Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: Initiation and Preliminary Results of Antidumping Duty Changed Circumstances Review, 29840-29842 [2016-11390]
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29840
Federal Register / Vol. 81, No. 93 / Friday, May 13, 2016 / Notices
and Compliance within 30 days of the
date of publication of this notice.
Requests should contain: (1) The party’s
name, address and telephone number;
(2) The number of participants; and (3)
A list of issues parties intend to discuss.
Issues raised in the hearing will be
limited to those raised in the respective
case and rebuttal briefs. If a request for
a hearing is made, parties will be
notified of the time and date for the
hearing to be held at the U.S.
Department of Commerce, 14th Street
and Constitution Avenue NW.,
Washington, DC 20230.9
The Department intends to issue the
final results of this administrative
review, including the results of its
analysis of the issues raised in any
written briefs, not later than 120 days
after the date of publication of this
notice, pursuant to section 751(a)(3)(A)
of the Act and 19 CFR 351.213(h),
unless this deadline is extended.
mstockstill on DSK3G9T082PROD with NOTICES
Assessment Rates
Upon issuance of the final results, the
Department shall determine, and CBP
shall assess, antidumping duties on all
appropriate entries covered by this
review.10 We will instruct CBP to assess
antidumping duties on all appropriate
entries covered by this review when the
importer-specific assessment rate
calculated in the final results of this
review is not zero or de minimis. Where
the respondent’s weighted-average
dumping margin is zero or de minimis,
or an importer-specific assessment rate
is zero or de minimis, we will instruct
CBP to liquidate the appropriate entries
without regard to antidumping duties.
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003.11 This clarification will
apply to entries of subject merchandise
during the POR produced by the
respondents for which the company did
not know that the merchandise was
destined for the United States. In such
instances, we will instruct CBP to
liquidate unreviewed entries at the all
others rate if there is no rate for the
intermediate company(ies) involved in
the transaction.
We intend to issue instructions to
CBP 15 days after publication of the
final results of this review.
Cash Deposit Requirements
The following deposit requirements
will be effective upon publication of the
notice of final results of administrative
9 See
19 CFR 351.310(d).
10 See 19 CFR 351.212(b)(1).
11 For a full discussion of this clarification, see
Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954
(May 6, 2003).
VerDate Sep<11>2014
18:05 May 12, 2016
Jkt 238001
review for all shipments of the subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the date of publication as provided
by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for Acron will be
equal to the weighted-average dumping
margins established in the final results
of this administrative review, except if
the rate is less than 0.50 percent and,
therefore, de minimis within the
meaning of 19 CFR 351.106(c)(1), in
which case the cash deposit rate will be
zero; (2) for merchandise exported by
EuroChem or by manufacturers or
exporters not covered in this review but
covered in a prior segment of the
proceeding, the cash deposit rate will
continue to be the company-specific rate
published for the most recently
completed segment; (3) if the exporter is
not a firm covered in this review, or the
original investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recently completed segment for the
manufacturer of the merchandise; and
(4) the cash deposit rate for all other
manufacturers or exporters will
continue to be 253.98 percent, the allothers rate established in the order.12
These cash deposit requirements, when
imposed, shall remain in effect until
further notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
Notification to Interested Parties
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: May 5, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
Appendix—List of Topics Discussed in
the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
12 See Termination of the Suspension Agreement
on Solid Fertilizer Grade Ammonium Nitrate From
the Russian Federation and Notice of Antidumping
Duty Order, 76 FR 23569, 23570 (April 27, 2011).
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
IV. Preliminary Determination of No
Shipments
V. Discussion of the Methodology
a. Normal Value Comparisons
b. Determination of Comparison Method
c. Results of the Differential Pricing
Analysis
d. Product Comparisons
e. Date of Sale
f. Constructed Export Price
g. Normal Value
h. Currency Conversion
VI. Recommendation
[FR Doc. 2016–11388 Filed 5–12–16; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–809]
Circular Welded Non-Alloy Steel Pipe
From the Republic of Korea: Initiation
and Preliminary Results of
Antidumping Duty Changed
Circumstances Review
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
Hyundai Steel, a producer/exporter of
circular welded non-alloy steel pipe
(CWP) from the Republic of Korea, and
pursuant to section 751(b) of the Tariff
Act of 1930, as amended (the Act), and
19 CFR 351.216 and 351.221(c)(3)(ii),
the Department is initiating a changed
circumstances review and issuing this
notice of preliminary results. We
preliminarily determine that Hyundai
Steel is the successor-in-interest to
Hyundai HYSCO (HYSCO).
