCR Request).
    \4\ Id. at 1-2.
    \5\ See Commerce's Letter, ``Extension of Initiation Deadline,'' 
dated June 16, 2023.
    \6\ See HDHE's Letter, ``Submission of Q1 2023 Financial 
Statement and Unofficial Translation,'' dated July 28, 2023.
    \7\ See HDHE's Letter, ``Submission of Q1 2023 Financial 
Statement Translation,'' dated August 2, 2023.
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Scope of the Order

    The merchandise covered by the Order is LPTs from Korea. For a full 
description of the merchandise covered by the scope of the Order, see 
the Preliminary Decision Memorandum.\8\
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    \8\ See Memorandum, ``Decision Memorandum for the Initiation and 
Preliminary Results of Changed Circumstances Review: Large Power 
Transformers from the Republic of Korea,'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216, Commerce will conduct a CCR of an order 
upon receipt of information or a review request from an interested 
party for a review of an order which shows changed circumstances 
sufficient to warrant a review of the order.\9\ In the past, Commerce 
has used CCRs to address the applicability of cash deposit rates after 
there have been changes in the name or structure of a respondent, such 
as a merger or spinoff (``successor-in-interest,'' or 
``successorship,'' determinations).\10\ The information

[[Page 53867]]

submitted by HDHE supporting its claim that it is the successor-in-
interest to HEES demonstrates changed circumstances sufficient to 
warrant such a review.\11\
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    \9\ See 19 CFR 351.216(c).
    \10\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606 
(November 7, 2017), unchanged in Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Final Results of Antidumping 
Duty Changed Circumstances Review, 82 FR 60177 (December 19, 2017) 
(Diamond Sawblades Final).
    \11\ See 19 CFR 351.216(d).
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    The information submitted by HDHE demonstrates that its request is 
based solely on a change in the Korean name of the company from 
``Hyundai Electric & Energy Systems Co., Ltd.'' to ``HD Hyundai 
Electric Co., Ltd.,'' effective March 27, 2023.\12\ Moreover, the 
evidence submitted in support of HDHE's request demonstrates that HDHE 
is otherwise the same business entity as HEES. Therefore, in accordance 
with the regulation referenced above, Commerce is initiating a CCR to 
determine whether HDHE is the successor-in-interest to HEES.
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    \12\ See CCR Request at 3.
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Preliminary Results

