Large Power Transformers From the Republic of Korea: Initiation of Antidumping Duty Changed Circumstances Review, 57210-57212 [2017-26071]

Download as PDF 57210 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at http:// enforcement.trade.gov/frn. The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content. sradovich on DSK3GMQ082PROD with NOTICES Preliminary Results of Review In accordance with section 703(d)(1)(A)(i) of the Act, we calculated an estimated individual countervailable subsidy rate for each producer/exporter of the subject merchandise individually investigated during the period of January 1, 2015, through December 31, 2015. We preliminarily determine these rates to be: participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, the Department intends to hold the hearing at the U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. Unless the deadline is extended pursuant to section 751(a)(3)(A) of the Act, we intend to issue the final results of this administrative review, including the results of our analysis of the issues raised by the parties in their comments, within 120 days after issuance of these preliminary results. Assessment Rates and Cash Deposit Requirement Subsidy Company rate In accordance with 19 CFR (percent) 351.221(b)(4)(i), we preliminarily Hebei Jiheng Chemical Co., Ltd 25.18 assigned subsidy rates in the amounts Heze Huayi Chemical Co., Ltd ... 3.81 shown above for the producer/exporters Juancheng Kangtai Chemical shown above. Upon issuance of the final Co., Ltd ................................... 1.53 results, the Department shall determine, and U.S. Customs and Border Protection Disclosure and Public Comment (CBP) shall assess, CVDs on all appropriate entries covered by this The Department intends to disclose review. We intend to issue instructions its calculations and analysis performed to CBP 15 days after publication of the to interested parties in this preliminary final results of review. determination within five days of its Pursuant to section 751(a)(2)(C) of the public announcement, or if there is no Act, the Department also intends to public announcement, within five days instruct CBP to collect cash deposits of of the date of this notice in accordance estimated CVDs, in the amounts shown with 19 CFR 351.224(b). Case briefs or above for each of the respective other written comments may be companies shown above, on shipments submitted to the Assistant Secretary for of subject merchandise entered, or Enforcement and Compliance no later withdrawn from warehouse, for than 30 days after the date of consumption on or after the date of publication of the preliminary publication of the final results of this determination. Rebuttal briefs, limited review. For all non-reviewed firms, we to issues raised in case briefs, may be will instruct CBP to continue to collect submitted no later than five days after cash deposits at the most-recent the deadline date for case briefs.6 company-specific or all-others rate Pursuant to 19 CFR 351.309(c)(2) and applicable to the company, as (d)(2), parties who submit case briefs or appropriate. These cash deposit rebuttal briefs in this investigation are requirements, when imposed, shall encouraged to submit with each argument: (1) A statement of the issue; remain in effect until further notice. These preliminary results are issued (2) a brief summary of the argument; and published in accordance with and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), sections 751(a)(1) and 777(i)(1) of the interested parties who wish to request a Act, and 19 CFR 351.221(b)(4). hearing, limited to issues raised in the Dated: November 27, 2017. case and rebuttal briefs, must submit a Carole Showers, written request to the Assistant Executive Director, Office of Policy Secretary for Enforcement and performing the duties of the Deputy Assistant Compliance, U.S. Department of Secretary for Enforcement and Compliance. Commerce within 30 days after the date Appendix—List of Topics Discussed in of publication of this notice. Requests the Preliminary Decision Memorandum should contain the party’s name, address, and telephone number, the I. Summary number of participants, whether any II. Background 6 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 III. Application of CVD Law to Imports From the PRC IV. Subsidies Valuation PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 V. Benchmarks VI. Use of Facts Otherwise Available and Adverse Inferences VII. Analysis of Programs VIII. Disclosure and Public Comment IX. Conclusion [FR Doc. 2017–26065 Filed 12–1–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–580–867] Large Power Transformers From the Republic of Korea: Initiation of Antidumping Duty Changed Circumstances Review Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) obtained information, with respect to certain entities, sufficient to warrant the self-initiation of a changed circumstances review of the antidumping duty order on large power transformers (LPTs) from the Republic of Korea (Korea). Interested parties are invited to submit