[Federal Register Volume 87, Number 68 (Friday, April 8, 2022)]
[Notices]
[Pages 20821-20824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07502]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-882]


Certain Cold-Rolled Steel Flat Products From the Republic of 
Korea: Final Results of Countervailing Duty Administrative Review; 2019

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

SUMMARY: The Department of Commerce (Commerce) determines that certain 
producers/exporters of certain cold-rolled steel flat products (cold-
rolled steel) from the Republic of Korea (Korea) received 
countervailable subsidies during the review period, while other 
producers/exporters (i.e., Hyundai Steel Co., Ltd., also referred to as 
Hyundai Steel Company (Hyundai Steel), and POSCO) received de minimis 
net countervailable subsidies during the review period. The period of 
review (POR) is January 1, 2019, through December 31, 2019.

DATES: Applicable April 8, 2022.

FOR FURTHER INFORMATION CONTACT: Natasia Harrison, 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) 482-1240.

SUPPLEMENTARY INFORMATION: 

[[Page 20822]]

Background

    Commerce published the Preliminary Results of this review on 
October 6, 2021.\1\ On October 21, 2021, Commerce issued its post-
preliminary analysis.\2\ Subsequently, on January 18, 2022, Commerce 
extended the deadline for the final results of this review to no later 
than April 1, 2022.\3\ For a complete description of the events that 
followed the Preliminary Results, see the Issues and Decision 
Memorandum.\4\
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    \1\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Preliminary Results of Countervailing Duty 
Administrative Review, 2019, 86 FR 55572 (October 6, 2021) 
(Preliminary Results), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Countervailing Duty Administrative Review 
of Certain Cold-Rolled Steel Flat Products from the Republic of 
Korea; 2019: Post-Preliminary Analysis Memorandum,'' dated October 
21, 2021.
    \3\ See Memorandum, ``Certain Cold-Rolled Steel Flat Products 
from the Republic of Korea: Countervailing Duty Administrative 
Review; 2019: Extension of Deadline for Final Results,'' dated 
January 18, 2022.
    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2019 Administrative Review of the 
Countervailing Duty Order on Certain Cold-Rolled Steel Flat 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 \5\
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    \5\ See Certain Cold-Rolled Steel Flat Products from Brazil, 
India, and the Republic of Korea: Amended Final Affirmative 
Countervailing Duty Determination and Countervailing Duty Order (the 
Republic of Korea) and Countervailing Duty Orders (Brazil and 
India), 81 FR 64436 (September 20, 2016) (Order).
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    The merchandise covered by the Order is certain cold-rolled steel. 
For a complete description of the scope of the 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 issues 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 https://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, we made certain changes to the subsidy rate 
calculations for POSCO, the calculation of the non-selected rate, and 
the draft customs instructions. For a discussion of these changes, 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 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.\6\ For a description of the methodology underlying all of 
Commerce's conclusions, see the Issues and Decision Memorandum.
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    \6\ 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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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not directly address the 
establishment of rates to be applied to companies not selected for 
individual examination where Commerce limits in examination in an 
administrative review pursuant to section 777(A)(e)(2) of the Act. 
However, Commerce normally determines the rates for non-selected 
companies in reviews in a manner that is consistent with section 
705(c)(5) of the Act, which provides instructions for calculating the 
all-others rate in an investigation. We also note that section 
777A(e)(2) of the Act provides that ``the individual countervailable 
subsidy rates determined under subparagraph (A) shall be used to 
determine the all-others rate under section 705(c)(5) {of the 
Act{time} .'' Section 705(c)(5)(A)(i) of the Act states that, in 
general, for companies not investigated, we will determine an all-
others rate by using the weighted-average countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding zero and de minimis rates or any rates based solely on the 
facts available. Additionally, section 705(c)(5)(A)(ii) of the Act 
provides that when the countervailable subsidy rates established for 
all exporters and producers individually investigated are zero or de 
minimis rates, or based solely on facts available, Commerce may use any 
reasonable method to establish a rate for the companies not 
individually investigated, including averaging the weighted-average 
countervailable subsidy rates determined for the exporters and 
producers individually investigated.
    In the final results of this review, we calculated de minimis net 
countervailable subsidy rates for both Hyundai Steel and POSCO, the 
mandatory respondents. As a result, for the reasons discussed in the 
Issues and Decision Memorandum, we have determined that it is 
appropriate to assign to the companies subject to the review, but not 
selected for individual examination, the weighted-average of the most 
recently calculated countervailable subsidy rates that are not zero or 
de minimis rates, or based solely on facts available from the prior 
review (i.e., CRS Third Admin Review Final Results).\7\ While Dongbu 
Steel Co., Ltd. and Dongbu Incheon Steel Co., Ltd. are non-selected 
respondents, because each received a calculated rate in the prior 
review (i.e., CRS Third Admin Review Final Results), Commerce has found 
it appropriate to apply that calculated rate to Dongbu Steel Co., Ltd. 
and Dongbu Incheon Steel Co., Ltd. in this review. For a list of the 45 
companies for which a review was requested and not rescinded, and which 
were not selected as mandatory respondents or found to be cross-owned 
with a mandatory respondent, see Appendix II to this notice.
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    \7\ See Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Final Results of Countervailing Duty 
Administrative Review; 2018, 86 FR 40465 (July 28, 2021) (CRS Third 
Admin Review Final Results).
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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:
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    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
POSCO: Pohang Scrap Recycling Distribution Center Co. Ltd.; POSCO 
Chemical Co., Ltd.; POSCO M-Tech; POSCO Nippon Steel RHF Joint 
Venture Co., Ltd.; and POSCO Terminal. The subsidy rate applies to 
all cross-owned companies. We note that POSCO has an affiliated 
trading company through which it exported certain subject 
merchandise, POSCO International Corporation (POSCO International). 
POSCO International was not selected as a mandatory respondent, but 
was examined in the context of POSCO. Therefore, there is not an 
established rate for POSCO International and POSCO International's 
subsidies are accounted for in terms of POSCO's total subsidy rate. 
Instead, entries of subject merchandise exported by POSCO 
International will receive the rate of the producer listed on the 
entry form with CBP. Thus, the subsidy rate applied to POSCO and 
POSCO's cross-owned affiliated companies is also applied to POSCO 
International for entries of merchandise produced by POSCO.
    \9\ See Appendix II.
    \10\ As described above, while Dongbu Steel Co., Ltd. and Dongbu 
Incheon Steel Co., Ltd. are non-selected respondents, because each 
received a calculated rate in the prior review (i.e., CRS Third 
Admin Review Final Results), Commerce has found it appropriate to 
apply that calculated rate to Dongbu Steel Co., Ltd. and Dongbu 
Incheon Steel Co., Ltd. in this review.

