Certain Corrosion-Resistant Steel Products From the Republic of Korea: Notice of Court Decision Not in Harmony With the Results of Countervailing Duty Review; Notice of Amended Final Results, 9614-9615 [2025-02624]
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Friday, February 14, 2025
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[FR Doc. 2025–02613 Filed 2–13–25; 8:45 am]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–879]
Certain Corrosion-Resistant Steel
Products From the Republic of Korea:
Notice of Court Decision Not in
Harmony With the Results of
Countervailing Duty Review; Notice of
Amended Final Results
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: On January 17, 2025, the U.S.
Court of International Trade (CIT)
issued its final judgment in KG Dongbu
Steel Co., Ltd., et al. v. United States,
Court no. 22–00047, sustaining the U.S.
Department of Commerce (Commerce)’s
second remand results pertaining to the
administrative review of the
countervailing duty (CVD) order on
certain corrosion-resistant steel
products (CORE) from the Republic of
Korea (Korea) covering the period
January 1, 2019, through December 31,
2019. Commerce is notifying the public
that the CIT’s final judgment is not in
harmony with Commerce’s final results
of the administrative review and that
Commerce is amending the final results
with respect to the countervailable
subsidy rate assigned to KG Dongbu
Steel Co., Ltd. (KG Dongbu Steel);
Dongbu Steel Co. Ltd. (Dongbu Steel);
and Dongbu Incheon Steel Co., Ltd.
(Dongbu Incheon Steel) (collectively,
the Dongbu Steel Entity).
DATES: Applicable January 27, 2025.
FOR FURTHER INFORMATION CONTACT: Bob
Palmer, AD/CVD Operations, Office
VIII, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–9068.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On January 19, 2022, Commerce
published its Final Results in the 2019
CVD administrative review of CORE
from Korea. Commerce determined that
countervailable subsidies were provided
to producers and exporters of CORE
from Korea.1
1 See Certain Corrosion-Resistant Steel Products
from the Republic of Korea: Final Results and
Partial Rescission of Countervailing Duty
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14FEN1
9615
Federal Register / Vol. 90, No. 30 / Friday, February 14, 2025 / Notices
KG Dongbu Steel appealed
Commerce’s Final Results. On July 7,
2023, the CIT remanded the Final
Results to Commerce.2 The CIT ordered
Commerce to reconsider or further
explain Commerce’s determinations
that: (1) the first through third debt-toequity restructurings provided a
countervailable benefit; (2) Commerce’s
determination that the benefits from
debt-to-equity restructurings passed
through from Dongbu Steel to KG
Dongbu Steel despite a change in
ownership; (3) whether Commerce’s
calculations of the creditworthiness
benchmark rate were supported by
substantial evidence; and (4) whether
Commerce’s calculation of the discount
rate for equity upon finding KG Dongbu
Steel not equity worthy was supported
by substantial evidence.3
In its first remand redetermination,
issued in July 2023, Commerce further
explained its rationale for determining
that the first through third debt-toequity restructurings provided a
countervailable benefit, that a benefit
2025, the CIT sustained Commerce’s
final redetermination in full.8
Timken Notice
In its decision in Timken,9 as clarified
by Diamond Sawblades,10 the Court of
Appeals for the Federal Circuit held
that, pursuant to section 516A(c) and (e)
of the Tariff Act of 1930, as amended
(the Act), Commerce must publish a
notice of court decision that is not ‘‘in
harmony’’ with a Commerce
determination and must suspend
liquidation of entries pending a
‘‘conclusive’’ court decision. The CIT’s
January 17, 2025, judgment constitutes
a final decision of the CIT that is not in
harmony with Commerce’s Final
Results. Thus, this notice is published
in fulfillment of the publication
requirements of Timken.
Amended Final Results
Because there is now a final court
judgment, Commerce is amending its
Final Results with respect to KG Dongbu
Steel as follows:
Company
Subsidy rate
(percent ad valorem)
KG Dongbu Steel Co., Ltd.; Dongbu Steel Co., Ltd.; Dongbu Incheon Steel Co., Ltd.11 ..................................................