comments, as indicated below. DATES: Applicable December 4, 2017. FOR FURTHER INFORMATION CONTACT: Moses Song, 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) 482–5041. SUPPLEMENTARY INFORMATION: AGENCY: Background On August 31, 2012, the Department published in the Federal Register an antidumping duty order on LPTs from Korea.1 Hyundai Heavy Industries Co., Ltd. (HHI) is one of the producers/ exporters reviewed in the less-than fairvalue investigation and has been reviewed in each subsequent administrative review of the Order. During the 2014/2015 administrative review, which is also the most recently completed administrative review, the Department assigned HHI an antidumping duty rate of 60.81 percent.2 To address concerns that certain merchandise may not be entering the United States at the appropriate cash deposit rate, the 1 See Large Power Transformers from the Republic of Korea: Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (the Order). 2 See Large Power Transformers from the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2014–2015, 82 FR 13432 (March 13, 2017) (2014/2015 Final Results). E:\FR\FM\04DEN1.SGM 04DEN1 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices Department is self-initiating a changed circumstances review. Scope of the Order The scope of this Order covers large liquid dielectric power transformers 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. sradovich on DSK3GMQ082PROD with NOTICES Initiation of Changed Circumstances Review Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.216(d), the Department will conduct a changed circumstances review upon receipt of information concerning, or a request from an interested party for a review of, an antidumping duty order which shows changed circumstances sufficient to warrant such a review of the order. In this case, the Department is selfinitiating a changed circumstances review based on information obtained (1) during the course of the 2014/2015 and 2015/2016 administrative reviews, (2) via public search, and (3) from U.S. Customs and Border Protection (CBP) data, as detailed below. On March 13, 2017, the Department published the final results of the 2014/ 2015 antidumping administrative review (covering the period August 1, VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 2014, through July 31, 2015), assigning a dumping rate of 60.81 percent to HHI.3 On May 24, 2017, in connection with the 2015/2016 administrative review (covering the period August 1, 2015, through July 31, 2016), HHI submitted English translations of HHI’s 2016 Korean language financial statements, requested by the Department as part of HHI’s response to the Department’s supplemental questionnaire.4 HHI’s 2016 unconsolidated and consolidated financial statements, both of which ended on December 31, 2016, and became effective as of March 16, 2017, list the ‘‘tentative’’ name of a newly established company by ‘‘spin-off,’’ as ‘‘Hyundai Electric and energy Co., Ltd.’’ 5 These financial statements also identify HHI as a company that still continued to exists after the ‘‘spin-off.’’ 6 Additionally, on or around August 14, 2017, a representative of Georgetown Economic Services, LLC (an economic consulting firm retained by Kelly Drye & Warren, LLP, counsel to the petitioner in the LPTs from Korea proceeding) 3 See 2014/2015 Final Results, 82 FR 13432 (March 13, 2017). 4 See Memorandum, on the subject of ‘‘Placement of Factual Information: (1) Hyundai Heavy Industries Co., Ltd.’s Financial Statements from the 2015/2016 Administrative Review of the Antidumping Duty Order on Large Power Transformers from the Republic of Korea and (2) Web site Information Regarding Hyundai Electric & Energy System Co., Ltd.,’’ dated concurrently with this notice (New Factual Information Placement Memorandum) at Attachment 1 (citing Letter from HHI to the Department, regarding ‘‘Large Power Transformers from South Korea: Hyundai’s Response to Questions 48 and 49 and Question 35e of the Supplemental Section A Questionnaire,’’ dated May 24, 2017 (HHI’s May 24, 2017, Questionnaire Response) at Attachment 1). We note that HHI and its U.S. affiliate, Hyundai Corporation USA (Hyundai USA), are collectively referred to as ‘‘Hyundai’’ in HHI’s May 24, 2017, Questionnaire Response. 5 Id. (citing HHI’s May 24, 2017, Questionnaire Response at Attachment 1). We note that HHI’s May 24, 2017, Questionnaire Response at Attachment 1 contains HHI’s 2016 unconsolidated financial statements named ‘‘Hyundai Heavy Industries Co., Ltd. Separate Financial Statements December 31. 2016’’ (HHI’s 2016 unconsolidated financial statements). Page 100 of HHI’s 2016 unconsolidated financial statements notes that Hyundai Electric and energy Co., Ltd. is a ‘‘{n}ewly established company by spin-off’’ and that HHI is a ‘‘{r}emaining company after spin-ff.’’ We also note that this attachment contains HHI’s 2016 consolidated financial statements named ‘‘Hyundai Heavy Industries Co., Ltd. and Subsidiaries Consolidated Financial Statements December 31, 2016’’ (HHI’s 2016 consolidated financial statements). The page 143 of HHI’s 2016 consolidated financial statements notes that Hyundai Electric and energy Co., Ltd. is a ‘‘{n}ewly established company by spin-off’’ and HHI is a ‘‘{r}emaining company after spin-off.’’ Both financial statements indicate that the date of spinoff is April 1, 2017. 6 Id. (citing HHI’s May 24, 2017, Questionnaire Response at Attachment 1). PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 57211 contacted the Department.7 During this phone conversation, the representative expressed concern that subject merchandise produced by HHI may be entering the United States under the name ‘‘Hyundai Electric and energy Co., Ltd.,’’ that this merchandise may be subject to the antidumping duty order on LPTs from Korea, and may be entering at the ‘‘all-others’’ rate of 22 percent, rather than the 60.81 percent rate assigned to HHI in the 2014/2015 antidumping administrative review.8 In light of the information in HHI’s 2016 financial statements and the phone conversation discussed above, the Department had concerns as to whether (1) Hyundai Electric and energy Co., Ltd. may be entering subject merchandise produced by HHI into the United States and (2) merchandise entered by Hyundai Electric and energy Co., Ltd. is entering at the appropriate rate. Because Hyundai Electric and energy Co., Ltd. is a new entity, which has not been covered by a prior administrative review or the original investigation, it does not have its own company-specific cash deposit rate. To gather additional information regarding the above-referenced company (i.e., Hyundai Electric and energy Co., Ltd.), the Department conducted a search of public information and found that Hyundai Electric & Energy System Co., Ltd., which has a similar name to the company identified in HHI’s 2016 financial statements (i.e., Hyundai Electric and energy Co., Ltd.), appears to be related to HHI and/or involved in the production and sales of power transformers.9 Additionally, the Department conducted a query of CBP 7 See Memorandum to the File from Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-executive functions and duties of the Assistant Secretary for Enforcement and Compliance, regarding ‘‘Phone Call,’’ dated concurrently with this notice (Phone Call Memorandum). 8 See Phone Call Memorandum. 9 See New Factual Information Placement Memorandum, at Attachment 2. We note that although the company name is slightly different (i.e., ‘‘Hyundai Electric and energy Co., Ltd.’’ from HHI’s 2016 financial statements and ‘‘Hyundai Electric & Energy System Co., Ltd.’’ from its Web site), the names are very similar and HHI’s financial statements state that ‘‘Hyundai Electric and energy Co., Ltd.’’ is a tentative name. According to the Web site, Hyundai Electric & Energy System Co., Ltd. was established on April 3, 2017, which is after the effective date of HHI’s 2016 financial statements (i.e., March 16, 2017) and the date of spin-off (i.e., April 1, 2017) identified in HHI’s 2016 financial statements. We also note that the Web site of ‘‘Hyundai Electric & Energy System Co., Ltd.’’ states that ‘‘Hyundai Heavy Industries’ Electric Systems Division . . . is making a fresh start as Hyundai Electric’’ and lists ‘‘Power Transformer’’ as one of its businesses. The history section of this Web site E:\FR\FM\04DEN1.SGM Continued 04DEN1 57212 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES import data for entries of subject merchandise that entered the United States from the Federal Register publication date of the 2014/2015 Final Results (i.e., March 13, 2017) to October 31, 2017.10 Because Hyundai Electric & Energy System Co., Ltd. has not been covered by a prior administrative review or the original investigation, it does not have its own company-specific cash deposit rate. Based on (1) information contained in the CBP import data, (2) concerns that Hyundai Electric and energy Co., Ltd., may be entering merchandise produced by HHI, (3) public information indicating that Hyundai Electric & Energy System Co., Ltd., which has a name similar to that of the company identified in the above-referenced phone call, appears to be involved in the production/sales of power transformers, and (4) the fact that neither of these entities have their own company-specific cash deposit rate, there is a serious concern that entries made by either of these entities since the 2014/2015 Final Results may include merchandise produced by HHI or otherwise may not be entering at the appropriate rate. In accordance with the abovereferenced statute and regulation, and based on the information obtained above, the Department finds that there is information which shows changed circumstances sufficient to warrant initiation of such a review to determine whether action is necessary to maintain the integrity of the Order. Therefore, the Department is self-initiating a changed circumstances review to determine the appropriate cash deposit rate for any merchandise entered by either Hyundai Electric and energy Co., Ltd. or Hyundai Electric & Energy System Co., Ltd. since the publication of the 2014/2015 Final