Large Power Transformers From the Republic of Korea: Initiation of Antidumping Duty Changed Circumstances Review, 57210-57212 [2017-26071]
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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 https://
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).
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III. Application of CVD Law to Imports From
the PRC
IV. Subsidies Valuation
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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).
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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,
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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).
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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
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04DEN1
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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).
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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 https://
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
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]]>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]
-----------------------------------------------------------------------
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\
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\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.
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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.
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\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
https://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