[[Page 20823]]



------------------------------------------------------------------------
                                                           Subsidy rate
                    Producer/exporter                       ad valorem
                                                             (percent)
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Hyundai Steel Co., Ltd..................................          * 0.46
POSCO \8\...............................................          * 0.22
Non-Selected Companies Under Review \9\.................            1.93
Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co.,                    9.18
 Ltd.\10\...............................................
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* de minimis.

Assessment Rate

    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). Because we have calculated de minimis countervailable 
subsidy rates for certain companies under 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 January 1, 2019, through December 31, 2019, without 
regard to countervailing duties in accordance with 19 CFR 351.212(b)(2) 
and 19 CFR 351.106(c).

Cash Deposit Rates

    In accordance with section 751(a)(2)(C) of the Act, Commerce 
intends to instruct CBP to continue to suspend liquidation but not to 
collect cash deposits of estimated countervailing duties on shipments 
of subject merchandise by the companies under review entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review. For all 
non-reviewed firms subject to the Order, we will instruct CBP to 
continue to collect cash deposits of estimated countervailing duties at 
the most recent company-specific rate or the all-others rate (3.89 
percent), as appropriate.\11\ These cash deposit requirements, 
effective upon publication of these final results, shall remain in 
effect until further notice.
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    \11\ See Order, 81 FR at 64438.
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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.

