[Federal Register Volume 77, Number 133 (Wednesday, July 11, 2012)]
[Notices]
[Pages 40857-40859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16935]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-867]
Large Power Transformers From the Republic of Korea: Final
Determination of Sales at Less Than Fair Value
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has determined
that imports of large power transformers from the Republic of Korea
(Korea) are being, or are likely to be, sold in the United States at
less than fair value (LTFV), as provided in section 735 of the Tariff
Act of 1930, as amended (the Act). The estimated margins of sales at
LTFV are listed in the ``Continuation of Suspension of Liquidation''
section of this notice.
DATES: Effective Date: July 11, 2012.
FOR FURTHER INFORMATION CONTACT: David Cordell and Brian Davis, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0408 or (202) 482-7924, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 16, 2012, the Department published in the Federal
Register its preliminary determination in the antidumping duty
investigation of large power transformers from Korea. See Large Power
Transformers From the Republic of Korea: Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final Determination,
77 FR 9204 (February 16, 2012) (Preliminary Determination).
As provided in section 782(i) of the Act, we conducted sales and
cost verifications of the questionnaire responses submitted by the
mandatory respondents, Hyundai Heavy Industries Co., Ltd. (Hyundai) and
Hyosung Corporation (Hyosung). We used standard verification
procedures, including examination of relevant accounting and production
records, as well as original source documents provided by both
companies.\1\
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\1\ See Memoranda to the File entitled ``Home Market
Verification of the Sales Response of Hyosung Corporation in the
Antidumping Duty Investigation of Large Power Transformers from the
Republic of Korea,'' dated May 4, 2012; ``Home Market Verification
of the Sales Response of Hyundai Heavy Industries Co., Ltd.
(``HHI'') and Hyundai Corporation, U.S.A. (collectively Hyundai) in
the Antidumping Duty Investigation of Large Power Transformers from
the Republic of Korea,'' dated May 10, 2012; ``Constructed Export
Price Verification of the Sales Response of Hyosung Corporation in
the Antidumping Duty Investigation of Large Power Transformers from
the Republic of Korea,'' dated May 15, 2012; ``Constructed Export
Price Verification of the Sales Response of Hyundai Heavy Industries
(HHI) and Hyundai Corporation, U.S.A. (collectively Hyundai) in the
Antidumping Duty Investigation of Large Power Transformers from the
Republic of Korea,'' dated May 16, 2012; ``Verification of the Cost
Response of Hyosung Corporation in the Antidumping Investigation of
Large Power Transformers from South Korea,'' dated May 4, 2012; and
``Verification of the Cost of Production and Constructed Value Data
Submitted by Hyundai Heavy Industries Co., Ltd. in the Antidumping
Duty Investigation of Large Power Transformers from the Republic of
Korea,'' dated May 2, 2012.
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We received case briefs from ABB Inc., Delta Star, Inc., and
Pennsylvania Transformer Technology Inc. (collectively, Petitioners),
Hyundai, and Hyosung on May 25, 2012. These parties submitted rebuttal
comments on June 1, 2012. No hearing was requested.
On June 4, 2012 and June 6, 2012, the Department solicited revised
sales and cost databases from Hyosung and Hyundai, respectively, to
address minor corrections and findings from verification. Accordingly,
Hyundai and Hyosung submitted revised sales and cost databases on June
12, 2012. We met with counsel for Petitioners, Hyundai, and Hyosung on
June 13, June 18, and June 19, 2012, respectively.\2\
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\2\ See Memoranda to the File entitled, ``Antidumping Duty
Investigation concerning Large Power Transformers from the Republic
of Korea: Department Meeting with Petitioners' Counsel,'' dated June
15, 2012, ``Antidumping Duty Investigation concerning Large Power
Transformers from the Republic of Korea: Department Meeting with
Respondent's Counsel (Hyundai),'' dated June 20, 2012, and
``Antidumping Duty Investigation concerning Large Power Transformers
from the Republic of Korea: Department Meeting with Respondent's
Counsel (Hyosung Corporation),'' dated June 19, 2012.
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Period of Investigation
The period of investigation is July 1, 2010, through June 30, 2011.
Scope of Investigation
The scope of this investigation covers large liquid dielectric
power transformers (LPTs) 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 investigation 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 investigation is
dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this antidumping investigation are addressed in the Issues and Decision
Memorandum from Gary Taverman, Senior Advisor for Antidumping and
Countervailing Duty Operations, to Paul Piquado, Assistant Secretary
for Import Administration (Issues and Decision Memorandum), which is
dated concurrently with and hereby adopted by this notice. A list of
the issues raised is attached to this notice as Appendix I. The Issues
and Decision Memorandum is a public document and is on file
electronically via Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (IA ACCESS).
[[Page 40858]]
Access to IA ACCESS is available in the Central Records Unit (CRU),
room 7046 of the main Department of Commerce building. In addition, a
complete version of the Issues and Decision Memorandum can be accessed
directly on the Internet at http://www.trade.gov/ia/. The signed Issues
and Decision Memorandum and the electronic versions of the Issues and
Decision Memorandum are identical in content.
Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verifications, we have made certain changes to the margin calculations
for Hyundai and Hyosung. For a discussion of these changes, see
Memoranda to the file, through Angelica Mendoza, Program Manager, from
David Cordell and Brian Davis, International Trade Analysts, entitled
``Analysis of Data Submitted by Hyundai Heavy Industries (HHI) and
Hyundai Corporation, U.S.A. (collectively Hyundai) in the Final
Determination of the Antidumping Duty Investigation of Large Power
Transformers from the Republic of Korea'' and, ``Analysis of Data
Submitted by Hyosung Corporation in the Final Determination of the
Antidumping Duty Investigation of Large Power Transformers from the
Republic of Korea,'' dated July 2, 2012; see also Memoranda to Neal M.
Halper, Director, Office of Accounting, through Michael P. Martin, Lead
Accountant, entitled, ``Cost of Production and Constructed Value
Calculation Adjustments for the Final Determination--Hyundai Heavy
Industries Co., Ltd. and Hyundai Corporation, USA'' and ``Cost of
Production and Constructed Value Calculation Adjustments for the Final
Determination--Hyosung Corporation,'' both dated July 2, 2012.
Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S.
Customs and Border Protection (CBP) to continue to suspend liquidation
of all entries of large power transformers from Korea which were
entered, or withdrawn from warehouse, for consumption on or after
February 16, 2012, the date of publication of the Preliminary
Determination. We will instruct CBP to require a cash deposit or the
posting of a bond equal to the weighted-average margins, as indicated
below, as follows: (1) The rates for Hyundai and Hyosung will be the
rates we have determined in this final determination; (2) if the
exporter is not a firm identified in this investigation but the
producer is, the rate will be the rate established for the producer of
the subject merchandise; (3) the rate for all other producers or
exporters will be 22.00 percent, as discussed in the ``All Others
Rate'' section, below. These suspension-of-liquidation instructions
will remain in effect until further notice.
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Weighted-
Manufacturer/exporter average margin
(percent)
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Hyundai Heavy Industries Co., Ltd....................... 14.95
Hyosung Corporation..................................... 29.04
All Others.............................................. 22.00
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All Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated all
others rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated excluding any zero or de
minimis margins and any margins determined entirely under section 776
of the Act. Hyundai and Hyosung are the only respondents in this
investigation for which we calculated company-specific rates that are
not zero or de minimis or determined entirely under section 776 of the
Act. Therefore, because there are only two relevant weighted-average
dumping margins for this final determination and because using a
weighted-average calculation risks disclosure of business proprietary
information of Hyundai and Hyosung, the ``all others'' rate is a
simple-average of these two values, which is 22.00 percent. See
Seamless Refined Copper Pipe and Tube From Mexico: Final Determination
of Sales at Less Than Fair Value, 75 FR 60723, 60724 (October 1, 2010)
(using a simple average to determine the ``All Others'' rate when there
are only two relevant weighted-average dumping margins because use of a
weighted average risks disclosure of business proprietary
information).\3\
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\3\ In the public version of its December 13, 2011, supplemental
questionnaire responses at page SA-1, Hyosung provided ranged
quantity and value of U.S. sales data, whereas in its January 13,
2012, supplemental questionnaire response at page SBC1, Hyundai
provided indexed quantity and value U.S. sales data. Therefore, we
were unable to perform the analysis articulated in Ball Bearings and
Parts Thereof From France, et al.: Final Results of Antidumping Duty
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662-3
(September 1, 2010) in this investigation in determining the ``all
others rate.''
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Disclosure
We intend to disclose to parties in this proceeding the
calculations performed within five days of the date of publication of
this notice in accordance with 19 CFR 351.224(b).
International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our final determination. As our
final determination is affirmative and in accordance with section
735(b)(2) of the Act, the ITC will determine, within 45 days, whether
the domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports or sales (or the
likelihood of sales) for importation of the subject merchandise. If the
ITC determines that such injury does exist, the Department will issue
an antidumping duty order directing CBP to assess antidumping duties on
all imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Notification Regarding Administrative Protective Order
This notice also serves as a final reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CPR 351.305. Timely notification of the
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and the
terms of an APO is a sanctionable violation.
This determination is issued and published pursuant to sections
735(d) and 777(i)(l) of the Act.
Dated: July 2, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I
Issues and Decision Memorandum
General
Comment 1: Date of Sale
Comment 2: Facts Available
Hyundai Heavy Industries Co., Ltd.--Specific Comments
Comment 3: Home Market Gross Unit Price
Comment 4: U.S. Gross Unit Price
Comment 5: U.S. Selling Expenses: Commissions and U.S. Duty
Comment 6: CEP Offset
Comment 7: Inconsistent Allocation of Certain Selling Expenses
[[Page 40859]]
Comment 8: General and Administrative and Financial Expenses
Comment 9: Unshipped Sales
Comment 10: Normal Value Versus Constructed Value
Hyosung Corporation--Specific Comments
Comment 11: Selling Expense Classifications
Comment 12: Gross Unit Price
Comment 13: The Understatement of U.S. Selling Expenses
Comment 14: The Use of Actual Data in Margin Calculation
Comment 15: General and Administrative and Indirect Selling Expense
Ratios
Comment 16: Clerical Error
[FR Doc. 2012-16935 Filed 7-10-12; 8:45 am]
BILLING CODE 3510-DS-P