DATES: Effective Date: May 13, 2016.
FOR FURTHER INFORMATION CONTACT:
Joseph Shuler, AD/CVD Operations,
Office I, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202)
482–1293.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On November 2, 1992, the Department
published the antidumping duty order
for circular welded non-alloy steel pipe
from the Republic of Korea.1
On February 24, 2016, Hyundai Steel
informed the Department that effective
July 1, 2015, it had merged with
1 See Notice of Antidumping Duty Orders: Certain
Circular Welded Non-Alloy Steel Pipe from Brazil,
the Republic of Korea (Korea), Mexico, and
Venezuela, and Amendment to Final Determination
of Sales at Less Than Fair Value: Certain Circular
Welded Non-Alloy Steel Pipe from Korea, 57 FR
49453 (November 2, 1992).
E:\FR\FM\13MYN1.SGM
13MYN1
Federal Register / Vol. 81, No. 93 / Friday, May 13, 2016 / Notices
HYSCO,2 and requested that: (1) The
Department conduct a changed
circumstances review under 19 CFR
351.216(b) to determine that it is the
successor-in-interest to HYSCO for
purposes of determining antidumping
duty cash deposits and liabilities; and
(2) the Department conduct the changed
circumstances review on an expedited
basis under 19 CFR 351.221(c)(3)(ii). No
interested parties commented on
Hyundai Steel’s request.
mstockstill on DSK3G9T082PROD with NOTICES
Scope of the Order
The merchandise subject to the order
is circular welded non-alloy steel pipe
and tube, of circular cross-section, not
more than 406.4 millimeters (16 inches)
in outside diameter, regardless of wall
thickness, surface finish (black,
galvanized, or painted), or end finish
(plain end, beveled end, threaded, or
threaded and coupled). These pipes and
tubes are generally known as standard
pipes and tubes and are intended for the
low-pressure conveyance of water,
steam, natural gas, air, and other liquids
and gases in plumbing and heating
systems, air-conditioning units,
automatic sprinkler systems, and other
related uses. Standard pipe may also be
used for light load-bearing applications,
such as for fence tubing, and as
structural pipe tubing used for framing
and as support members for
reconstruction or load-bearing purposes
in the construction, shipbuilding,
trucking, farm equipment, and other
related industries. Unfinished conduit
pipe is also included in the order.
All carbon-steel pipes and tubes
within the physical description outlined
above are included within the scope of
the order except line pipe, oil-country
tubular goods, boiler tubing, mechanical
tubing, pipe and tube hollows for
redraws, finished scaffolding, and
finished conduit.3
Imports of these products are
currently classifiable under the
following Harmonized Tariff Schedule
of the United States (HTSUS) numbers:
7306.30.1000, 7306.30.5025,
7306.30.5032, 7306.30.5040,
2 See letter from Hyundai Steel to the Department,
‘‘Certain Circular Welded Non-Alloy Steel Pipe
from the Republic of Korea: Request for Changed
Circumstances Review (CCR Request), dated
February 24, 2016.
3 See Final Negative Determination of Scope
Inquiry on Certain Circular Welded Non-Alloy Steel
Pipe and Tube from Brazil, the Republic of Korea,
Mexico, and Venezuela, 61 FR 11608 (March 21,
1996). In accordance with this determination, pipe
certified to the API 5L line-pipe specification and
pipe certified to both the API 5L line-pipe
specifications and the less-stringent ASTM A–53
standard-pipe specifications, which falls within the
physical parameters as outlined above, and entered
as line pipe of a kind used for oil and gas pipelines,
is outside of the scope of the AD order.
VerDate Sep<11>2014
18:05 May 12, 2016
Jkt 238001
7306.30.5055, 7306.30.5085, and
7306.30.5090. Although the HTSUS
numbers are provided for convenience
and customs purposes, our written
description of the scope of the order is
dispositive.