Results. This changed circumstances review may require an examination of whether these entities are a successorin-interest to HHI or should be treated as a single entity with HHI pursuant to 19 CFR 351.401(f). Public Comment Interested parties may submit comments on the above-referenced information and the notice of initiation of this changed circumstances review by no later than 15 calendar days after the date of publication of this notice in the further indicates that Hyundai Electric & Energy System Co., Ltd. is engaged in the transformer business. In addition, under this Web site, HHI is listed as one of the ‘‘Family Site.’’ 10 See Memorandum, on the subject of ‘‘Release of U.S. Customs and Border Protection Import Data,’’ dated currently with this notice (CBP Memorandum). VerDate Sep<11>2014 18:22 Dec 01, 2017 Jkt 244001 Federal Register.11 Parties who wish to comment on the initiation of this changed circumstances review must file comments electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).12 Access to ACCESS is available to registered users at http:// access.trade.gov and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. An electronically filed document must be received successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the day on which it is due.13 Preliminary and Final Results of the Review The Department intends to publish in the Federal Register a notice of the preliminary results of the antidumping duty changed circumstances review in accordance with 19 CFR 351.221(b)(4) and 351.221(c)(3)(i), which will set forth the Department’s preliminary factual and legal conclusions. The Department will issue its final results of the changed circumstances review in accordance with the time limits set forth in 19 CFR 351.216(e). At the preliminary result of this review, if warranted based on the Department’s analysis, we may instruct CBP as to the appropriate cash deposit rate. Notification to Interested Parties This notice is published in accordance with section 751(b)(1) of the Act and 19 CFR 351.221(b)(1). Dated: November 28, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. [FR Doc. 2017–26071 Filed 12–1–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Application(s) for Duty-Free Entry of Scientific Instruments Pursuant to Section 6(c) of the Educational, Scientific and Cultural Materials Importation Act of 1966 (Pub. L. 89–651, as amended by Pub. L. 106– 11 Or the next business day, if the deadline falls on a weekend, federal holiday or any other day when the Department is closed. See 19 CFR 351.303(b). 12 See 19 CFR 351.303(b) and (f). 13 See 19 CFR 351.303(b). PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 36; 80 Stat. 897; 15 CFR part 301), we invite comments on the question of whether instruments of equivalent scientific value, for the purposes for which the instruments shown below are intended to be used, are being manufactured in the United States. Comments must comply with 15 CFR 301.5(a)(3) and (4) of the regulations and be postmarked on or before December 26, 2017. Address written comments to Statutory Import Programs Staff, Room 3720, U.S. Department of Commerce, Washington, DC 20230. Applications may be examined between 8:30 a.m. and 5:00 p.m. at the U.S. Department of Commerce in Room 3720. Docket Number: 17–014. Applicant: Fermi Research Alliance, 2000 East Wilson Street, Batavia, IL 60510. Instrument: ICARUS T600 Detector. Manufacturer: The European Organization for Nuclear Research, Switzerland. Intended Use: The instrument will be used to study the rate at which muon neutrinos, a type of elementary particle, change flavor to electron neutrinos as they travel the distance between three LArTPC detectors. This is the only instrument that meets the requirements for position and time resolution of particle trajectories. Justification for Duty-Free Entry: There are no instruments of the same general category manufactured in the United States. Application accepted by Commissioner of Customs: July 12, 2017. Docket Number: 17–015. Applicant: New Mexico Institute of Mining and Technology, 801 Leroy Place, Socorro, NM 87801. Instrument: Unit Telescope Enclosure #1 (UTE1). Manufacturer: European Industrial Engineering (EIE) Group, Italy. Intended Use: The instrument will be used to study star and planet formation, active galactic nuclei and stellar accretion and mass loss. Unique features of the instrument include access to all astronomical objects above 30 degrees in elevation, with an inner axis rotation angle between +40 degrees and ¥50 degrees, as well as thermal stability and protection from shock load and vibration. Justification for Duty-Free Entry: There are no instruments of the same general category manufactured in the United States. Application accepted by Commissioner of Customs: July 24, 2017. Docket Number: 17–016. Applicant: Yale University, 333 Cedar Street, SHM B323, New Haven, CT 06520. Instrument: Mosquito crystal robot. Manufacturer: TTP Labtech, United Kingdom. Intended Use: The instrument will be used to obtain crystals of the E:\FR\FM\04DEN1.SGM 04DEN1

