81_FR_46782 81 FR 46645 - Certain Oil Country Tubular Goods From the Republic of Korea: Initiation and Expedited Preliminary Results of Changed Circumstances Review

81 FR 46645 - Certain Oil Country Tubular Goods From the Republic of Korea: Initiation and Expedited Preliminary Results of Changed Circumstances Review

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 137 (July 18, 2016)

Page Range46645-46647
FR Document2016-16923

In response to a request from Hyundai Steel Co. Ltd. (Hyundai Steel), a producer/exporter of certain oil country tubular goods (OCTG) from the Republic of Korea (Korea), and pursuant to section 751(b) of the Tariff Act of 1930, as amended (the Act), 19 CFR 351.216 and 351.221(c)(3)(ii), the Department is initiating a changed circumstances review (CCR) and issuing this notice of preliminary results. We have preliminarily determined that Hyundai Steel is the successor-in- interest to the former Hyundai HYSCO and, as such, if the Department upholds these preliminary results in the final results, Hyundai Steel will be entitled to the antidumping duty deposit rate currently assigned to Hyundai HYSCO with respect to the subject merchandise.

Federal Register, Volume 81 Issue 137 (Monday, July 18, 2016)
[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Notices]
[Pages 46645-46647]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16923]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-870]


Certain Oil Country Tubular Goods From the Republic of Korea: 
Initiation and Expedited Preliminary Results of Changed Circumstances 
Review

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

DATES: Effective Date: July 18, 2016.

SUMMARY: In response to a request from Hyundai Steel Co. Ltd. (Hyundai 
Steel), a producer/exporter of certain oil country tubular goods (OCTG) 
from the Republic of Korea (Korea), and pursuant to section 751(b) of 
the Tariff Act of 1930, as amended (the Act), 19 CFR 351.216 and 
351.221(c)(3)(ii), the Department is initiating a changed circumstances 
review (CCR) and issuing this notice of preliminary results. We have 
preliminarily determined that Hyundai Steel is the successor-in-
interest to the former Hyundai HYSCO and, as such, if the Department 
upholds these preliminary results in the final results, Hyundai Steel 
will be entitled to the antidumping duty deposit rate currently 
assigned to Hyundai HYSCO with respect to the subject merchandise.

FOR FURTHER INFORMATION CONTACT: Victoria Cho, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
5075.

SUPPLEMENTARY INFORMATION:

Background

    On September 10, 2014, the Department published an antidumping duty 
order on OCTG from Korea.\1\
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    \1\ See Certain Oil Country Tubular Goods From India, the 
Republic of Korea, Taiwan, the Republic of Turkey, and the Socialist 
Republic of Vietnam: Antidumping Duty Orders; and Certain Oil 
Country Tubular Goods From the Socialist Republic of Vietnam: 
Amended Final Determination of Sales at Less Than Fair Value, 74 FR 
53691 (September 10, 2014).
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    On February 24, 2016,\2\ Hyundai Steel informed the Department that 
effective July 1, 2015, it had merged with Hyundai HYSCO,\3\ and 
requested that: (1) The Department conduct a CCR under 19 CFR 
351.216(b) to determine that it is the successor-in-interest to Hyundai 
HYSCO for purposes of determining Hyundai Steel's antidumping duty cash 
deposits and liabilities; (2) the Department's successor-in-interest 
determination be effective as of July 1, 2015, the date on which the 
merger was completed; and (3) on an expedited basis under 19 CFR 
351.221(c)(3)(ii).
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    \2\ See the February 24, 2016, letter from Hyundai Steel, ``Oil 
Country Tubular Goods from the Republic of Korea: Request for a 
Changed Circumstances Review,'' (CCR Request).
    \3\ Hyundai HYSCO was a respondent in the investigation of OCTG 
from Korea covering the period July 1, 2012-June 30, 2013. Hyundai 
HYSCO received a 15.75 percent dumping margin. See Certain Oil 
Country Tubular Goods From the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value and Negative Final 
Determination of Critical Circumstances, 79 FR 41983 (July 18, 
2014).
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    On May 18, 2016,\4\ the Department declined to initiate the CCR 
that Hyundai Steel requested in its February 24, 2016, CCR Request. The 
Department determined that it would not conduct a CCR of a final 
determination in an investigation less than 24 months after the 
publication of the final determination absent showing of good cause.\5\ 
The Department further found that Hyundai Steel ``did not reference or 
attempt to show good cause'' in its February 24, 2016, request.\6\ On 
May 31, 2016,\7\ Hyundai Steel filed its second request for a CCR, in 
which it alleged that that good cause exists in this case and requested 
that the Department initiate a CCR.
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    \4\ See the Department's May 18, 2016, letter to Hyundai Steel.
    \5\ See the Department's May 18, 2016, letter to Hyundai Steel 
(the Department's Rejection Letter); 19 CFR 351.216(c); and section 
751(b)(4) of the Act.
    \6\ See the CCR Request; and also see the Department's Rejection 
Letter.
    \7\ See the May 31, 2016, letter from Hyundai Steel to the 
Department.
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    We received no comments from any other interested party.

Scope of the Review

    The merchandise covered by this review is certain oil country 
tubular goods (OCTG), which are hollow steel products of circular 
cross-section, including oil well casing and tubing, of iron (other 
than cast iron) or steel (both carbon and alloy), whether seamless or 
welded, regardless of end finish (e.g., whether or not plain end, 
threaded, or threaded and coupled) whether or not conforming to 
American Petroleum Institute (API) or non-API specifications, whether 
finished (including limited service OCTG products) or unfinished 
(including green tubes and limited service OCTG products), whether or 
not thread protectors are attached. The scope of the investigation also 
covers OCTG coupling stock. For a complete description of the scope of 
the investigation, see Appendix I to this notice.

