[Federal Register Volume 88, Number 188 (Friday, September 29, 2023)]
[Notices]
[Pages 67243-67245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21379]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-878]


Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Notice of 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 certain corrosion-resistant steel 
products (CORE) from the Republic of Korea (Korea). Additionally, 
Commerce preliminarily determines that Dongkuk Coated Metal Co., Ltd., 
following a corporate organizational change in June 2023 (hereinafter, 
Dongkuk CM), is the successor-in-interest to the pre-reorganization 
Dongkuk Steel Mill Co., Ltd. entity (hereinafter, Old Dongkuk Steel). 
As such, Dongkuk CM is entitled to Old Dongkuk Steel's AD cash deposit 
rates with respect to entries of subject merchandise in the above-
referenced proceeding. Interested parties are invited to comment on 
these preliminary results.

DATES: Applicable September 29, 2023.

FOR FURTHER INFORMATION CONTACT: William Horn, 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) 482-4868.

SUPPLEMENTARY INFORMATION: 

[[Page 67244]]

Background

    On June 30, 2023, Dongkuk CM notified Commerce of a corporate 
reorganization and requested that Commerce initiate a CCR under the 
relevant AD proceeding to determine that it is the successor-in-
interest to Old Dongkuk Steel for purposes of determining AD cash 
deposits.\1\ In this request, Dongkuk CM stated that, on May 12, 2023, 
the shareholders of Old Dongkuk Steel approved the December 9, 2022, 
proposal by the company's board of directors (BOD) to spin off its 
cold-rolled steel division, which produced CORE and non-subject 
merchandise, and its hot-rolled steel division, which produced only 
non-subject merchandise, as separate operating companies (i.e., Dongkuk 
CM and New Dongkuk Steel, respectively) and position the newly-
established operating companies under the holding company, Dongkuk 
Holdings Co., Ltd. (Dongkuk Holdings), effective as of June 1, 2023 
(the Spin-Off and Reorganization).\2\ Immediately following the BOD 
meeting on December 9, 2022, Old Dongkuk Steel notified the Korean 
Financial Services Commission (KFSC) and the Korean Financial 
Supervisory Service (KFSS) of the planned Spin-Off and Reorganization 
through a written notification that summarized the Spin-Off Plan (KFSS 
Notification). The KFSS Notification explained the plan to split the 
operations of Old Dongkuk Steel into Dongkuk CM, New Dongkuk, and 
Dongkuk Holdings.\3\ Subsequently, the Extraordinary General Meeting of 
Shareholders was convened on May 12, 2023, which ``approved as 
presented'' the Spin-Off Plan to proceed on June 1, 2023, as had been 
proposed.\4\
---------------------------------------------------------------------------

    \1\ See Dongkuk's Letter, ``Request for Changed Circumstances 
Review and Successor-in-Interest Determination'' (Dongkuk CCR 
Request), dated June 30, 2023.
    \2\ Id. at 2-3 and Attachment 1.
    \3\ Id. at 4 and Attachment 3.
    \4\ Id. at 4 and Attachments 2 and 4.
---------------------------------------------------------------------------

    Dongkuk CM states that there were no other changes because of the 
Spin-Off and Reorganization. The total capital of Old Dongkuk Steel was 
allocated among the three companies under the new structure; management 
of Old Dongkuk Steel was divided among the three companies; the 
production facilities of Old Dongkuk Steel, including the production 
facility for CORE (i.e., the Busan Plant), were split by operating 
division (i.e., Cold- Rolled Steel Division and Hot-Rolled Steel 
Division) between Dongkuk CM and New Dongkuk Steel; Dongkuk CM retained 
the suppliers of Old Dongkuk Steel's Cold-Rolled Steel Division for the 
materials used in the production of CORE; and Dongkuk CM retained the 
customer base of Old Dongkuk Steel's Cold-Rolled Steel Division for 
CORE.\5\
---------------------------------------------------------------------------

    \5\ Id. at 3-6 and Attachments 2-4.
---------------------------------------------------------------------------

Scope of the Order <SUP>6</SUP>
---------------------------------------------------------------------------

    \6\ See Certain Corrosion-Resistant Steel Products from India, 
Italy, the People's Republic of China, the Republic of Korea, and 
Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 
2016) (Order).
---------------------------------------------------------------------------

    The merchandise covered by the Order is certain corrosion-resistant 
steel products from Korea. For a complete description of the scope of 
the Order, see the Preliminary Decision Memorandum.\7\
---------------------------------------------------------------------------

    \7\ See Memorandum, ``Decision Memorandum for the Initiation and 
Preliminary Results of the Changed Circumstances Review of the 
Antidumping Duty Order on Certain Corrosion-Resistant Steel Products 
from the Republic of Korea,'' dated concurrently with, and hereby 
adopted by, this notice.
---------------------------------------------------------------------------

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 concerning, or a request from an interested 
party for a review of, an order which shows changed circumstances 
sufficient to warrant a review of the order. Commerce finds that the 
information submitted by Dongkuk CM demonstrates changed circumstances 
sufficient to warrant such a review. Therefore, in accordance with 
section 751(b)(1) of the Act and 19 CFR 351.216(d), Commerce is 
initiating a CCR based on the information contained in Dongkuk CM's 
request that Commerce determine that Dongkuk CM is the successor-in-
interest to Old Dongkuk Steel for purposes of the Order.
    Further, 19 CFR 351.221(c)(3)(ii) permits Commerce to combine the 
notice of initiation of a CCR and the notice of preliminary results of 
a CCR if Commerce concludes that expedited action is warranted. In this 
instance, because the record contains the information necessary to make 
a preliminary finding, we find that expedited action is warranted and 
have combined the notice of initiation and the notice of preliminary 
results.

