Large Diameter Welded Pipe From the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review; 2022 (2024)

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

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea). The period of review (POR) is January 1, 2022, through December 31, 2022. Additionally, we are rescinding this review with respect to 17 companies. We invite interested parties to comment on these preliminary results.

Applicable June 6, 2024.

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Faris Montgomery or Jonathan Schueler, 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) 482-1537 or (202) 482-9175, respectively.

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Background

On July 12, 2023, Commerce initiated an administrative review of the countervailing duty order on welded pipe from Korea.^[1] Commerce selected Hyundai RB Co., Ltd. (Hyundai RB) and SeAH Steel Corporation (SeAH Steel) as the mandatory respondents in this administrative review.^[2] On December 20, 2023, Commerce extended the deadline for these preliminary results to no later than May 30, 2024.^[3]

For a complete description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum.^[4] A list of topics discussed in the Preliminary Decision Memorandum is included at Appendix I 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://access.trade.gov/​public/​FRNoticesListLayout.aspx.

Scope of the Order

The merchandise covered by the Order is welded pipe. For a complete description of the scope of the Order, see the Preliminary Decision Memorandum.

Rescission of Administrative Review, in Part

On September 14, 2023, Commerce notified interested parties that it intended to rescind this administrative review with respect to the companies listed in Appendix II because they had no entries of subject merchandise during the POR.^[5] No party commented on the notification of intent to rescind the review with respect to the 17 companies listed in Appendix II. Therefore, we determine that there were no entries of subject merchandise during the POR by these companies. As a result, we are rescinding this review, in part, with respect to the 17 companies listed in Appendix II, pursuant to 19 CFR 351.213(d)(3).

Methodology

Commerce is conducting this review in accordance with section 751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, we preliminarily determine that there is a subsidy, i.e., a government-provided financial contribution that confers a Start Printed Page 48383 benefit to the recipient, and that the subsidy is specific.^[6] For a full description of the methodology underlying our conclusions, see the Preliminary Decision Memorandum.

Preliminary Rate for Non-Selected Companies

The statute and Commerce's regulations do not directly address the countervailing duty rates to be applied to companies not selected for individual examination where Commerce limited its examination in an administrative review pursuant to section 777A(e)(2) of the Act. However, Commerce normally determines the rates for non-selected companies in reviews in a manner that is consistent with section 705(c)(5) of the Act, which provides instructions for calculating the all-others rate in an investigation. Section 777A(e)(2) of the Act provides that “the individual countervailable subsidy rates determined under subparagraph (A) shall be used to determine the all-others rate under section 705(c)(5) {of the Act}.” Section 705(c)(5)(A) of the Act states that for companies not investigated, in general, we will determine an all-others rate by weight averaging the countervailable subsidy rates established for each of the companies individually investigated, excluding zero and de minimis rates or any rates based solely on the facts available.

Commerce initiated this administrative review with respect to 25 producers/exporters. We are rescinding the review with respect to the 17 companies listed in Appendix II. Commerce selected two mandatory respondents, Hyundai RB and SeAH Steel, for individual examination. For the remaining non-selected companies subject to this review, i.e., Chang Won Bending Co., Ltd.; Dong Yang Steel Pipe Co., Ltd.; EEW Korea Co., Ltd.; HiSteel Co., Ltd.; Husteel Co., Ltd.; and ku*msoo Connecting Co., Ltd., because the rates calculated for mandatory respondents Hyundai RB and SeAH Steel are above de minimis and not based entirely on facts available, we are applying a preliminary subsidy rate based on a weighted average of the rates calculated for the two mandatory respondents using the publicly-ranged sales data they submitted on the record.^[7] This methodology is consistent with our practice for establishing an all-others subsidy rate pursuant to section 705(c)(5)(A) of the Act.