Initiation and Preliminary Results

    Pursuant to section 751(b)(1) of the Act, the Department will 
conduct a CCR upon receipt of a request from an interested party or 
receipt of information concerning an antidumping duty order which shows 
changed circumstances sufficient to warrant a review of the order.\8\ 
In addition, because the final determination was published less than 24 
months prior to the date on which Hyundai Steel submitted its request 
for a CCR (i.e., May 31, 2016), and pursuant to section 351.216(c) of 
the Department's regulations, a CCR will not be initiated unless good 
cause exists. We find that good cause exists in the instant CCR request 
to initiate this CCR before the 24 month anniversary of the final 
determination, as demonstrated by Hyundai Steel.\9\ Moreover, as noted 
above in the ``Background'' section, we have received information 
indicating that on July 1, 2015, Hyundai HYSCO merged with Hyundai 
Steel, with the

[[Page 46646]]

latter assuming all operations for the production and sale of the 
subject merchandise.\10\ This constitutes changed circumstances 
warranting a review of this order.\11\
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    \8\ See 19 CFR 351.216(c); section 735(a) of the Act.
    \9\ See the May 31, 2016, letter from Hyundai Steel to the 
Department.
    \10\ See the CCR request.
    \11\ See 19 CFR 351.216(d).
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    Section 351.221(c)(3)(ii) of the Department's regulations permits 
the Department to combine the notice of initiation of a CCR and the 
notice of preliminary results if the Department concludes that 
expedited action is warranted. In this instance, because we have on the 
record the information necessary to make a preliminary finding and no 
party has opposed expedited action, we find that expedited action is 
warranted, and have combined the notice of initiation and the notice of 
preliminary results.
    In making a successor-in-interest determination, the Department 
examines several factors, including but not limited to, changes in: (1) 
Management; (2) production facilities; (3) supplier relationships; and 
(4) customer base.\12\ While no single factor or combination of these 
factors will necessarily provide a dispositive indication of a 
successor-in-interest relationship, the Department will generally 
consider the new company to be the successor to the previous company if 
the new company's resulting operation is not materially dissimilar to 
that of its predecessor.\13\ Thus, if the evidence demonstrates that, 
with respect to the production and sale of the subject merchandise, the 
new company operates as the same business entity as the former company, 
the Department will accord the new company the same antidumping 
treatment as its predecessor.
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    \12\ See, e.g., Preliminary Results of Antidumping Duty Changed 
Circumstances Review: Carbon and Certain Alloy Steel Wire Rod from 
Canada, 71 FR 75229 (December 14, 2009) and unchanged in Notice of 
Final Results of Antidumping Duty Changed Circumstances Review: 
Carbon and Certain Alloy Steel Wire Rod from Canada, 72 FR 15102 
(March 30, 2007) (Carbon and Certain Alloy Steel from Canada); 
Certain Lined Paper Products From India: Preliminary Results of 
Changed Circumstances Review, 79 FR 21897 (April 18, 2014) and 
unchanged in Certain Lined Paper Products From India: Final Results 
of Changed Circumstances Review, 79 FR 35726 (June 24, 2014).
    \13\ See, e.g., Notice of Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Carbon and Certain 
Alloy Steel Wire Rod From Mexico, 75 FR 67685 (November 3, 2010) and 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Carbon and Certain Alloy Steel Wire Rod From Mexico, 76 FR 
45509 (July 29, 2011); Carbon and Certain Alloy Steel from Canada.
---------------------------------------------------------------------------

    In its CCR Request, Hyundai Steel explained that effective July 1, 
2015, Hyundai HYSCO merged with Hyundai Steel,\14\ with Hyundai Steel 
effectively absorbing Hyundai HYSCO. On April 28, 2015, the board of 
directors of Hyundai Steel and Hyundai HYSCO, both members of the 
Hyundai Motor Group, decided to merge the two companies. The 
absorption-type merger was conducted, through which Hyundai Steel 
became the surviving company.\15\ Hyundai Steel claimed that since the 
merger took effect, it is operating essentially the same business as 
the former Hyundai HYSCO, and there has been no significant change in 
management, production facilities, supplier relationships, or customer 
base with respect to the production and sale of the subject 
merchandise.\16\ Hyundai Steel submitted detailed documentation 
relating to the merger of the two companies (e.g., major shareholders' 
lists, board of directors' lists, executives' lists, meeting minutes 
regarding the merger, business registration certificates, and a copy of 
the merger corporate registration and announcement of the merger).\17\
---------------------------------------------------------------------------

    \14\ See the CCR Request.
    \15\ Id., at 3.
    \16\ Id., at 4.
    \17\ Id., at 3 and Exhibits 1 through 8.
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    With respect to management, Hyundai Steel asserts that the 
management structure of the former Hyundai HYSCO has also remained 
largely unchanged. Hyundai Steel retained most of its board of 
directors. Mr. Heon-seok Lee, who was a board member and executive of 
Hyundai HYSCO, remained as an executive of Hyundai Steel.\18\ In 
addition, Hyundai Steel states that of the 17 executives of Hyundai 
HYSCO, 12 have remained at Hyundai Steel after the merger, excluding 
only four non-executive directors. Nine out of the 12 executives that 
remained at Hyundai Steel have been assigned to departments and 
divisions within Hyundai Steel.\19\
---------------------------------------------------------------------------

    \18\ Id., at 8 and exhibit 2.
    \19\ Id., at 8-9 and exhibit 3.
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    Hyundai Steel further explained that its current organizational 
structure is substantially similar to that of Hyundai HYSCO. The only 
change to the organizational structure is that HYSCO's Business 
Management Division and Overseas Business Division in its Sales 
Division were divided and integrated into Hyundai Steel's Business 
Planning Department, Administrative Service Department, Accounting/
Monetary Department, Sales Department and R&D Center, according to the 
function of each team. The other three divisions (i.e., the Sales 
Division (excluding the Overseas Business sub-division), Pipe Plant, 
and Automotive Parts Plant) were simply transferred over to Hyundai 
Steel.\20\ Moreover, Hyundai Steel claims that the merger did not 
affect the overall organizational structure in the production and sale 
of OCTG.\21\
---------------------------------------------------------------------------

