Large Power Transformers From the Republic of Korea: Notice of Court Decision Not in Harmony with Final Results, Notice of Amended Final Results
On May 26, 2020, the Court of International Trade (CIT) sustained the final remand results pertaining to the administrative review of the antidumping duty order on large power t...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
On May 26, 2020, the Court of International Trade (CIT) sustained the final remand results pertaining to the administrative review of the antidumping duty order on large power transformers (LPTs) from the Republic of Korea (Korea) covering the period August 1, 2013 through July 31, 2014. The Department of Commerce (Commerce) is notifying the public that the final judgment in this case is not in harmony with the final results and notice of amended final results of the administrative review and that Commerce is amending the amended final results with respect to the dumping margins assigned to Hyundai Heavy Industries Co., Ltd. and Hyundai Corporation USA, and the non-selected respondent companies ILJIN, ILJIN Electric Co., Ltd., and LSIS Co., Ltd.
DATES:
Applicable June 5, 2020.
FOR FURTHER INFORMATION CONTACT:
John K. 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) 482-0195.
SUPPLEMENTARY INFORMATION:
Background
On March 16, 2016, Commerce issued the
Final Results.[1]
In the
Final Results,
Commerce assigned dumping margins of 9.40 percent and 4.07 percent to Hyosung Corporation (Hyosung) and Hyundai Heavy Industries Co., Ltd. (HHI) and Hyundai, USA (Hyundai USA) (collectively, Hyundai), respectively.[2]
Upon consideration of various ministerial error allegations, Commerce issued the
Amended Final Results
on May 5, 2016, and calculated a weighted-average margin of 7.89 percent for Hyosung, and margins of 5.98 percent for ILJIN, ILJIN Electric, and LSIS.[3]
Hyosung and Hyundai are Korean producers/exporters of LPTs and were mandatory respondents in the underlying administrative review, while ILJIN, ILJIN Electric, and LSIS are Korean producers/exporters of LPTs which were not selected for review.
On October 10, 2017, the CIT remanded various aspects of the
Final Results
and
Amended Final Results
to Commerce.[4]
Specifically, the CIT instructed Commerce to clarify the
( printed page 40248)
treatment of the respondents' U.S. commissions based on record evidence, as well as re-examine whether to cap Hyundai's service-related revenues based on associated expenses.
Pursuant to the
Remand Order,
Commerce issued its Final Redetermination, which addressed the CIT's holdings and revised the weighted-average dumping margins for Hyosung and Hyundai to 8.74 percent and 25.51 percent, respectively.[5]
On November 13, 2018, the CIT sustained Commerce's Final Redetermination with respect to commissions, but remanded the issue of service-related revenues to Commerce a second time.[6]
Hyosung moved for partial final judgement on issues affecting its entries. On August 29, 2019, the CIT issued the partial final judgement with regard to issues which affected Hyosung.[7]
Commerce issued a Timken Notice with respect to Hyosung on October 11, 2019, which established Hyosung's final dumping margin at 8.74 percent.[8]
Pursuant to the second
Remand Order,
Commerce again reconsidered its treatment of service-related revenues with respect to Hyundai and did not cap revenue for transactions for which substantial evidence did not support a finding that the services were separately negotiable with third parties.[9]
Commerce also did not apply its capping methodology to the delayed delivery charges associated with two transactions, and instead made circumstance of sale (COS) adjustments to normal value for those delayed delivery charges.[10]
On February 19, 2020, the CIT sustained Commerce's Second Remand Results with respect to the revised capping of certain of Hyundai's transactions, but remanded the issue of the COS adjustment.[11]
Pursuant to this third
Remand Order,
Commerce reconsidered its treatment of the COS adjustments.[12]
Commerce calculated a weighted-average dumping margin for Hyundai of 16.13 percent for the period of review.[13]
On May 26, 2020, the CIT sustained the Third Remand Results.[14]
Timken Notice
In its decision in
Timken,[15]
as clarified by
Diamond Sawblades[16]
, the United States Court of Appeals for the Federal Circuit held that, pursuant to sections 516A(c) and (e) of the Act, Commerce must publish a notice of a court decision that is not “in harmony” with a Department determination and must suspend liquidation of entries pending a “conclusive” court decision. The CIT's May 26, 2020, judgment sustaining Commerce's Third Remand Results with respect to COS adjustments constitutes a final decision of the CIT that is not in harmony with the
Amended Final Results.
This notice is published in fulfillment of the publication requirements of
Timken.
