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[Federal Register Volume 86, Number 134 (Friday, July 16, 2021)]
[Notices]
[Pages 37740-37741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15152]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-879]

Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Preliminary Results of Countervailing Duty Administrative 
Review, 2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain corrosion-resistant steel products (CORE) from the 
Republic of Korea. The period of review (POR) is January 1, 2019, 
through December 31, 2019.

DATES: Applicable July 16, 2021.

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

SUPPLEMENTARY INFORMATION:

Background

    On July 21, 30, and 31, 2020, we received requests for multiple 
administrative reviews.\1\ On September 3, 2020, Commerce published a 
notice of initiation of an administrative review of the countervailing 
duty (CVD) order on CORE from Korea.\2\ On October 6, 2020, Commerce 
selected KG Dongbu Steel Co., Ltd. (KG Dongbu Steel) (formerly Dongbu 
Steel Co., Ltd.)/Dongbu Incheon Steel Co., Ltd. (collectively, Dongbu) 
and Hyundai Steel Company as mandatory respondents in this 
administrative review.\3\
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    \1\ See Petitioners' Letter, ``Request for Administrative 
Review,'' dated July 31, 2020; see also POSCO C&C's Letter, 
``Administrative Review Request,'' dated July 30, 2020; Hyundai 
Steel's Letter, ``Request for Administrative Review,'' dated July 
21, 2020; and POSCO's Letter, ``Administrative Review Request,'' 
dated July 21, 2020.
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 54983 (September 3, 2020).
    \3\ On October 27, 2020, KG Dongbu Steel reported that it 
changed its name from Dongbu Steel to KG Dongbu Steel. See Dongbu's 
Letter, ``Affiliated Companies Response,'' dated October 27, 2020.
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    On March 4, 2021, and March 24, 2021, Commerce extended the 
deadline for the preliminary results of this review.\4\
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    \4\ See Memoranda, ``Extension of Deadline for the Preliminary 
Results of the 2019 Countervailing Duty Administrative Review,'' 
dated March 4, 2021, and March 24, 2021, respectively.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\5\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included at the Appendix I 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 http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review; 2019: 
Certain Corrosion-Resistant Steel Products from the Republic of 
Korea,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

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

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a financial contribution from 
an authority that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\6\ For a full description of the methodology 
underlying our conclusions, see the accompanying Preliminary 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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Preliminary Rate for Non-Selected Companies Under Review

    The statute and Commerce's regulations do not directly address the 
CVD rates to be applied to companies not selected for individual 
examination where Commerce limited its examination in an administrative 
review pursuant to section 777A(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. 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) of the Act states 
that for companies not investigated, in general, we will determine an 
all-others rate by weight-averaging the countervailable subsidy rates 
established for each of the companies individually investigated, 
excluding zero and de minimis rates or any rates based solely on the 
facts available.
    We preliminarily determine that Dongbu is the only mandatory 
respondent that received countervailable subsidies that are above de 
minimis. Therefore, we preliminarily determine to apply the net subsidy 
rate calculated for Dongbu to the non-selected companies. For a list of 
the 36 companies for which a review was requested, and which were not 
selected as mandatory respondents or found to be cross-owned with a 
mandatory respondent, see Appendix II to this notice.

Preliminary Results of the Review

    As a result of this review, we preliminarily determine the net 
countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                          rate
                                                               (percent)
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KG Dongbu Steel Co., Ltd. (formerly Dongbu Steel Co., Ltd.)/       10.52
 Dongbu Incheon Steel Co., Ltd..............................
Hyundai Steel Company.......................................      * 0.48
Non-Selected Companies Under Review \7\.....................       10.52
------------------------------------------------------------------------
* (de minimis).

Disclosure and Public Comment
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    \7\ See Appendix II.
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    We intend to disclose to interested parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\8\ 
Rebuttals to case briefs may be filed no later than seven days after 
the case briefs are filed,

[[Page 37741]]

and all rebuttal comments must be limited to comments raised in the 
case briefs.\9\ Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information until further notice.\10\
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    \8\ See 19 CFR 351.309(c).
    \9\ See 19 CFR 351.309(d).
    \10\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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    Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit 
case briefs or rebuttal briefs in this review 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.
    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Assessment Rate

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and U.S. Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries covered 
by this review. 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 Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above on shipments of subject 
merchandise 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, we will instruct CBP 
to continue to collect cash deposits at the most recent company-
specific or all others rate applicable to the company. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: July 12, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. 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. Dongkuk Steel Mill Co., Ltd.
8. Korea Clad Tech. Co., Ltd.
9. Pantos Logistics Co., Ltd.
10. PL Special Steel Co., Ltd.
11. POSCO
12. POSCO C&C
13. POSCO Coated & Color Steel Co., Ltd.
14. POSCO Daewoo Corp.
15. Samsung C&T Corporation
16. Samsung Electronics Co., Ltd.
17. Sanglim Steel Co., Ltd.
18. SeAH Coated Metal
19. SeAH Steel Corporation
20. Seajin St. Industry, Ltd.
21. Sejung Shipping Co., Ltd.
22. Seun Steel Co., Ltd.
23. Segye Chemical Industry Co., Ltd.
24. Shandongsheng Cao Xian Yalu Mftd.
25. Shengzhou Hanshine Import and Export Trade
26. Soon Hong Trading Co., Ltd.
27. Southern Steel Sheet Co., Ltd.
28. SSangyong Manufacturing
29. Sung A Steel Co., Ltd.
30. SW Co., Ltd.
31. SY Co., Ltd.
32. Syon
33. TCC Steel. Co., Ltd.
34. Young Steel Korea Co., Ltd.
35. Young Sun Steel Co.
36. Young Steel Co.

[FR Doc. 2021-15152 Filed 7-15-21; 8:45 am]
BILLING CODE 3510-DS-P
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