    Commerce is permitted by 19 CFR 351.221(c)(3)(ii) to combine the 
notice of initiation of a CCR and the preliminary results if Commerce 
concludes that expedited action is warranted. In this instance, because 
the record contains information necessary to make a preliminary 
finding, we find that expedited action is warranted and we have 
combined the notice of initiation and the preliminary results.
    Accordingly, pursuant to section 751(b) of the Act, we have 
conducted a successor-in-interest analysis in response to HDHE's 
request. In making a successor-in-interest determination in an AD CCR, 
Commerce examines several factors, including, but not limited to, 
changes in the following: (1) management and ownership; (2) production 
facilities; (3) supplier relationships; and (4) customer base.\13\ 
While no single factor or combination of factors will necessarily 
provide a dispositive indication of a successor-in-interest 
relationship, generally, Commerce will consider the new company to be 
the successor to the previous company if the new company's resulting 
operation is not materially dissimilar to that of its predecessor.\14\ 
Thus, if the evidence demonstrates that, with respect to the production 
and sales of the subject merchandise, the new company operates as 
essentially the same business entity as the former company, Commerce 
will assign to the new company the cash deposit rate of its 
predecessor.\15\
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    \13\ See, e.g., Diamond Sawblades Final; see also Certain Frozen 
Warmwater Shrimp from India: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 83 FR 37784 (August 
2, 2018), unchanged in Certain Frozen Warmwater Shrimp from India: 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, 83 FR 49909 (October 3, 2018) (Shrimp from India).
    \14\ See, e.g., Diamond Sawblades Final and Shrimp from India.
    \15\ See, e.g., Notice of Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Certain Frozen 
Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012), 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619 
(December 11, 2012); see also Notice of Initiation and Preliminary 
Results of Changed Circumstances Reviews: Certain Passenger Vehicle 
and Light Truck Tires from the People's Republic of China, 85 FR 
5193 (January 29, 2020), unchanged in Certain Passenger Vehicle and 
Light Truck Tires from the People's Republic of China: Final Results 
of Changed Circumstances Reviews, 85 FR 14638 (March 13, 2020).
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    In its CCR request, HDHE provided evidence demonstrating that 
HDHE's operations are not materially dissimilar from those of HEES. 
Based on the record, we preliminarily determine that HDHE is the 
successor-in-interest to HEES, as the change in the business' Korean 
name was not accompanied by significant changes to its management and 
ownership, production, facilities, supplier relationships, or customer 
base. There is also no evidence of significant changes between HEES and 
the successor-in-interest company HDHE's operations, ownership, or 
corporate or legal structure during the relevant period that could have 
impacted the successor-in-interest company's subsidy levels.\16\ Thus, 
we preliminarily determine that HDHE operates as essentially the same 
business entity as HEES, that HDHE is the successor-in-interest to 
HEES, and that HDHE should receive the same AD cash deposit rate with 
respect to subject merchandise as its predecessor, HEES.
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    \16\ See CCR Request.
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    For a complete discussion of the information that HDHE provided, 
and the complete successor-in-interest analysis, see the Preliminary 
Decision Memorandum. A list of topics discussed in the Preliminary 
Decision Memorandum is included as an appendix 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.

Public Comment

    In accordance with 19 CFR 351.309(c)(1)(ii), interested parties may 
submit case briefs not later than seven days after the date of 
publication of this notice.\17\ Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed no later than seven days after 
the case briefs, in accordance with 19 CFR 351.309(d).\18\ Parties who 
submit case or rebuttal briefs are encouraged to submit with each 
argument: (1) a statement of the issue; (2) a brief summary of the 
arguments; and (3) a table of authorities.\19\
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    \17\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \18\ Commerce is exercising its discretion under 19 CFR 
351.309(d)(1) to alter the time limit for the filing of rebuttal 
briefs.
    \19\ See 19 CFR 351.309(c)(2).
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    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 7 days of publication of this notice.\20\ Hearing 
requests should contain the following information: (1) the party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of the issues to be discussed. Oral presentations at the 
hearing will be limited to issues raised in the 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 the time 
of the hearing two days before the scheduled date.
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    \20\ Commerce is exercising its discretion under 19 CFR 
351.310(c) to alter the time limit for requesting a hearing.
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    All submissions are to be filed electronically using ACCESS. An 
electronically filed document must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Time on the day it is due.\21\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information, 
until further notice.\22\
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    \21\ See 19 CFR 351.303(b).
    \22\ 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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Final Results of Review

    Should our final results remain unchanged from these preliminary 
results, we will instruct U.S. Customs and Border Protection to assign 
entries of subject merchandise exported by HDHE the AD cash deposit 
rate applicable to HEES. Consistent with 19 CFR 351.216(e), we will 
issue the final results of this changed circumstances review no later 
than 270 days after the date on which this review was initiated, or 
within 45 days if all parties agree to our preliminary finding.

[[Page 53868]]

Notification to Interested Parties

    This initiation and preliminary results notice is published in 
accordance with sections 751(b)(1) and 777(i)(1) of the Act, and 19 CFR 
351.216(b), 351.221(b) and 351.221(c)(3).

    Dated: August 3, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Initiation and Preliminary Results of the Changed Circumstances 
Review
V. Successor-in-Interest Determination
VI. Recommendation

[FR Doc. 2023-17070 Filed 8-8-23; 8:45 am]
BILLING CODE 3510-DS-P