[Federal Register Volume 85, Number 11 (Thursday, January 16, 2020)]
[Notices]
[Pages 2710-2712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00644]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-888]
Certain Carbon and Alloy Steel Cut-to-Length Plate From the
Republic of Korea: Final Results and Partial Rescission 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, a
producer and/or exporter of certain carbon and alloy cut-to-length
plate (CTL plate) from the Republic of Korea (Korea), received net
countervailable subsidies during the period of review (POR), April 4,
2017 through December 31, 2017.
DATES: Applicable January 16, 2020.
FOR FURTHER INFORMATION CONTACT: Bob Palmer or Jinny Ahn, 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) 482-9068 and (202)
482-0339, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 17, 2019, Commerce published the Preliminary Results of
this administrative review in the Federal Register, and invited
interested parties to comment.\1\ On September 18, 2019, Nucor
Corporation (Nucor) submitted pre-verification comments on the record
of this administrative review.\2\ Between September 23, 2019 and
September 27, 2019, we conducted verifications of the questionnaire
responses submitted by POSCO and the Government of Korea (GOK). We
released verification reports on November 13, 2019.\3\ On October 10,
2019, Commerce postponed the final results of review by 57 days until
January 10, 2020.\4\ On December 2, 2019, Nucor, POSCO, and the GOK
submitted timely case briefs.\5\ Nucor and POSCO also submitted timely
rebuttal briefs on December 9, 2019.\6\
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\1\ See Certain Carbon and Alloy Steel Cut-to- Length Plate From
the Republic of Korea: Preliminary Results of Countervailing Duty
Administrative Review and Intent To Rescind the Review, in Part;
2017, 84 FR 34123 (July 17, 2019) (Preliminary Results), and
accompanying Preliminary Decision Memorandum (PDM).
\2\ See Nucor's Letter, ``Comments Regarding Verification of
POSCO's Questionnaire Responses,'' dated September 18, 2019.
\3\ See Memoranda, ``Verification of the Questionnaire Reponses
of POSCO'' and ``Verification of the Questionnaire Responses of the
Government of the Republic of Korea,'' dated November 13, 2019.
\4\ See Memorandum, ``Extension of Deadline for Final Results of
Countervailing Duty Administrative Review,'' dated October 10, 2019.
\5\ See Nucor's Letter, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate from the Republic of Korea: Case Brief,'' dated
December 2, 2019; POSCO's Letter, ``Certain Carbon and Alloy Steel
Cut-to-Length Plate from the Republic of Korea, Case No. C-580-888:
POSCO's Case Brief,'' dated December 2, 2019; and GOK's Letter,
``Certain Carbon and Alloy Steel Cut-to-Length Plate from the
Republic of Korea, 04/04/2017-12/31/2017 Administrative Review, Case
No. C-580-888: Case Brief of the Government of Korea,'' dated
December 2, 2019.
\6\ See Nucor's Letter, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate from the Republic of Korea: Rebuttal Brief,'' dated
December 9, 2019; and POSCO's Letter, ``Certain Carbon and Alloy
Steel Cut-to-Length Plate from the Republic of Korea, Case No. C-
580-888: POSCO's Rebuttal Brief,'' dated December 9, 2019.
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[[Page 2711]]
Scope of the Order
The products covered by the order are certain carbon and alloy
steel hot-rolled or forged flat plate products not in coils, whether or
not painted, varnished, or coated with plastics or other non-metallic
substances from the Republic of Korea. Products subject to the order
are currently classified in the Harmonized Tariff Schedule of the
United States (HTSUS) under item numbers: 7208.40.3030, 7208.40.3060,
7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000,
7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005,
7225.40.3050, 7226.20.0000, and 7226.91.5000. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise subject to this scope is
dispositive.
A full description of the scope of the order is contained in the
Issues and Decision Memorandum, which is hereby adopted by this
notice.\7\
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\7\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Countervailing Duty Administrative Review:
Certain Carbon and Alloy Steel Cut-to-Length Plate from the Republic
of Korea; 2017,'' dated concurrently with this notice (Issues and
Decision Memorandum).
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Analysis of Comments Received
All issues raised in interested parties' case and rebuttal briefs
are addressed in the Issues and Decision Memorandum. A list of the
issues raised by interested parties and to which we responded in the
Issues and Decision Memorandum is provided 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 https://access.trade.gov and
to all parties in the Central Records Unit, room B8024 of the main
Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
Changes Since the Preliminary Results
Based on the comments received from the interested parties, we made
changes to the net subsidy rate calculated for the mandatory
respondent. 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 to be countervailable, we find that there
is a subsidy, i.e., a financial contribution from a government or
public entity that gives rise to a benefit to the recipient, and that
the subsidy is specific.\8\ For a full description of the methodology
underlying all of Commerce's conclusions, see the Issues and 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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Partial Rescission of Administrative Review
In the Preliminary Results, Commerce announced its intent to
rescind the review of Hyundai Steel Company (Hyundai) based on
Hyundai's certified claim of no shipments of subject merchandise during
the POI, as confirmed with U.S. Customs and Border Protection (CBP).\9\
No interested party submitted comments on Commerce's intent to rescind
the review of Hyundai. Because there is no evidence on the record to
indicate that Hyundai had entries, exports, or sales of subject
merchandise to the United States during the POR, we are rescinding the
administrative review of Hyundai pursuant to 19 CFR 351.213(d)(3).\10\
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\9\ See Preliminary Results, 84 FR at 34124; and PDM at 4.
