82 FR 42289 - Large Power Transformers From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2015-2016

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 172 (September 7, 2017)

Page Range42289-42291
FR Document2017-18998

The Department of Commerce (the Department) is conducting an administrative review of the antidumping duty order on large power transformers (LPTs) from the Republic of Korea (Korea). The period of review is August 1, 2015, through July 31, 2016. The review covers five producers/exporters of the subject merchandise. We preliminarily determine that Hyosung Corporation (Hyosung) and Hyundai Heavy Industries Co., Ltd. (Hyundai), the two companies selected for individual examination, sold subject merchandise in the United States at prices below normal value during the period of review. Interested parties are invited to comment on these preliminary results.

Federal Register, Volume 82 Issue 172 (Thursday, September 7, 2017)
[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Notices]
[Pages 42289-42291]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18998]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review; 2015-2016

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

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on large power 
transformers (LPTs) from the Republic of Korea (Korea). The period of 
review is August 1, 2015, through July 31, 2016. The review covers five 
producers/exporters of the subject merchandise. We preliminarily 
determine that Hyosung Corporation (Hyosung) and Hyundai Heavy 
Industries Co., Ltd. (Hyundai), the two companies selected for 
individual examination, sold subject merchandise in the United States 
at prices below normal value during the period of review. Interested 
parties are invited to comment on these preliminary results.

DATES: Applicable September 7, 2017.

FOR FURTHER INFORMATION CONTACT: Moses Song or John Drury, 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) 482-5041 or (202) 482-0195, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department initiated this review on October 14, 2016.\1\ We 
selected two mandatory respondents in this review,

[[Page 42290]]

Hyosung and Hyundai. For a more detailed description of the events that 
followed the initiation of this review, see the Preliminary Decision 
Memorandum, dated concurrently with these results and hereby adopted by 
this notice.\2\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 81 FR 71061 (October 14, 2016) (Initiation 
Notice); see also Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 81 FR 78778, 78781 (November 9, 2016) 
(Amended Initiation Notice). We issued an amended Federal Register 
initiation notice on November 9, 2016, to reflect one company name 
that was missing from the October 14, 2016 Initiation Notice.
    \2\ See Memorandum to Gary Taverman, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, from James Maeder, Senior Director, 
performing the duties of Deputy Assistant Secretary for Antidumping 
and Countervailing Duty Operations, entitled ``Decision Memorandum 
for Preliminary Results of Antidumping Duty Administrative Review: 
Large Power Transformers from the Republic of Korea; 2015-2016'' 
(Preliminary Decision Memorandum), dated concurrently with this 
notice.
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    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 to ACCESS is available to registered users at http://access.trade.gov and is available to all parties in the Central Records 
Unit, Room B8024 of the main Department of Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly on the Internet at http://enforcement.trade.gov/frn/index.html. A list of topics discussed in the Preliminary Decision 
Memorandum is attached as an Appendix to this notice. The signed 
Preliminary Decision Memorandum and the electronic versions of the 
Preliminary Decision Memorandum are identical in content.

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 merchandise subject to the 
order is currently classified in the Harmonized Tariff Schedule of the 
United States at subheadings 8504.23.0040, 8504.23.0080 and 
8504.90.9540. This tariff classification is provided for convenience 
and Customs purposes; however, the written description of the scope of 
the order is dispositive.\3\
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    \3\ The full text of the scope of the order is contained in 
Preliminary Decision Memorandum.
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Methodology

    The Department 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.

Facts Available

    Pursuant to section 776(a) of the Act, the Department is 
preliminarily relying upon facts otherwise available to assign an 
estimated weighted-average dumping margin to the mandatory respondents 
in this review because both respondents withheld necessary information 
that was requested by the Department, thereby significantly impeding 
the conduct of the review. Further, the Department preliminarily 
determines that these mandatory respondents failed to cooperate by not 
acting to the best of their abilities to comply with requests for 
information and, thus, the Department is applying adverse facts 
available (AFA) to the respondents, in accordance with section 776(b) 
of the Act. For a full description of the methodology underlying our 
conclusions regarding the application of AFA, see the Preliminary 
Decision Memorandum.

Rate for Non-Selected Companies

    In accordance with the U.S. Court of Appeals for the Federal 
Circuit's decision in Albemarle Corp. v. United States,\4\ we are 
applying to the non-selected companies the rate preliminarily applied 
to Hyosung and Hyundai in this administrative review.\5\ This is the 
only rate determined in this review for individual respondents and, 
thus, should be applied to the three non-selected companies under 
section 735(c)(5)(B) of the Act. For a detailed discussion, see the 
Preliminary Decision Memorandum.
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    \4\ See Albemarle Corp. v. United States, 821 F.3d 1345 (Fed. 
Cir. 2016).
    \5\ See, e.g., Certain Small Diameter Carbon and Alloy Seamless 
Standard, Line, and Pressure Pipe (Under 4\1/2\ Inches) from Japan: 
Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2014-2015, 81 FR 45124, 
45124 (July 12, 2016), unchanged in Certain Small Diameter Carbon 
and Alloy Seamless Standard, Line, and Pressure Pipe (Under 4\1/2\ 
Inches) from Japan: Final Results of Antidumping Duty Administrative 
Review and Final Determination of No Shipments; 2014-2015, 81 FR 
80640, 80641 (November 16, 2016).
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Preliminary Results of Review

