Oil Country Tubular Goods From the Republic of Korea: Final Affirmative Countervailing Duty Determination, 59056-59058 [2022-21181]
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59056
Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040,
7304.59.8045, 7304.59.8050, 7304.59.8055,
7304.59.8060, 7304.59.8065, 7304.59.8070,
7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050,
and 7306.50.5070.
The HTSUS subheadings and
specifications above are provided for
convenience and customs purposes only. The
written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Changes from the Preliminary
Determination
IV. Final Negative Determination of Critical
Circumstances
V. Discussion of the Issues
Comment 1: Constructed Export Price
(CEP) Offset
Comment 2: Third-Country Indirect Selling
Expenses (ISE)
Comment 3: Research and Development
(R&D) Expenses for Further
Manufacturing Costs
VI. Recommendation
[FR Doc. 2022–21184 Filed 9–28–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–913]
Oil Country Tubular Goods From the
Republic of Korea: Final Affirmative
Countervailing Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
oil country tubular goods (OCTG) from
the Republic of Korea (Korea). The
period of investigation is January 1,
2020, through December 31, 2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT:
Jacob Garten or Melissa Porpotage, AD/
CVD Operations, Office II, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–3342 or (202) 482–1413,
respectively.
khammond on DSKJM1Z7X2PROD with NOTICES
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On March 14, 2022, Commerce
published the Preliminary
VerDate Sep<11>2014
17:52 Sep 28, 2022
Jkt 256001
Determination in the Federal Register.1
For a complete description of the events
that followed the Preliminary
Determination, see the Issues and
Decision Memorandum.2 The Issues and
Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://
access.trade.gov. In addition, a complete
version of the Issues and Decision
Memorandum can be accessed directly
at https://access.trade.gov/public/
FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are OCTG from Korea. For
a complete description of the scope of
this investigation, see appendix I.
Scope Comments
On March 7, 2022, concurrent with
the issuance of the Preliminary
Determination, we issued a Preliminary
Scope Memorandum.3 In the
Preliminary Scope Decision
Memorandum, Commerce established
the deadline for parties to submit scope
case briefs.4 Commerce did not receive
any comments from interested parties
regarding the scope by the deadline.
Consequently, we made no changes to
the scope from the Preliminary Scope
Decision Memorandum.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation, and the issues raised in
the case and rebuttal briefs by parties in
this investigation, are discussed in the
Issues and Decision Memorandum. For
a list of the issues raised by parties, and
to which we responded in the Issues
and Decision Memorandum, see
appendix II of this notice.
1 See Oil Country Tubular Goods from the
Republic of Korea: Preliminary Negative
Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping
Duty Determination, 87 FR 14248 (March 14, 2022)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
2 See Memorandum, ‘‘Decision Memorandum for
the Final Determination of the Countervailing Duty
Investigation of Oil Country Tubular Goods from
the Republic of Korea,’’ dated concurrently with,
and hereby adopted by, this notice (Issues and
Decision Memorandum).
3 See Memorandum, ‘‘Antidumping Duty
Investigations of Oil Country Tubular Goods from
Argentina, Mexico, and the Russian Federation and
Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the
Russian Federation: Preliminary Scope Decision
Memorandum,’’ dated March 7, 2022 (Preliminary
Scope Memorandum).
4 Id. at 4.
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Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found to be
countervailable, Commerce determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient
and that the subsidy is specific.5 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce relied, in part, on facts
otherwise available, including adverse
facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For
a full discussion of our application of
AFA, see the section ‘‘Use of Facts
Available and Adverse Inferences’’ in
the accompanying Issues and Decision
Memorandum.
Verification
As provided in section 782(i) of the
Act, in August 2022, Commerce verified
the subsidy information reported by
Hyundai Steel Company (Hyundai
Steel),6 SeAH Steel Corporation (SeAH
Steel), and the Government of Korea.
We used standard verification
procedures, including an examination of
relevant accounting records and original
source documents provided by the
respondents.
