Preliminary Countervailing Duty Determination - Hot-Rolled Steel from Korea Administrative Review

Content

SUMMARY:

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were provided to producers
and exporters of certain hot-rolled steel flat products (hot-rolled steel) from the Republic of Korea (Korea), during the
period of review (POR) from January 1, 2023, through December 31, 2023. In addition, Commerce is rescinding this review, in
part, with respect to 13 companies. Interested parties are invited to comment on these preliminary results.

DATES:

Applicable April 10, 2026.

FOR FURTHER INFORMATION CONTACT:

Kelsie Hohenberger or Nathan James, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2517 or (202) 482-5305,
respectively.

SUPPLEMENTARY INFORMATION:

Background

On October 3, 2016, Commerce published in the
Federal Register
the countervailing duty order on hot-rolled steel from Korea. (1) On November 14, 2024, Commerce initiated this administrative review of the Order. (2) On December 17, 2024, Commerce selected Hyundai Steel and POSCO as the mandatory respondents in this review. (3)

On December 9, 2024, Commerce tolled certain deadlines in this administrative proceeding by 90 days. (4) On September 17, 2025, Commerce extended the deadline for the preliminary results of this administrative review by 120 days. (5) Further, due to the lapse in appropriations and Federal Government shutdown, on November 14, 2025, Commerce tolled all deadlines
in administrative proceedings by 47 days. (6) Additionally, due to a backlog of documents that were electronically filed via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS) during the Federal Government shutdown, on November 24,
2025, Commerce tolled all deadlines

  in administrative proceedings by an additional 21 days. [(7)]()

For a complete description of the events that followed the initiation of this review, see the Preliminary Decision Memorandum. (8) A list of topics included in the Preliminary Decision Memorandum is provided as Appendix I to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically via ACCESS. ACCESS is available to registered users
at https://access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Scope of the Order

The product covered by the Order is hot-rolled steel from Korea. For a complete description of the scope of the Order, see the Preliminary Decision Memorandum.

Rescission of Administrative Review, In Part

On March 9, 2026, Commerce notified interested parties that we intended to rescind this administrative review for 13 companies
for which the record information shows no suspended entries of subject merchandise during the POR. (9) No parties commented on the notification of intent to rescind the review, in part. Therefore, we find that there were no entries
of subject merchandise during the POR by the 13 companies listed in Appendix II. As a result of our finding, we are rescinding
this review, in part, pursuant to 19 CFR 351.213(d)(3), with respect to these companies. For further information regarding
this determination, see “Rescission of Administrative Review, in Part” section in the Preliminary Decision Memorandum.

Methodology

Commerce is conducting this administrative review in accordance with 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific. (10) For a full description of the methodology underlying our conclusions, see the Preliminary Decision Memorandum.

Preliminary Results of Review

As a result of this review, we preliminarily determine the following net countervailable subsidy rates exist for the POR,
January 1, 2023, through December 31, 2023:

| Company | Subsidy rate

(percent ad valorem)
Hyundai Steel Company 11
POSCO 12

Disclosure

Commerce intends to disclose its calculations and analysis performed to interested parties for these preliminary results within
five days of any public announcement or, if there is no public announcement, within five days of the date of publication of
this notice in accordance with 19 CFR 351.224(b).

Verification

On February 24, 2025, Nucor Corporation, a domestic interested party, requested that Commerce conduct verification in this
review. (13) In July 2025, as provided in section 782(i)(3) of the Act, we verified Hyundai Steel's information relied upon for the preliminary
results of this review. (14)

Public Comment

Pursuant to 19 CFR 351.309(c), interested parties may submit case briefs to Commerce no later than 21 days after the date
of publication of this notice. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five
days after the date for filing case briefs. (15) Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities. (16) All briefs must be filed electronically using ACCESS. An electronically filed document must be received successfully in its
entirety in ACCESS by 5:00 p.m. Eastern Time on the established deadline.

As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we request that interested parties provide at the beginning of
their briefs a public, executive summary for each issue raised in their briefs. (17) Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final results in this administrative review. We request that interested parties include
footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f). (18)

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, filed electronically via ACCESS by 5:00 p.m. Eastern Time within 30 days after 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 to be discussed. Oral presentations at the hearing will be limited to issues
raised in the briefs. If a request for a hearing is made, Commerce will inform parties of the scheduled date for the hearing. (19)

Assessment Rates

Consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), upon issuance of the final results, Commerce shall
determine, and CBP shall assess, countervailing duties on all appropriate entries covered by this review.

For the companies listed in Appendix II for which the review is being rescinded, Commerce will instruct CBP to assess countervailing
duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time
of entry, or withdrawal from warehouse, for consumption, during the period January 1, 2023, through December 31, 2023, in
accordance with 19 CFR 351.212(c)(1)(i). Commerce intends to issue rescission instructions to CBP no earlier than 35 days
after the date of publication of this notice in the
Federal Register
.

For the companies remaining under review, Commerce will instruct CBP to assess countervailing duties on all appropriate entries
at the subsidy rates calculated in the final results of this review. Commerce intends to issue assessment instructions to
CBP no earlier than 35 days after the date of publication of the final results of this review in the
Federal Register
.

