Large Power Transformers From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2014-2015, 13432-13433 [2017-04824]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 82, Number 47 (Monday, March 13, 2017)]
[Notices]
[Pages 13432-13433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04824]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Final 
Results of Antidumping Duty Administrative Review; 2014-2015

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

SUMMARY: On September 2, 2016, the Department of Commerce (the 
Department) published in the Federal Register the preliminary results 
of the third administrative review of the antidumping duty order on 
large power transformers from the Republic of Korea. The review covers 
five producers/exporters of the subject merchandise, Hyosung 
Corporation (Hyosung), Hyundai Heavy Industries Co., Ltd. (Hyundai), 
Iljin, Iljin Electric Co., Ltd. (Iljin Electric), and LSIS Co., Ltd. 
(LSIS). Iljin, Iljin Electric and LSIS, were not selected for 
individual examination. The period of review is August 1, 2014, through 
July 31, 2015. As a result of our analysis of the comments and 
information received, these final results differ from the preliminary 
results of review. For the final weighted-average dumping margins, see 
the ``Final Results of Review'' section below.

DATES: Effective Date: March 13, 2017.

FOR FURTHER INFORMATION CONTACT: John Drury (Hyosung) or Moses Song 
(Hyundai), AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0195 or (202) 482-5041, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 2, 2016, the Department published the Preliminary 
Results.\1\ A summary of the events that occurred since the Department 
published these results, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\
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    \1\ See Large Power Transformers from the Republic of Korea: 
Preliminary Results of Antidumping Duty Administrative Review; 2014-
2015, 81 FR 60672 (September 2, 2016) (Preliminary Results).
    \2\ See Memorandum to Ronald K. Lorentzen, Acting Assistant 
Secretary for Enforcement and Compliance, from Gary Taverman, 
Associate Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, entitled ``Issues and Decision 
Memorandum for the Final Results of the Administrative Review of the 
Antidumping Duty Order on Large Power Transformers from the Republic 
of Korea; 2014-2015'', dated concurrently with this notice (Issues 
and Decision Memorandum).
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Scope of the Order

    The scope of this order covers large liquid dielectric power 
transformers (LPTs) having a top power handling capacity greater than 
or equal to 60,000 kilovolt amperes (60 megavolt amperes), whether 
assembled or unassembled, complete or incomplete. The merchandise 
subject to the order is currently classified in the Harmonized Tariff 
Schedule of the United States at subheadings 8504.23.0040, 
8504.23.0080, and 8504.90.9540. For a complete description of the scope 
of the order, see Appendix I.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Issues and Decision 
Memorandum. A list of the issues raised by parties is attached to this 
notice as Appendix II. The Issues and Decision Memorandum is a public 
document and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov and it is available to all parties in the Central 
Records Unit, Room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Issues and Decision Memorandum 
can be accessed directly at https://enforcement.trade.gov/frn/. The signed and electronic versions of the Issues and 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our review of the record and comments received from 
interested parties, we made certain changes to the margin calculations 
for Hyosung and Hyundai. For Hyosung, the Department has relied on 
partial facts available under section 776(a)(1) of the Act with respect 
to adjustments to the cost of manufacturing and U.S. gross unit price 
for certain sales. In addition, the Department has relied on partial 
adverse facts available under sections 776(a) and (b) of the Act with 
respect to ocean freight expenses for certain sales made by Hyosung. 
Furthermore, pursuant to section 776(a) and (b) of the Act, the 
Department has relied upon total facts otherwise available, with 
adverse inferences, for Hyundai's dumping margin. For a discussion of 
these changes, see the ``Margin Calculations'' section of the Issues 
and Decision Memorandum. As a result of these changes, the weighted-
average dumping margin also changes for the three companies not 
selected for individual examination.

Final Results of the Review

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Manufacturer/exporter                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Corporation.........................................        2.99
Hyundai Heavy Industries Co., Ltd...........................       60.81
Iljin Electric Co., Ltd.....................................        2.99
Iljin.......................................................        2.99
LSIS Co., Ltd...............................................        2.99
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed to parties in this 
proceeding within five days of the date of publication of this notice, 
in accordance with 19 CFR 351.224(b).

Duty Assessment

    The Department shall determine and U.S. Customs and Border 
Protection (CBP) shall assess antidumping duties on all appropriate 
entries.\3\ For any individually examined respondents whose weighted-
average dumping margin is above de minimis, we calculated importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the importer's examined sales to 
the total entered value of those same sales in accordance with 19 CFR 
351.212(b)(1). Upon issuance of the final results of this 
administrative review, if any importer-specific assessment rates 
calculated in the final results are above de minimis (i.e., at or above 
0.5 percent), the Department will issue instructions directly to CBP to 
assess antidumping duties on appropriate entries.
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    \3\ In these final results, the Department applied the 
assessment rate calculation method adopted in Antidumping 
Proceedings: Calculation of the Weighted-Average Dumping Margin and 
Assessment Rate in Certain Antidumping Proceedings: Final 
Modification, 77 FR 8101 (February 14, 2012).
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    To determine whether the duty assessment rates covering the period 
were de minimis, in accordance with the requirement set forth in 19 CFR 
351.106(c)(2), for each respondent we calculated importer (or 
customer)-specific ad valorem rates by aggregating