Changes Since the Preliminary
Determination
Based on our review and analysis of
the information received at verification
and comments received from parties, we
made certain changes to the subsidy rate
calculations for Hyundai Steel and
SeAH Steel. As a result of these
changes, Commerce also revised the allothers rate. For a discussion of these
changes, see the Issues and Decision
Memorandum.
All-Others Rate
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated
countervailable subsidy rate for the two
mandatory respondents, Hyundai Steel
and SeAH Steel. Section 705(c)(5)(A)(i)
of the Act states that, for companies not
individually investigated, Commerce
will determine an all-others rate equal
5 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
6 Hyundai Steel Company is the same respondent
from the Preliminary Determination, where we
incorrectly stated the company’s name as Hyundai
Steel Corporation.
E:\FR\FM\29SEN1.SGM
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Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
to the weighted-average countervailable
subsidy rates established for exporters
and/or producers individually
investigated, excluding any zero and de
minimis countervailable subsidy rates,
and any rates determined entirely under
section 776 of the Act.
In this investigation, Commerce
calculated a de minimis rate for
Hyundai Steel. Therefore, the only rate
that is not zero, de minimis, or based
entirely on facts otherwise available is
the rate calculated for SeAH Steel.
Consequently, the rate calculated for
SeAH Steel is also assigned as the rate
for all other producers and exporters.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a countervailing duty order
and require a cash deposit of estimated
countervailing duties for such entries of
subject merchandise in the amounts
indicated above, in accordance with
section 706(a) of the Act. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated, and
all estimated duties deposited or
securities posted as a result of the
suspension of liquidation will be
refunded or canceled.
Final Determination
Commerce determines that the
following estimated net countervailable
subsidy rates exist:
ITC Notification
In accordance with section 705(d) of
the Act, Commerce will notify the ITC
of its final affirmative determination
that countervailable subsidies are being
provided to producers and exporters of
OCTG from Korea. As Commerce’s final
determination is affirmative, in
accordance with section 705(b) of the
Act, the ITC will determine, within 45
days, whether the domestic industry in
the United States is materially injured,
or threatened with material injury, by
reason of imports of OCTG from Korea.
In addition, we are making available to
the ITC all non-privileged and nonproprietary information related to this
investigation. We will allow the ITC
access to all privileged and business
proprietary information in our files,
provided the ITC confirms that it will
not disclose such information, either
publicly or under an administrative
protective order (APO), without the
written consent of the Assistant
Secretary for Enforcement and
Compliance. If the ITC determines that
material injury or threat of material
injury does not exist, this proceeding
will be terminated, and all cash deposits
will be refunded. If the ITC determines
that such injury does exist, Commerce
will issue a countervailing duty order
directing CBP to assess, upon further
instruction by Commerce,
countervailing duties on all imports of
the subject merchandise that are
entered, or withdrawn from warehouse,
for consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section.
Company
Subsidy rate
(percent
ad valorem)
Hyundai Steel Company ...........
SeAH Steel Corporation 7 ..........
All Others ..................................
0.25 (de minimis).
1.33.
1.33.
khammond on DSKJM1Z7X2PROD with NOTICES
Disclosure
Commerce intends to disclose to
interested parties its calculations
performed in this final determination
within five days of any public
announcement, or if there is no public
announcement, within five days of the
date of publication of this notice in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In the Preliminary Determination, the
total net countervailable subsidy rates
for the individually examined
respondents were de minimis, and,
therefore, we did not suspend
liquidation of entries of OCTG from
Korea. However, as the estimated
subsidy rate for one examined company,
SeAH Steel, as well as the all-others rate
is above de minimis in this final
determination, we are directing U.S.
Customs and Border Protection (CBP) to
suspend liquidation of entries of OCTG
from Korea, other than those produced
and exported by Hyundai Steel
Company, that are entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register, and to require a cash deposit
for such entries of merchandise in the
amounts indicated above, pursuant to
section 705(c)(1)(B)(ii) of the Act. The
suspension of liquidation will remain in
effect until further notice.
