83 FR 24973 - Large Power Transformers From the Republic of Korea: Notice of Preliminary Results of Antidumping Duty Changed Circumstances Review

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 105 (May 31, 2018)

The Department of Commerce preliminarily determines that Hyundai Electric & Energy Systems Co., Ltd. (HEES) is the successor-in- interest to Hyundai Heavy Industries Co., Ltd. (HHI), and that HHI's current cash deposit rate is the rate applicable for all entries of large power transformers exported by HEES. Further, we preliminarily determine that the application of the cash deposit rate applicable to HEES shall be made retroactively to the effective date of the first entry by HEES.

[Federal Register Volume 83, Number 105 (Thursday, May 31, 2018)]
[Notices]
[Pages 24973-24974]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11713]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-867]


Large Power Transformers From the Republic of Korea: Notice of 
Preliminary Results of Antidumping Duty Changed Circumstances Review

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

SUMMARY: The Department of Commerce preliminarily determines that 
Hyundai Electric & Energy Systems Co., Ltd. (HEES) is the successor-in-
interest to Hyundai Heavy Industries Co., Ltd. (HHI), and that HHI's 
current cash deposit rate is the rate applicable for all entries of 
large power transformers exported by HEES. Further, we preliminarily 
determine that the application of the cash deposit rate applicable to 
HEES shall be made retroactively to the effective date of the first 
entry by HEES.

DATES: Applicable May 31, 2018.

FOR FURTHER INFORMATION CONTACT: Moses Song, 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.

SUPPLEMENTARY INFORMATION:

Background

    On August 31, 2012, the Department of Commerce (Commerce) published 
in the Federal Register an antidumping duty order on large power 
transformers (LPTs) from the Republic of Korea (Korea).\1\ HHI is one 
of the producers/exporters reviewed in the less-than fair-value 
investigation and has been reviewed in each subsequent administrative 
review of the Order. During the 2014/2015 administrative review, 
covering the period August 1, 2014, through July 31, 2015, Commerce 
assigned HHI an antidumping duty rate of 60.81 percent, finding that 
the application of total adverse facts available (AFA) was 
warranted.\2\ In addition, during the 2015/2016 administrative review, 
covering the period August 1, 2015, through July 31, 2016, Commerce 
continued to assign HHI an antidumping duty rate of 60.81 percent, 
finding that the application of total AFA was warranted.\3\
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    \1\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012) (the Order).
    \2\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2014-2015, 
82 FR 13432 (March 13, 2017) (2014/2015 Final Results).
    \3\ See Large Power Transformers from the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2015-2016, 
83 FR 11679 (March 16, 2018) (2015-2016 Final Results).
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    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(d), on December 4, 2017, Commerce self-
initiated a Changed Circumstances Review (CCR) regarding HHI's new spin 
off company, HEES, based on information obtained (1) during the course 
of the 2014/2015 and 2015/2016 administrative reviews, (2) via public 
search and the phone conversation with a representative retained by ABB 
Inc.'s (ABB's or the petitioner's) counsel, and (3) from U.S. Customs 
and Border Protection (CBP) data.\4\
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    \4\ See Large Power Transformers from the Republic of Korea: 
Initiation of Antidumping Duty Changed Circumstances Review, 82 FR 
57210 (December 4, 2017) (Initiation Notice).
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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.
    Incomplete LPTs are subassemblies consisting of the active part and 
any other parts attached to, imported with or invoiced with the active 
parts of LPTs. The ``active part'' of the transformer consists of one 
or more of the following when attached to or otherwise assembled with 
one another: The steel core or shell, the windings, electrical 
insulation between the windings, the mechanical frame for an LPT.
    The product definition encompasses all such LPTs regardless of name 
designation, including but not limited to step-up transformers, step-
down transformers, autotransformers, interconnection transformers, 
voltage regulator transformers, rectifier transformers, and power 
rectifier transformers.
    The LPTs subject to this Order are currently classifiable under 
subheadings 8504.23.0040, 8504.23.0080, and 8504.90.9540 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this Order is dispositive.

Methodology

    We are conducting this CCR in accordance with section 751(b)(1) of 
the Act. For a full description of the methodology underlying our 
analysis, see the accompanying Preliminary Decision Memorandum.\5\
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    \5\ 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, entitled ``Preliminary Results of 
Changed Circumstances Review Regarding Successor-In-Interest 
Analysis: Large Power Transformers from the Republic of Korea'' 
dated concurrently with this notice (Preliminary Decision 
Memorandum).
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Preliminary Results of Changed Circumstances Review

    In accordance with 19 CFR 351.216, we preliminarily determine that 
HEES is the successor-in-interest to HHI. Record evidence, as submitted 
by HHI and HEES (collectively, Hyundai), indicates that, based on the 
totality of the circumstances under Commerce's successor-in-interest 
criteria, HEES's day-to-day operations, corporate and management 
structure, and ownership are materially similar to those of HHI before 
the spin-off with respect to the merchandise under review. Moreover, we 
preliminarily find that HEES assumed HHI's production facilities, 
supplier relationships, and the customer base with regard to the 
merchandise under review. For the complete successor-in-interest 
analysis, including discussion of business proprietary information, 
refer to the accompanying Preliminary Decision Memorandum.
    Therefore, based on record evidence, we preliminarily determine 
that as the successor-in-interest to HHI, HEES should receive the same 
antidumping duty treatment with respect to the subject merchandise as 
HHI, and that the rate assigned to HHI is the rate for HEES as a result 
of our successor-in-interest finding.
    Further, as a result of Hyundai's corporate reorganization, HEES 
has been

[[Page 24974]]

entering subject merchandise at the lower all-others cash deposit rate 
as opposed to the cash deposit rate applicable to HHI. Because we 
preliminarily find that HEES is the successor-in-interest to HHI, we 
also preliminarily determine that, as a result of Hyundai's business 
decision to spin off HEES and for HEES to enter subject merchandise as 
the manufacturer and/or exporter, the efficacy of the Order is 
undermined, depriving the domestic industry of the full magnitude of 
the remedy via the payment of appropriate cash deposits applicable to 
HHI. Therefore, to maintain the effectiveness of the Order and to 
provide the adequate relief to the domestic industry, we preliminarily 
determine that the unique facts of this CCR warrant the retroactive 
application of the cash deposit rate to the effective date of the first 
entry by HEES. If we continue to reach the same determination at the 
final results of this CCR, we will instruct CBP to collect the cash 
deposits accordingly.

Public Comment

    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 30 days of publication of this notice in the Federal 
Register. In accordance with 19 CFR 351.309(c)(1)(ii), interested 
parties may submit case briefs not later than 30 days after the date of 
publication of this notice. Rebuttal briefs, limited to issues raised 
in the case briefs, may be filed no later than five days after the case 
briefs, in accordance with 19 CFR 351.309(d). 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 via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS) and must also be served 
on interested parties. 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. An electronically filed document must be received 
successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the 
day on which it is due.\6\
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    \6\ See 19 CFR 351.303(b).
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    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) of 
the Act and 19 CFR 351.216(b), 351.221(b) and 351.221(c)(3).

    Dated: May 24, 2018.
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 I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Successor-In-Interest Determination
V. Retroactive Application of HHI's Cash Deposit Rate to HEES
VI. Recommendation

[FR Doc. 2018-11713 Filed 5-30-18; 8:45 am]
BILLING CODE 3510-DS-P