    \20\ Id., at 7.
    \21\ Id., at 7 and exhibit 9.
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    Based on this information, and in particular, based on the fact 
that Hyundai Steel's management team continues to include the majority 
of the former HYSCO managers, we preliminarily find that the 
reorganization resulting from the merger of the two companies did not 
result in management that was materially dissimilar with respect to the 
subject merchandise.
    With respect to production facilities, Hyundai Steel asserts that 
all of the production facilities for Hyundai HYSCO and Hyundai Steel 
have remained the same, after Hyundai Steel absorbed Hyundai HYSCO due 
to the merger.\22\ Hyundai Steel provided copies of HYSCO's company 
brochure and a screenshot of Hyundai Steel's official Web site, which 
identifies the addresses and telephone numbers of the offices, 
production facilities, and branch offices of Hyundai HYSCO and Hyundai 
Steel.\23\ Hyundai Steel contends that none of these locations have 
changed as a result of the merger, including the location of the 
production facility for OCTG and the Steel Pipe Plant located in Ulsan, 
South Korea. Based on this information, we preliminarily find that the 
merger did not result in material changes to the production of the 
subject merchandise.
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    \22\ See, e.g., Carbon and Certain Alloy Steel from Canada.
    \23\ See the CCR Request at 9 and exhibit 10.
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    With respect to suppliers and customers, all of the supplier 
relationships related to OCTG for Hyundai HYSCO and Hyundai Steel have 
remained the same. Specifically, Hyundai Steel states that is was 
Hyundai HYSCO's sole supplier of hot-rolled coil for OCTG production in 
June 2015.\24\ After the merger, although the level of integration may 
have changed, the coil used in the production of OCTG continues to be 
supplied by Hyundai Steel.\25\ Hyundai Steel contends that it has also 
maintained Hyundai HYSCO's OCTG customer base.\26\ Hyundai Steel 
asserts that Hyundai HYSCO USA (HHU) was Hyundai HYSCO's sole U.S. 
customer in June 2015, while Hyundai Steel America (HSA) was Hyundai

[[Page 46647]]

Steel's sole U.S. customer in July 2015.\27\ Hyundai Steel asserts that 
its U.S. subsidiary, HSA, is the same company as Hyundai HYSCO's U.S. 
subsidiary, HHU, which was renamed pursuant to the merger.\28\
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    \24\ Id., at 9 and exhibit 11.
    \25\ Id., Hyundai Steel states that due to the time required to 
integrate the systems of the two companies, the internal systems 
relating to pipe products continued to operate separately after the 
merger while Hyundai Steel worked to merge the two systems into a 
single system. Therefore, during July 2015, Hyundai Steel is 
recognized in the system as the hot-rolled supplier.
    \26\ See the CCR Request at 9 and exhibit 12.
    \27\ Id., at 9 and 10 and exhibit 12.
    \28\ Id.
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    Based on the evidence reviewed, we preliminarily find that Hyundai 
Steel is the successor-in-interest to the merger of Hyundai Steel and 
Hyundai HYSCO. Specifically, we preliminarily find that the merger of 
these two companies resulted in no significant changes to management, 
production facilities, supplier relationships, and customers with 
respect to the production and sale of the subject merchandise. Thus, 
Hyundai Steel operates as the same business entity as Hyundai HYSCO 
with respect to the subject merchandise. If the Department upholds 
these preliminary results in the final results, Hyundai Steel will be 
entitled to the antidumping duty deposit rate currently assigned to 
Hyundai HYSCO with respect to the subject merchandise (i.e., 15.75 
percent). If these preliminary results are adopted in the final results 
of this CCR, we will instruct U.S. Customs and Border Protection to 
suspend liquidation of entries of OCTG made by Hyundai Steel, effective 
on the publication date of the final results.

Public Comment

    Interested parties may submit case briefs and/or written comments 
not later than 14 days after the date of publication of this notice. 
Rebuttal briefs and rebuttals to written comments, which must be 
limited to issues raised in such briefs or comments, may be filed not 
later than 21 days after the date of publication of this notice. 
Parties who submit case 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. All comments are to be 
filed electronically using Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS) 
available to registered users at http://iaaccess.trade.gov and in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building, and must also be served on interested parties.\29\ An 
electronically filed document must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Time on the day it is due.\30\
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    \29\ See 19 CFR 351.303(f).
    \30\ See 19 CFR 351.303(b).
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    Consistent with 19 CFR 351.216(e), we will issue the final results 
of this CCR 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. We are issuing and publishing this finding and 
notice in accordance with sections 751(b)(1) and 777(i)(l) of the Act 
and 19 CFR 351.216.