7 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
company to be cross-owned with SeAH Steel
Corporation: SeAH Steel Holding Corporation.
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17:52 Sep 28, 2022
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Notification Regarding APO
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to the APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
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59057
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 771(i) of the Act, and 19 CFR
351.210(c).
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance.
Appendix I—Scope of the Investigation
The merchandise covered by this
investigation is certain OCTG, which are
hollow steel products of circular crosssection, including oil well casing and tubing,
of iron (other than case iron) or steel (both
carbon and alloy), whether seamless or
welded, regardless of end finish (e.g.,
whether or not plain end, threaded, or
threaded and coupled) whether or not
conforming to American Petroleum Institute
(API) or non-API specifications, whether
finished (including limited service OCTG
products) or unfinished (including green
tubes and limited service OCTG products),
whether or not thread protectors are attached.
The scope of this investigation also covers
OCTG coupling stock.
Subject merchandise includes material
matching the above description that has been
finished, packaged, or otherwise processed in
a third country, including by performing any
heat treatment, cutting, upsetting, threading,
coupling, or any other finishing, packaging,
or processing that would not otherwise
remove the merchandise from the scope of
the investigation if performed in the country
of manufacture of the OCTG.
Excluded from the scope of the
investigation are: Casing, tubing, or coupling
stock containing 10.5 percent or more by
weight of chromium; drill pipe; unattached
couplings; and unattached thread protectors.
The merchandise subject to this
investigation is currently classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) under item numbers:
7304.29.1010, 7304.29.1020, 7304.29.1030,
7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020,
7304.29.2030, 7304.29.2040, 7304.29.2050,
7304.29.2060, 7304.29.2080, 7304.29.3110,
7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160, 7304.29.3180,
7304.29.4110, 7304.29.4120, 7304.29.4130,
7304.29.4140, 7304.29.4150, 7304.29.4160,
7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075,
7304.29.6115, 7304.29.6130, 7304.29.6145,
7304.29.6160, 7304.29.6175, 7305.20.2000,
7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000,
7306.29.3100, 7306.29.4100, 7306.29.6010,
7306.29.6050, 7306.29.8110, and
7306.29.8150.
E:\FR\FM\29SEN1.SGM
29SEN1
59058
Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
The merchandise subject to this
investigation may also enter under the
following HTSUS item numbers:
7304.39.0024, 7304.39.0028, 7304.39.0032,
7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056,
7304.39.0062, 7304.39.0068, 7304.39.0072,
7304.39.0076, 7304.39.0080, 7304.59.6000,
7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040,
7304.59.8045, 7304.59.8050, 7304.59.8055,
7304.59.8060, 7304.59.8065, 7304.59.8070,
7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050,
and 7306.50.5070.
The HTSUS subheadings and
specifications above are provided for
convenience and customs purposes only. The
written description of the scope of this
investigation is dispositive.