Accordingly, Commerce will continue the suspension of liquidation of the subject merchandise at issue pending expiration of the period to appeal or, if appealed, pending a final and conclusive court decision.
Amended Final Results
Because there is now a final court decision, Commerce is amending the
Amended Final Results
with respect to the dumping margins calculated for Hyundai and the non-selected respondent companies ILJIN, ILJIN Electric, and LSIS. Based on the Third Remand Results, as affirmed by the CIT, the revised dumping margins for Hyundai and ILJIN, ILJIN Electric, and LSIS from August 1, 2013 through July 31, 2014, are as follows:
Producer/exporter
Weighted-
average
margin (percent)
Hyundai Heavy Industries Co., Ltd
16.13
ILJIN Electric Co., Ltd
17
12.44
ILJIN
12.44
LSIS Co., Ltd
12.44
In the event that the CIT's rulings are not appealed or, if appealed, are upheld by a final and conclusive court decision, Commerce will instruct U.S. Customs and Border Protection to assess antidumping duties on unliquidated entries of subject merchandise based on the revised dumping margins listed above.
Cash Deposit Requirements
Since the
Amended Final Results,
the Department has established a new cash deposit rate for Hyundai and the non-selected companies.[18]
Therefore, this Final Redetermination, and as affirmed by the CIT, does not change the later-established cash deposit rates for Hyundai, ILJIN, ILJIN Electric, and LSIS.
Notification to Interested Parties
This notice is issued and published in accordance with sections 516A(e)(1), 751(a)(1), and 777(i)(1) of the Act.
Dated: June 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Footnotes
1.
See Large Power Transformers from the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2013-2014,81 FR 14087 (March 16, 2016) (
Final Results) and accompanying Issues and Decision Memorandum.
2.
Commerce also assessed margins of 6.74 percent on ILJIN Electric Co., Ltd. (ILJIN Electric), ILJIN, and LSIS Co., Ltd. (LSIS), based on the margins calculated for Hyosung and Hyundai.
See Final Results.
3.
See Large Power Transformers from the Republic of Korea: Amended Final Results of Antidumping Duty Administrative Review; 2013-2014,81 FR 27088 (May 5, 2016) (
Amended Final Results)
5.
See
Memorandum, “Final Results of Redetermination Pursuant to Court Remand
ABB INC
v.
United States
Court No. 16-00054, Slip-Op. 17-138 (CIT October 10, 2017),” dated February 7, 2018 (Final Redetermination) available at
http://enforcement.trade.gov/remands/17-138.pdf.
8.
See Large Power Transformers From the Republic of Korea: Notice of Court Decision Not in Harmony With Final Results, Notice of Amended Final Results,84 FR 54843 (October 11, 2019)
9.
See
Memorandum, “Final Results of Redetermination Pursuant to Court Remand:
ABB INC
v.
United States,
Consol. Court No. 16-00054, Slip Op. 18-156 (CIT November 13, 2018)” dated April 26, 2019, (Second Remand Results).
12.
See
Memorandum, “Final Results of Redetermination Pursuant to Court Remand:
ABB INC
v.
United States,
Consol. Court No. 16-00054, Slip Op. 20-21 (CIT February 19, 2020)” dated April 14, 2020, (Third Remand Results).
17.
In the Final Results, we explained that “As we did not have publicly-ranged U.S. sales volumes for Hyosung for the period August 1, 2013, through July 31, 2014, to calculate a weighted average percentage margin for the non-selected companies (
i.e.,
ILJIN, ILJIN Electric, and LSIS) in this review, the rate applied to the non-selected companies is a simple-average percentage margin calculated based on the margins calculated for Hyosung and Hyundai.”
See Final Results
at 14088, n.11. As noted above, the revised margin for Hyosung is now 8.74 percent and the revised margin for Hyundai is 16.13 percent. The simple average of these two numbers is 12.44 percent.
18.
See, e.g., Large Power Transformers from the Republic of Korea: Final Results of Antidumping Duty Administrative Duty Administrative Review; 2016-2017,84 FR 16461 (April 19, 2019).
Use this for formal legal and research references to the published document.
85 FR 40247
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Large Power Transformers From the Republic of Korea: Notice of Court Decision Not in Harmony with Final Results, Notice of Amended Final Results,” thefederalregister.org (July 6, 2020), https://thefederalregister.org/documents/2020-14435/large-power-transformers-from-the-republic-of-korea-notice-of-court-decision-not-in-harmony-with-final-results-notice-of.