Preliminary Results of the Review

In accordance with 19 CFR 351.221(b)(4)(i), we calculated an individual net countervailable subsidy rate for Hyundai RB and SeAH. Commerce preliminarily finds that, during the POR, the net countervailable subsidy rates for the producers/exporters under review are as follows:

Disclosure and Public Comment

We intend to disclose to parties to this proceeding the calculations performed in reaching the preliminary results within five days after public announcement of the preliminary results or, if there is no public announcement, within five days of the date of publication of this notice.^[12]

Interested parties may submit case briefs no later than 30 days after the publication of this notice.^[13] Rebuttal briefs, limited to issues raised in case briefs, may be filed no later than five days after the date for filing case briefs.^[14] Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.^[15]

As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their briefs that should be limited to five pages total, including footnotes. In this review, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.^[16] Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final results in this Start Printed Page 48384 administrative review. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).^[17]

Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, filed electronically via ACCESS. Requests should contain: (1) the party's name, address, and telephone number; (2) the number of participants; and (3) a list of issues to be discussed. Issues raised in the hearing will be limited to those raised in the respective case briefs. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. A hearing request must be received successfully in its entirety by Commerce's electronic records system, ACCESS, by 5 p.m. Eastern Time within 30 days after the date of publication of this notice.

Final Results

Unless the deadline is extended, we intend to issue the final results of this administrative review, which will include the results of our analysis of the issues raised in the case briefs, within 120 days of publication of these preliminary results in the Federal Register , pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Assessment Rates

In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily assigned subsidy rates in the amounts shown above for the producers/exporters shown above. Upon completion of the administrative review, consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall determine, and U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries covered by this review.

For the companies for which this review is rescinded, we will instruct CBP to assess countervailing duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period January 1, 2022, through December 31, 2022, in accordance with 19 CFR 351.212(c)(l)(i). We intend to issue assessment instructions to CBP for these companies no earlier than 35 days after the date of publication of the preliminary results of this review in the Federal Register .

For the companies remaining in the review, we intend to issue assessment instructions to CBP no earlier than 35 days after the date of publication of the final results of this review in the Federal Register . If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired ( i.e., within 90 days of publication).

Cash Deposit Rate

In accordance with section 751(a)(2)(C) of the Act, Commerce intends, upon publication of the final results, to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts calculated in the final results for each of the reviewed companies listed above on shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review, except, where the rate calculated in the final results is zero or de minimis, no cash deposit will be required. For all non-reviewed firms, we will instruct CBP to continue to collect cash deposits of estimated countervailing duties at the all-others rate as established in the Order ( i.e., 9.29 percent) ^[18] or the most recent company-specific rate applicable to the company, as appropriate. These cash deposit instructions, when imposed, shall remain in effect until further notice.

Notification to Interested Parties

These preliminary results of review are issued and published pursuant to sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213(d)(4) and 351.221(b)(4).

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Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary

II. Background

III. Scope of the Order

IV. Final Rescission of Administrative Review, In Part

V. Diversification of Korea's Economy

VI. Subsidies Valuation Information

VII. Benchmarks and Interest Rates

VIII. Analysis of Programs

IX. Recommendation

Appendix II

Companies Rescinded From Review

1. AJU Besteel Co., Ltd

2. Daiduck Piping Co., Ltd.

3. Dongbu Incheon Steel Co., Ltd.

4. EEW KHPC Co., Ltd.

5. Hansol Metal Co. Ltd.

6. Hyundai Steel Company ^[19]

7. Il Jin Nts Co. Ltd.

8. Kem Solutions Co., Ltd.

9. Kiduck Industries Co., Ltd.

10. Kum Kang Kind. Co., Ltd.

11. Nexteel Co., Ltd.

12. POSCO International Corporation

13. Samkang M&T Co., Ltd.

14. Seonghwa Industrial Co., Ltd

15. SIN‐E B&P Co., Ltd.

16. Steel Flower Co., Ltd.

17. WELTECH Co., Ltd

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