khammond on DSKJM1Z7X2PROD with NOTICES
Appendix II—List of Topics Discussed
in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse
Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether the Provision of
Korea Emissions Trading System (K–
ETS) Permit Program is Countervailable
Comment 2: Whether the Preliminary
Benefit Calculation for the Provision of
K–ETS Permit Program is Incorrect
Comment 3: Whether Commerce Should
Apply Adverse Facts Available (AFA)
Regarding the Reduction Rate Applied to
Participants in the Provision of K–ETS
Permits Program
Comment 4: Whether Commerce Should
Correct Its Calculations for Programs
Preliminarily Found to Provide No
Measurable Benefit to SeAH
Comment 5: Whether Commerce Should
Correct an Error in the Short-Term Loan
Interest Rate Benchmark
Comment 6: Whether the Discount of
Electricity Fee for Energy Storage System
(ESS) Program Is Countervailable
Comment 7: Whether the Demand
Response Resources (DRR) Program is
Countervailable
Comment 8: Whether Tax Credits Under
Restriction of Special Taxation Act
(RSTA) Article 25(1)(6) are
Countervailable
Comment 9: Whether the Insurance Claim
Disbursements by Seoul Guarantee
Insurance (SGI) are Countervailable
Comment 10: Whether the Provision of
Port Usage Rights at the Port of Incheon
Are Countervailable
Comment 11: Whether Commerce Should
Apply AFA to SeAH Steel for Failure to
Report Usage of the Korean ExportImport Bank (KEXIM) Performance
Guarantee Program
Comment 12: Whether the KEXIM
Performance Guarantee Provides a
Countervailable Benefit
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17:52 Sep 28, 2022
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VII. Recommendation
[FR Doc. 2022–21181 Filed 9–28–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–489–846]
Certain Steel Nails From the Republic
of Turkey: Postponement of Final
Determination of Sales at Less Than
Fair Value Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) is postponing
the deadline for issuing the final
determination in the less-than-fair-value
(LTFV) investigation of certain steel
nails (nails) from the Republic of Turkey
(Turkey) until December 19, 2022, and
is extending the provisional measures
from a four-month period to a period of
not more than six months.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT:
David Crespo, AD/CVD Operations,
Office II, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3693.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On January 19, 2022, Commerce
initiated an LTFV investigation of
imports of nails from Turkey.1 The
period of investigation is October 1,
2020, through September 30, 2021. On
August 4, 2022, Commerce published
the Preliminary Determination.2
Postponement of Final Determination
Section 735(a)(2) of the Tariff Act of
1930, as amended (the Act), and 19 CFR
351.210(b)(2) provide that a final
determination may be postponed until
not later than 135 days after the date of
the publication of the preliminary
determination if, in the event of an
affirmative preliminary determination, a
request for such postponement is made
by the exporters or producers who
account for a significant proportion of
1 See Certain Steel Nails from India, Sri Lanka,
Thailand, and the Republic of Turkey: Initiation of
Less-Than-Fair-Value Investigations, 87 FR 3965
(January 26, 2022).
2 See Certain Steel Nails from the Republic of
Turkey: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, 87 FR 47699 (August
4, 2022) (Preliminary Determination).
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Fmt 4703
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exports of the subject merchandise, or in
the event of a negative preliminary
determination, a request for such
postponement is made by the
petitioners. Further, 19 CFR
351.210(e)(2) requires that such
postponement requests by exporters be
accompanied by a request for extension
of provisional measures from a fourmonth period to a period of not more
than six months, in accordance with
section 733(d) of the Act.
On August 2, 2022, Aslanbas Civi Tel
Ve Celik Hasir San. A.S. (Aslanbas) and
Sertel Vida Metals, A.S. (Sertel Vida),
mandatory respondents in this
investigation, requested that Commerce
postpone the deadline for the final
determination until no later than 135
days from the publication of the
Preliminary Determination, and extend
the application of the provisional
measures from a four-month period to a
period of not more than six months.3 In
accordance with section 735(a)(2)(A) of
the Act and 19 CFR 351.210(b)(2)(ii),
because: (1) the preliminary
determination was affirmative; (2) the
request was made by the exporters and
producers who account for a significant
proportion of exports of the subject
merchandise; and (3) no compelling
reasons for denial exist, Commerce is
postponing the final determination until
no later than 135 days after the date of
the publication of the Preliminary
Determination, and extending the
provisional measures from a four-month
period to a period of not more than six
months. Accordingly, Commerce will
issue its final determination no later
than December 19, 2022.4
This notice is issued and published
pursuant to 19 CFR 351.210(g).
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance.
[FR Doc. 2022–21132 Filed 9–28–22; 8:45 am]
BILLING CODE 3510–DS–P
3 See Aslanbas and Sertel Vida’s Letter, ‘‘Request
to Extend the Final Determination,’’ dated August
2, 2022.
4 Postponing the final determination to 135 days
after the publication of the Preliminary
Determination would place the deadline on
Saturday, December 17, 2022. Commerce’s practice
dictates that where a deadline falls on a weekend
or federal holiday, the appropriate deadline is the
next business day. See Notice of Clarification:
Application of ‘‘Next Business Day’’ Rule for
Administrative Determination Deadlines Pursuant
to the Tariff Act of 1930, As Amended, 70 FR 24533
(May 10, 2005).