5.89
Cash Deposit Requirements
Because the Dongbu Steel Entity has
a superseding cash deposit rate, i.e.,
there have been final results published
in a subsequent administrative review,
we will not issue revised cash deposit
instructions to U.S. Customs and Border
Protection (CBP). This notice will not
affect the current cash deposit rate.
Liquidation of Suspended Entries
At this time, Commerce remains
enjoined by CIT order from liquidating
entries that were produced and/or
exported by KG Dongbu Steel (formerly,
Dongbu Steel), and its cross-owned
company, Dongbu Incheon Steel, and
were entered, or withdrawn from
warehouse, for consumption during the
period January 1, 2019, through
December 31, 2019. These entries will
remain enjoined pursuant to the terms
of the injunction during the pendency of
any appeals process.
khammond on DSK9W7S144PROD with NOTICES
passed from Dongbu Steel to the new
ownership in KG Dongbu Steel and that
the uncreditworthy benchmark rate and
unequityworthy discount rate are
supported by substantial evidence.4
Regarding the debt-to-equity
restructurings, Commerce reiterated that
the countervailability determination
was attempting to fix in the fourth
administrative review a mistake that
was made in the three prior
administrative reviews which
determined KG Dongbu Steel benefited
from the debt-to-equity restructuring.5
On April 3, 2024, the CIT remanded
Commerce for a second time on each of
the issues.6
In its second remand redetermination,
issued in July 2024, Commerce
determined, under protest, that no
benefit was conferred through the first
through third debt-to-equity
restructurings and that the issue of
whether benefits passed through to KG
Dongbu Steel was moot.7 On January 17,
Administrative Review, 87 FR 2760 (January 19,
2022) (Final Results), and accompanying Issues and
Decision Memorandum (IDM).
2 See KG Dongbu Steel Co., Ltd., et al. v. United
States, 648 F. Supp. 3d 1353 (CIT July 7, 2023).
3 Id.
4 See Final Results of Redetermination Pursuant
to Court Remand, KG Dongbu Steel Co., Ltd. v.
United States, Court No. 22–00047, Slip Op. 23–98
(CIT July 7, 2023), dated October 5, 2023, available
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16:06 Feb 13, 2025
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In the event the CIT’s ruling is not
appealed, or, if appealed, upheld by a
final and conclusive court decision,
Commerce intends to instruct CBP to
assess countervailing duties on
unliquidated entries of subject
merchandise produced and/or exported
by the Dongbu Steel Entity in
accordance with 19 CFR 351.212(b). We
will instruct CBP to assess
countervailing duties on all appropriate
entries covered by this review when the
ad valorem rate is not zero or de
minimis. Where an ad valorem subsidy
rate is zero or de minimis,12 we will
instruct CBP to liquidate the appropriate
entries without regard to countervailing
duties.
Notification to Interested Parties
Dated: February 7, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and
Negotiations, performing the non-exclusive
functions and duties of the Assistant
Secretary for Enforcement and Compliance.
[FR Doc. 2025–02624 Filed 2–13–25; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–201–845/C–201–846]
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Advance Notification of
Sunset Review; Correction
This notice is issued and published in
accordance with sections 516A(c) and
(e) and 777(i)(1) of the Act.
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
ACTION: Notice; correction.
at https://access.trade.gov/public/FinalRemand
Redetermination.aspx.
5 Id.
6 See KG Dongbu Steel Co., Ltd., et al. v. United
States, 695 F. Supp. 3d 1338 (CIT April 3, 2024).
7 See Final Results of Redetermination Pursuant
to Court Remand, KG Dongbu Steel Co., Ltd. v.
United States, Court No. 22–00047, Slip Op. 24–38
(CIT April 3, 2024), dated July 3, 2024, available at
https://access.trade.gov/public/FinalRemand
Redetermination.aspx.
8 See KG Dongbu Steel Co., Ltd., et al. v. United
States, Slip Op. 25–7 (CIT January 17, 2025).
9 See Timken Co. v. United States, 893 F.2d 337
(Fed. Cir. 1990) (Timken).
10 See Diamond Sawblades Manufacturers
Coalition v. United States, 626 F.3d 1374 (Fed. Cir.
2010) (Diamond Sawblades).
