Certain Cold-Rolled Steel Flat Products and Certain Corrosion-Resistant Steel Products From the Republic of Korea: Preliminary Results of Antidumping Duty and Countervailing Duty Changed Circumstances Reviews, 287-288 [2020-29178]

Download as PDF Federal Register / Vol. 86, No. 2 / Tuesday, January 5, 2021 / Notices subsidiary Dongbu Incheon after Dongbu Steel’s Board of Directors had International Trade Administration approved the merger.2 Further, on March 27, 2020, Dongbu Steel received [A–580–878, A–580–881, C–580–879, C–580– shareholder approval for the newly882] merged Dongbu Steel to change its name Certain Cold-Rolled Steel Flat Products to KG Dongbu Steel.3 As such, KG and Certain Corrosion-Resistant Steel Dongbu Steel requested that Commerce Products From the Republic of Korea: conduct changed circumstances reviews Preliminary Results of Antidumping (CCRs) and find that KG Dongbu Steel Duty and Countervailing Duty Changed is the successor in interest to Dongbu Circumstances Reviews Steel and Dongbu Incheon, and that it be subject to cash deposit requirements AGENCY: Enforcement and Compliance, at the AD margins and CVD rates International Trade Administration, currently in effect for entries of coldDepartment of Commerce. rolled steel and CORE by Dongbu Steel SUMMARY: The Department of Commerce and Dongbu Incheon, pursuant to (Commerce) preliminarily determines section 751(b) of the Tariff Act of 1930, that KG Dongbu Steel Co., Ltd. (KG as amended (the Act), and 19 CFR Dongbu Steel) is the successor in 351.216(b). We did not receive interest to Dongbu Steel Co., Ltd. comments from other interested parties (Dongbu Steel) and Dongbu Incheon concerning these requests. Steel Co., Ltd. (Dongbu Incheon) for On June 4, 2020, Commerce initiated purposes of determining antidumping the CCRs of the AD and CVD orders on duty (AD) cash deposits and liabilities cold-rolled steel and CORE from Korea. pursuant to the AD orders on certain On June 12, 2020, Commerce requested cold-rolled steel flat products (coldmore information from KG Dongbu Steel rolled steel) and certain corrosionresistant steel products (CORE) from the regarding the ‘‘look-back window’’ for Republic of Korea (Korea). Additionally, purposes of the CVD CCRs,4 and on June 30, 2020, KG Dongbu Steel filed its Commerce preliminarily determines response.5 For a complete description of that KG Dongbu Steel is not the the successor-in-interest analysis, see successor in interest to Dongbu Steel the Preliminary Decision and Dongbu Incheon for purposes of countervailing duty (CVD) cash deposits Memorandum.6 A list of topics addressed in the Preliminary Decision and liabilities pursuant to the CVD Memorandum is included as an orders on cold-rolled steel and CORE, because there was a significant change appendix to this notice. The Preliminary in ownership and operations that could Decision Memorandum is a public have affected the nature and extent of document and is on file electronically the countervailable subsidies via Enforcement and Compliance’s attributable to KG Dongbu Steel. Antidumping and Countervailing Duty Interested parties are invited to Centralized Electronic Service System comment on these preliminary results. (ACCESS). ACCESS is available to registered users at https:// DATES: Applicable January 5, 2021. access.trade.gov. In addition, a complete FOR FURTHER INFORMATION CONTACT: Joshua A. DeMoss, AD/CVD Operations, version of the Preliminary Decision Office VI, Enforcement and Compliance, Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. International Trade Administration, The signed and the electronic versions U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 2 Id. at 2. DC 20230; telephone: (202) 482–3362. 3 Id. SUPPLEMENTARY INFORMATION: 4 jbell on DSKJLSW7X2PROD with NOTICES DEPARTMENT OF COMMERCE Background On April 13, 2020, KG Dongbu Steel informed Commerce that effective September 1, 2019, KG Steel Co., Ltd. (KG Steel) purchased a substantial portion of Dongbu Steel’s shares and, as a result, became the major shareholder of Dongbu Steel.1 On March 2, 2020, Dongbu Steel publicly announced its merger with its wholly-owned 1 See KG Dongbu Steel’s Letter, ‘‘Request for Changed Circumstances Review: Change of Name for Dongbu Steel Co., Ltd. and Dongbu Incheon Steel Co., Ltd.,’’ dated April 13, 2020. VerDate Sep<11>2014 17:09 Jan 04, 2021 Jkt 253001 See Commerce’s Letter, ‘‘Countervailing Duty Changed Circumstances Reviews of Cold-Rolled Steel and Corrosion Resistant Steel (CORE) from the Republic of Korea,’’ dated June 12, 2020. 5 See KG Dongbu Steel’s Letter, ‘‘Certain Corrosion Resistant Steel Products and Cold-Rolled Steel Products from the Republic of Korea Changed Circumstance Review, Case Nos. C–580–879 and C– 580–882: First Supplemental Questionnaire Response,’’ dated June 30, 2020. 6 See Memorandum, ‘‘Preliminary Results of the Changed Circumstances Reviews Regarding Successor-In-Interest Analysis: Antidumping Duty Orders and Countervailing Duty Orders on Certain Cold-rolled Steel Flat Products and Certain Corrosion-resistant Steel Products from the Republic of Korea,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 287 of the Preliminary Decision Memorandum are identical in content. Scope of the Orders The products covered by these CCRs are certain cold-rolled steel products (cold-rolled steel) and certain corrosionresistant steel products (CORE) from Korea. For full descriptions of the scope of the orders, see the Preliminary Decision Memorandum. Preliminary Results of Changed Circumstances Reviews In accordance with 19 CFR 351.216, we preliminarily determine that KG Dongbu Steel is the successor in interest to Dongbu Steel and Dongbu Incheon for purposes of the AD orders on coldrolled steel and CORE. Record evidence, as submitted by KG Dongbu Steel, indicates that, based on the totality of the circumstances under Commerce’s successor-in-interest criteria, KG Dongbu Steel’s operations are not materially dissimilar to those of Dongbu Steel and Dongbu Incheon before the acquisition and name change with respect to the merchandise under review, for purposes