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Agencies
[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59056-59058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21181]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-913]
Oil Country Tubular Goods From the Republic of Korea: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of oil country tubular goods (OCTG) from the Republic of Korea (Korea).
The period of investigation is January 1, 2020, through December 31,
2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT: Jacob Garten or Melissa Porpotage, AD/
CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3342 or (202)
482-1413, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 14, 2022, Commerce published the Preliminary Determination
in the Federal Register.\1\ For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ The Issues and Decision Memorandum is a public
document and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------
\1\ See Oil Country Tubular Goods from the Republic of Korea:
Preliminary Negative Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping Duty Determination, 87
FR 14248 (March 14, 2022) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Decision Memorandum for the Final
Determination of the Countervailing Duty Investigation of Oil
Country Tubular Goods from the Republic of Korea,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are OCTG from Korea. For
a complete description of the scope of this investigation, see appendix
I.
Scope Comments
On March 7, 2022, concurrent with the issuance of the Preliminary
Determination, we issued a Preliminary Scope Memorandum.\3\ In the
Preliminary Scope Decision Memorandum, Commerce established the
deadline for parties to submit scope case briefs.\4\ Commerce did not
receive any comments from interested parties regarding the scope by the
deadline. Consequently, we made no changes to the scope from the
Preliminary Scope Decision Memorandum.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Antidumping Duty Investigations of Oil
Country Tubular Goods from Argentina, Mexico, and the Russian
Federation and Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the Russian
Federation: Preliminary Scope Decision Memorandum,'' dated March 7,
2022 (Preliminary Scope Memorandum).
\4\ Id. at 4.
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see appendix II of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce determines that
there is a subsidy, i.e., a financial contribution by an ``authority''
that gives rise to a benefit to the recipient and that the subsidy is
specific.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\5\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
In making this final determination, Commerce relied, in part, on
facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the section ``Use of Facts Available and
Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Verification
As provided in section 782(i) of the Act, in August 2022, Commerce
verified the subsidy information reported by Hyundai Steel Company
(Hyundai Steel),\6\ SeAH Steel Corporation (SeAH Steel), and the
Government of Korea. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided by the respondents.
---------------------------------------------------------------------------
\6\ Hyundai Steel Company is the same respondent from the
Preliminary Determination, where we incorrectly stated the company's
name as Hyundai Steel Corporation.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the information received at
verification and comments received from parties, we made certain
changes to the subsidy rate calculations for Hyundai Steel and SeAH
Steel. As a result of these changes, Commerce also revised the all-
others rate. For a discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, Hyundai Steel and SeAH Steel. Section
705(c)(5)(A)(i) of the Act states that, for companies not individually
investigated, Commerce will determine an all-others rate equal
[[Page 59057]]
to the weighted-average countervailable subsidy rates established for
exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act.
In this investigation, Commerce calculated a de minimis rate for
Hyundai Steel. Therefore, the only rate that is not zero, de minimis,
or based entirely on facts otherwise available is the rate calculated
for SeAH Steel. Consequently, the rate calculated for SeAH Steel is
also assigned as the rate for all other producers and exporters.
Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist:
---------------------------------------------------------------------------
\7\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with SeAH
Steel Corporation: SeAH Steel Holding Corporation.
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
Hyundai Steel Company................................ 0.25 (de
minimis).
SeAH Steel Corporation \7\........................... 1.33.
All Others........................................... 1.33.
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose to interested parties its calculations
performed in this final determination within five days of any public
announcement, or if there is no public announcement, within five days
of the date of publication of this notice in accordance with 19 CFR
351.224(b).