Agencies

[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Notices]
[Pages 57210-57212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26071]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Initiation 
of Antidumping Duty Changed Circumstances Review

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

SUMMARY: The Department of Commerce (the Department) obtained 
information, with respect to certain entities, sufficient to warrant 
the self-initiation of a changed circumstances review of the 
antidumping duty order on large power transformers (LPTs) from the 
Republic of Korea (Korea). Interested parties are invited to submit 
comments, as indicated below.

DATES: Applicable December 4, 2017.

FOR FURTHER INFORMATION CONTACT: Moses Song, 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) 482-5041.

SUPPLEMENTARY INFORMATION:

Background

    On August 31, 2012, the Department published in the Federal 
Register an antidumping duty order on LPTs from Korea.\1\ Hyundai Heavy 
Industries Co., Ltd. (HHI) is one of the producers/exporters reviewed 
in the less-than fair-value investigation and has been reviewed in each 
subsequent administrative review of the Order. During the 2014/2015 
administrative review, which is also the most recently completed 
administrative review, the Department assigned HHI an antidumping duty 
rate of 60.81 percent.\2\ To address concerns that certain merchandise 
may not be entering the United States at the appropriate cash deposit 
rate, the

[[Page 57211]]

Department is self-initiating a changed circumstances review.
---------------------------------------------------------------------------

    \1\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (the Order).
    \2\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2014-2015, 
82 FR 13432 (March 13, 2017) (2014/2015 Final Results).
---------------------------------------------------------------------------

Scope of the Order

    The scope of this Order covers large liquid dielectric power 
transformers 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.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(d), the Department will conduct a changed 
circumstances review upon receipt of information concerning, or a 
request from an interested party for a review of, an antidumping duty 
order which shows changed circumstances sufficient to warrant such a 
review of the order. In this case, the Department is self-initiating a 
changed circumstances review based on information obtained (1) during 
the course of the 2014/2015 and 2015/2016 administrative reviews, (2) 
via public search, and (3) from U.S. Customs and Border Protection 
(CBP) data, as detailed below.
    On March 13, 2017, the Department published the final results of 
the 2014/2015 antidumping administrative review (covering the period 
August 1, 2014, through July 31, 2015), assigning a dumping rate of 
60.81 percent to HHI.\3\
---------------------------------------------------------------------------

    \3\ See 2014/2015 Final Results, 82 FR 13432 (March 13, 2017).
---------------------------------------------------------------------------

    On May 24, 2017, in connection with the 2015/2016 administrative 
review (covering the period August 1, 2015, through July 31, 2016), HHI 
submitted English translations of HHI's 2016 Korean language financial 
statements, requested by the Department as part of HHI's response to 
the Department's supplemental questionnaire.\4\ HHI's 2016 
unconsolidated and consolidated financial statements, both of which 
ended on December 31, 2016, and became effective as of March 16, 2017, 
list the ``tentative'' name of a newly established company by ``spin-
off,'' as ``Hyundai Electric and energy Co., Ltd.'' \5\ These financial 
statements also identify HHI as a company that still continued to 
exists after the ``spin-off.'' \6\
---------------------------------------------------------------------------