of the AD CCRs. Moreover, we preliminarily find that KG Dongbu Steel’s production facilities, supplier relationships, and customer base with regard to the merchandise subject to the AD orders are substantially the same as Dongbu Steel’s and Dongbu Incheon’s before the acquisition and name change. However, with respect to the CVD CCRs, we preliminarily find that there is evidence of significant changes in ownership during the ‘‘look-back window’’ that could have affected the nature and extent of the countervailable subsidies attributable to the successor entity vs. the predecessor entity. These changes in management and ownership would likely have affected subsidization of the companies. An examination of the actual amount and rate of countervailable subsidies attributable to KG Dongbu Steel subsidy, therefore, would be more appropriate in the context of an administrative review. Therefore, based on record evidence, we preliminarily determine that it is appropriate to apply to KG Dongbu Steel AD cash deposits requirements and liabilities at the rates currently in effect for Dongbu Steel/Dongbu Incheon. For CVD purposes, we preliminarily determine that changes in ownership and management were significant, and thus preliminarily determine that it is not appropriate to apply to KG Dongbu Steel the CVD cash deposit requirements and liabilities currently in effect for Dongbu Steel/Dongbu Incheon. For additional details regarding the E:\FR\FM\05JAN1.SGM 05JAN1 288 Federal Register / Vol. 86, No. 2 / Tuesday, January 5, 2021 / Notices preliminary successor-in-interest analysis, see the Preliminary Decision Memorandum. Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance. Interested parties will be notified of the timeline for the submission of such case briefs and written comments at a later date. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.7 Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.8 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm by telephone the date and time of the hearing two days before the scheduled date. Consistent with 19 CFR 351.216(e), we will intend to issue the final results of this changed circumstances review no later than 270 days after the date on which this review was initiated, or within 45 days if all parties agree to our preliminary finding. Notification to Interested Parties This notice is published in accordance with sections 751(b)(1) and 777(i)(1) of the Act and 19 CFR 351.216(b), 351.221(b) and 351.221(c)(3). Dated: December 29, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Orders IV. Successor-In-Interest Determination V. Recommendation [FR Doc. 2020–29178 Filed 1–4–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review Enforcement and Compliance, International Trade Administration, Department of Commerce. SUPPLEMENTARY INFORMATION: AGENCY: Background Every five years, pursuant to the Tariff Act of 1930, as amended (the Act), the Department of Commerce (Commerce) and the International Trade Commission automatically initiate and conduct reviews to determine whether revocation of a countervailing or antidumping duty order or termination of an investigation suspended under section 704 or 734 of the Act would be likely to lead to continuation or recurrence of dumping or a countervailable subsidy (as the case may be) and of material injury. Upcoming Sunset Reviews for February 2021 Pursuant to section 751(c) of the Act, the following Sunset Reviews are scheduled for initiation in February 2021 and will appear in that month’s Notice of Initiation of Five-Year Sunset Reviews (Sunset Review). Department contact Antidumping Duty Proceedings Uncoated Paper from Australia, A–602–807 (1st Review) .......................................................................... Uncoated Paper from Brazil, A–351–842 (1st Review) ............................................................................... Floor-Standing, Metal-Top Ironing Tables and Parts Thereof from China, (A–570–888) (3rd Review) ...... Potassium Permanganate from China, (A–570–001) (5th Review) ............................................................. Seamless Carbon and Alloy Steel Standard, Line And Pressure Pipe from China, (A–570–956) (2nd Review). Uncoated Paper from China, (A–570–022) (1st Review) ............................................................................ Uncoated Paper from Indonesia, (A–560–828) (1st Review) ...................................................................... Uncoated Paper from Portugal, (A–471–807) (1st Review) ........................................................................ Countervailing Duty Proceedings Uncoated Paper from China (C–570–023) (1st Review) ............................................................................. Seamless Carbon and Alloy Steel Standard, Line And Pressure Pipe from China (C–570–957) (2nd Review). Uncoated Paper from Indonesia (C–560–829) (1st Review) ....................................................................... jbell on DSKJLSW7X2PROD with NOTICES Suspended Investigations No Sunset Review of suspended investigations is scheduled for initiation in February 2021. Commerce’s procedures for the conduct of Sunset Review are set forth 7 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). VerDate Sep<11>2014 18:33 Jan 04, 2021 Jkt 253001 Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. Jacqueline Arrowsmith, (202) 482– 5255. Thomas Martin, (202) 482–3936. Thomas Martin, (202) 482–3936. Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. Mary Kolberg, (202) 482–1785. in 19 CFR 351.218. The Notice of Initiation of Five-Year (Sunset) Review provides further information regarding what is required of all parties to participate in Sunset Review. Pursuant to 19 CFR 351.103(c), Commerce will maintain and make available a service list for these proceedings. To facilitate the timely preparation of the service list(s), it is requested that those seeking recognition 8 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19, 85 FR 17006 (March 26, 2020); and Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 E:\FR\FM\05JAN1.SGM 05JAN1

