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

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Federal RegisterNov 7, 2024
89 Fed. Reg. 88234 (Nov. 7, 2024)
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    Department of Commerce International Trade Administration
  • [C-580-898]
  • 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 , and invited interested parties to comment. For a complete description of the events that followed the Preliminary Results, see the Issues and Decision Memorandum. On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days. On September 27, 2024, Commerce extended the deadline for the final results to November 1, 2024.

    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).

    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).

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

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

    Scope of the Order

    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. For a description of the methodology underlying Commerce's conclusions, see the Issues and Decision Memorandum.

    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. This methodology is consistent with our practice for establishing an all-others subsidy rate pursuant to section 705(c)(5)(A) of the Act.

    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:

    Company Subsidy rate (percent ad valorem)
    Hyundai RB Co., Ltd. and its cross-owned affiliate 0.71
    SeAH Steel Corporation and its cross-owned affiliates 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. 0.56
    Kumsoo Connecting Co., Ltd. 0.56

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

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

    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.