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 Department of Commerce International Trade Administration [C-580-917]
 AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce.
 SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 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. Interested parties are invited to comment on this preliminary determination.
 DATES: Applicable September 29, 2023.
 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 This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). On May 24, 2023, Commerce published in the 
                    **Federal Register**
                     the notice of initiation of this investigation.[1]
                    
                     On June 30, 2023, Commerce postponed the preliminary determination of this investigation until September 25, 2023.[2] For a complete description of the events that followed the initiation of this investigation, 
                    *see*
                     the Preliminary Decision Memorandum.[3]
                    
                     A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II 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.* 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 In accordance with the preamble to Commerce's regulations,[4]
                    
                     the 
                    *Initiation Notice*
                     set aside a period of time for parties to raise issues regarding product coverage (
                    *i.e.,*
                     scope).[5]
                    
                     We received comments from several interested parties concerning the scope of the antidumping duty (AD) and 
                    ( print page 67234)
                    countervailing duty (CVD) investigations as it appeared in the 
                    *Initiation Notice.*[6]
                    
                     For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, 
                    *see*
                     the Preliminary Scope Decision Memorandum.[7]
                    
                     Commerce is preliminarily modifying the scope language as it appeared in the 
                    *Initiation Notice, see*
                     Appendix I. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found 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.[8]
                    
                     Furthermore, pursuant to section 776(a) of the Act, Commerce has preliminarily relied upon facts otherwise available, in part, for Booyoung Industry (BYI) and Daechang Co. Ltd (Daechang). For a full description of the methodology underlying the preliminary determination, 
                    *see*
                     the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final CVD determination in this investigation with the final determination in the companion AD investigation of brass rod from Korea based on a request made by the American Brass Rod Fair Trade Coalition and its members, Mueller Brass Co. and Wieland Chase LLC (collectively, the petitioners).[9]
                    
                     Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than February 7, 2024, unless postponed. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and 
                    *de minimis*
                     rates and any rates based entirely under section 776 of the Act. In this investigation, Commerce preliminarily calculated a 
                    *de minimis*
                     rate for BYI. Therefore, the only rate that is not zero, 
                    *de minimis,*
                     or based entirely on facts otherwise available is the rate calculated for Daechang. Consequently, the rate calculated for Daechang is also assigned as the rate for all other producers and exporters. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Company
Subsidy rate
                             
                                (percent 
                                *ad valorem*)Booyoung Industry
0.43 (
                            *de minimis*).Daechang Co. Ltd.10
2.57.All Others
2.57.
 Suspension of Liquidation In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to 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 the date of publication of this notice in the 
                    **Federal Register**
                    . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Because the subsidy rate for BYI is 
                    *de minimis,*
                     Commerce is directing CBP not to suspend liquidation of entries of the merchandise from this company. Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary 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). Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.[11]
                    
                     Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.[12]
                    
                     Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) a statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain the party's name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. 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 by telephone the date, time, and location of the hearing two days before the scheduled date. U.S. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will make its final determination before the later of 120 days after the date of this preliminary determination or 45 days 
                    ( print page 67235)
                    after the final determination whether imports of brass rod from Korea are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). Dated: September 25, 2023. Lisa W. Wang, 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 Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Injury Test VI. Subsidies Valuation Information VII. Benchmark and Discount Rates VIII. Diversification of Korea's Economy IX. Use of Facts Otherwise Available X. Analysis of Programs XI. Recommendation


# Footnotes

1.
    
                         
                        *See Brass Rod from India, Israel, and the Republic of Korea: Initiation of Countervailing Duty Investigations,*88 FR 33566 (May 24, 2023) (
                        *Initiation Notice*). Back to Citation
 2.
    
                         
                        *See Brass Rod from India, Israel, and the Republic of Korea: Postponement of Preliminary Determinations in the Countervailing Duty Investigations,*88 FR 42300 (June 30, 2023). Back to Citation
 3.
    
                         
                        *See*
                         Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination of the Countervailing Duty Investigation of Brass Rod from the Republic of Korea,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Back to Citation
 4.
    
                         
                        *See Antidumping Duties; Countervailing Duties, Final Rule,*62 FR 27296, 27323 (May 19, 1997). Back to Citation
 5.
    
                         
                        *See Initiation Notice.* Back to Citation
 6.
    
                         
                        *Id.* Back to Citation
 7.
    
                         
                        *See*
                         Memorandum, “Preliminary Scope Decision Memorandum,” dated concurrently with this notice (Preliminary Scope Decision Memorandum). Back to Citation
 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. Back to Citation
 9.
    
                         
                        *See*
                         Petitioners' Letter, “Petitioner's Request for Alignment of the Countervailing Duty Investigations with the Concurrent Antidumping Duty Investigations,” dated September 18, 2023. Back to Citation
 10.
    
                         As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Daechang Co. Ltd.: Essentech Co., Ltd.; Seowon Co., Ltd.; Taewoo Co., Ltd.; IN Steel Industry Co., Ltd.; and Affiliate A. Daechang requested business proprietary treatment for Affiliate A. Commerce is continuing to evaluate the request for proprietary treatment and intends to make a determination regarding the public disclosure of this entity's name before the final determination. Back to Citation
 11.
    
                         
                        *See*19 CFR 351.309; 
                        *see also*19 CFR 351.303 (for general filing requirements). Back to Citation
 12.
    
                         
                        *See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-19; Extension of Effective Period,*85 FR 41363 (July 10, 2020). Back to Citation


[FR Doc. 2023-21547 Filed 9-28-23; 8:45 am] BILLING CODE 3510-DS-P