If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to
liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (i.e., within 90 days of publication).

Cash Deposit Requirements

Pursuant to section 751(a)(2)(C) of the Act, Commerce intends to instruct CBP to collect cash deposits of estimated countervailing
duties in the amount indicated above with regard to shipments of subject merchandise entered, or withdrawn from warehouse,
for consumption on or after the date of publication of the final results of this review. If the rates calculated in the final
results are zero or de minimis, no cash deposit will be required on shipments of the subject merchandise entered or withdrawn from warehouse, for consumption
on or after the date of publication of this review. For all non-reviewed firms, we will instruct CBP to continue to collect
cash deposits of estimated countervailing duties at the most recent company-specific or all-others rate applicable to the
company, as appropriate. These cash deposit instructions, when imposed, shall remain in effect until further notice.

Final Results of Review

Unless the deadline is extended, we intend to issue the final results of this administrative review, which will include the
results of our analysis of the issues raised in the case briefs, within 120 days of publication of these preliminary results
in the
Federal Register
, pursuant to section 751(a)(3)(A) of the Act.

Notification to Interested Parties

We are issuing and publishing these preliminary results in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and
19 CFR 351.221(b)(4).

Dated: April 7, 2026. Christopher Abbott, Deputy Assistant Secretary for Policy and Negotiations, 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. Diversification of the Republic of Korea's Economy

V. Rescission of Administrative Review, In Part

VI. Subsidies Valuation Information

VII. Benchmarks and Interest Rates

VIII. Analysis of Programs

IX. Recommendation

Appendix II

Companies Rescinded From Review

1. DCE Inc.

2. Dong Chuel America Inc.

3. Dong Chuel Industrial Co., Ltd.

4. Dongbu Incheon Steel Co., Ltd.

5. Dongbu Steel Co., Ltd.

6. Dongkuk Industries Co., Ltd.

7. Dongkuk Steel Mill Co., Ltd.

8. Hyewon Sni Corporation (H.S.I.)

9. JFE Shoji Trade Korea Ltd.

10. POSCO Coated & Color Steel Co., Ltd.

11. POSCO Daewoo Corporation

12. Soon Hong Trading Co., Ltd.

13. Sung-A Steel Co., Ltd.

[FR Doc. 2026-07001 Filed 4-9-26; 8:45 am] BILLING CODE 3510-DS-P

Footnotes

(1) See Certain Hot-Rolled Steel Flat Products from Brazil and the Republic of Korea: Amended Final Affirmative Countervailing
Duty Determination and Countervailing Duty Orders, 81 FR 67960 (October 3, 2016) (Order).

(2) See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 89 FR 89955 (November 14, 2024) (Initiation Notice).

(3) See Memorandum, “Respondent Selection,” dated December 17, 2024.

(4) See Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated December 9, 2024.

(5) See Memorandum, “Extension of Deadline for Preliminary Results of 2023 Countervailing Duty Administrative Review,” dated September
17, 2025.

(6) See Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” dated November 14, 2025.

(7) See Memorandum, “Tolling of all Case Deadlines,” dated November 24, 2025.

(8) See Memorandum, “Decision Memorandum for the Preliminary Results and Partial Rescission of the Administrative Review of the Countervailing
Duty Order on Certain Hot-Rolled Steel Flat Products from the Republic of Korea; 2023,” dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).

(9) See Memorandum, “Intent to Rescind Review, in Part,” dated March 9, 2026.

(10) See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and
section 771(5A) of the Act regarding specificity.

(11) Hyundai Steel Company is also known as Hyundai Steel Co., Ltd. Further, as discussed in the Preliminary Determination Memorandum,
Commerce has found Hyundai Green Power and Hyundai ITC Co., Ltd. to be cross-owned with Hyundai Steel.

(12) As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with POSCO:
POSCO Holdings, POSCO M-Tech, POSCO Future M, POSCO Mobility Solutions, and POSCO Nippon Steel RHF Joint Venture Co., Ltd.
We note that POSCO has an affiliated trading company through which it exported certain subject merchandise, POSCO International
Corporation (POSCO International). POSCO International was not selected as a mandatory respondent, but was examined in the
context of POSCO. Therefore, because POSCO International's subsidies are included as part of POSCO's total subsidy rate, we
have not assigned a subsidy rate to POSCO International. Entries of subject merchandise exported by POSCO International will
receive the rate of the producer listed on the U.S. Customs and Border Protection (CBP) entry form.

(13) See Nucor's Letter, “Request for Verification,” dated February 24, 2025.

(14) See Memorandum, “Verification of the Questionnaire Responses of Hyundai Steel Company and Its Cross-owned Companies,” dated August
4, 2025.

(15) See 19 CFR 351.309(d); see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 2023) (APO and Service Procedures).

(16) See 19 CFR 351.309(c)(2) and (d)(2).

(17) We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and
Decision Memorandum.

(18) See APO and Service Procedures.

(19) See 19 CFR 351.310(d).

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