    We preliminarily determine that, for the period August 1, 2015, 
through July 31, 2016, the following weighted-average dumping margins 
exist: \6\
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    \6\ As AFA, we preliminarily assign Hyosung and Hyundai a 
dumping margin of 60.81 percent, an AFA rate used in the previous 
review. See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2014-2015, 
82 FR 13432 (March 13, 2017). This rate achieves the purpose of 
applying an adverse inference, i.e., it is sufficiently adverse to 
ensure that the uncooperative party does not obtain a more favorable 
result by failing to cooperate than if it had fully cooperated. 
According to 776(c)(2) of the Act, this rate does not require 
corroboration.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Producer/exporter                     dumping margin
                                                             (percent)
------------------------------------------------------------------------
Hyosung Corporation.....................................           60.81
Hyundai Heavy Industries Co., Ltd.......................           60.81
Iljin Electric Co., Ltd.................................           60.81
Iljin...................................................           60.81
LSIS Co., Ltd...........................................           60.81
------------------------------------------------------------------------

Disclosure and Public Comment

    Normally, the Department discloses the calculations performed in 
connection with preliminary results to interested parties within five 
days after the date of publication of this notice.\7\ Because the 
Department preliminarily applied total AFA to each of the mandatory 
respondents in this review, in accordance with section 776 of the Act, 
there are no calculations to disclose.
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    \7\ See 19 CFR 351.224(b).
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    Interested parties may submit case briefs no later than 30 days 
after the date of publication of this notice.\8\ Rebuttal briefs, the 
content of which is limited to the issues raised in the case briefs, 
must be filed within five days from the deadline date for the 
submission of case briefs.\9\ Parties who submit case or rebuttal 
briefs in this proceeding are requested to submit with each argument: 
(1) A statement of the issue; (2) a brief summary of the argument; and 
(3) a table of authorities.\10\ Case and rebuttal briefs should be 
filed using ACCESS.\11\ Case and rebuttal briefs must be served on 
interested parties.\12\ Executive summaries should be limited to five 
pages total, including footnotes.
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    \8\ See 19 CFR 351.309(c)(1)(ii).
    \9\ See 19 CFR 351.309(d)(1) and (2).
    \10\ See 19 CFR 351.309(c)(2).
    \11\ See generally 19 CFR 351.303.
    \12\ See 19 CFR 351.303(f).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance within 30 days of the date of 
publication of this notice. Requests should contain: (1) The party's 
name, address and telephone number; (2) the number of participants; and 
(3) a list of issues parties intend to discuss. Issues raised in the 
hearing will be limited to those raised in the respective case and 
rebuttal briefs. If a request for a hearing is made, the Department 
intends to hold the hearing at the U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington,

[[Page 42291]]

DC 20230, at a date and time to be determined.\13\ Parties should 
confirm the date, time, and location of the hearing two days before the 
scheduled date.
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    \13\ See 19 CFR 351.310(d).
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    The Department intends to publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief, no later than 120 days after 
publication of these preliminary results, unless extended.\14\
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    \14\ See section 751(a)(3)(A) of the Act; 19 CFR 351.213(h).
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Assessment Rates

    Upon completion of this administrative review, the Department shall 
determine, and Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries. If the preliminary 
results are unchanged for the final results, we will instruct CBP to 
apply an ad valorem assessment rate of 60.81 percent to all entries of 
subject merchandise during the period of review which were produced 
and/or exported by Hyosung, Hyundai, and the aforementioned companies 
which were not selected for individual examination.\15\ We intend to 
issue liquidation instructions to CBP 15 days after publication of the 
final results of this review.
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    \15\ See Preliminary Decision Memorandum at ``Rate for Non-
Selected Companies'' (for an explanation of how we preliminarily 
determined the rate for non-selected companies).
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Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for Hyosung and 
Hyundai and other companies listed above will be equal to the weighted-
average dumping margin established in the final results of this 
administrative review; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recently completed 
segment of this proceeding in which they were reviewed; (3) if the 
exporter is not a firm covered in this review, a prior review, or in 
the investigation but the producer is, the cash deposit rate will be 
the rate established for the most recently completed segment of this 
proceeding for the producer of the merchandise; and (4) the cash 
deposit rate for all other producers or exporters will continue to be 
the all-others rate of 22.00 percent, the rate established in the 
investigation of this proceeding.\16\ These cash deposit requirements, 
when imposed, shall remain in effect until further notice.
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    \16\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
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Notification to Importers

    This notice also serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: August 31, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Application of Facts Available and Use of Adverse Inference
    A. Application of Facts Available
    B. Use of Adverse Inference
    C. Selection and Corroboration of the Adverse Facts Available 
Rate
V. Discussion of The Issues
    A. Hyosung-Specific Issues Failure to Report Separately Service-
Related Revenues Invoice Used in last Period of Review (POR) Used in 
this POR for Different Sale Unreported Sales Adjustments
    B. Hyundai-Specific Issues Failure to Separately Report the 
Prices and Costs for Accessories Understatement of the Home Market 
Gross Unit Price Undisclosed Relationship with Hyundai's Sales Agent
    VI. Rate for Non-Selected Companies
    VII. Recommendation

[FR Doc. 2017-18998 Filed 9-6-17; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
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
DatesApplicable September 7, 2017.
ContactMoses Song or John Drury, 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) 482-5041 or (202) 482-0195, respectively.
FR Citation82 FR 42289 

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