    Dated: July 8, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Review

    The merchandise covered by the investigation is certain oil 
country tubular goods (OCTG), which are hollow steel products of 
circular cross-section, including oil well casing and tubing, of 
iron (other than cast iron) or steel (both carbon and alloy), 
whether seamless or welded, regardless of end finish (e.g., whether 
or not plain end, threaded, or threaded and coupled) whether or not 
conforming to American Petroleum Institute (API) or non-API 
specifications, whether finished (including limited service OCTG 
products) or unfinished (including green tubes and limited service 
OCTG products), whether or not thread protectors are attached. The 
scope of the investigation also covers OCTG coupling stock.
    Excluded from the scope of the investigation are: Casing or 
tubing containing 10.5 percent or more by weight of chromium; drill 
pipe; unattached couplings; and unattached thread protectors.
    The merchandise subject to the investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.10.10, 7304.29.10.20, 
7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 
7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 
7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 
7304.29.31.10, 7304.29.31.20, 7304.29.31.30, 7304.29.31.40, 
7304.29.31.50, 7304.29.31.60, 7304.29.31.80, 7304.29.41.10, 
7304.29.41.20, 7304.29.41.30, 7304.29.41.40, 7304.29.41.50, 
7304.29.41.60, 7304.29.41.80, 7304.29.50.15, 7304.29.50.30, 
7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.61.15, 
7304.29.61.30, 7304.29.61.45, 7304.29.61.60, 7304.29.61.75, 
7305.20.20.00, 7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 
7306.29.10.30, 7306.29.10.90, 7306.29.20.00, 7306.29.31.00, 
7306.29.41.00, 7306.29.60.10, 7306.29.60.50, 7306.29.81.10, and 
7306.29.81.50.
    The merchandise subject to the investigation may also enter 
under the following HTSUS item numbers: 7304.39.00.24, 
7304.39.00.28, 7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 
7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 
7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 
7304.39.00.80, 7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 
7304.59.80.25, 7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 
7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 
7304.59.80.65, 7304.59.80.70, 7304.59.80.80, 7305.31.40.00, 
7305.31.60.90, 7306.30.50.55, 7306.30.50.90, 7306.50.50.50, and 
7306.50.50.70.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2016-16923 Filed 7-15-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                                    Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices                                                      46645

                                                       Excluded from the scope of this                       and, as such, if the Department upholds                that Hyundai Steel ‘‘did not reference or
                                                    investigation are the following: (1) Sheet and           these preliminary results in the final                 attempt to show good cause’’ in its
                                                    strip that is not annealed or otherwise heat             results, Hyundai Steel will be entitled to             February 24, 2016, request.6 On May 31,
                                                    treated and not pickled or otherwise                     the antidumping duty deposit rate                      2016,7 Hyundai Steel filed its second
                                                    descaled; (2) plate (i.e., flat-rolled stainless
                                                    steel products of a thickness of 4.75 mm or
                                                                                                             currently assigned to Hyundai HYSCO                    request for a CCR, in which it alleged
                                                    more); and (3) flat wire (i.e., cold-rolled              with respect to the subject merchandise.               that that good cause exists in this case
                                                    sections, with a mill edge, rectangular in               FOR FURTHER INFORMATION CONTACT:                       and requested that the Department
                                                    shape, of a width of not more than 9.5 mm).              Victoria Cho, AD/CVD Operations,                       initiate a CCR.
                                                       The products under investigation are                  Office VI, Enforcement and Compliance,                    We received no comments from any
                                                    currently classifiable under Harmonized                  International Trade Administration,                    other interested party.
                                                    Tariff Schedule of the United States (HTSUS)             U.S. Department of Commerce, 14th
                                                    subheadings 7219.13.0031, 7219.13.0051,                                                                         Scope of the Review
                                                                                                             Street and Constitution Avenue NW.,
                                                    7219.13.0071, 7219.13.0081, 7219.14.0030,
                                                                                                             Washington, DC 20230; telephone: (202)                    The merchandise covered by this
                                                    7219.14.0065, 7219.14.0090, 7219.23.0030,                                                                       review is certain oil country tubular
                                                    7219.23.0060, 7219.24.0030, 7219.24.0060,                482–5075.
                                                                                                                                                                    goods (OCTG), which are hollow steel
                                                    7219.32.0005, 7219.32.0020, 7219.32.0025,                SUPPLEMENTARY INFORMATION:
                                                                                                                                                                    products of circular cross-section,
                                                    7219.32.0035, 7219.32.0036, 7219.32.0038,                                                                       including oil well casing and tubing, of
                                                    7219.32.0042, 7219.32.0044, 7219.32.0045,
                                                                                                             Background
                                                    7219.32.0060, 7219.33.0005, 7219.33.0020,                   On September 10, 2014, the                          iron (other than cast iron) or steel (both
                                                    7219.33.0025, 7219.33.0035, 7219.33.0036,                Department published an antidumping                    carbon and alloy), whether seamless or
                                                    7219.33.0038, 7219.33.0042, 7219.33.0044,                duty order on OCTG from Korea.1                        welded, regardless of end finish (e.g.,
                                                    7219.33.0045, 7219.33.0070, 7219.33.0080,                   On February 24, 2016,2 Hyundai Steel                whether or not plain end, threaded, or
                                                    7219.34.0005, 7219.34.0020, 7219.34.0025,                informed the Department that effective                 threaded and coupled) whether or not
                                                    7219.34.0030, 7219.34.0035, 7219.34.0050,
                                                                                                             July 1, 2015, it had merged with                       conforming to American Petroleum
                                                    7219.35.0005, 7219.35.0015, 7219.35.0030,                                                                       Institute (API) or non-API
                                                    7219.35.0035, 7219.35.0050, 7219.90.0010,                Hyundai HYSCO,3 and requested that:
                                                                                                             (1) The Department conduct a CCR                       specifications, whether finished
                                                    7219.90.0020, 7219.90.0025, 7219.90.0060,                                                                       (including limited service OCTG
                                                    7219.90.0080, 7220.12.1000, 7220.12.5000,                under 19 CFR 351.216(b) to determine
                                                                                                             that it is the successor-in-interest to                products) or unfinished (including
                                                    7220.20.1010, 7220.20.1015, 7220.20.1060,