Suspension of Liquidation
In the Preliminary Determination, the total net countervailable
subsidy rates for the individually examined respondents were de
minimis, and, therefore, we did not suspend liquidation of entries of
OCTG from Korea. However, as the estimated subsidy rate for one
examined company, SeAH Steel, as well as the all-others rate is above
de minimis in this final determination, we are directing U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of OCTG
from Korea, other than those produced and exported by Hyundai Steel
Company, that are entered, or withdrawn from warehouse, for consumption
on or after the date of publication of this notice in the Federal
Register, and to require a cash deposit for such entries of merchandise
in the amounts indicated above, pursuant to section 705(c)(1)(B)(ii) of
the Act. The suspension of liquidation will remain in effect until
further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above, in
accordance with section 706(a) of the Act. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of OCTG from
Korea. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
OCTG from Korea. In addition, we are making available to the ITC all
non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is certain OCTG,
which are hollow steel products of circular cross-section, including
oil well casing and tubing, of iron (other than case iron) or steel
(both carbon and alloy), whether seamless or welded, regardless of
end finish (e.g., whether or not plain end, threaded, or threaded
and coupled) whether or not conforming to American Petroleum
Institute (API) or non-API specifications, whether finished
(including limited service OCTG products) or unfinished (including
green tubes and limited service OCTG products), whether or not
thread protectors are attached. The scope of this investigation also
covers OCTG coupling stock.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by performing any heat treatment,
cutting, upsetting, threading, coupling, or any other finishing,
packaging, or processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the OCTG.
Excluded from the scope of the investigation are: Casing,
tubing, or coupling stock containing 10.5 percent or more by weight
of chromium; drill pipe; unattached couplings; and unattached thread
protectors.
The merchandise subject to this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020,
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030,
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080,
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160, 7304.29.3180, 7304.29.4110,
7304.29.4120, 7304.29.4130, 7304.29.4140, 7304.29.4150,
7304.29.4160, 7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075, 7304.29.6115,
7304.29.6130, 7304.29.6145, 7304.29.6160, 7304.29.6175,
7305.20.2000, 7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000, 7306.29.3100,
7306.29.4100, 7306.29.6010, 7306.29.6050, 7306.29.8110, and
7306.29.8150.
[[Page 59058]]
The merchandise subject to this investigation may also enter
under the following HTSUS item numbers: 7304.39.0024, 7304.39.0028,
7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062,
7304.39.0068, 7304.39.0072, 7304.39.0076, 7304.39.0080,
7304.59.6000, 7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045,
7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065,
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
The HTSUS subheadings and specifications above are provided for
convenience and customs purposes only. The written description of
the scope of this investigation is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether the Provision of Korea Emissions Trading
System (K-ETS) Permit Program is Countervailable
Comment 2: Whether the Preliminary Benefit Calculation for the
Provision of K-ETS Permit Program is Incorrect
Comment 3: Whether Commerce Should Apply Adverse Facts Available
(AFA) Regarding the Reduction Rate Applied to Participants in the
Provision of K-ETS Permits Program
Comment 4: Whether Commerce Should Correct Its Calculations for
Programs Preliminarily Found to Provide No Measurable Benefit to
SeAH
Comment 5: Whether Commerce Should Correct an Error in the
Short-Term Loan Interest Rate Benchmark
Comment 6: Whether the Discount of Electricity Fee for Energy
Storage System (ESS) Program Is Countervailable
Comment 7: Whether the Demand Response Resources (DRR) Program
is Countervailable
Comment 8: Whether Tax Credits Under Restriction of Special
Taxation Act (RSTA) Article 25(1)(6) are Countervailable
Comment 9: Whether the Insurance Claim Disbursements by Seoul
Guarantee Insurance (SGI) are Countervailable
Comment 10: Whether the Provision of Port Usage Rights at the
Port of Incheon Are Countervailable
Comment 11: Whether Commerce Should Apply AFA to SeAH Steel for
Failure to Report Usage of the Korean Export-Import Bank (KEXIM)
Performance Guarantee Program
Comment 12: Whether the KEXIM Performance Guarantee Provides a
Countervailable Benefit
VII. Recommendation
[FR Doc. 2022-21181 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P