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AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily finds that Iljin Electric Co., Ltd. (Iljin), and non-individually examined companies for which a review was requested, made sales of large power transformers from the Republic of Korea (Korea) at prices below normal value (NV) during the period of review (POR) of August 1, 2022, through July 31, 2023. Commerce also preliminarily finds that HD Hyundai Electric Co., Ltd. (Hyundai) did not make sales of large power transformers from Korea at prices below NV during the POR. Additionally, Commerce is rescinding this administrative review, in part, with respect Hyosung Heavy Industries Corporation (Hyosung) because Hyosung had no entries of subject merchandise during the POR. We invite interested parties to comment on these preliminary results.
DATES:
Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT:
John Drury at (202) 482-0195 or Jinny Ahn at (202) 482-0339, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the antidumping duty order on large power transformers on August 31, 2012. Commerce provided an opportunity to request an administrative review on August 2, 2023. On August 31, 2023, we received requests to conduct an administrative review from Iljin, Hyundai, and Hitachi Energy USA, Inc. and Prolec-GE Waukesha, Inc. (the petitioners). Commerce initiated this review on October 18, 2023. We selected two mandatory respondents in this review, Hyundai and Iljin. For a more detailed description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum.
See Large Power Transformers from the Republic of Korea: Antidumping Duty Order,77 FR 53177 (August 31, 2012) ( Order).
See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 88 FR 50840, (August 2, 2023).
See Iljin's Letter, “Request for Administrative Review,” dated August 31, 2023.
See Hyundai's Letter, “Administrative Review Request,” dated August 31, 2023.
See Petitioners' Letter, “Request for Administrative Review,” dated August 31, 2023.
See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 88 FR 71829, 71831 (October 18, 2023) ( Initiation Notice).
See Memorandum, “Decision Memorandum for Preliminary Results of Antidumping Duty Administrative Review of Large Power Transformers from the Republic of Korea; 2022-2023,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
Scope of the Order
The scope of this Order covers large liquid dielectric power transformers having a top power handling capacity greater than or equal to 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete.
The full text of the scope of the Order is contained in Preliminary Decision Memorandum.
Partial Rescission of Review
Pursuant to 19 CFR 351.213(d)(3), it is Commerce's practice to rescind an administrative review of an antidumping duty order when there are no reviewable entries of subject merchandise during the POR for which liquidation is suspended. Normally, upon completion of an administrative review, the suspended entries are liquidated at the antidumping duty assessment rate calculated for the review period. Therefore, for an administrative review to be conducted, there must be at least one reviewable, suspended entry that Commerce can instruct CBP to liquidate at the antidumping duty assessment rate calculated for the review period. There were no entries of subject merchandise during the POR for Hyosung. As a result, on August 22, 2024, Commerce notified all interested parties of its intent to rescind this review, in part, with respect to Hyosung and received no comments. Therefore, we are rescinding this administrative review with respect to Hyosung. The administrative review remains active with respect to the three other companies upon which we initiated this review.
See, e.g., Dioctyl Terephthalate from the Republic of Korea: Rescission of Antidumping Administrative Review; 2021-2022,88 FR 24758 (April 24, 2023); see also Certain Carbon and Alloy Steel Cut-to-Length Plate from the Federal Republic of Germany: Recission of Antidumping Administrative Review; 2020-2021, 88 FR 4157 (January 24, 2023).
See19 CFR 351.212(b)(1).
See19 CFR 351.213(d)(3).
See Memorandum, “Release of U.S. Customs and Border Protection Import Data,” dated November 14, 2023.
See Memorandum, “Notice of Intent To Rescind Review, In Part,” dated August 22, 2024.
Methodology
Commerce is conducting this review in accordance with section 751(a)(2) of the Tariff Act of 1930, as amended (the Act). For a full description of the methodology underlying our conclusions, see the Preliminary Decision Memorandum. A list of the topics discussed in the Preliminary Decision Memorandum is included as the appendix to this notice. The Preliminary Decision Memorandum is a public document and is made available to the public 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.
Rate for Non-Selected Respondents
The statute and Commerce's regulations do not address the establishment of a rate to be applied to companies not selected for individual examination when Commerce limits its examination in an administrative review pursuant to section 777A(c)(2) of the Act. Generally, Commerce looks to section 735(c)(5) of the Act, which provides instructions for calculating the all-others rate in a market economy investigation, for guidance when calculating the rate for companies which were not selected for individual examination in an administrative review. Under section 735(c)(5)(A) of the Act, the all-others rate is normally “an amount equal to the weighted average of the estimated weighted average dumping margins established for exporters and producers individually investigated, excluding any zero or de minimis margins, and any margins determined entirely {on the basis of facts available}.” In this review, only one mandatory respondent ( i.e., Iljin) has received a weighted-average dumping margin which is not that did not get a rate that is zero, de minims, or determined entirely on the basis of facts available. Accordingly, we have applied the rate calculated for Iljin, 10.61 percent, to the non-selected companies.
Preliminary Results of Review
We preliminarily determine the following estimated weighted-average dumping margins exist during the period August 1, 2022, through July 31, 2023:
| Producer/exporter | Weighted- average dumping margin (percent) |
|---|---|
| HD Hyundai Electric Co., Ltd | 0.00 |
| Iljin Electric Co., Ltd. | 10.61 |
| LS Electric Co., Ltd | 10.61 |
For the first administrative review of the Order, Commerce initiated the administrative review on multiple companies, including Iljin Electric Co., Ltd. and ILJIN. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part,78 FR 60834, 60836 (October 2, 2013). Commerce did not select either ILJIN or Iljin Electric Co., Ltd. for individual examination, but did assign margins for both entities. See Large Power Transformers from the Republic of Korea: Amended Final Results of Antidumping Duty Administrative Review; 2012-2013,80 FR 26001 (May 6, 2015). The current administrative review is the first review in which either Iljin Electric Co., Ltd. or ILJIN was selected for individual examination. Record evidence indicates that Iljin Electric Co., Ltd. is the only entity in Korea with the Iljin name that produces LPTs. See Iljin's Letter, “Response to the Department's March 29 Supplemental Questionnaire,” dated April 26, 2024 (Iljin SAQR), at page 2. Therefore, we preliminarily find that ILJIN and Iljin Electric Co., Ltd. are the same entity. Parties are invited to comment for the final results.