                                                    7220.20.1080, 7220.20.6005, 7220.20.6010,                Hyundai HYSCO for purposes of                          green tubes and limited service OCTG
                                                    7220.20.6015, 7220.20.6060, 7220.20.6080,                determining Hyundai Steel’s                            products), whether or not thread
                                                    7220.20.7005, 7220.20.7010, 7220.20.7015,                                                                       protectors are attached. The scope of the
                                                                                                             antidumping duty cash deposits and
                                                    7220.20.7060, 7220.20.7080, 7220.90.0010,                                                                       investigation also covers OCTG
                                                                                                             liabilities; (2) the Department’s
                                                    7220.90.0015, 7220.90.0060, and                                                                                 coupling stock. For a complete
                                                                                                             successor-in-interest determination be
                                                    7220.90.0080. Although the HTSUS                                                                                description of the scope of the
                                                    subheadings are provided for convenience                 effective as of July 1, 2015, the date on
                                                                                                                                                                    investigation, see Appendix I to this
                                                    and customs purposes, the written                        which the merger was completed; and
                                                                                                                                                                    notice.
                                                    description of the scope of this proceeding is           (3) on an expedited basis under 19 CFR
                                                    dispositive.                                             351.221(c)(3)(ii).                                     Initiation and Preliminary Results
                                                    [FR Doc. 2016–16947 Filed 7–15–16; 8:45 am]
                                                                                                                On May 18, 2016,4 the Department                      Pursuant to section 751(b)(1) of the
                                                                                                             declined to initiate the CCR that                      Act, the Department will conduct a CCR
                                                    BILLING CODE 3510–DS–P
                                                                                                             Hyundai Steel requested in its February                upon receipt of a request from an
                                                                                                             24, 2016, CCR Request. The Department                  interested party or receipt of
                                                    DEPARTMENT OF COMMERCE                                   determined that it would not conduct a                 information concerning an antidumping
                                                                                                             CCR of a final determination in an                     duty order which shows changed
                                                    International Trade Administration                       investigation less than 24 months after                circumstances sufficient to warrant a
                                                                                                             the publication of the final                           review of the order.8 In addition,
                                                    [A–580–870]
                                                                                                             determination absent showing of good                   because the final determination was
                                                    Certain Oil Country Tubular Goods                        cause.5 The Department further found                   published less than 24 months prior to
                                                    From the Republic of Korea: Initiation                                                                          the date on which Hyundai Steel
                                                                                                               1 See Certain Oil Country Tubular Goods From
                                                    and Expedited Preliminary Results of                     India, the Republic of Korea, Taiwan, the Republic
                                                                                                                                                                    submitted its request for a CCR (i.e.,
                                                    Changed Circumstances Review                             of Turkey, and the Socialist Republic of Vietnam:      May 31, 2016), and pursuant to section
                                                                                                             Antidumping Duty Orders; and Certain Oil Country       351.216(c) of the Department’s
                                                    AGENCY:   Enforcement and Compliance,                    Tubular Goods From the Socialist Republic of           regulations, a CCR will not be initiated
                                                    International Trade Administration,                      Vietnam: Amended Final Determination of Sales at
                                                                                                                                                                    unless good cause exists. We find that
                                                    Department of Commerce.                                  Less Than Fair Value, 74 FR 53691 (September 10,
                                                                                                             2014).                                                 good cause exists in the instant CCR
                                                    DATES: Effective Date: July 18, 2016.                      2 See the February 24, 2016, letter from Hyundai     request to initiate this CCR before the 24
                                                    SUMMARY: In response to a request from                   Steel, ‘‘Oil Country Tubular Goods from the            month anniversary of the final
                                                    Hyundai Steel Co. Ltd. (Hyundai Steel),                  Republic of Korea: Request for a Changed               determination, as demonstrated by
                                                                                                             Circumstances Review,’’ (CCR Request).
                                                    a producer/exporter of certain oil                         3 Hyundai HYSCO was a respondent in the
                                                                                                                                                                    Hyundai Steel.9 Moreover, as noted
                                                    country tubular goods (OCTG) from the                    investigation of OCTG from Korea covering the          above in the ‘‘Background’’ section, we
                                                    Republic of Korea (Korea), and pursuant                  period July 1, 2012–June 30, 2013. Hyundai HYSCO       have received information indicating
                                                    to section 751(b) of the Tariff Act of                   received a 15.75 percent dumping margin. See           that on July 1, 2015, Hyundai HYSCO
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                             Certain Oil Country Tubular Goods From the
                                                    1930, as amended (the Act), 19 CFR                       Republic of Korea: Final Determination of Sales at
                                                                                                                                                                    merged with Hyundai Steel, with the
                                                    351.216 and 351.221(c)(3)(ii), the                       Less Than Fair Value and Negative Final
                                                    Department is initiating a changed                       Determination of Critical Circumstances, 79 FR           6 See the CCR Request; and also see the