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: April 1, 2022.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.

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. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Whether Electricity is Subsidized by the Government 
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 Miscalculated the Benefit Conferred 
by the Industrial Technology Innovation Promotion Act (ITIPA) 
Program
    Comment 4: Whether Commerce Should Continue to Include Benefits 
from Certain Industrial Technology Innovation Promotion Act Projects
    Comment 5: Whether Commerce Should Exclude Quota Tariff Import 
Duty Exemptions Received on Certain Items Used to Produce Non-
Subject Merchandise
    Comment 6: Whether Commerce Should Modify the Trading Company 
Methodology for POSCO International Corporation (POSCO 
International)
    Comment 7: Whether Commerce Made Certain Errors in the Draft 
Customs Instructions for POSCO International
    Comment 8: Whether Commerce Made Certain Errors in the Draft 
Customs Instructions Related to Dongbu Steel Co., Ltd. (Dongbu 
Steel), Dongbu Incheon Steel Co., Ltd. (Dongbu Incehon), and KG 
Dongbu Steel Co., Ltd. (KG Dongbu Steel)
    Comment 9: Whether Commerce Should Modify Its Selection of the 
Rate for Non-Selected Companies
IX. Recommendation

Appendix II

List of Non-Selected Companies

1. AJU Steel Co., Ltd.
2. Amerisource Korea
3. Atlas Shipping Cp. Ltd.
4. BC Trade
5. Busung Steel Co., Ltd.
6. Cenit Co., Ltd.
7. Daewoo Logistics Corp.
8. Dai Yang Metal Co., Ltd.
9. DK GNS Co., Ltd
10. Dongbu Incheon Steel Co., Ltd.\12\
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    \12\ While Dongbu Steel Co., Ltd. and Dongbu Incheon Steel Co., 
Ltd. are non-selected respondents, because each received a 
calculated rate in the prior review (i.e., CRS Third Admin Review 
Final Results), Commerce has found it appropriate to apply that 
calculated rate to Dongbu Steel Co., Ltd. and Dongbu Incheon Steel 
Co., Ltd.
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11. Dongbu Steel Co., Ltd.\13\
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    \13\ Id.
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12. KG Dongbu Steel Co., Ltd.
13. Dongbu USA
14. Dong Jin Machinery
15. Dongkuk Industries Co., Ltd.
16. Dongkuk Steel Mill Co., Ltd.
17. Eunsan Shipping and Air Cargo Co., Ltd.
18. Euro Line Global Co., Ltd.

[[Page 20824]]

19. GS Global Corp.
20. Hanawell Co., Ltd.
21. Hankum Co., Ltd.
22. Hyosung TNC Corp.
23. Hyuk San Profile Co., Ltd.
24. Hyundai Group
25. Iljin NTS Co., Ltd.
26. Iljin Steel Corp.
27. Jeen Pung Industrial Co., Ltd.
28. JT Solution
29. Kolon Global Corporation
30. Nauri Logistics Co., Ltd.
31. Okaya (Korea) Co., Ltd.
32. PL Special Steel Co., Ltd.
33. POSCO C&C Co., Ltd.
34. POSCO Daewoo Corp.
35. POSCO International Corp. (POSCO International Corporation)
36. Samsung C&T Corp.
37. Samsung STS Co., Ltd.
38. SeAH Steel Corp.
39. SM Automotive Ltd.
40. SK Networks Co., Ltd.
41. Taihan Electric Wire Co., Ltd.
42. TGS Pipe Co., Ltd.
43. TI Automotive Ltd.
44. Xeno Energy
45. Young Steel Co., Ltd.

[FR Doc. 2022-07502 Filed 4-7-22; 8:45 am]
BILLING CODE 3510-DS-P