All carbon-steel pipes and tubes
within the physical description outlined
above are included within the scope of
the order except line pipe, oil-country
tubular goods, boiler tubing, mechanical
tubing, pipe and tube hollows for
redraws, finished scaffolding, and
finished conduit.
Imports of these products are
currently classifiable under the
following Harmonized Tariff Schedule
of the United States (HTSUS) numbers:
7306.30.1000, 7306.30.5025,
7306.30.5032, 7306.30.5040,
7306.30.5055, 7306.30.5085, and
7306.30.5090. Although the HTSUS
numbers are provided for convenience
and customs purposes, our written
description of the scope of the order is
dispositive.
Initiation and Preliminary Results
Pursuant to section 751(b)(1) of the
Act, the Department will conduct a
changed circumstances review upon
receipt of a request from an interested
party or receipt of information
concerning an antidumping duty order
which demonstrates changed
circumstances sufficient to warrant a
review of the order. As noted above in
the ‘‘Background’’ section, we received
information indicating that on July 1,
2015, Hyundai Steel merged with
HYSCO. The information further
indicates that at that time, Hyundai
Steel assumed all of HYSCO’s
operations for the production and sale
of subject merchandise. This constitutes
changed circumstances warranting a
review of this order.4 Therefore, in
accordance with section 751(b)(1) of the
Act, we are initiating a changed
circumstances review based upon the
information contained in Hyundai
Steel’s submission.5
Section 351.221(c)(3)(ii) of the
Department’s regulations permits the
Department to combine the notice of
initiation of a changed circumstances
review and the preliminary results of
review if the Department concludes that
expedited action is warranted. In this
instance, we find that expedited action
is warranted, and are issuing a
combined notice of initiation and
preliminary results based on the
information placed on the record by
Hyundai Steel.
4 See
5 See
PO 00000
19 CFR 351.216(d).
the CCR Request.
Frm 00010
Fmt 4703
Sfmt 4703
29841
In making a successor-in-interest
determination, the Department
examines several factors including, but
not limited to, whether there were
changes in: (1) Management; (2)
production facilities; (3) supplier
relationships; and (4) customer base.6
While no single factor or combination of
these factors will necessarily provide a
dispositive indication of a successor-ininterest relationship, the Department
will generally consider the new
company to be the successor to the
previous company if the new company’s
resulting operation is not materially
dissimilar to that of its predecessor.7
Thus, if the evidence demonstrates that,
with respect to the production and sale
of the subject merchandise, the new
company operates as the same business
entity as the former company, the
Department will accord the new
company the same treatment under the
antidumping duty order as its
predecessor.
In its submission, Hyundai Steel
explained that it merged with HYSCO
effective July 1, 2015. Hyundai Steel
stated that the merger was approved by
shareholders of both companies, but
procedurally, the merger took the form
of an ‘‘absorption’’ through which
Hyundai Steel ‘‘absorbed’’ HYSCO,
which no longer exists as a corporate
entity.8 Hyundai Steel claimed that
since the effective date of the merger,
Hyundai Steel is operating essentially
the same business as HYSCO did, and
that there have been no significant
changes in management or production
facilities, with only minimal impact on
the company’s supplier relationships
and its customer base with respect to
the production and sale of the subject
merchandise.9 Hyundai Steel submitted
detailed documentation relating to the
merger of the two companies (e.g.,
shareholder meeting report, articles of
incorporation, and a copy of the merger
announcement).10
6 See, e.g., Pressure Sensitive Plastic Tape from
Italy: Preliminary Results of Antidumping Duty
Changed Circumstances Review, 75 FR 8925 (Feb.
26, 2010), unchanged in Pressure Sensitive Plastic
Tape From Italy: Final Results of Antidumping Duty
Changed Circumstances Review, 75 FR 27706 (May
18, 2010); Brake Rotors From the People’s Republic
of China: Final Results of Changed Circumstances
Antidumping Duty Administrative Review, 70 FR
69941 (November 18, 2005) (Brake Rotors), citing
Brass Sheet and Strip from Canada; Final Results
of Antidumping Duty Administrative Review, 57 FR
2460 (May 13, 1992); and Structural Steel Beams
from Korea: Preliminary Results of Changed
Circumstances Antidumping Duty Administrative
Review, 66 FR 15834 (March 21, 2001).