                                                    circumstances review (CCR) and issuing                   41983 (July 18, 2014).                                 Department’s Rejection Letter.
                                                                                                               4 See the Department’s May 18, 2016, letter to         7 See the May 31, 2016, letter from Hyundai Steel
                                                    this notice of preliminary results. We                                                                          to the Department.
                                                                                                             Hyundai Steel.
                                                    have preliminarily determined that                         5 See the Department’s May 18, 2016, letter to         8 See 19 CFR 351.216(c); section 735(a) of the Act.
                                                    Hyundai Steel is the successor-in-                       Hyundai Steel (the Department’s Rejection Letter);       9 See the May 31, 2016, letter from Hyundai Steel

                                                    interest to the former Hyundai HYSCO                     19 CFR 351.216(c); and section 751(b)(4) of the Act.   to the Department.



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                                                    46646                           Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices

                                                    latter assuming all operations for the                   absorbing Hyundai HYSCO. On April                           merger did not affect the overall
                                                    production and sale of the subject                       28, 2015, the board of directors of                         organizational structure in the
                                                    merchandise.10 This constitutes                          Hyundai Steel and Hyundai HYSCO,                            production and sale of OCTG.21
                                                    changed circumstances warranting a                       both members of the Hyundai Motor                              Based on this information, and in
                                                    review of this order.11                                  Group, decided to merge the two                             particular, based on the fact that
                                                       Section 351.221(c)(3)(ii) of the                      companies. The absorption-type merger                       Hyundai Steel’s management team
                                                    Department’s regulations permits the                     was conducted, through which Hyundai                        continues to include the majority of the
                                                    Department to combine the notice of                      Steel became the surviving company.15                       former HYSCO managers, we
                                                    initiation of a CCR and the notice of                    Hyundai Steel claimed that since the                        preliminarily find that the
                                                    preliminary results if the Department                    merger took effect, it is operating                         reorganization resulting from the merger
                                                    concludes that expedited action is                       essentially the same business as the                        of the two companies did not result in
                                                    warranted. In this instance, because we                  former Hyundai HYSCO, and there has                         management that was materially
                                                    have on the record the information                       been no significant change in                               dissimilar with respect to the subject
                                                    necessary to make a preliminary finding                  management, production facilities,                          merchandise.
                                                    and no party has opposed expedited                       supplier relationships, or customer base                       With respect to production facilities,
                                                    action, we find that expedited action is                 with respect to the production and sale                     Hyundai Steel asserts that all of the
                                                    warranted, and have combined the                         of the subject merchandise.16 Hyundai                       production facilities for Hyundai
                                                    notice of initiation and the notice of                   Steel submitted detailed documentation                      HYSCO and Hyundai Steel have
                                                    preliminary results.                                     relating to the merger of the two                           remained the same, after Hyundai Steel
                                                       In making a successor-in-interest                     companies (e.g., major shareholders’                        absorbed Hyundai HYSCO due to the
                                                    determination, the Department                            lists, board of directors’ lists, executives’               merger.22 Hyundai Steel provided
                                                    examines several factors, including but                  lists, meeting minutes regarding the                        copies of HYSCO’s company brochure
                                                    not limited to, changes in: (1)                          merger, business registration                               and a screenshot of Hyundai Steel’s
                                                    Management; (2) production facilities;                   certificates, and a copy of the merger                      official Web site, which identifies the
                                                    (3) supplier relationships; and (4)                      corporate registration and                                  addresses and telephone numbers of the
                                                    customer base.12 While no single factor                  announcement of the merger).17                              offices, production facilities, and branch
                                                    or combination of these factors will                        With respect to management, Hyundai                      offices of Hyundai HYSCO and Hyundai
                                                    necessarily provide a dispositive                        Steel asserts that the management                           Steel.23 Hyundai Steel contends that
                                                    indication of a successor-in-interest                    structure of the former Hyundai HYSCO                       none of these locations have changed as
                                                    relationship, the Department will                        has also remained largely unchanged.                        a result of the merger, including the
                                                    generally consider the new company to                    Hyundai Steel retained most of its board                    location of the production facility for
                                                    be the successor to the previous                         of directors. Mr. Heon-seok Lee, who                        OCTG and the Steel Pipe Plant located
                                                    company if the new company’s resulting                   was a board member and executive of                         in Ulsan, South Korea. Based on this
                                                    operation is not materially dissimilar to                Hyundai HYSCO, remained as an                               information, we preliminarily find that
                                                    that of its predecessor.13 Thus, if the                  executive of Hyundai Steel.18 In                            the merger did not result in material
                                                    evidence demonstrates that, with                         addition, Hyundai Steel states that of                      changes to the production of the subject
                                                    respect to the production and sale of the                the 17 executives of Hyundai HYSCO,                         merchandise.
                                                    subject merchandise, the new company                     12 have remained at Hyundai Steel after                        With respect to suppliers and
                                                    operates as the same business entity as                  the merger, excluding only four non-                        customers, all of the supplier
                                                    the former company, the Department                       executive directors. Nine out of the 12                     relationships related to OCTG for
                                                    will accord the new company the same                     executives that remained at Hyundai                         Hyundai HYSCO and Hyundai Steel
                                                    antidumping treatment as its                             Steel have been assigned to departments                     have remained the same. Specifically,
                                                    predecessor.                                                                                                         Hyundai Steel states that is was
                                                                                                             and divisions within Hyundai Steel.19
                                                       In its CCR Request, Hyundai Steel                        Hyundai Steel further explained that                     Hyundai HYSCO’s sole supplier of hot-
                                                    explained that effective July 1, 2015,                   its current organizational structure is                     rolled coil for OCTG production in June
                                                    Hyundai HYSCO merged with Hyundai                        substantially similar to that of Hyundai                    2015.24 After the merger, although the
                                                    Steel,14 with Hyundai Steel effectively                  HYSCO. The only change to the                               level of integration may have changed,
                                                                                                             organizational structure is that HYSCO’s                    the coil used in the production of OCTG
                                                      10 See the CCR request.
                                                                                                             Business Management Division and                            continues to be supplied by Hyundai
                                                      11 See 19 CFR 351.216(d).
                                                                                                             Overseas Business Division in its Sales                     Steel.25 Hyundai Steel contends that it
                                                      12 See, e.g., Preliminary Results of Antidumping
                                                                                                             Division were divided and integrated                        has also maintained Hyundai HYSCO’s
                                                    Duty Changed Circumstances Review: Carbon and
                                                    Certain Alloy Steel Wire Rod from Canada, 71 FR          into Hyundai Steel’s Business Planning                      OCTG customer base.26 Hyundai Steel
                                                    75229 (December 14, 2009) and unchanged in
                                                                                                             Department, Administrative Service                          asserts that Hyundai HYSCO USA
                                                    Notice of Final Results of Antidumping Duty                                                                          (HHU) was Hyundai HYSCO’s sole U.S.
                                                    Changed Circumstances Review: Carbon and                 Department, Accounting/Monetary
                                                    Certain Alloy Steel Wire Rod from Canada, 72 FR          Department, Sales Department and R&D                        customer in June 2015, while Hyundai
                                                    15102 (March 30, 2007) (Carbon and Certain Alloy         Center, according to the function of each                   Steel America (HSA) was Hyundai
                                                    Steel from Canada); Certain Lined Paper Products
                                                    From India: Preliminary Results of Changed               team. The other three divisions (i.e., the                    21 Id., at 7 and exhibit 9.
                                                    Circumstances Review, 79 FR 21897 (April 18,             Sales Division (excluding the Overseas                        22 See,  e.g., Carbon and Certain Alloy Steel from
                                                    2014) and unchanged in Certain Lined Paper               Business sub-division), Pipe Plant, and                     Canada.
                                                    Products From India: Final Results of Changed
                                                                                                             Automotive Parts Plant) were simply                           23 See the CCR Request at 9 and exhibit 10.
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                                                    Circumstances Review, 79 FR 35726 (June 24, 2014).
                                                      13 See, e.g., Notice of Initiation and Preliminary     transferred over to Hyundai Steel.20                          24 Id., at 9 and exhibit 11.

