[Federal Register Volume 85, Number 124 (Friday, June 26, 2020)]
[Notices]
[Pages 38361-38362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13813]
[[Page 38361]]
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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 of Countervailing Duty Administrative Review; 2017
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that POSCO
received countervailable subsidies that are above de minimis, and that
Hyundai Steel Company (Hyundai Steel) received countervailable
subsidies that are de minimis. The period of review (POR) is January 1,
2017 through December 31, 2017.
DATES: Applicable June 26, 2020.
FOR FURTHER INFORMATION CONTACT: Moses Song or Yasmin Bordas, 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) 482-7885 or (202) 482-3813,
respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this review on
November 8, 2019.\1\ In addition, Commerce issued a post-preliminary
determination on the upstream allegation on electricity and the debt
workout/restructuring program of POSCO Plantec Co., Ltd. (POSCO
Plantec), which is a POSCO affiliated entity, on April 14, 2020.\2\ For
a history of events that occurred since the Preliminary Results, see
the Issues and Decision Memorandum.\3\
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\1\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Preliminary Results of Countervailing Duty
Administrative Review; 2017, 84 FR 60377 (November 8, 2020)
(Preliminary Results) and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum,''
dated April 14, 2020 (Post-Prelim Analysis Memorandum).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the 2017 Administrative Review: Certain Cold-Rolled
Steel Flat Products from Republic of Korea,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decision
Memorandum, or IDM).
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On March 3, 2020, we postponed the final results of this review
until May 6, 2020.\4\ On April 24, 2020, Commerce tolled all deadlines
in administrative reviews by 50 days, thereby extending the deadline
for these results until June 25, 2020.\5\
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\4\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products
from the Republic of Korea: Extension of Deadline for Final Results
of Countervailing Duty Administrative Review,'' dated March 3, 2020.
\5\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews in Response to
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
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Scope of the Order
The merchandise covered by this order is certain cold-rolled steel
flat products. 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. The issues are identified in the
Appendix 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 http://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision
Memorandum and the electronic version of the Issues and Decision
Memorandum are identical in content.
Changes Since the Preliminary Results
Based on the comments received from interested parties and record
information, we have made no changes to the net subsidy rates
calculated for POSCO, Hyundai Steel and for those companies not
selected for individual review. For a discussion of these issues, see
the Issues and Decision Memorandum.
Methodology
Commerce conducted this review in accordance with section
751(a)(1)(A) of the Tariff Act of 1930, as amended (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.\6\ For a description of the methodology underlying all of
Commerce's conclusions, see the Issues and Decision Memorandum.
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\6\ 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
establishment of 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 705(c)(5)(A)(i) of the Act instructs Commerce, as a general
rule, to calculate an all-others rate equal to the weighted average of
the countervailable subsidy rates established for exporters and
producers individually investigated, excluding any zero, de minimis, or
rates based entirely on facts available. Commerce looks to that
provision as guidance in determining a rate for companies in which a
review was requested, but which were not selected as mandatory
respondents. In this review, the only subsidy rate above de minimis is
the rate calculated for POSCO. Therefore, for the companies for which a
review was requested that were not selected as mandatory respondents,
we are applying the subsidy rate calculated for POSCO.
Final Results of Administrative Review
In accordance with section 751(a)(1)(A) of the Act and 19 CFR
351.221(b)(5), we determine the total estimated net countervailable
subsidy rates for the period January 1, 2017 through December 31, 2017
to be as follows:
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\7\ We note that cross-ownership exists between POSCO, POSCO
Chemtech (also known as POSCO Chemical Co., Ltd.), POSCO Nippon
Steel RHF Joint Venture Co., Ltd., POSCO Processing and Service,
Pohang Scrap Recycling Distribution Center Co., Ltd., and POSCO M-
Tech. This rate applies to all cross-owned companies. See
Preliminary Results and accompanying PDM at 9.
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Subsidy rate (percent ad
Company valorem)
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POSCO \7\............................... 0.59
Hyundai Steel Co., Ltd.................. 0.45
(de minimis)
Dongbu Steel Co., Ltd................... 0.59
Dongbu Incheon Steel Co., Ltd........... 0.59
Dongkuk Steel Mill Co., Ltd............. 0.59
Dongkuk Industries Co., Ltd............. 0.59
Euro Line Global Co., Ltd............... 0.59
Hanawell Co., Ltd....................... 0.59
Hankum Co., Ltd......................... 0.59
Hyuk San Profile Co., Ltd............... 0.59
Nauri Logistics Co., Ltd................ 0.59
[[Page 38362]]
Taihan Electric Wire Co., Ltd........... 0.59
Union Steel Co., Ltd.................... 0.59
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Assessment and Cash Deposit Requirements
In accordance with 19 CFR 351.212(b)(2), Commerce intends to issue
appropriate instructions to U.S. Customs and Border Protection (CBP) 15
days after publication of these final results to liquidate shipments of
subject merchandise. Because we have calculated a de minimis
countervailable subsidy rate for Hyundai Steel, we will instruct CBP to
liquidate the appropriate entries without regard to countervailing
duties in accordance with 19 CFR 351.212. We will instruct CBP to
liquidate shipments of subject merchandise produced and/or exported by
POSCO and the above listed companies, entered or withdrawn from
warehouse for consumption from January 1, 2017 through December 31,
2017, at the ad valorem rates listed above for each respective company.
In accordance with section 751(a)(2)(C) of the Act, we intend also
to instruct CBP to collect cash deposits of estimated countervailing
duties, in the amounts shown above, with the exception of Hyundai
Steel, 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. Because the countervailable subsidy rate
for Hyundai Steel is de minimis, Commerce will instruct CBP to collect
cash deposits at a rate of zero for Hyundai Steel for all shipments of
the subject merchandise that are 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 deposit
requirements, when imposed, shall remain in effect until further
notice.
Administrative Protective Order
This notice also serves as a final reminder to parties subject to
an 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), which
continues to govern business proprietary information in this segment of
proceeding. 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 violation which is subject to sanction.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding, in
accordance with 19 CFR 351.224(b).
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: June 22, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. List of Issues
III. Background
IV. Changes Since the Preliminary Results
V. Scope of the Order
VI. Period of Review
VII. Rate for Non-Examined Companies
VIII. Subsidies Valuation Information
IX. Use of Facts Otherwise Available
X. Analysis of Programs
XI. Discussion of Comments
Comment 1: Whether the Electricity for Less Than Adequate
Remuneration Upstream Subsidy Allegation Confers a Benefit
Comment 2: Whether POSCO Plantec Co., Ltd. (POSCO Plantec) is
POSCO's Cross-Owned Input Supplier
Comment 3: Whether POSCO Plantec Received Countervailable
Benefits Through Its Debt Restructuring Program
Comment 4: Whether the Application of Adverse Facts Available is
Warranted for Sungjin Geotec Co., Ltd.'s Non-Recurring Subsidies
Received During the Average Useful Life Period
XII. Recommendation
[FR Doc. 2020-13813 Filed 6-25-20; 8:45 am]
BILLING CODE 3510-DS-P