Methodology

    In determining whether one company is the successor to another, 
Commerce generally considers a company to be the successor-in-interest 
for AD cash deposit purposes if the operations of the successor are not 
materially dissimilar from those of its predecessor.\8\ In making this 
determination, Commerce examines a number of factors including, but not 
limited to, changes in: (1) management; (2) production facilities; (3) 
suppliers; and (4) customer base.\9\ While no one or several of these 
factors will necessarily provide a dispositive indication of 
succession, if the evidence demonstrates that, with respect to the 
production and sale of the subject merchandise, the new company 
operates as the same business entity as the prior company, Commerce 
will assign the new company the cash deposit rate of its 
predecessor.\10\
---------------------------------------------------------------------------

    \8\ See Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review: Multilayered Wood Flooring from the 
People's Republic of China, 79 FR 48117 (August 15, 2014), unchanged 
in Multilayered Wood Flooring from the People's Republic of China: 
Final Results of Changed Circumstances Review, 79 FR 58740 
(September 30, 2014).
    \9\ Id.
    \10\ See, e.g., Certain Preserved Mushrooms from India: 
Initiation and Preliminary Results of Changed-Circumstances Review, 
67 FR 78416 (December 24, 2002), unchanged in Certain Preserved 
Mushrooms from India: Final Results of Changed-Circumstances Review, 
68 FR 6884 (February 11, 2003); and Fresh and Chilled Atlantic 
Salmon from Norway: Final Results of Changed Circumstances 
Antidumping Administrative Review, 64 FR 9979, 9980 (March 1, 1999).
---------------------------------------------------------------------------

    Commerce's analysis of the information submitted by Dongkuk CM is 
detailed in the Preliminary Decision Memorandum. A list of the 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 made available to the public 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 is available at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Preliminary Results of the Changed Circumstances Reviews

    In the Dongkuk CCR Request, Dongkuk CM provided evidence 
demonstrating that its operations are not materially dissimilar from 
those of Old Dongkuk Steel with respect to the subject merchandise. 
Specifically, Dongkuk CM is managed and operated by the same managers 
as Old Dongkuk Steel, either directly as board members or members of 
Dongkuk CM's management team, or indirectly as members of Dongkuk 
Holdings' management team. Further, Dongkuk CM has not added, or 
discontinued use

[[Page 67245]]

of, steel production facilities as a result of the change in ownership 
and management structure. Finally, there have been no significant 
changes to the company's suppliers and customer base. Based on the 
foregoing, which is explained in greater detail in the Preliminary 
Decision Memorandum, we preliminarily determine that Dongkuk CM is the 
successor-in-interest to Old Dongkuk Steel and, as such, that Dongkuk 
CM is entitled to Old Dongkuk Steel's AD cash deposit rate with respect 
to entries of subject merchandise.

Public Comment

    In accordance with 19 CFR 351.309(c)(1)(ii), interested parties may 
submit case briefs not later than 14 days after the date of publication 
of this notice.\11\ Rebuttal briefs, limited to issues raised in case 
briefs, may be filed not later than seven days after the due date for 
case briefs, in accordance with 19 CFR 351.309(d).\12\ Parties who 
submit case briefs or rebuttal briefs in this CCR are requested to 
submit with each argument: (1) a statement of the issues; (2) a brief 
summary of the arguments; and (3) a table of authorities.\13\
---------------------------------------------------------------------------

    \11\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to Covid-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020) (Temporary Rule).
    \13\ See 19 CFR 351.309(c)(2).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 14 days of publication of this notice.\14\ Hearing 
requests should contain the following information: (1) the party's 
name, address, and telephone number; (2) the number of participants; 
(3) whether any participant is a foreign national; and (4) 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.
---------------------------------------------------------------------------

    \14\ Commerce is exercising its discretion under 19 CFR 
351.310(c) to alter the time limit for requesting a hearing.
---------------------------------------------------------------------------

    All submissions must be filed electronically using ACCESS and must 
also be served on interested parties. An electronically-filed document 
must be received successfully in its entirely by ACCESS by 5:00 p.m. 
Eastern Time (ET) on the due date.\15\ Note that Commerce has 
temporarily modified certain requirements for serving documents 
containing business proprietary information, until further notice.\16\
---------------------------------------------------------------------------

    \15\ See 19 CFR 351.303(b).
    \16\ See Temporary Rule.
---------------------------------------------------------------------------

Final Results

    Consistent with 19 CFR 351.216(e), we intend to issue the final 
results of this CCR no later than 270 days after the date on which this 
review was initiated, or within 45 days of publication of these 
preliminary results, if all parties agree to the preliminary findings.

Notification to Interested Parties

    We are issuing and publishing this initiation and preliminary 
results notice in accordance with section 751(b)(1) and 777(i)(1) of 
the Act, and 19 CFR 351.216(b) and 351.221(c)(3).

    Dated: September 22, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

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

[FR Doc. 2023-21379 Filed 9-28-23; 8:45 am]
BILLING CODE 3510-DS-P