    \4\ See Memorandum, on the subject of ``Placement of Factual 
Information: (1) Hyundai Heavy Industries Co., Ltd.'s Financial 
Statements from the 2015/2016 Administrative Review of the 
Antidumping Duty Order on Large Power Transformers from the Republic 
of Korea and (2) Web site Information Regarding Hyundai Electric & 
Energy System Co., Ltd.,'' dated concurrently with this notice (New 
Factual Information Placement Memorandum) at Attachment 1 (citing 
Letter from HHI to the Department, regarding ``Large Power 
Transformers from South Korea: Hyundai's Response to Questions 48 
and 49 and Question 35e of the Supplemental Section A 
Questionnaire,'' dated May 24, 2017 (HHI's May 24, 2017, 
Questionnaire Response) at Attachment 1). We note that HHI and its 
U.S. affiliate, Hyundai Corporation USA (Hyundai USA), are 
collectively referred to as ``Hyundai'' in HHI's May 24, 2017, 
Questionnaire Response.
    \5\ Id. (citing HHI's May 24, 2017, Questionnaire Response at 
Attachment 1). We note that HHI's May 24, 2017, Questionnaire 
Response at Attachment 1 contains HHI's 2016 unconsolidated 
financial statements named ``Hyundai Heavy Industries Co., Ltd. 
Separate Financial Statements December 31. 2016'' (HHI's 2016 
unconsolidated financial statements). Page 100 of HHI's 2016 
unconsolidated financial statements notes that Hyundai Electric and 
energy Co., Ltd. is a ``{n{time} ewly established company by spin-
off'' and that HHI is a ``{r{time} emaining company after spin-ff.'' 
We also note that this attachment contains HHI's 2016 consolidated 
financial statements named ``Hyundai Heavy Industries Co., Ltd. and 
Subsidiaries Consolidated Financial Statements December 31, 2016'' 
(HHI's 2016 consolidated financial statements). The page 143 of 
HHI's 2016 consolidated financial statements notes that Hyundai 
Electric and energy Co., Ltd. is a ``{n{time} ewly established 
company by spin-off'' and HHI is a ``{r{time} emaining company after 
spin-off.'' Both financial statements indicate that the date of 
spin-off is April 1, 2017.
    \6\ Id. (citing HHI's May 24, 2017, Questionnaire Response at 
Attachment 1).
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    Additionally, on or around August 14, 2017, a representative of 
Georgetown Economic Services, LLC (an economic consulting firm retained 
by Kelly Drye & Warren, LLP, counsel to the petitioner in the LPTs from 
Korea proceeding) contacted the Department.\7\ During this phone 
conversation, the representative expressed concern that subject 
merchandise produced by HHI may be entering the United States under the 
name ``Hyundai Electric and energy Co., Ltd.,'' that this merchandise 
may be subject to the antidumping duty order on LPTs from Korea, and 
may be entering at the ``all-others'' rate of 22 percent, rather than 
the 60.81 percent rate assigned to HHI in the 2014/2015 antidumping 
administrative review.\8\
---------------------------------------------------------------------------

    \7\ See Memorandum to the File from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-executive functions and duties of the 
Assistant Secretary for Enforcement and Compliance, regarding 
``Phone Call,'' dated concurrently with this notice (Phone Call 
Memorandum).
    \8\ See Phone Call Memorandum.
---------------------------------------------------------------------------

    In light of the information in HHI's 2016 financial statements and 
the phone conversation discussed above, the Department had concerns as 
to whether (1) Hyundai Electric and energy Co., Ltd. may be entering 
subject merchandise produced by HHI into the United States and (2) 
merchandise entered by Hyundai Electric and energy Co., Ltd. is 
entering at the appropriate rate. Because Hyundai Electric and energy 
Co., Ltd. is a new entity, which has not been covered by a prior 
administrative review or the original investigation, it does not have 
its own company-specific cash deposit rate.
    To gather additional information regarding the above-referenced 
company (i.e., Hyundai Electric and energy Co., Ltd.), the Department 
conducted a search of public information and found that Hyundai 
Electric & Energy System Co., Ltd., which has a similar name to the 
company identified in HHI's 2016 financial statements (i.e., Hyundai 
Electric and energy Co., Ltd.), appears to be related to HHI and/or 
involved in the production and sales of power transformers.\9\ 
Additionally, the Department conducted a query of CBP

[[Page 57212]]

import data for entries of subject merchandise that entered the United 
States from the Federal Register publication date of the 2014/2015 
Final Results (i.e., March 13, 2017) to October 31, 2017.\10\ Because 
Hyundai Electric & Energy System Co., Ltd. has not been covered by a 
prior administrative review or the original investigation, it does not 
have its own company-specific cash deposit rate.
---------------------------------------------------------------------------