7 See, e.g., Brake Rotors.
8 See CCR Request at 2.
9 See CCR Request at 3–4.
10 Id. at 3 and Exhibits 1 through 14.
E:\FR\FM\13MYN1.SGM
13MYN1
mstockstill on DSK3G9T082PROD with NOTICES
29842
Federal Register / Vol. 81, No. 93 / Friday, May 13, 2016 / Notices
With respect to management, Hyundai
Steel retained its board of directors and
discharged the board of directors of
HYSCO, with the exception of Mr.
Heon-seok Lee, who was a board
member and executive (Chief Director of
Pipe Factory Manufacturing Support
Group) of HYSCO and who remains
with Hyundai Steel as a member of the
board of directors and an executive
(Chief Director of Pipe Factory and Head
of Automotive Parts Production
Office).11 In addition, 12 of 17 HYSCO
executives remain at Hyundai Steel,
nine of whom continue to work in
business units similar to the HYSCO
units where they were employed.
Hyundai Steel further explained that
its current organizational structure is
substantially similar to that of HYSCO;
the only difference is that the
management team of the former
company is now integrated into the
larger management structure of Hyundai
Steel.12 Hyundai Steel explained that
the only changes within the
organizational structure are that certain
business units (of HYSCO) were divided
and integrated into Hyundai Steel’s
business units.13 The documentation
submitted in the CCR Request
demonstrates that the units specifically
related to the production and sale of the
subject merchandise by Hyundai Steel
remain the same, other than changes in
the names of the plants and divisions,
as they were for HYSCO.14
Based on this information, and in
particular, based on the fact that
Hyundai Steel’s management team
continues to include the majority of the
former HYSCO managers, we
preliminarily find that the
reorganization resulting from the merger
of the two companies did not result in
management that was materially
dissimilar with respect to the subject
merchandise.
With respect to production facilities,
Hyundai Steel reported that there have
been no changes.15 Hyundai Steel
provided copies of HYSCO’s company
brochure and noted that the location of
the production facility, in Ulsan, Korea,
also remains unchanged.16 Based on this
information, we preliminarily find that
the merger did not result in material
changes to the production of the subject
merchandise.
With respect to suppliers and
customers, Hyundai Steel provided
information that demonstrates that there
Public Comment
Interested parties may submit case
briefs and/or written comments not later
than 14 days after the date of
11 Id.
at 8 and Exhibit 3.
12 Id. at 7.
13 Id. at 7.
14 See CCR Request at 7–8.
15 Id. at 9.
16 Id.
VerDate Sep<11>2014
18:05 May 12, 2016
are only marginal differences to its
supplier relationships. Specifically,
prior to the merger, Hyundai Steel was
HYSCO’s largest supplier of hot-rolled
coil; after the merger, Hyundai Steel
continues to be the largest supplier of
this input to the production of the
subject merchandise. Although other
suppliers of hot-rolled coil to HYSCO
prior to the merger are no longer
providing hot-rolled coil, Hyundai Steel
explained that these suppliers provided
only a small portion of the input to
HYSCO before the merger.17 Hyundai
Steel explained that the merger had no
effect on the customers or sales
practices in the U.S. (other than a short
interruption in sales) or domestic
markets because Hyundai Steel is now
selling the subject merchandise to the
same customers in exactly the same
manner as HYSCO did. Hyundai Steel
elaborated that the same customers
accounted for 98 percent of the
customer base following the merger.
Based on our consideration of the
totality of the evidence provided by
Hyundai Steel, we preliminarily
determine that Hyundai Steel is the
successor-in-interest to HYSCO, for
purposes of the application of the
antidumping duty order. Specifically,
with respect to the production and sale
of the subject merchandise, we find that
the merger of these two companies
resulted in no significant changes to
management or production facilities.