11 Dongbu Steel Co., Ltd. changed its name to KG
Dongbu Steel Co., Ltd. in 2020.
12 See 19 CFR 351.106(c)(2).
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AGENCY:
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Agencies
[Federal Register Volume 90, Number 30 (Friday, February 14, 2025)]
[Notices]
[Pages 9614-9615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02624]
=======================================================================
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-879]
Certain Corrosion-Resistant Steel Products From the Republic of
Korea: Notice of Court Decision Not in Harmony With the Results of
Countervailing Duty Review; Notice of Amended Final Results
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On January 17, 2025, the U.S. Court of International Trade
(CIT) issued its final judgment in KG Dongbu Steel Co., Ltd., et al. v.
United States, Court no. 22-00047, sustaining the U.S. Department of
Commerce (Commerce)'s second remand results pertaining to the
administrative review of the countervailing duty (CVD) order on certain
corrosion-resistant steel products (CORE) from the Republic of Korea
(Korea) covering the period January 1, 2019, through December 31, 2019.
Commerce is notifying the public that the CIT's final judgment is not
in harmony with Commerce's final results of the administrative review
and that Commerce is amending the final results with respect to the
countervailable subsidy rate assigned to KG Dongbu Steel Co., Ltd. (KG
Dongbu Steel); Dongbu Steel Co. Ltd. (Dongbu Steel); and Dongbu Incheon
Steel Co., Ltd. (Dongbu Incheon Steel) (collectively, the Dongbu Steel
Entity).
DATES: Applicable January 27, 2025.
FOR FURTHER INFORMATION CONTACT: Bob Palmer, AD/CVD Operations, Office
VIII, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-9068.
SUPPLEMENTARY INFORMATION:
Background
On January 19, 2022, Commerce published its Final Results in the
2019 CVD administrative review of CORE from Korea. Commerce determined
that countervailable subsidies were provided to producers and exporters
of CORE from Korea.\1\
---------------------------------------------------------------------------
\1\ See Certain Corrosion-Resistant Steel Products from the
Republic of Korea: Final Results and Partial Rescission of
Countervailing Duty Administrative Review, 87 FR 2760 (January 19,
2022) (Final Results), and accompanying Issues and Decision
Memorandum (IDM).
---------------------------------------------------------------------------
[[Page 9615]]
KG Dongbu Steel appealed Commerce's Final Results. On July 7, 2023,
the CIT remanded the Final Results to Commerce.\2\ The CIT ordered
Commerce to reconsider or further explain Commerce's determinations
that: (1) the first through third debt-to-equity restructurings
provided a countervailable benefit; (2) Commerce's determination that
the benefits from debt-to-equity restructurings passed through from
Dongbu Steel to KG Dongbu Steel despite a change in ownership; (3)
whether Commerce's calculations of the creditworthiness benchmark rate
were supported by substantial evidence; and (4) whether Commerce's
calculation of the discount rate for equity upon finding KG Dongbu
Steel not equity worthy was supported by substantial evidence.\3\
---------------------------------------------------------------------------
\2\ See KG Dongbu Steel Co., Ltd., et al. v. United States, 648
F. Supp. 3d 1353 (CIT July 7, 2023).
\3\ Id.
---------------------------------------------------------------------------
In its first remand redetermination, issued in July 2023, Commerce
further explained its rationale for determining that the first through
third debt-to-equity restructurings provided a countervailable benefit,
that a benefit passed from Dongbu Steel to the new ownership in KG
Dongbu Steel and that the uncreditworthy benchmark rate and
unequityworthy discount rate are supported by substantial evidence.\4\
Regarding the debt-to-equity restructurings, Commerce reiterated that
the countervailability determination was attempting to fix in the
fourth administrative review a mistake that was made in the three prior
administrative reviews which determined KG Dongbu Steel benefited from
the debt-to-equity restructuring.\5\ On April 3, 2024, the CIT remanded
Commerce for a second time on each of the issues.\6\
---------------------------------------------------------------------------
\4\ See Final Results of Redetermination Pursuant to Court
Remand, KG Dongbu Steel Co., Ltd. v. United States, Court No. 22-
00047, Slip Op. 23-98 (CIT July 7, 2023), dated October 5, 2023,
available at https://access.trade.gov/public/FinalRemandRedetermination.aspx.
