Commerce Drops CVD Rate for Hyundai's Port-Usage Rights on Remand at Trade Court
The Commerce Department on Jan. 24 dropped exporter Hyundai Steel Co.'s countervailing duty rate to a de minimis mark on remand in a suit contesting the rate applicable to Hyundai's usage rights for the North Incheon Harbor in South Korea. The agency said at the Court of International Trade that it considered the exporter's "construction costs in the benefit calculation," though it disagreed that the construction costs should be considered at all (Hyundai Steel Co. v. United States, CIT # 21-00304).
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Hyundai built a wharf at the North Incheon Harbor, completing the project in 2006. The company paid most of the port's construction costs then transferred ownership to the Korean government in 2007. Since it built the wharf, Hyundai was allowed to use the port freely and collect berthing income from third-party users for a period of 41 years.
As part of the 2018 review of the CVD order on corrosion-resistant steel products from South Korea, Commerce said that because of the Korean government's forgone revenue it would have gained from collecting the fees itself, the provision of port-use rights was a benefit for Hyundai. The result was a total 0.51% CVD rate for the company, just clearing the de minimis mark.
The trade court remanded this finding in September 2023, telling the agency to consider Hyundai's construction costs in its analysis of whether a benefit was provided (see 2309270034). Commerce said it subtracted Hyundai's construction costs from the "sum of the berth occupancy charges and harbor facility usage fees" the company collected from third parties. This mark was then divided by Hyundai's total sales.