[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29290-29292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08457]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-917]


Brass Rod 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 brass rod from the Republic of Korea (Korea). The period of 
investigation is January 1, 2022, through December 31, 2022.

DATES: Applicable April 22, 2024.

FOR FURTHER INFORMATION CONTACT: Toni Page or Lingjun Wang, AD/CVD 
Operations, Office OVII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1398 or (202) 
482-2316, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 29, 2023, Commerce published the Preliminary 
Determination in the Federal Register and invited interested parties to 
comment on it.\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 http://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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    \1\ See Brass Rod from the Republic of Korea: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 88 FR 67233 
(September 29, 2023), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of Brass Rod 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 Investigation

    The product covered by this investigation is brass rod from Korea. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    During this investigation, Commerce received scope comments from 
parties. Commerce issued a Preliminary Scope Decision Memorandum to 
address these comments and set aside a period for parties to address 
scope issues in scope-specific case and rebuttal briefs.\3\ We did not 
receive timely comments from any interested parties on the Preliminary 
Scope Decision Memorandum. Thus, we did not make any changes to the 
scope of the investigation from the scope published in the Preliminary 
Determination, as noted in Appendix I.
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    \3\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated September 25, 2023 (Preliminary Scope Decision Memorandum).

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[[Page 29291]]

Analysis of Subsidy Programs and Comments Received

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

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), between January 15 and February 2, 2024, Commerce conducted 
verification of the subsidy information reported by the Government of 
the Republic of Korea (GOK), Booyoung Industry (BYI), and Daechang Co. 
Ltd. (Daechang).\4\ We used standard verification procedures, including 
an examination of relevant accounting records and original source 
documents provided by the respondents.
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    \4\ See Memoranda, ``Verification of the Questionnaire Response 
of the Government of Korea,'' dated February 29, 2024; 
``Verification of Questionnaire Responses of Booyoung Industry,'' 
dated February 27, 2024; and ``Verification of Questionnaire 
Responses of Daechang Co., Ltd.,'' dated March 1, 2024.
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Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce preliminarily 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.
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    \3\ 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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    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.

Changes Since the Preliminary Determination

    Based on our review and analysis of the information received during 
verification and comments received from parties, for this final 
determination, we made certain changes to the countervailable subsidy 
rate calculations for BYI, Daechang, and for all other producers/
exporters. For a discussion of these changes, see the Issues and 
Decision Memorandum.

All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will 
determine an all-others rate equal to the weighted average 
countervailable subsidy rates established for those exporters and/or 
producers individually investigated, excluding any zero and de minimis 
countervailable subsidy rates and any rates based entirely under 
section 776 of the Act.
    In this investigation, Commerce calculated rates for BYI and 
Daechang that are above de minimis and are not based entirely on facts 
available. For the all-others rate we are using the simple average of 
the subsidy rates calculated for BYI and Daechang. This is consistent 
with the methodology that we use in an investigation to establish the 
all-others rate, pursuant to section 705(c)(5)(A) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period of January 1, 2022, through December 
31, 2022:
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    \6\ Commerce has found the following companies to be cross-owned 
with Daechang Co. Ltd.: Essentech Co., Ltd., IN Steel Industry Co., 
Ltd., Seowon Co., Ltd., Taewoo Co., Ltd., and IMI Co., Ltd.

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                                                          Subsidy rate
                       Company                            (percent ad
                                                            valorem)
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Booyoung Industry....................................               2.04
Daechang Co. Ltd \6\.................................               3.70
All Others...........................................               2.87
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to collect cash deposits and 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after September 29, 2023, the date of 
publication of the Preliminary Determination in the Federal Register.
    Additionally, pursuant to section 705(c)(1)(B)(ii) of the Act and 
19 CFR 351.210(d), where appropriate, Commerce will instruct CBP to 
require a cash deposit equal to the estimated individual 
countervailable subsidy rate or the estimated all-others rate, as 
indicated in the chart above, effective on the date of publication of 
this final determination.
    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.

Disclosure

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

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 brass rod 
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 brass rod 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.

Administrative Protective Order

    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

[[Page 29292]]

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 final determination is issued and published pursuant to 
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: April 15, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by this investigation are brass rod and bar 
(brass rod), which is defined as leaded, low-lead, and no-lead solid 
brass made from alloys such as, but not limited to the following 
alloys classified under the Unified Numbering System (UNS) as 
C27450, C27451, C27460, C34500, C35000, C35300, C35330, C36000, 
C36300, C37000, C37700, C48500, C67300, C67600, and C69300, and 
their international equivalents.
    The brass rod subject to this investigation has an actual cross-
section or outside diameter greater than 0.25 inches but less than 
or equal to 12 inches. Brass rod cross-sections may be round, 
hexagonal, square, or octagonal shapes as well as special profiles 
(e.g., angles, shapes), including hollow profiles.
    Standard leaded brass rod covered by the scope contains, by 
weight, 57.0-65.0 percent copper; 0.5-3.0 percent lead; no more than 
1.3 percent iron; and at least 15 percent zinc. No-lead or low-lead 
brass rod covered by the scope contains by weight 59.0-76.0 percent 
copper; 0-1.5 percent lead; no more than 0.35 percent iron; and at 
least 15 percent zinc. Brass rod may also include other chemical 
elements (e.g., nickel, phosphorous, silicon, tin, etc.).
    Brass rod may be in straight lengths or coils. Brass rod covered 
by this investigation may be finished or unfinished, and may or may 
not be heated, extruded, pickled, or cold-drawn. Brass rod may be 
produced in accordance with ASTM B16, ASTM B124, ASTM B981, ASTM 
B371, ASTM B453, ASTM B21, ASTM B138, and ASTM B927, but such 
conformity to an ASTM standard is not required for the merchandise 
to be included within the scope.
    Excluded from the scope of this investigation is brass ingot, 
which is a casting of unwrought metal unsuitable for conversion into 
brass rod without remelting, that contains, by weight, at least 57.0 
percent copper and 15.0 percent zinc.
    The merchandise covered by this investigation is currently 
classifiable under subheadings 7407.21.9000, 7407.21.7000, and 
7407.21.1500 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Products subject to the scope may also enter under HTSUS 
subheadings 7403.21.0000, 7407.21.3000, and 7407.21.5000. The HTSUS 
subheadings and UNS alloy designations are provided for convenience 
and customs purposes. The written description of the scope of the 
investigation is dispositive.

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

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether to Revise Preliminary Determination on 
Provision of Electricity for Less Than Adequate Remuneration (LTAR)
    Comment 2: Whether to Apply Adverse Facts Available (AFA) to 
BYI's Reported Loan
    Comment 3: Whether to Apply AFA to Essentech's Loans
    Comment 4: Whether Daechang Received Benefits from the Provision 
of Carbon Emission Permits by the GOK-Korea Emission Trading System 
(K-ETS)
    Comment 5: Whether to Treat Seowon as a Cross-Owned Producer of 
Subject Merchandise for Purposes of Attribution
    Comment 6: Whether to Allocate the Benefit Received Over Total 
Sales for the Energy Efficiency Utilizing Artificial Intelligence 
Program
    Comment 7: Whether to Revise Daechang's Benefit Calculation for 
the Facility Improvement Fund to Reduce Air Pollutants in Sihwa 
Banwol Industrial Complex Program
    Comment 8: Whether the Hwaseong City Export Logistics Support 
Program is Countervailable
VIII. Recommendation

 [FR Doc. 2024-08457 Filed 4-19-24; 8:45 am]
 BILLING CODE 3510-DS-P