Additionally, the minor changes in
supplier relationships and customers
that Hyundai Steel identified indicate
that there had been no material change
in suppliers of inputs or services related
to the production, sale and distribution
of the subject merchandise, and thus do
not weigh against finding that Hyundai
Steel is the successor-in-interest to
HYSCO. Thus, Hyundai Steel operates
as the same business entity as HYSCO
with respect to the subject merchandise.
If the Department upholds this
preliminary determination in the final
results, Hyundai Steel will retain the
antidumping duty deposit rate currently
assigned to HYSCO with respect to the
subject merchandise (i.e., 3.69 percent).
If these preliminary results are adopted
in the final results of this changed
circumstances review, we will instruct
U.S. Customs and Border Protection to
suspend liquidation of entries of CWP
made by Hyundai Steel, effective the
date of publication of the final results.
17 Id.
Jkt 238001
PO 00000
at 8–9.
Frm 00011
Fmt 4703
Sfmt 4703
publication of this notice. Rebuttal
briefs and rebuttals to written
comments, which must be limited to
issues raised in such briefs or
comments, may be filed not later than
21 days after the date of publication of
this notice.18 Parties who submit case or
rebuttal briefs 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.
Parties submitting briefs should do so
pursuant to the Department’s electronic
filing system, ACCESS.19 Electronicallyfiled documents must be received
successfully in their entirety by 5:00
p.m. Eastern Time on the due dates
established above.20
Any interested party may request a
hearing within 14 days of publication of
this notice.21 Parties will be notified of
the time and date of any hearing if
requested.22
Consistent with 19 CFR 351.216(e),
we will issue the final results of this
changed circumstances review no later
than 270 days after the date on which
this review was initiated, or within 45
days if all parties agree to our
preliminary finding. This initiation and
preliminary results of review notice is
published in accordance with sections
751(b)(l) and 777(i)(l) of the Act and 19
CFR 351.216, 19 CFR 351.221(b)(l), (4),
and 19 CFR 351.222(g).
Dated: May 9, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2016–11390 Filed 5–12–16; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Meeting of the President’s Export
Council
International Trade
Administration, U.S. Department of
Commerce.
ACTION: Notice of an open meeting by
teleconference.
AGENCY:
The President’s Export
Council (Council) will hold an open call
to present observations from a recent
trip to Cuba by the Council’s Chair and
Vice Chair and to deliberate a
recommendation related to Cuba. The
final agenda will be posted at least one
week in advance of the meeting on the
SUMMARY:
18 See
19 CFR 351.309(d).
19 CFR 351.303(f).
20 See 19 CFR 351.303(b)(1).
21 See 19 CFR 351.310(c).
22 See 19 CFR 351.310(d).
19 See
E:\FR\FM\13MYN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 93 (Friday, May 13, 2016)]
[Notices]
[Pages 29840-29842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11390]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-809]
Circular Welded Non-Alloy Steel Pipe From the Republic of Korea:
Initiation and Preliminary Results of Antidumping Duty Changed
Circumstances Review
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Hyundai Steel, a producer/
exporter of circular welded non-alloy steel pipe (CWP) from the
Republic of Korea, and pursuant to section 751(b) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.216 and 351.221(c)(3)(ii),
the Department is initiating a changed circumstances review and issuing
this notice of preliminary results. We preliminarily determine that
Hyundai Steel is the successor-in-interest to Hyundai HYSCO (HYSCO).
DATES: Effective Date: May 13, 2016.
FOR FURTHER INFORMATION CONTACT: Joseph Shuler, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1293.
SUPPLEMENTARY INFORMATION:
Background
On November 2, 1992, the Department published the antidumping duty
order for circular welded non-alloy steel pipe from the Republic of
Korea.\1\
---------------------------------------------------------------------------
\1\ See Notice of Antidumping Duty Orders: Certain Circular
Welded Non-Alloy Steel Pipe from Brazil, the Republic of Korea
(Korea), Mexico, and Venezuela, and Amendment to Final Determination
of Sales at Less Than Fair Value: Certain Circular Welded Non-Alloy
Steel Pipe from Korea, 57 FR 49453 (November 2, 1992).