Agencies

[Federal Register Volume 86, Number 2 (Tuesday, January 5, 2021)]
[Notices]
[Pages 287-288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29178]



[[Page 287]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-878, A-580-881, C-580-879, C-580-882]


Certain Cold-Rolled Steel Flat Products and Certain Corrosion-
Resistant Steel Products From the Republic of Korea: Preliminary 
Results of Antidumping Duty and Countervailing Duty Changed 
Circumstances Reviews

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that KG Dongbu Steel Co., Ltd. (KG Dongbu Steel) is the successor in 
interest to Dongbu Steel Co., Ltd. (Dongbu Steel) and Dongbu Incheon 
Steel Co., Ltd. (Dongbu Incheon) for purposes of determining 
antidumping duty (AD) cash deposits and liabilities pursuant to the AD 
orders on certain cold-rolled steel flat products (cold-rolled steel) 
and certain corrosion-resistant steel products (CORE) from the Republic 
of Korea (Korea). Additionally, Commerce preliminarily determines that 
KG Dongbu Steel is not the successor in interest to Dongbu Steel and 
Dongbu Incheon for purposes of countervailing duty (CVD) cash deposits 
and liabilities pursuant to the CVD orders on cold-rolled steel and 
CORE, because there was a significant change in ownership and 
operations that could have affected the nature and extent of the 
countervailable subsidies attributable to KG Dongbu Steel. Interested 
parties are invited to comment on these preliminary results.

DATES: Applicable January 5, 2021.

FOR FURTHER INFORMATION CONTACT: Joshua A. DeMoss, 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) 482-3362.

SUPPLEMENTARY INFORMATION:

Background

    On April 13, 2020, KG Dongbu Steel informed Commerce that effective 
September 1, 2019, KG Steel Co., Ltd. (KG Steel) purchased a 
substantial portion of Dongbu Steel's shares and, as a result, became 
the major shareholder of Dongbu Steel.\1\ On March 2, 2020, Dongbu 
Steel publicly announced its merger with its wholly-owned subsidiary 
Dongbu Incheon after Dongbu Steel's Board of Directors had approved the 
merger.\2\ Further, on March 27, 2020, Dongbu Steel received 
shareholder approval for the newly-merged Dongbu Steel to change its 
name to KG Dongbu Steel.\3\ As such, KG Dongbu Steel requested that 
Commerce conduct changed circumstances reviews (CCRs) and find that KG 
Dongbu Steel is the successor in interest to Dongbu Steel and Dongbu 
Incheon, and that it be subject to cash deposit requirements at the AD 
margins and CVD rates currently in effect for entries of cold-rolled 
steel and CORE by Dongbu Steel and Dongbu Incheon, pursuant to section 
751(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.216(b). We did not receive comments from other interested parties 
concerning these requests.
---------------------------------------------------------------------------

    \1\ See KG Dongbu Steel's Letter, ``Request for Changed 
Circumstances Review: Change of Name for Dongbu Steel Co., Ltd. and 
Dongbu Incheon Steel Co., Ltd.,'' dated April 13, 2020.
    \2\ Id. at 2.
    \3\ Id.
---------------------------------------------------------------------------

