[Federal Register Volume 86, Number 2 (Tuesday, January 5, 2021)]
[Notices]
[Pages 287-288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29178]
[[Page 287]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-878, A-580-881, C-580-879, C-580-882]
Certain Cold-Rolled Steel Flat Products and Certain Corrosion-
Resistant Steel Products From the Republic of Korea: Preliminary
Results of Antidumping Duty and Countervailing Duty Changed
Circumstances Reviews
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that KG Dongbu Steel Co., Ltd. (KG Dongbu Steel) is the successor in
interest to Dongbu Steel Co., Ltd. (Dongbu Steel) and Dongbu Incheon
Steel Co., Ltd. (Dongbu Incheon) for purposes of determining
antidumping duty (AD) cash deposits and liabilities pursuant to the AD
orders on certain cold-rolled steel flat products (cold-rolled steel)
and certain corrosion-resistant steel products (CORE) from the Republic
of Korea (Korea). Additionally, Commerce preliminarily determines that
KG Dongbu Steel is not the successor in interest to Dongbu Steel and
Dongbu Incheon for purposes of countervailing duty (CVD) cash deposits
and liabilities pursuant to the CVD orders on cold-rolled steel and
CORE, because there was a significant change in ownership and
operations that could have affected the nature and extent of the
countervailable subsidies attributable to KG Dongbu Steel. Interested
parties are invited to comment on these preliminary results.
DATES: Applicable January 5, 2021.
FOR FURTHER INFORMATION CONTACT: Joshua A. DeMoss, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3362.
SUPPLEMENTARY INFORMATION:
Background
On April 13, 2020, KG Dongbu Steel informed Commerce that effective
September 1, 2019, KG Steel Co., Ltd. (KG Steel) purchased a
substantial portion of Dongbu Steel's shares and, as a result, became
the major shareholder of Dongbu Steel.\1\ On March 2, 2020, Dongbu
Steel publicly announced its merger with its wholly-owned subsidiary
Dongbu Incheon after Dongbu Steel's Board of Directors had approved the
merger.\2\ Further, on March 27, 2020, Dongbu Steel received
shareholder approval for the newly-merged Dongbu Steel to change its
name to KG Dongbu Steel.\3\ As such, KG Dongbu Steel requested that
Commerce conduct changed circumstances reviews (CCRs) and find that KG
Dongbu Steel is the successor in interest to Dongbu Steel and Dongbu
Incheon, and that it be subject to cash deposit requirements at the AD
margins and CVD rates currently in effect for entries of cold-rolled
steel and CORE by Dongbu Steel and Dongbu Incheon, pursuant to section
751(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR
351.216(b). We did not receive comments from other interested parties
concerning these requests.
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\1\ See KG Dongbu Steel's Letter, ``Request for Changed
Circumstances Review: Change of Name for Dongbu Steel Co., Ltd. and
Dongbu Incheon Steel Co., Ltd.,'' dated April 13, 2020.
\2\ Id. at 2.
\3\ Id.
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On June 4, 2020, Commerce initiated the CCRs of the AD and CVD
orders on cold-rolled steel and CORE from Korea. On June 12, 2020,
Commerce requested more information from KG Dongbu Steel regarding the
``look-back window'' for purposes of the CVD CCRs,\4\ and on June 30,
2020, KG Dongbu Steel filed its response.\5\ For a complete description
of the successor-in-interest analysis, see the Preliminary Decision
Memorandum.\6\ A list of topics addressed in the Preliminary Decision
Memorandum is included as an appendix 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 http://enforcement.trade.gov/frn/. The signed and the electronic
versions of the Preliminary Decision Memorandum are identical in
content.
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\4\ See Commerce's Letter, ``Countervailing Duty Changed
Circumstances Reviews of Cold-Rolled Steel and Corrosion Resistant
Steel (CORE) from the Republic of Korea,'' dated June 12, 2020.
\5\ See KG Dongbu Steel's Letter, ``Certain Corrosion Resistant
Steel Products and Cold-Rolled Steel Products from the Republic of
Korea Changed Circumstance Review, Case Nos. C-580-879 and C-580-
882: First Supplemental Questionnaire Response,'' dated June 30,
2020.
\6\ See Memorandum, ``Preliminary Results of the Changed
Circumstances Reviews Regarding Successor-In-Interest Analysis:
Antidumping Duty Orders and Countervailing Duty Orders on Certain
Cold-rolled Steel Flat Products and Certain Corrosion-resistant
Steel Products from the Republic of Korea,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Orders
The products covered by these CCRs are certain cold-rolled steel
products (cold-rolled steel) and certain corrosion-resistant steel
products (CORE) from Korea. For full descriptions of the scope of the
orders, see the Preliminary Decision Memorandum.
Preliminary Results of Changed Circumstances Reviews
In accordance with 19 CFR 351.216, we preliminarily determine that
KG Dongbu Steel is the successor in interest to Dongbu Steel and Dongbu
Incheon for purposes of the AD orders on cold-rolled steel and CORE.
Record evidence, as submitted by KG Dongbu Steel, indicates that, based
on the totality of the circumstances under Commerce's successor-in-
interest criteria, KG Dongbu Steel's operations are not materially
dissimilar to those of Dongbu Steel and Dongbu Incheon before the
acquisition and name change with respect to the merchandise under
review, for purposes of the AD CCRs. Moreover, we preliminarily find
that KG Dongbu Steel's production facilities, supplier relationships,
and customer base with regard to the merchandise subject to the AD
orders are substantially the same as Dongbu Steel's and Dongbu
Incheon's before the acquisition and name change.
However, with respect to the CVD CCRs, we preliminarily find that
there is evidence of significant changes in ownership during the
``look-back window'' that could have affected the nature and extent of
the countervailable subsidies attributable to the successor entity vs.
the predecessor entity. These changes in management and ownership would
likely have affected subsidization of the companies. An examination of
the actual amount and rate of countervailable subsidies attributable to
KG Dongbu Steel subsidy, therefore, would be more appropriate in the
context of an administrative review.
Therefore, based on record evidence, we preliminarily determine
that it is appropriate to apply to KG Dongbu Steel AD cash deposits
requirements and liabilities at the rates currently in effect for
Dongbu Steel/Dongbu Incheon. For CVD purposes, we preliminarily
determine that changes in ownership and management were significant,
and thus preliminarily determine that it is not appropriate to apply to
KG Dongbu Steel the CVD cash deposit requirements and liabilities
currently in effect for Dongbu Steel/Dongbu Incheon. For additional
details regarding the
[[Page 288]]
preliminary successor-in-interest analysis, see the Preliminary
Decision Memorandum.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of such case briefs
and written comments at a later date. Rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than seven days
after the deadline date for case briefs.\7\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\8\
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case
briefs or rebuttal briefs are encouraged to submit with each argument:
(1) A statement of the issue; (2) a brief summary of the argument; and
(3) a table of authorities.
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\7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\8\ See Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of
Effective Period, 85 FR 41363 (July 10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date and time of
the hearing two days before the scheduled date.
Consistent with 19 CFR 351.216(e), we will intend to issue the
final results of this changed circumstances review no later than 270
days after the date on which this review was initiated, or within 45
days if all parties agree to our preliminary finding.
Notification to Interested Parties
This notice is published in accordance with sections 751(b)(1) and
777(i)(1) of the Act and 19 CFR 351.216(b), 351.221(b) and
351.221(c)(3).
Dated: December 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Successor-In-Interest Determination
V. Recommendation
[FR Doc. 2020-29178 Filed 1-4-21; 8:45 am]
BILLING CODE 3510-DS-P