Commerce Wants Redo on CVD Review Over Korean Sewerage Fees Program

The Commerce Department wants another chance to consider a countervailing duty review after it learned more about the alleged benefit conferred to the respondent, the Department of Justice said in an unopposed remand motion filed Nov. 8 at the Court of International Trade. In particular, Commerce wants to reconsider a South Korean government program relating to the payments of sewerage fees that allegedly gave respondent Hyundai Steel Co.a countervailable benefit (Hyundai Steel Company v. U.S., CIT #21-00012).

The case concerns the 2018 CVD administrative review of cut-to-length carbon-quality steel plate from South Korea. In the East Asian country, the regional government water authority assumes that however much water a customer consumes equals the amount of sewerage it discharges into the public sewer system. The customers are therefore charged for this sewerage based on the level of water consumed. However, if a customer can prove that it did not discharge as much sewerage as the amount of water it consumed, that customer can be charged at the actual rate of water usage.

Hyundai said it uses water as part of its production process. Therefore, the company hired an "independent study" to find its actual level of sewerage. This study was accepted by the regional Korean water authority, lowering Hyundai's level at which it is charged for water consumption (see 2106240047). The CVD petitioner then alleged that this was a countervailable benefit to Hyundai.

Now, Commerce is requesting a remand in the case since its understanding of the program has increased stemming from the 2019 administrative review of the program. "In light of this increased understanding of the program and law, Commerce requests a voluntary remand to reconsider the countervailability of the Reduction for Sewerage Fees program in the 2018 administrative review," the motion said. DOJ said that Hyundai consents to the motion while the petitioner, Nucor Corporation, takes no position.