    On June 4, 2020, Commerce initiated the CCRs of the AD and CVD 
orders on cold-rolled steel and CORE from Korea. On June 12, 2020, 
Commerce requested more information from KG Dongbu Steel regarding the 
``look-back window'' for purposes of the CVD CCRs,\4\ and on June 30, 
2020, KG Dongbu Steel filed its response.\5\ For a complete description 
of the successor-in-interest analysis, see the Preliminary Decision 
Memorandum.\6\ A list of topics addressed in the Preliminary Decision 
Memorandum is included as an appendix to this notice. The Preliminary 
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. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed and the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
---------------------------------------------------------------------------

    \4\ See Commerce's Letter, ``Countervailing Duty Changed 
Circumstances Reviews of Cold-Rolled Steel and Corrosion Resistant 
Steel (CORE) from the Republic of Korea,'' dated June 12, 2020.
    \5\ See KG Dongbu Steel's Letter, ``Certain Corrosion Resistant 
Steel Products and Cold-Rolled Steel Products from the Republic of 
Korea Changed Circumstance Review, Case Nos. C-580-879 and C-580-
882: First Supplemental Questionnaire Response,'' dated June 30, 
2020.
    \6\ See Memorandum, ``Preliminary Results of the Changed 
Circumstances Reviews Regarding Successor-In-Interest Analysis: 
Antidumping Duty Orders and Countervailing Duty Orders on Certain 
Cold-rolled Steel Flat Products and Certain Corrosion-resistant 
Steel Products from the Republic of Korea,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Orders

    The products covered by these CCRs are certain cold-rolled steel 
products (cold-rolled steel) and certain corrosion-resistant steel 
products (CORE) from Korea. For full descriptions of the scope of the 
orders, see the Preliminary Decision Memorandum.

Preliminary Results of Changed Circumstances Reviews

    In accordance with 19 CFR 351.216, we preliminarily determine that 
KG Dongbu Steel is the successor in interest to Dongbu Steel and Dongbu 
Incheon for purposes of the AD orders on cold-rolled steel and CORE. 
Record evidence, as submitted by KG Dongbu Steel, indicates that, based 
on the totality of the circumstances under Commerce's successor-in-
interest criteria, KG Dongbu Steel's operations are not materially 
dissimilar to those of Dongbu Steel and Dongbu Incheon before the 
acquisition and name change with respect to the merchandise under 
review, for purposes of the AD CCRs. Moreover, we preliminarily find 
that KG Dongbu Steel's production facilities, supplier relationships, 
and customer base with regard to the merchandise subject to the AD 
orders are substantially the same as Dongbu Steel's and Dongbu 
Incheon's before the acquisition and name change.
    However, with respect to the CVD CCRs, we preliminarily find that 
there is evidence of significant changes in ownership during the 
``look-back window'' that could have affected the nature and extent of 
the countervailable subsidies attributable to the successor entity vs. 
the predecessor entity. These changes in management and ownership would 
likely have affected subsidization of the companies. An examination of 
the actual amount and rate of countervailable subsidies attributable to 
KG Dongbu Steel subsidy, therefore, would be more appropriate in the 
context of an administrative review.
    Therefore, based on record evidence, we preliminarily determine 
that it is appropriate to apply to KG Dongbu Steel AD cash deposits 
requirements and liabilities at the rates currently in effect for 
Dongbu Steel/Dongbu Incheon. For CVD purposes, we preliminarily 
determine that changes in ownership and management were significant, 
and thus preliminarily determine that it is not appropriate to apply to 
KG Dongbu Steel the CVD cash deposit requirements and liabilities 
currently in effect for Dongbu Steel/Dongbu Incheon. For additional 
details regarding the

[[Page 288]]

preliminary successor-in-interest analysis, see the Preliminary 
Decision Memorandum.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of such case briefs 
and written comments at a later date. Rebuttal briefs, limited to 
issues raised in case briefs, may be submitted no later than seven days 
after the deadline date for case briefs.\7\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\8\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs are encouraged to submit with each argument: 
(1) A statement of the issue; (2) a brief summary of the argument; and 
(3) a table of authorities.
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \8\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date and time of 
the hearing two days before the scheduled date.
    Consistent with 19 CFR 351.216(e), we will intend to issue the 
final results of this changed circumstances review no later than 270 
days after the date on which this review was initiated, or within 45 
days if all parties agree to our preliminary finding.

Notification to Interested Parties

    This notice is published in accordance with sections 751(b)(1) and 
777(i)(1) of the Act and 19 CFR 351.216(b), 351.221(b) and 
351.221(c)(3).

    Dated: December 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Successor-In-Interest Determination
V. Recommendation

[FR Doc. 2020-29178 Filed 1-4-21; 8:45 am]
BILLING CODE 3510-DS-P