---------------------------------------------------------------------------
On February 24, 2016, Hyundai Steel informed the Department that
effective July 1, 2015, it had merged with
[[Page 29841]]
HYSCO,\2\ and requested that: (1) The Department conduct a changed
circumstances review under 19 CFR 351.216(b) to determine that it is
the successor-in-interest to HYSCO for purposes of determining
antidumping duty cash deposits and liabilities; and (2) the Department
conduct the changed circumstances review on an expedited basis under 19
CFR 351.221(c)(3)(ii). No interested parties commented on Hyundai
Steel's request.
---------------------------------------------------------------------------
\2\ See letter from Hyundai Steel to the Department, ``Certain
Circular Welded Non-Alloy Steel Pipe from the Republic of Korea:
Request for Changed Circumstances Review (CCR Request), dated
February 24, 2016.
---------------------------------------------------------------------------
Scope of the Order
The merchandise subject to the order is circular welded non-alloy
steel pipe and tube, of circular cross-section, not more than 406.4
millimeters (16 inches) in outside diameter, regardless of wall
thickness, surface finish (black, galvanized, or painted), or end
finish (plain end, beveled end, threaded, or threaded and coupled).
These pipes and tubes are generally known as standard pipes and tubes
and are intended for the low-pressure conveyance of water, steam,
natural gas, air, and other liquids and gases in plumbing and heating
systems, air-conditioning units, automatic sprinkler systems, and other
related uses. Standard pipe may also be used for light load-bearing
applications, such as for fence tubing, and as structural pipe tubing
used for framing and as support members for reconstruction or load-
bearing purposes in the construction, shipbuilding, trucking, farm
equipment, and other related industries. Unfinished conduit pipe is
also included in the order.
All carbon-steel pipes and tubes within the physical description
outlined above are included within the scope of the order except line
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe
and tube hollows for redraws, finished scaffolding, and finished
conduit.\3\
---------------------------------------------------------------------------
\3\ See Final Negative Determination of Scope Inquiry on Certain
Circular Welded Non-Alloy Steel Pipe and Tube from Brazil, the
Republic of Korea, Mexico, and Venezuela, 61 FR 11608 (March 21,
1996). In accordance with this determination, pipe certified to the
API 5L line-pipe specification and pipe certified to both the API 5L
line-pipe specifications and the less-stringent ASTM A-53 standard-
pipe specifications, which falls within the physical parameters as
outlined above, and entered as line pipe of a kind used for oil and
gas pipelines, is outside of the scope of the AD order.
---------------------------------------------------------------------------
Imports of these products are currently classifiable under the
following Harmonized Tariff Schedule of the United States (HTSUS)
numbers: 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040,
7306.30.5055, 7306.30.5085, and 7306.30.5090. Although the HTSUS
numbers are provided for convenience and customs purposes, our written
description of the scope of the order is dispositive.
All carbon-steel pipes and tubes within the physical description
outlined above are included within the scope of the order except line
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe
and tube hollows for redraws, finished scaffolding, and finished
conduit.
Imports of these products are currently classifiable under the
following Harmonized Tariff Schedule of the United States (HTSUS)
numbers: 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040,
7306.30.5055, 7306.30.5085, and 7306.30.5090. Although the HTSUS
numbers are provided for convenience and customs purposes, our written
description of the scope of the order is dispositive.
Initiation and Preliminary Results
Pursuant to section 751(b)(1) of the Act, the Department will
conduct a changed circumstances review upon receipt of a request from
an interested party or receipt of information concerning an antidumping
duty order which demonstrates changed circumstances sufficient to
warrant a review of the order. As noted above in the ``Background''
section, we received information indicating that on July 1, 2015,
Hyundai Steel merged with HYSCO. The information further indicates that
at that time, Hyundai Steel assumed all of HYSCO's operations for the
production and sale of subject merchandise. This constitutes changed
circumstances warranting a review of this order.\4\ Therefore, in
accordance with section 751(b)(1) of the Act, we are initiating a
changed circumstances review based upon the information contained in
Hyundai Steel's submission.\5\
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\4\ See 19 CFR 351.216(d).
\5\ See the CCR Request.