                                                    Results of Antidumping Duty Changed                      Moreover, Hyundai Steel claims that the                       25 Id., Hyundai Steel states that due to the time

                                                    Circumstances Review: Carbon and Certain Alloy                                                                       required to integrate the systems of the two
                                                    Steel Wire Rod From Mexico, 75 FR 67685                       15 Id.,                                                companies, the internal systems relating to pipe
                                                                                                                          at 3.
                                                    (November 3, 2010) and unchanged in Final Results             16 Id.,
                                                                                                                                                                         products continued to operate separately after the
                                                                                                                          at 4.                                          merger while Hyundai Steel worked to merge the
                                                    of Antidumping Duty Changed Circumstances
                                                                                                                  17 Id., at 3 and Exhibits 1 through 8.
                                                    Review: Carbon and Certain Alloy Steel Wire Rod                                                                      two systems into a single system. Therefore, during
                                                                                                                  18 Id., at 8 and exhibit 2.
                                                    From Mexico, 76 FR 45509 (July 29, 2011); Carbon                                                                     July 2015, Hyundai Steel is recognized in the
                                                    and Certain Alloy Steel from Canada.                          19 Id., at 8–9 and exhibit 3.                          system as the hot-rolled supplier.
                                                      14 See the CCR Request.                                     20 Id., at 7.                                            26 See the CCR Request at 9 and exhibit 12.




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                                                                                        Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices                                                  46647

                                                    Steel’s sole U.S. customer in July                             Consistent with 19 CFR 351.216(e),                    The HTSUS subheadings above are
                                                    2015.27 Hyundai Steel asserts that its                       we will issue the final results of this               provided for convenience and customs
                                                    U.S. subsidiary, HSA, is the same                            CCR no later than 270 days after the                  purposes only. The written description of the
                                                                                                                                                                       scope of the investigation is dispositive.
                                                    company as Hyundai HYSCO’s U.S.                              date on which this review was initiated,
                                                    subsidiary, HHU, which was renamed                           or within 45 days if all parties agree to             [FR Doc. 2016–16923 Filed 7–15–16; 8:45 am]
                                                    pursuant to the merger.28                                    our preliminary finding. We are issuing               BILLING CODE 3510–DS–P

