Large Diameter Welded Pipe From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2022

DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-898]

Large Diameter Welded Pipe From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2022

AGENCY:

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

SUMMARY:

The U.S. Department of Commerce (Commerce) determines that

producers and/or exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea) received countervailable subsidies during the period of review (POR), January 1, 2022, through December 31, 2022.

DATES:

Applicable November 7, 2024.

FOR FURTHER INFORMATION CONTACT:

Jonathan Schueler or Brandon James, 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) 482-9175 or (202) 482-7472, respectively.

SUPPLEMENTARY INFORMATION:

Background

On June 6, 2024, Commerce published the

Preliminary Results

of this administrative review in the

Federal Register

,

1

and invited interested parties to comment. For a complete description of the events that followed the

Preliminary Results, see

the Issues and Decision Memorandum.

2

On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.

3

On September 27, 2024, Commerce extended the deadline for the final results to November 1, 2024.

4

1

See Large Diameter Welded Pipe from the Republic of Korea: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review;

2022, 89 FR 48382 (June 6, 2024) (

Preliminary Results

), and accompanying Preliminary Decision Memorandum (PDM).

2

See

Memorandum, “Issues and Decision Memorandum for the Final Results of the Countervailing Duty Administrative Review of Large Diameter Welded Pipe from the Republic of Korea; 2022,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

3

See

Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024.

4

See

Memorandum “Extension of Deadline for Final Results of Countervailing Duty Administrative Review; 2022,” dated September 26, 2024.

Scope of the Order

5

5

See Large Diameter Welded Pipe from the Republic of Korea: Countervailing Duty Order,

84 FR 18773 (May 2, 2019) (

Order

).

The merchandise covered by the

Order

is welded pipe. For a complete description of the scope of the

Order, see

the Issues and Decision Memorandum.

Analysis of Comments Received

All issues raised in interested parties' briefs are addressed in the Issues and Decision Memorandum. A list of the issues addressed is attached to this notice as an appendix. 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.

Changes Since the Preliminary Results

Based on our analysis of the case and rebuttal briefs and the evidence on the record, we made certain changes from the

Preliminary Results.

These changes are explained in the Issues and Decision Memorandum.

Methodology

Commerce conducted this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, we find that there is a subsidy,

i.e.,

a government-provided financial contribution that gives rise to a benefit to the recipient, and that the subsidy is specific.

6

For a description of the methodology underlying Commerce's conclusions,

see

the Issues and Decision Memorandum.

6

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.

Rate for Non-Selected Companies

Generally, Commerce looks to section 705(c)(5) of the Act for guidance for calculating the rate for companies that were not selected for individual examination in an administrative review. 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 facts otherwise available. There are six companies for which a review was requested and not rescinded, and which were not selected as mandatory respondents or found to be cross-owned with a mandatory respondent. For these non-selected companies, 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 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.

7

See Preliminary Results,

89 FR 48383.

This is the same methodology Commerce applied in the

Preliminary Results

for determining a rate for companies not selected for individual examination. However, due to changes in the calculations for Hyundai RB, we revised the non-selected rate accordingly. Consequently, we are applying an

ad valorem

subsidy rate of 0.56 percent for the six non-selected companies for which a review was requested and not rescinded.

Final Results of Review

In accordance with 19 CFR 351.221(b)(5), we determine the following net countervailable subsidy rates exist for the POR January 1, 2022, through December 31, 2022:

8

Commerce finds Shinchang Construction Co., Ltd. to be cross-owned with Hyundai RB.

9

Commerce finds the following companies to be cross-owned with SeAH Steel: SeAH Steel Holdings Corporation; and ESAB SeAH Corporation.

10

Subject merchandise both produced and exported by Husteel Co., Ltd. (Husteel) is excluded from the

Order.

Thus, Husteel's inclusion in this administrative review is limited to entries for which Husteel was not both the producer and exporter of the subject merchandise.

Company

Subsidy rate

(percent

ad valorem

)

Hyundai RB Co., Ltd. and its cross-owned affiliate

8

0.71

SeAH Steel Corporation and its cross-owned affiliates

9

0.54

Review-Specific Average Rate Applicable to the Following Companies

Chang Won Bending Co., Ltd.

0.56

Dong Yang Steel Pipe Co., Ltd.

0.56

EEW Korea Co., Ltd.

0.56

HiSteel Co., Ltd.

0.56

Husteel Co., Ltd.

10

0.56

Kumsoo Connecting Co., Ltd.

0.56

Disclosure

Commerce intends to disclose to parties in this proceeding the calculations performed for these final results of review within five days of the date of publication of this notice in the

Federal Register

.

11

11

See

19 CFR 351.224(b).

Assessment Rates

Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.212(b)(2), Commerce has determined, and U.S. Customs and Border Protection (CBP)

shall assess, countervailing duties on all appropriate entries of subject merchandise in accordance with the final results of this review, for the above-listed companies at the applicable

ad valorem

assessment rates listed. Commerce intends 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 Instructions

In accordance with section 751(a)(1) of the Act, Commerce intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown for each of the companies listed above based 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 administrative review.

12

For all non-reviewed firms subject to the

Order,

we will instruct CBP to continue to collect cash deposits of estimated countervailing duties at the most recent company-specific rate or the all-others rate established in the original investigation (

i.e.,

9.29 percent), as appropriate.

13

These cash deposit requirements, effective upon publication of these final results, shall remain in effect until further notice.

12

See, e.g., Honey from Argentina: Results of Countervailing Duty Administrative Review,

69 FR 29518 (May 24, 2004), and accompanying Issues and Decision Memorandum at Issue 4.

13

See Order,

84 FR 18775.

Administrative Protective Order

This notice also serves as a reminder to parties subject to an administrative protective order (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 or 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 sanctionable violation.

Notification to Interested Parties

We are issuing and publishing these final results in accordance with sections 751(a)(1) and 777(i) of the Act and 19 CFR 351.221(b)(5).

Dated: October 31, 2024.

Ryan Majerus,

Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Scope of the

Order

IV. Subsidies Valuation Information

V. Analysis of Programs

VI. Discussion of Comments

Comment 1: Whether the Provision of Electricity for Less Than Adequate Remuneration (LTAR) Is Countervailable

Comment 2: Whether the Demand Response Resources (DRR) Program Is Countervailable

Comment 3: Whether Certain Programs Are

De Facto

Specific When Widely Available and Used

Comment 4: Whether the Discount Electricity Charges for Energy Storage Systems (ESS) Program Is Specific

VII. Recommendation

[FR Doc. 2024-25873 Filed 11-6-24; 8:45 am]

BILLING CODE 3510-DS-P