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]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[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.
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    \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.
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    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.
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    \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).
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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.
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    \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).
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    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