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Section 351.221(c)(3)(ii) of the Department's regulations permits
the Department to combine the notice of initiation of a changed
circumstances review and the preliminary results of review if the
Department concludes that expedited action is warranted. In this
instance, we find that expedited action is warranted, and are issuing a
combined notice of initiation and preliminary results based on the
information placed on the record by Hyundai Steel.
In making a successor-in-interest determination, the Department
examines several factors including, but not limited to, whether there
were changes in: (1) Management; (2) production facilities; (3)
supplier relationships; and (4) customer base.\6\ While no single
factor or combination of these factors will necessarily provide a
dispositive indication of a successor-in-interest relationship, the
Department will generally consider the new company to be the successor
to the previous company if the new company's resulting operation is not
materially dissimilar to that of its predecessor.\7\ Thus, if the
evidence demonstrates that, with respect to the production and sale of
the subject merchandise, the new company operates as the same business
entity as the former company, the Department will accord the new
company the same treatment under the antidumping duty order as its
predecessor.
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\6\ See, e.g., Pressure Sensitive Plastic Tape from Italy:
Preliminary Results of Antidumping Duty Changed Circumstances
Review, 75 FR 8925 (Feb. 26, 2010), unchanged in Pressure Sensitive
Plastic Tape From Italy: Final Results of Antidumping Duty Changed
Circumstances Review, 75 FR 27706 (May 18, 2010); Brake Rotors From
the People's Republic of China: Final Results of Changed
Circumstances Antidumping Duty Administrative Review, 70 FR 69941
(November 18, 2005) (Brake Rotors), citing Brass Sheet and Strip
from Canada; Final Results of Antidumping Duty Administrative
Review, 57 FR 2460 (May 13, 1992); and Structural Steel Beams from
Korea: Preliminary Results of Changed Circumstances Antidumping Duty
Administrative Review, 66 FR 15834 (March 21, 2001).
\7\ See, e.g., Brake Rotors.
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In its submission, Hyundai Steel explained that it merged with
HYSCO effective July 1, 2015. Hyundai Steel stated that the merger was
approved by shareholders of both companies, but procedurally, the
merger took the form of an ``absorption'' through which Hyundai Steel
``absorbed'' HYSCO, which no longer exists as a corporate entity.\8\
Hyundai Steel claimed that since the effective date of the merger,
Hyundai Steel is operating essentially the same business as HYSCO did,
and that there have been no significant changes in management or
production facilities, with only minimal impact on the company's
supplier relationships and its customer base with respect to the
production and sale of the subject merchandise.\9\ Hyundai Steel
submitted detailed documentation relating to the merger of the two
companies (e.g., shareholder meeting report, articles of incorporation,
and a copy of the merger announcement).\10\
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\8\ See CCR Request at 2.
\9\ See CCR Request at 3-4.
\10\ Id. at 3 and Exhibits 1 through 14.
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[[Page 29842]]
With respect to management, Hyundai Steel retained its board of
directors and discharged the board of directors of HYSCO, with the
exception of Mr. Heon-seok Lee, who was a board member and executive
(Chief Director of Pipe Factory Manufacturing Support Group) of HYSCO
and who remains with Hyundai Steel as a member of the board of
directors and an executive (Chief Director of Pipe Factory and Head of
Automotive Parts Production Office).\11\ In addition, 12 of 17 HYSCO
executives remain at Hyundai Steel, nine of whom continue to work in
business units similar to the HYSCO units where they were employed.
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\11\ Id. at 8 and Exhibit 3.
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Hyundai Steel further explained that its current organizational
structure is substantially similar to that of HYSCO; the only
difference is that the management team of the former company is now
integrated into the larger management structure of Hyundai Steel.\12\
Hyundai Steel explained that the only changes within the organizational
structure are that certain business units (of HYSCO) were divided and
integrated into Hyundai Steel's business units.\13\ The documentation
submitted in the CCR Request demonstrates that the units specifically
related to the production and sale of the subject merchandise by
Hyundai Steel remain the same, other than changes in the names of the
plants and divisions, as they were for HYSCO.\14\
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\12\ Id. at 7.
\13\ Id. at 7.
\14\ See CCR Request at 7-8.
