[Federal Register Volume 83, Number 172 (Wednesday, September 5, 2018)]
[Notices]
[Pages 45094-45095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19210]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Notice of 
Final Results of Antidumping Duty Changed Circumstances Review

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) finds that Hyundai 
Electric & Energy Systems Co., Ltd. (HEES) is the successor-in-interest 
to Hyundai Heavy Industries Co., Ltd. (HHI) and that HHI's current cash 
deposit rate is the applicable rate for all entries of the subject 
merchandise exported by HEES. In addition, we determine that facts 
presented in this changed circumstances review (CCR) warrant the 
retroactive application of the cash deposit rate to the effective date 
of the first entry by HEES.

DATES: Applicable September 5, 2018.

FOR FURTHER INFORMATION CONTACT: John C. McGowan, 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) 482-3019.

SUPPLEMENTARY INFORMATION: 

Background

    On August 31, 2012, Commerce published in the Federal Register an 
antidumping duty order on large power transformers (LPTs) from the 
Republic of Korea (Korea).\1\ HHI was one of the producers/exporters 
reviewed in the less-than fair-value investigation and has been 
reviewed in each subsequent administrative review of the Order. During 
the 2014-2015 administrative review, covering the period August 1, 
2014, through July 31, 2015, Commerce assigned HHI an antidumping duty 
rate of 60.81 percent, finding that the application of total adverse 
facts available (AFA) was warranted.\2\ In addition, during the 2015-
2016 administrative review, covering the period August 1, 2015, through 
July 31, 2016, Commerce continued to assign HHI an antidumping duty 
rate of 60.81 percent, finding that the application of total AFA was 
warranted.\3\
---------------------------------------------------------------------------

    \1\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (the Order).
    \2\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2014-2015, 
82 FR 13432 (March 13, 2017) (2014/2015 Final Results).
    \3\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2015-2016, 
83 FR 11679 (March 16, 2018) (2015-2016 Final Results).
---------------------------------------------------------------------------

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(d), on December 4, 2017, Commerce self-
initiated a CCR regarding HHI's new spin off company, HEES, based on 
information obtained: (1) During the course of the 2014/2015 and 2015/
2016 administrative reviews; (2) via public search and a phone 
conversation with a representative retained by ABB Inc.'s (ABB's or the 
petitioner's) counsel; and (3) from U.S. Customs and Border Protection 
(CBP) data.\4\
---------------------------------------------------------------------------

    \4\ See Large Power Transformers from the Republic of Korea: 
Initiation of Antidumping Duty Changed Circumstances Review, 82 FR 
57210 (December 4, 2017) (Initiation Notice).
---------------------------------------------------------------------------

    On May 31, 2018, Commerce issued the Preliminary Results of this 
CCR, in which it determined that: (1) HEES is the successor-in-interest 
to HHI; (2) HHI's current cash deposit rate is the rate applicable for 
all entries of LPTs exported by HEES; and (3) the application of the 
cash deposit rate applicable to HEES shall be made

[[Page 45095]]

retroactively to the effective date of the first entry by HEES.\5\
---------------------------------------------------------------------------

    \5\ See Large Power Transformers from the Republic of Korea: 
Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances Review, 83 FR 24973 (May 31, 2018) (Preliminary 
Results) and the accompanying Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    On July 6, 2018, Hyundai submitted comments regarding the 
Preliminary Results.\6\ On July 13, 2018, ABB submitted its rebuttal 
brief.\7\
---------------------------------------------------------------------------

    \6\ HHI and HEES are collectively referred to as Hyundai. See 
Letter from Hyundai to Commerce, ``Large Power Transformers from 
Korea: Hyundai's Case Brief,'' dated July 6, 2018.
    \7\ See Letter from the petitioner to Commerce, ``Large Power 
Transformers from the Republic of Korea: Petitioner's Rebuttal 
Brief,'' dated July 13, 2018.
---------------------------------------------------------------------------

Scope of the Order

    The scope of this Order covers large liquid dielectric power 
transformers having a top power handling capacity greater than or equal 
to 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or 
unassembled, complete or incomplete.
    Incomplete LPTs are subassemblies consisting of the active part and 
any other parts attached to, imported with or invoiced with the active 
parts of LPTs. The ``active part'' of the transformer consists of one 
or more of the following when attached to or otherwise assembled with 
one another: The steel core or shell, the windings, electrical 
insulation between the windings, the mechanical frame for an LPT.
    The product definition encompasses all such LPTs regardless of name 
designation, including but not limited to step-up transformers, step-
down transformers, autotransformers, interconnection transformers, 
voltage regulator transformers, rectifier transformers, and power 
rectifier transformers.
    The LPTs subject to this Order are currently classifiable under 
subheadings 8504.23.0040, 8504.23.0080, and 8504.90.9540 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this Order is dispositive.

Analysis of Comments Received

    The issue raised in the case and rebuttal briefs by parties to this 
CCR is addressed in the Issues and Decision Memorandum, which is hereby 
adopted by this notice.\8\ A list of the topics discussed in the Issues 
and Decision Memorandum is attached to this notice as an Appendix. 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 it is available to all parties in the Central Records Unit, Room 
B8024, of the main Department of 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/. The 
signed Issues and Decision Memorandum and the electronic version of the 
Issues and Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \8\ See Memorandum to Gary Taverman, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Final Results of Changed Circumstances 
Review Regarding Successor-In-Interest Analysis: Large Power 
Transformers from the Republic of Korea,'' dated concurrently with 
this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Final Results of Changed Circumstances Review

    Based on the record evidence and our analysis of the comments 
received, Commerce continues to find that applying HHI's current cash 
deposit rate of 60.81 percent retroactively to the effective date of 
the first entry of HEES, HHI's successor-in-interest, is warranted.\9\
---------------------------------------------------------------------------

    \9\ See Issues and Decision Memorandum.
---------------------------------------------------------------------------

Instructions to U.S. Customs and Border Protection

    As a result of this determination, Commerce will instruct CBP to 
collect estimated antidumping duties for all shipments of the subject 
merchandise produced and/or exported by HEES and entered, or withdrawn 
from warehouse, for consumption on or after the date of the first entry 
made by HEES at the 60.81 percent rate established in the 2014-2015 and 
2015-2016 antidumping duty administrative reviews. This cash deposit 
requirement shall remain in effect until further notice.

Notification to Interested Parties

    This notice serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.306. Timely written notification of 
the 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 sanctionable violation.
    We are issuing and publishing this final results notice in 
accordance with sections 751(b) and 777(i) of the Act, and 19 CFR 
351.216, 351.221(b)(5), and 351.221(c)(3).

    Dated: August 28, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Discussion of Interested Party Comments
    Comment: Whether Retroactive Application of a Cash Deposit Rate 
to a Successor-in-Interest Is Permitted by Law and Consistent With 
Commerce's Practice
V. Recommendation

[FR Doc. 2018-19210 Filed 9-4-18; 8:45 am]
 BILLING CODE 3510-DS-P