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]

Download as PDF 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 13MYN1

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]


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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\
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    \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).
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    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.
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    \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.
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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\
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    \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.
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    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    \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\
---------------------------------------------------------------------------

    \12\ Id. at 7.
    \13\ Id. at 7.
    \14\ See CCR Request at 7-8.
---------------------------------------------------------------------------

    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