83 FR 45415 - Large Power Transformers From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2016-2017

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 174 (September 7, 2018)

Page Range45415-45417
FR Document2018-19428

The Department of Commerce (Commerce) preliminarily determines that Hyundai Heavy Industries Co., Ltd. (HHI) and Hyundai Electric & Energy Systems Co. (HEES) (collectively, Hyundai) made sales of subject merchandise at less than normal value, and that Hyosung Corporation (Hyosung) did not make sales of subject merchandise at less than normal value, during the period of review (POR) August 1, 2016, through July 31, 2017. Interested parties are invited to comment on these preliminary results.

Federal Register, Volume 83 Issue 174 (Friday, September 7, 2018)
[Federal Register Volume 83, Number 174 (Friday, September 7, 2018)]
[Notices]
[Pages 45415-45417]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19428]


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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; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Hyundai Heavy Industries Co., Ltd. (HHI) and Hyundai Electric & 
Energy Systems Co. (HEES) (collectively, Hyundai) made sales of subject 
merchandise at less than normal value, and that Hyosung Corporation 
(Hyosung) did not make sales of subject merchandise at less than normal 
value, during the period of review (POR) August 1, 2016, through July 
31, 2017. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable September 7, 2018.

FOR FURTHER INFORMATION CONTACT: Joshua DeMoss, Tyler Weinhold, 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-
3362, (202) 482-1121, or (202) 482-0195, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce initiated this review on October 16, 2017.\1\ We selected 
two mandatory respondents in this review, Hyosung and HHI.\2\ Commerce 
exercised its discretion to toll all deadlines affected by the closure 
of the Federal Government from January 20 through 22, 2018. The revised 
deadline for the preliminary results of this review is August 31, 
2018.\3\ 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.\4\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 48051 (October 16, 2017) (Initiation 
Notice).
    \2\ In accordance with Commerce's decision in the LPTs from 
Korea changed circumstances review, Commerce has determined that 
HEES is the successor-in-interest to HHI. See Large Power 
Transformers from the Republic of Korea: Notice of Preliminary 
Results of Antidumping Duty Changed Circumstances Review, 83 FR 
24973 (May 31, 2018) (LPTs from Korea CCR) (unchanged in Large Power 
Transformers from the Republic of Korea: Notice of Final Results of 
Antidumping Duty Changed Circumstances Review, signed August 28, 
2018; pending publication).
    \3\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
    \4\ 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; 2016-2017'' 
(Preliminary Decision Memorandum), dated concurrently with this 
notice.
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    The Preliminary Decision Memorandum is a public document and

[[Page 45416]]

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.\5\
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    \5\ The full text of the scope of the order is contained in 
Preliminary Decision Memorandum.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a) 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, Commerce is preliminarily 
relying upon facts otherwise available to assign an estimated weighted-
average dumping margin to Hyundai in this review because Hyundai 
withheld necessary information that was requested by Commerce, thereby 
significantly impeding the conduct of the review. Further, Commerce 
preliminarily determines that Hyundai failed to cooperate by not acting 
to the best of its ability to comply with requests for information and, 
thus, Commerce is applying adverse facts available (AFA) to Hyundai, 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,\6\ we are 
applying to the non-selected companies the rate preliminarily applied 
to Hyosung in this administrative review.\7\ 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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    \6\ See Albemarle Corp. v. United States, 821 F.3d 1345 (Fed. 
Cir. 2016).
    \7\ 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, 2016, 
through July 31, 2017, the following weighted-average dumping margins 
exist: \8\
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    \8\ As AFA, we preliminarily assign 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).