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Based on this information, and in particular, based on the fact
that Hyundai Steel's management team continues to include the majority
of the former HYSCO managers, we preliminarily find that the
reorganization resulting from the merger of the two companies did not
result in management that was materially dissimilar with respect to the
subject merchandise.
With respect to production facilities, Hyundai Steel reported that
there have been no changes.\15\ Hyundai Steel provided copies of
HYSCO's company brochure and noted that the location of the production
facility, in Ulsan, Korea, also remains unchanged.\16\ Based on this
information, we preliminarily find that the merger did not result in
material changes to the production of the subject merchandise.
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\15\ Id. at 9.
\16\ Id.
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With respect to suppliers and customers, Hyundai Steel provided
information that demonstrates that there are only marginal differences
to its supplier relationships. Specifically, prior to the merger,
Hyundai Steel was HYSCO's largest supplier of hot-rolled coil; after
the merger, Hyundai Steel continues to be the largest supplier of this
input to the production of the subject merchandise. Although other
suppliers of hot-rolled coil to HYSCO prior to the merger are no longer
providing hot-rolled coil, Hyundai Steel explained that these suppliers
provided only a small portion of the input to HYSCO before the
merger.\17\ Hyundai Steel explained that the merger had no effect on
the customers or sales practices in the U.S. (other than a short
interruption in sales) or domestic markets because Hyundai Steel is now
selling the subject merchandise to the same customers in exactly the
same manner as HYSCO did. Hyundai Steel elaborated that the same
customers accounted for 98 percent of the customer base following the
merger.
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\17\ Id. at 8-9.
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Based on our consideration of the totality of the evidence provided
by Hyundai Steel, we preliminarily determine that Hyundai Steel is the
successor-in-interest to HYSCO, for purposes of the application of the
antidumping duty order. Specifically, with respect to the production
and sale of the subject merchandise, we find that the merger of these
two companies resulted in no significant changes to management or
production facilities. Additionally, the minor changes in supplier
relationships and customers that Hyundai Steel identified indicate that
there had been no material change in suppliers of inputs or services
related to the production, sale and distribution of the subject
merchandise, and thus do not weigh against finding that Hyundai Steel
is the successor-in-interest to HYSCO. Thus, Hyundai Steel operates as
the same business entity as HYSCO with respect to the subject
merchandise. If the Department upholds this preliminary determination
in the final results, Hyundai Steel will retain the antidumping duty
deposit rate currently assigned to HYSCO with respect to the subject
merchandise (i.e., 3.69 percent). If these preliminary results are
adopted in the final results of this changed circumstances review, we
will instruct U.S. Customs and Border Protection to suspend liquidation
of entries of CWP made by Hyundai Steel, effective the date of
publication of the final results.
Public Comment
Interested parties may submit case briefs and/or written comments
not later than 14 days after the date of publication of this notice.
Rebuttal briefs and rebuttals to written comments, which must be
limited to issues raised in such briefs or comments, may be filed not
later than 21 days after the date of publication of this notice.\18\
Parties who submit case or rebuttal briefs 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. Parties submitting
briefs should do so pursuant to the Department's electronic filing
system, ACCESS.\19\ Electronically-filed documents must be received
successfully in their entirety by 5:00 p.m. Eastern Time on the due
dates established above.\20\
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\18\ See 19 CFR 351.309(d).
\19\ See 19 CFR 351.303(f).
\20\ See 19 CFR 351.303(b)(1).
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Any interested party may request a hearing within 14 days of
publication of this notice.\21\ Parties will be notified of the time
and date of any hearing if requested.\22\
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\21\ See 19 CFR 351.310(c).
\22\ See 19 CFR 351.310(d).
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Consistent with 19 CFR 351.216(e), we will issue the final results
of this changed circumstances review no later than 270 days after the
date on which this review was initiated, or within 45 days if all
parties agree to our preliminary finding. This initiation and
preliminary results of review notice is published in accordance with
sections 751(b)(l) and 777(i)(l) of the Act and 19 CFR 351.216, 19 CFR
351.221(b)(l), (4), and 19 CFR 351.222(g).
Dated: May 9, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-11390 Filed 5-12-16; 8:45 am]
BILLING CODE 3510-DS-P