    \9\ See New Factual Information Placement Memorandum, at 
Attachment 2. We note that although the company name is slightly 
different (i.e., ``Hyundai Electric and energy Co., Ltd.'' from 
HHI's 2016 financial statements and ``Hyundai Electric & Energy 
System Co., Ltd.'' from its Web site), the names are very similar 
and HHI's financial statements state that ``Hyundai Electric and 
energy Co., Ltd.'' is a tentative name. According to the Web site, 
Hyundai Electric & Energy System Co., Ltd. was established on April 
3, 2017, which is after the effective date of HHI's 2016 financial 
statements (i.e., March 16, 2017) and the date of spin-off (i.e., 
April 1, 2017) identified in HHI's 2016 financial statements. We 
also note that the Web site of ``Hyundai Electric & Energy System 
Co., Ltd.'' states that ``Hyundai Heavy Industries' Electric Systems 
Division . . . is making a fresh start as Hyundai Electric'' and 
lists ``Power Transformer'' as one of its businesses. The history 
section of this Web site further indicates that Hyundai Electric & 
Energy System Co., Ltd. is engaged in the transformer business. In 
addition, under this Web site, HHI is listed as one of the ``Family 
Site.''
    \10\ See Memorandum, on the subject of ``Release of U.S. Customs 
and Border Protection Import Data,'' dated currently with this 
notice (CBP Memorandum).
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    Based on (1) information contained in the CBP import data, (2) 
concerns that Hyundai Electric and energy Co., Ltd., may be entering 
merchandise produced by HHI, (3) public information indicating that 
Hyundai Electric & Energy System Co., Ltd., which has a name similar to 
that of the company identified in the above-referenced phone call, 
appears to be involved in the production/sales of power transformers, 
and (4) the fact that neither of these entities have their own company-
specific cash deposit rate, there is a serious concern that entries 
made by either of these entities since the 2014/2015 Final Results may 
include merchandise produced by HHI or otherwise may not be entering at 
the appropriate rate.
    In accordance with the above-referenced statute and regulation, and 
based on the information obtained above, the Department finds that 
there is information which shows changed circumstances sufficient to 
warrant initiation of such a review to determine whether action is 
necessary to maintain the integrity of the Order. Therefore, the 
Department is self-initiating a changed circumstances review to 
determine the appropriate cash deposit rate for any merchandise entered 
by either Hyundai Electric and energy Co., Ltd. or Hyundai Electric & 
Energy System Co., Ltd. since the publication of the 2014/2015 Final 
Results. This changed circumstances review may require an examination 
of whether these entities are a successor-in-interest to HHI or should 
be treated as a single entity with HHI pursuant to 19 CFR 351.401(f).

Public Comment

    Interested parties may submit comments on the above-referenced 
information and the notice of initiation of this changed circumstances 
review by no later than 15 calendar days after the date of publication 
of this notice in the Federal Register.\11\ Parties who wish to comment 
on the initiation of this changed circumstances review must file 
comments electronically via Enforcement and Compliance's Antidumping 
and Countervailing Duty Centralized Electronic Service System 
(ACCESS).\12\ Access to ACCESS is available to registered users at 
http://access.trade.gov and is available to all parties in the Central 
Records Unit, Room B8024 of the main Department of Commerce building. 
An electronically filed document must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Time on the day on which it is 
due.\13\
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    \11\ Or the next business day, if the deadline falls on a 
weekend, federal holiday or any other day when the Department is 
closed. See 19 CFR 351.303(b).
    \12\ See 19 CFR 351.303(b) and (f).
    \13\ See 19 CFR 351.303(b).
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Preliminary and Final Results of the Review

    The Department intends to publish in the Federal Register a notice 
of the preliminary results of the antidumping duty changed 
circumstances review in accordance with 19 CFR 351.221(b)(4) and 
351.221(c)(3)(i), which will set forth the Department's preliminary 
factual and legal conclusions. The Department will issue its final 
results of the changed circumstances review in accordance with the time 
limits set forth in 19 CFR 351.216(e). At the preliminary result of 
this review, if warranted based on the Department's analysis, we may 
instruct CBP as to the appropriate cash deposit rate.

Notification to Interested Parties

    This notice is published in accordance with section 751(b)(1) of 
the Act and 19 CFR 351.221(b)(1).

    Dated: November 28, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2017-26071 Filed 12-1-17; 8:45 am]
BILLING CODE 3510-DS-P