                                                      Based on the evidence reviewed, we                         and publishing this finding and notice
                                                    preliminarily find that Hyundai Steel is                     in accordance with sections 751(b)(1)
                                                                                                                 and 777(i)(l) of the Act and 19 CFR                   DEPARTMENT OF COMMERCE
                                                    the successor-in-interest to the merger of
                                                    Hyundai Steel and Hyundai HYSCO.                             351.216.
                                                                                                                                                                       International Trade Administration
                                                    Specifically, we preliminarily find that                       Dated: July 8, 2016.
                                                    the merger of these two companies                            Paul Piquado,                                         North American Free Trade Agreement
                                                    resulted in no significant changes to                        Assistant Secretary for Enforcement and               (NAFTA), Article 1904; Notice of
                                                    management, production facilities,                           Compliance.                                           Completion of Panel Review
                                                    supplier relationships, and customers                                                                              AGENCY:  United States Section, NAFTA
                                                                                                                 Appendix I—Scope of the Review
                                                    with respect to the production and sale                                                                            Secretariat, International Trade
                                                    of the subject merchandise. Thus,                              The merchandise covered by the
                                                                                                                 investigation is certain oil country tubular          Administration, Department of
                                                    Hyundai Steel operates as the same                                                                                 Commerce.
                                                    business entity as Hyundai HYSCO with                        goods (OCTG), which are hollow steel
                                                                                                                 products of circular cross-section, including         ACTION: Notice of Completion of Panel
                                                    respect to the subject merchandise. If                       oil well casing and tubing, of iron (other than       Review of the United States
                                                    the Department upholds these                                 cast iron) or steel (both carbon and alloy),          International Trade Commission’s final
                                                    preliminary results in the final results,                    whether seamless or welded, regardless of             determination of Polyethylene
                                                    Hyundai Steel will be entitled to the                        end finish (e.g., whether or not plain end,
                                                                                                                                                                       Terephthalate Resin from Canada,
                                                    antidumping duty deposit rate currently                      threaded, or threaded and coupled) whether
                                                                                                                 or not conforming to American Petroleum               Secretariat File No. USA–CDA–2016–
                                                    assigned to Hyundai HYSCO with
                                                                                                                 Institute (API) or non-API specifications,            1904–01.
                                                    respect to the subject merchandise (i.e.,
                                                                                                                 whether finished (including limited service
                                                    15.75 percent). If these preliminary                                                                               SUMMARY:   A Request for Panel Review
                                                                                                                 OCTG products) or unfinished (including
                                                    results are adopted in the final results                     green tubes and limited service OCTG                  was filed on behalf of Selenis Canada,
                                                    of this CCR, we will instruct U.S.                           products), whether or not thread protectors           Inc. with the United States Section of
                                                    Customs and Border Protection to                             are attached. The scope of the investigation          the NAFTA Secretariat for the
                                                    suspend liquidation of entries of OCTG                       also covers OCTG coupling stock.                      International Trade Commission’s final
                                                    made by Hyundai Steel, effective on the                        Excluded from the scope of the                      determination regarding Polyethylene
                                                    publication date of the final results.                       investigation are: Casing or tubing containing        Terephthalate Resin from Canada on
                                                                                                                 10.5 percent or more by weight of chromium;           June 6, 2016. Pursuant to Rule 39(1) of
                                                    Public Comment                                               drill pipe; unattached couplings; and
                                                                                                                 unattached thread protectors.                         the to the Article 1904 Panel Rules, the
                                                       Interested parties may submit case                          The merchandise subject to the                      interested person shall file a Complaint
                                                    briefs and/or written comments not later                     investigation is currently classified in the          within 30 days after filing a Request for
                                                    than 14 days after the date of                               Harmonized Tariff Schedule of the United              Panel Review. No Complaint was filed
                                                    publication of this notice. Rebuttal                         States (HTSUS) under item numbers:                    on July 6, 2016. Therefore, pursuant to
                                                    briefs and rebuttals to written                              7304.29.10.10, 7304.29.10.20, 7304.29.10.30,          Rule 71(3), the panel review is deemed
                                                                                                                 7304.29.10.40, 7304.29.10.50, 7304.29.10.60,          terminated the day after the expiration
                                                    comments, which must be limited to                           7304.29.10.80, 7304.29.20.10, 7304.29.20.20,
                                                    issues raised in such briefs or                                                                                    of the limitation period established in
                                                                                                                 7304.29.20.30, 7304.29.20.40, 7304.29.20.50,
                                                    comments, may be filed not later than                        7304.29.20.60, 7304.29.20.80, 7304.29.31.10,          Rule 39(1), effectively July 7, 2016.
                                                    21 days after the date of publication of                     7304.29.31.20, 7304.29.31.30, 7304.29.31.40,          FOR FURTHER INFORMATION CONTACT: Paul
                                                    this notice. Parties who submit case or                      7304.29.31.50, 7304.29.31.60, 7304.29.31.80,          E. Morris, United States Secretary,
                                                    rebuttal briefs are encouraged to submit                     7304.29.41.10, 7304.29.41.20, 7304.29.41.30,          NAFTA Secretariat, Room 2061, 1401
                                                    with each argument: (1) A statement of                       7304.29.41.40, 7304.29.41.50, 7304.29.41.60,          Constitution Avenue NW., Washington,
                                                                                                                 7304.29.41.80, 7304.29.50.15, 7304.29.50.30,          DC 20230, (202) 482–5438.
                                                    the issue; (2) a brief summary of the                        7304.29.50.45, 7304.29.50.60, 7304.29.50.75,
                                                    argument; and (3) a table of authorities.                    7304.29.61.15, 7304.29.61.30, 7304.29.61.45,            Dated: July 12, 2016.
                                                    All comments are to be filed                                 7304.29.61.60, 7304.29.61.75, 7305.20.20.00,          Paul E. Morris,
                                                    electronically using Enforcement and                         7305.20.40.00, 7305.20.60.00, 7305.20.80.00,          United States Secretary, NAFTA Secretariat.
                                                    Compliance’s Antidumping and                                 7306.29.10.30, 7306.29.10.90, 7306.29.20.00,
                                                                                                                                                                       [FR Doc. 2016–16844 Filed 7–15–16; 8:45 am]
                                                    Countervailing Duty Centralized                              7306.29.31.00, 7306.29.41.00, 7306.29.60.10,
                                                                                                                 7306.29.60.50, 7306.29.81.10, and                     BILLING CODE 3510–GT–P
                                                    Electronic Service System (ACCESS)
                                                    available to registered users at http://                     7306.29.81.50.
                                                                                                                   The merchandise subject to the
                                                    iaaccess.trade.gov and in the Central                        investigation may also enter under the                DEPARTMENT OF COMMERCE
                                                    Records Unit, Room B8024 of the main                         following HTSUS item numbers:
                                                    Department of Commerce building, and                         7304.39.00.24, 7304.39.00.28, 7304.39.00.32,          International Trade Administration
                                                    must also be served on interested                            7304.39.00.36, 7304.39.00.40, 7304.39.00.44,
                                                                                                                                                                       [A–580–810]
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                                                    parties.29 An electronically filed                           7304.39.00.48, 7304.39.00.52, 7304.39.00.56,
                                                    document must be received successfully                       7304.39.00.62, 7304.39.00.68, 7304.39.00.72,
                                                                                                                 7304.39.00.76, 7304.39.00.80, 7304.59.60.00,          Welded ASTM A–312 Stainless Steel
                                                    in its entirety by ACCESS by 5:00 p.m.                                                                             Pipe From the Republic of Korea: Final
                                                                                                                 7304.59.80.15, 7304.59.80.20, 7304.59.80.25,
                                                    Eastern Time on the day it is due.30                         7304.59.80.30, 7304.59.80.35, 7304.59.80.40,          Results of Antidumping Duty
                                                                                                                 7304.59.80.45, 7304.59.80.50, 7304.59.80.55,          Administrative Review; 2013–2014
                                                      27 Id.,   at 9 and 10 and exhibit 12.                      7304.59.80.60, 7304.59.80.65, 7304.59.80.70,
                                                      28 Id.
                                                                                                                 7304.59.80.80, 7305.31.40.00, 7305.31.60.90,          AGENCY:  Enforcement and Compliance,
                                                      29 See 19 CFR 351.303(f).                                  7306.30.50.55, 7306.30.50.90, 7306.50.50.50,          International Trade Administration,
                                                      30 See 19 CFR 351.303(b).                                  and 7306.50.50.70.                                    U.S. Department of Commerce.


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Document Created: 2016-07-16 02:28:27
Document Modified: 2016-07-16 02:28:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ContactVictoria Cho, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 5075.
FR Citation81 FR 46645 

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