\10\ See Issues and Decision Memorandum for further discussion.
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Companies Not Selected for Individual Review
Commerce calculated an individual estimated net countervailable
subsidy rate for POSCO, the only individually examined exporter/
producer in this investigation. Because the only individually
calculated rate is not zero, de minimis, or based entirely under
section 776 of the Act, the estimated net countervailable subsidy rate
calculated for POSCO is the rate assigned to all other producers and
exporters not selected for individual review. This is consistent with
the methodology used in an investigation to establish the all-others
rate, pursuant to section 705(c)(5)(A) of the Act.
Final Results of Administrative Review
We determine that, for the period of April 4, 2017 through December
31, 2017, the following total net countervailable subsidy rates exist:
------------------------------------------------------------------------
Net countervailable
Company subsidy rate (percent
ad valorem)
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POSCO \11\.................................... 0.50
BDP International............................. 0.50
Blue Track Equipment.......................... 0.50
Boxco......................................... 0.50
Bukook Steel Co., Ltd......................... 0.50
Buma CE Co., Ltd.............................. 0.50
Daelim Industrial Co., Ltd.................... 0.50
Daesam Industrial Co., Ltd.................... 0.50
Daesin Lighting Co., Ltd...................... 0.50
Daewoo International Corp..................... 0.50
Dong Yang Steel Pipe.......................... 0.50
Dongkuk Industries Co., Ltd................... 0.50
Dongkuk Steel Mill Co., Ltd................... 0.50
Dongbu Steel Co., Ltd......................... 0.50
EAE Automotive Equipment...................... 0.50
EEW KHPC Co., Ltd............................. 0.50
Eplus Expo Inc................................ 0.50
GS Global Corp................................ 0.50
Haem Co., Ltd................................. 0.50
[[Page 2712]]
Han Young Industries.......................... 0.50
Hyosung Corp.................................. 0.50
Jinmyung Frictech Co., Ltd.................... 0.50
Korean Iron and Steel Co., Ltd................ 0.50
Kyoungil Precision Co., Ltd................... 0.50
Samsun C&T Corp............................... 0.50
SK Netwoks Co., Ltd........................... 0.50
Steel N People Ltd............................ 0.50
Summit Industry............................... 0.50
Sungjin Co., Ltd.............................. 0.50
Young Sun Steel............................... 0.50
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Disclosure
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\11\ Commerce has determined the following companies to be
cross-owned with POSCO: POSCO Chemtech, POSCO Nippon RHF Joint
Venture Co., Ltd., POSCO Processing & Service, Pohang Scrap
Recycling Distribution Center, and POSCO M-Tech. See Preliminary
Results, 84 FR at 34124; and PDM at 11.
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Commerce intends to disclose the calculations performed for these
final results of review within five days of the date of publication of
this notice in the Federal Register, in accordance with 19 CFR
351.224(b).
Assessment Rate
Pursuant to 19 CFR 351.212(b)(2), Commerce intends to issue
assessment instructions to CBP 15 days after publication of the final
results of this review. We will instruct CBP to liquidate shipments of
subject merchandise produced and/or exported by the companies listed
above, entered, or withdrawn from warehouse for consumption, from April
4, 2017 through December 31, 2017, at the ad valorem rates listed.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the notice of final results of this administrative
review for all shipments of the subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication, as provided by section 751(a)(2)(C) of the Act: (1) The
cash deposit rate for the companies listed in these final results will
be equal to the subsidy rates established in the final results of this
review; (2) 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, as appropriate. These
cash deposit requirements, when imposed, shall remain in effect until
further notice.
Notification Regarding Administrative Protective Order
This notice also serves as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition 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 the proceeding.
Timely written notification of the return or destruction of APO
materials, or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a sanctionable violation.
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: January 10, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Partial Rescission of Administrative Review
IV. Scope of the Order
V. Rate for Non-Examined Companies
VI. Subsidies Valuation Information
VII. Use of Facts Otherwise Available
VIII. Analysis of Programs
IX. Discussion of Comments
Comment 1: Whether Commerce Should Apply Adverse Facts Available
for Industrial Technology Innovation Promotion Act Grants Received
During the Average Useful Life Period
Comment 2: Whether Tax Deductions Under Restriction of Special
Taxation Act Article 10-2 Are Countervailable
Comment 3: Whether Tax Credits Under Article 57 of the Corporate
Tax Act Are Countervailable
X. Recommendation
[FR Doc. 2020-00644 Filed 1-15-20; 8:45 am]
BILLING CODE 3510-DS-P