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the amount of dumping calculated for all U.S. sales to that importer or 
customer and dividing this amount by the total entered value of the 
sales to that importer (or customer). Where an importer (or customer)-
specific ad valorem rate is greater than de minimis, and the respondent 
has reported reliable entered values, we will apply the assessment rate 
to the entered value of the importer's/customer's entries during the 
review period.
    We intend to issue assessment instructions directly to CBP 15 days 
after publication of the final results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of this notice for all shipments of subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
publication of these final results, as provided by section 751(a)(2) of 
the Act: (1) The cash deposit rate for respondents noted above will be 
the rate established in the final results of this administrative 
review; (2) for merchandise exported by manufacturers or exporters not 
covered in this administrative 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 of this 
proceeding; (3) if the exporter is not a firm covered in this review, a 
prior review, or the original investigation, but the manufacturer is, 
the cash deposit rate will be the rate established for the most 
recently completed segment of this proceeding for the manufacturer of 
the subject merchandise; and (4) the cash deposit rate for all other 
manufacturers or exporters will continue to be 22.00 percent, the all-
others rate established in the antidumping investigation.\4\ These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.
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    \4\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping and/or countervailing duties prior to 
liquidation of the relevant entries during the period of review. 
Failure to comply with this requirement could result in the 
Department's presumption that reimbursement of antidumping and/or 
countervailing duties did occur and the subsequent assessment of 
doubled antidumping duties.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. Timely written notification of the return/destruction 
of APO materials, or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a sanctionable violation.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(h).

    Dated: March 6, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Order

    The scope of this order covers LPTs having a top power handling 
capacity greater than or equal to 60,000 kilovolt amperes (60 
megavolt amperes), whether assembled or unassembled, complete or 
incomplete.
    Incomplete LPTs are subassemblies consisting of the active part 
and any other parts attached to, imported with or invoiced with the 
active parts of LPTs. The ``active part'' of the transformer 
consists of one or more of the following when attached to or 
otherwise assembled with one another: The steel core or shell, the 
windings, electrical insulation between the windings, the mechanical 
frame for an LPT.
    The product definition encompasses all such LPTs regardless of 
name designation, including but not limited to step-up transformers, 
step-down transformers, autotransformers, interconnection 
transformers, voltage regulator transformers, rectifier 
transformers, and power rectifier transformers.
    The LPTs subject to this order are currently classifiable under 
subheadings 8504.23.0040, 8504.23.0080 and 8504.90.9540 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this order is 
dispositive.

Appendix II--List of Topics Discussed in the Final Issues and Decision 
Memorandum

I. Summary
II. List of Issues
III. Background
IV. Scope of the Order
V. Margin Calculation
VI. Application of Total Facts Available with Regard to Hyundai
VII. Selection of Adverse Facts Available (AFA) Rate
VIII. Rate for Unexamined Respondents
IX. Discussion of the Issues
    A. Hyundai-Specific Issues
    Comment 1: Application of Total Adverse Facts Available
    Comment 2: Corrections to the Draft Liquidation Instructions
    Comment 3: Moot Arguments
    B. Hyosung-Specific Issues
    Comment 4: The Department's Application of Expense Revenue Caps
    Comment 5: Should the Department Continue to Apply Expense 
Revenue Caps, It Should Correct Hyosung's U.S. Inland Freight Cap
    Comment 6: The Department Should Grant Hyosung a Commission 
Offset
    Comment 7: The Department Should Correct Certain Clerical Errors 
in its Preliminary Results
    Comment 8: The Department Should Not Conduct a Differential 
Pricing Analysis in the Final Results
    Comment 9: Hyosung's Allocations for Costs and Prices of Spare 
Parts and Accessories Are Not Reasonable and Should Be Rejected
    Comment 10: Hyosung Misreported the Physical Characteristics for 
Certain Sales
    Comment 11: Hyosung Failed to Reconcile Its Reported U.S. Sales 
Data to Its Normal Books and Records
    Comment 12: Hyosung's Reported Increases to U.S. Prices Are Not 
Supported by Sales Documentation Generated in Its Normal Course of 
Business
    1. Freight and Sales Revenues Not Supported by the Record
    2. Hyosung's Commercial Invoices Are Not Reliable
    3. Hyosung's Invoices Show Incorrect Amounts
    4. Hyosung's Reported Warehouse Expenses and Storage Revenues 
Are Not Correct
    5. Hyosung's Reconciled U.S. Sales Database Is Reliable
    Comment 13: The Department Should Not Accept Hyosung's 
Understated Ocean Freight Expenses for U.S. Sales
    Comment 14: The Department Must Not Accept Hyosung's Reported 
Cost of Manufacture Data
    Comment 15: Application of Total Adverse Facts Available Is Not 
Warranted for The Final Results
    Comment 16: If The Department Relies On Any Portion of Hyosung's 
Data Then Additional Corrections Should Be Made in the Final Results
    Comment 17: Date of Sale
X. Recommendation

[FR Doc. 2017-04824 Filed 3-10-17; 8:45 am]
BILLING CODE 3510-DS-P