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyosung Corporation.........................................        0.00
Hyundai Heavy Industries Co., Ltd./Hyundai Electric & Energy       60.81
 Systems Co., Ltd...........................................
Iljin Electric Co., Ltd.....................................        0.00
Iljin.......................................................        0.00
LSIS Co., Ltd...............................................        0.00
------------------------------------------------------------------------

Disclosure and Public Comment

    Commerce will disclose to parties to the proceeding any 
calculations performed in connection with these preliminary results of 
review within five days after the date of publication of this 
notice.\9\ Commerce will announce the briefing schedule to interested 
parties at a later date. Interested parties may submit case briefs on 
the deadline that Commerce will announce.\10\ 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.\11\
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    \9\ See 19 CFR 351.224(b).
    \10\ See 19 CFR 351.309(c)(1)(ii) and (d)(1).
    \11\ See 19 CFR 351.309(d)(1) and (2).
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    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.\12\ Case and rebuttal briefs should be filed using 
ACCESS.\13\ Case and rebuttal briefs must be served on interested 
parties.\14\ Executive summaries should be limited to five pages total, 
including footnotes.
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    \12\ See 19 CFR 351.309(c)(2).
    \13\ See generally 19 CFR 351.303.
    \14\ 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, Commerce intends 
to hold the hearing at the U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230, at a date and time to be 
determined.\15\ Parties should confirm the date, time, and location of 
the hearing two days before the scheduled date.
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    \15\ See 19 CFR 351.310(d).
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    Commerce 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.\16\
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    \16\ 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, Commerce shall 
determine, and Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries. If a respondent's 
weighted-average dumping margin is not zero or de minimis in the final 
results of this review and the respondent reported reliable entered 
values, we will calculate importer-specific ad valorem assessment rates 
for the merchandise based on the ratio of the total amount of dumping 
calculated for the examined

[[Page 45417]]

sales made during the period of review to each importer to the total 
entered value of those same sales in accordance with 19 CFR 
351.212(b)(1). If the respondent has not reported reliable entered 
values, we will calculate a per-unit assessment rate for each importer 
by dividing the total amount of dumping for the examined sales made 
during the period of review to that importer by the total sales 
quantity associated with those transactions. Where an importer-specific 
ad valorem assessment rate is zero or de minimis, we will instruct CBP 
to liquidate the appropriate entries without regard to antidumping 
duties in accordance with 19 CFR 351.106(c)(2). If the respondent's 
weighted-average dumping margin is zero or de minimis in the final 
results of review, we will instruct CBP not to assess duties on any of 
its entries in accordance with the Final Modification for Reviews, 
i.e., ``{w{time} here the weighted-average margin of dumping for the 
exporter is determined to be zero or de minimis, no antidumping duties 
will be assessed.'' \17\
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    \17\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 
2012) (Final Modification for Reviews).
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    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 Hyundai.
    Regarding entries of subject merchandise during the period of 
review that were produced by Hyosung and Hyundai and for which they did 
not know that the merchandise was destined for the United States, we 
will instruct CBP to liquidate un-reviewed entries at the all-others 
rate of 22.00 percent, as established in the less-than-fair-value 
investigation of the order, if there is no rate for the intermediate 
company(ies) involved in the transaction.\18\ For a full discussion of 
this matter, see Assessment Policy Notice.\19\
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    \18\ See Large Power Transformers from the Republic of Korea: 
Antidumping Duty Order, 77 FR 53177 (August 31, 2012).
    \19\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
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    We intend to issue liquidation instructions to CBP 15 days after 
publication of the final results of this review.

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.\20\ These cash deposit requirements, 
when imposed, shall remain in effect until further notice.
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    \20\ 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 Commerce'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, 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--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Deadline for Submission of Updated Sales and Cost Information
IV. Scope of the Order
V. Discussion of the Methodology
    A. Determination of Comparison Method
    B. Results of the Differential Pricing Analysis
    C. Home Market Viability as Comparison Market
    D. Level of Trade
    E. Cost of Production
    F. Calculation of Normal Value Based on Comparison Market Prices
    G. Price-to-Constructed Value Comparison
VI. 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
VII. Discussion of The Issues
    A. Hyundai-Specific Issues
VIII. Rate for Non-Selected Companies
IX. Parts
X. Recommendation

[FR Doc. 2018-19428 Filed 9-6-18; 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, 2018.
ContactJoshua DeMoss, Tyler Weinhold, 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- 3362, (202) 482-1121, or (202) 482-0195, respectively.
FR Citation83 FR 45415 

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