\5\ Id.
\6\ See KG Dongbu Steel Co., Ltd., et al. v. United States, 695
F. Supp. 3d 1338 (CIT April 3, 2024).
---------------------------------------------------------------------------
In its second remand redetermination, issued in July 2024, Commerce
determined, under protest, that no benefit was conferred through the
first through third debt-to-equity restructurings and that the issue of
whether benefits passed through to KG Dongbu Steel was moot.\7\ On
January 17, 2025, the CIT sustained Commerce's final redetermination in
full.\8\
---------------------------------------------------------------------------
\7\ See Final Results of Redetermination Pursuant to Court
Remand, KG Dongbu Steel Co., Ltd. v. United States, Court No. 22-
00047, Slip Op. 24-38 (CIT April 3, 2024), dated July 3, 2024,
available at https://access.trade.gov/public/FinalRemandRedetermination.aspx.
\8\ See KG Dongbu Steel Co., Ltd., et al. v. United States, Slip
Op. 25-7 (CIT January 17, 2025).
---------------------------------------------------------------------------
Timken Notice
In its decision in Timken,\9\ as clarified by Diamond
Sawblades,\10\ the Court of Appeals for the Federal Circuit held that,
pursuant to section 516A(c) and (e) of the Tariff Act of 1930, as
amended (the Act), Commerce must publish a notice of court decision
that is not ``in harmony'' with a Commerce determination and must
suspend liquidation of entries pending a ``conclusive'' court decision.
The CIT's January 17, 2025, judgment constitutes a final decision of
the CIT that is not in harmony with Commerce's Final Results. Thus,
this notice is published in fulfillment of the publication requirements
of Timken.
---------------------------------------------------------------------------
\9\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\10\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
---------------------------------------------------------------------------
Amended Final Results
Because there is now a final court judgment, Commerce is amending
its Final Results with respect to KG Dongbu Steel as follows:
---------------------------------------------------------------------------
\11\ Dongbu Steel Co., Ltd. changed its name to KG Dongbu Steel
Co., Ltd. in 2020.
------------------------------------------------------------------------
Subsidy rate (percent ad
Company valorem)
------------------------------------------------------------------------
KG Dongbu Steel Co., Ltd.; Dongbu Steel Co., 5.89
Ltd.; Dongbu Incheon Steel Co., Ltd.\11\.....
------------------------------------------------------------------------
Cash Deposit Requirements
Because the Dongbu Steel Entity has a superseding cash deposit
rate, i.e., there have been final results published in a subsequent
administrative review, we will not issue revised cash deposit
instructions to U.S. Customs and Border Protection (CBP). This notice
will not affect the current cash deposit rate.
Liquidation of Suspended Entries
At this time, Commerce remains enjoined by CIT order from
liquidating entries that were produced and/or exported by KG Dongbu
Steel (formerly, Dongbu Steel), and its cross-owned company, Dongbu
Incheon Steel, and were entered, or withdrawn from warehouse, for
consumption during the period January 1, 2019, through December 31,
2019. These entries will remain enjoined pursuant to the terms of the
injunction during the pendency of any appeals process.
In the event the CIT's ruling is not appealed, or, if appealed,
upheld by a final and conclusive court decision, Commerce intends to
instruct CBP to assess countervailing duties on unliquidated entries of
subject merchandise produced and/or exported by the Dongbu Steel Entity
in accordance with 19 CFR 351.212(b). We will instruct CBP to assess
countervailing duties on all appropriate entries covered by this review
when the ad valorem rate is not zero or de minimis. Where an ad valorem
subsidy rate is zero or de minimis,\12\ we will instruct CBP to
liquidate the appropriate entries without regard to countervailing
duties.
---------------------------------------------------------------------------
\12\ See 19 CFR 351.106(c)(2).
---------------------------------------------------------------------------
Notification to Interested Parties
This notice is issued and published in accordance with sections
516A(c) and (e) and 777(i)(1) of the Act.
Dated: February 7, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2025-02624 Filed 2-13-25; 8:45 am]
BILLING CODE 3510-DS-P