[Federal Register Volume 87, Number 12 (Wednesday, January 19, 2022)]
[Notices]
[Pages 2759-2761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00939]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-879]


Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Final Results and Partial Rescission of Countervailing Duty 
Administrative Review; 2019

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

SUMMARY: The Department of Commerce (Commerce) determines that

[[Page 2760]]

countervailable subsidies are being provided to producers and exporters 
of certain corrosion-resistant steel products from the Republic of 
Korea. The period of review (POR) is January 1, 2019, through December 
31, 2019. Commerce is also rescinding the review with respect to 
Dongkuk Steel Mill Co., Ltd. (Dongkuk).

DATES: Applicable January 19, 2022.

FOR FURTHER INFORMATION CONTACT: Joshua Simondis or Dennis McClure, 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) 482-0608 or (202) 
482-5973, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Results of this review on July 
16, 2021.\1\ For a description of the events that occurred since the 
Preliminary Results, see the Issues and Decision Memorandum.\2\
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    \1\ See Certain Corrosion-Resistant Steel Products from the 
Republic of Korea: Preliminary Results of Countervailing Duty 
Administrative Review; 2019, 86 FR 37740 (July 16, 2021) 
(Preliminary Results), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results and Partial Rescission of the 2019 Administrative 
Review of the Countervailing Duty Order on Certain Corrosion-
Resistant Steel Products from the Republic of Korea,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Order

    The products covered by this order are certain corrosion-resistant 
steel 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 accompanying this notice. A list 
of the issued raised by parties, and to which Commerce responded in the 
Issues and Decision Memorandum, is provided in Appendix I 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on a review of the record and comments received from 
interested parties, and for the reasons explained in the Issues and 
Decision Memorandum, we made changes to the Preliminary Results.

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.\3\ For a description of the methodology underlying all of 
Commerce's conclusions, see the Issues and Decision Memorandum.
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    \3\ 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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Rescission of Administrative Review, in Part

    As noted in the Issues and Decision Memorandum, Commerce 
inadvertently included Dongkuk as a respondent company in this 
administrative review. Accordingly, we are rescinding the review with 
respect to Dongkuk. For further discussion, see ``Rescission of 
Administrative Review, in Part'' section in the Issues and Decision 
Memorandum.

Companies Not Selected for Individual Review

    There are 35 companies for which a review was requested, but which 
were not selected as mandatory respondents or found to be cross-owned 
with a mandatory respondent. For these 35 companies, we applied the 
subsidy rate calculated for KG Dongbu Steel Co., Ltd. (KG Dongbu Steel) 
(formerly Dongbu Steel Co., Ltd.) and its cross-owned affiliate, Dongbu 
Incheon Steel Co., Ltd., as the only rate calculated for a mandatory 
respondent that was above de minimis and not based entirely on facts 
available. This methodology for establishing the subsidy rate for the 
non-selected companies is consistent with our practice and with section 
705(c)(5)(A) of the Act.

Final Results of Administrative Review

    We determine that, for the period January 1, 2019, through December 
31, 2019, the following total estimated net countervailable subsidy 
rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
KG Dongbu Steel Co., Ltd. (formerly Dongbu Steel Co.,              10.51
 Ltd.) \4\/Dongbu Incheon Steel Co., Ltd................
Hyundai Steel Company...................................          * 0.47
Non-Selected Companies Under Review \5\.................           10.51
------------------------------------------------------------------------
* (de minimis).

Assessment Rate
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    \4\ Dongbu Steel Co., Ltd. changed its name to KG Dongbu Steel 
Co., Ltd. in 2020.
    \5\ See Appendix II.
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    Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and U.S. 
Customs and Border Protection (CBP) shall assess, countervailing duties 
on all appropriate entries of subject merchandise in accordance with 
the final results of this review, for the above-listed companies at the 
applicable ad valorem assessment rates listed. Commerce intends to 
issue assessment instructions to CBP no earlier than 35 days after the 
date of publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

Cash Deposit Rates

    In accordance with section 751(a)(1) of the Act, Commerce intends 
to instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for each of the respective companies listed 
above. 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 deposits, when imposed, shall remain in 
effect until further notice.

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
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). 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 sanctionable 
violation.

[[Page 2761]]

Disclosure

    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).

Notification to Interested Parties

    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 12, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Changes Since the Preliminary Results
IV. Scope of the Order
V. Period of Review
VI. Rescission of Administrative Review, in Part
VII. Subsidies Valuation Information
VIII. Analysis of Programs
IX. Discussion of Comments
    Comment 1: Whether Electricity Is Subsidized by the Government 
of the Republic of Korea (GOK)
    Comment 2: Whether Commerce's Determination that Port Usage 
Rights Provide a Countervailable Benefit Is Unsupported by Evidence 
and Contrary to Law
    Comment 3: Whether Commerce Incorrectly Countervailed the 
Reduction for Sewerage Usage Fees
    Comment 4: Whether the Restructuring of KG Dongbu Steel's 
Existing Loans by GOK-Controlled Financial Institutions Constitutes 
a Financial Contribution and a Benefit to KG Dongbu Steel
    Comment 5: Whether the Restructured Loans Provided to KG Dongbu 
Were Specific
    Comment 6: Whether Commerce Should Use the Interest Rates From 
Loans Provided by Private Banks Participating in the Creditor Bank 
Committee as Benchmarks
    Comment 7: Whether KG Dongbu Steel Is Equityworthy and the 2015-
2018 Debt-to-Equity Swaps Should Be Countervailed
    Comment 8: Whether Subsidies Prior to Dongbu Steel's Change in 
Ownership Pass Through to KG Dongbu Steel
    Comment 9: Whether Commerce Incorrectly Calculated the 
Uncreditworthy Discount Rate Used for Allocating the Benefits From 
Long-Term Loans, Bonds, and Equity Infusions
    Comment 10: Whether Commerce Incorrectly Calculated the Discount 
Rate for the 2019 Government Equity Infusion
XI. Recommendation

Appendix II

List of Non-Selected Companies

1. Ajin H & S Co., Ltd.
2. AJU Steel Co., Ltd.
3. B&N International
4. CDS Global Logistics
5. Dong A Hwa Sung Co., Ltd.
6. Dongkuk International, Inc.
7. Korea Clad Tech. Co., Ltd.
8. Pantos Logistics Co., Ltd.
9. PL Special Steel Co., Ltd.
10. POSCO
11. POSCO C&C
12. POSCO Coated & Color Steel Co., Ltd.
13. POSCO Daewoo Corp.
14. Samsung C&T Corporation
15. Samsung Electronics Co., Ltd.
16. Sanglim Steel Co., Ltd.
17. SeAH Coated Metal
18. SeAH Steel Corporation
19. Seajin St. Industry, Ltd.
20. Sejung Shipping Co., Ltd.
21. Seun Steel Co., Ltd.
22. Segye Chemical Industry Co., Ltd.
23. Shandongsheng Cao Xian Yalu Mftd.
24. Shengzhou Hanshine Import and Export Trade
25. Soon Hong Trading Co., Ltd.
26. Southern Steel Sheet Co., Ltd.
27. SSangyong Manufacturing
28. Sung A Steel Co., Ltd.
29. SW Co., Ltd.
30. SY Co., Ltd.
31. Syon
32. TCC Steel. Co., Ltd.
33. Young Steel Korea Co., Ltd.
34. Young Sun Steel Co.
35. Young Steel Co.

[FR Doc. 2022-00939 Filed 1-18-22; 8:45 am]
BILLING CODE 3510-DS-P