[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Notices]
[Pages 49927-49929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24505]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-834]


Stainless Steel Sheet and Strip in Coils From the Republic of 
Korea: Notice of Initiation of Changed Circumstances Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Initiation of Changed Circumstances Antidumping Duty 
Administrative Review.

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SUMMARY: On August 6, 2001, the Department of Commerce (``Department'') 
received a letter on behalf of the INI Steel Company (``INI''), 
formerly Inchon Iron and Steel Co., Ltd. (``Inchon''), notifying the 
Department that Inchon's corporate name has changed to INI Steel 
Company. INI requests that the Department initiate a changed 
circumstance administrative review to confirm that INI is the 
successor-in-interest to Inchon.

EFFECTIVE DATE: October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Cheryl Werner or Rick Johnson, Import 
Adminstration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone (202) 482-2667 and (202) 482-3818, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') by 
the Uruguay Round Agreements Act (``URAA''). In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
to the regulations at 19 CFR part 351 (2001).

Background

    In an August 6, 2001, letter to the Department, INI Steel Company, 
formerly Inchon Iron and Steel Co., Ltd., notified the Department that 
as of August 1, 2001, Inchon's corporate name had changed to INI Steel 
Company. INI stated that its owners, management structure, production 
facilities, supplier relationships and customer base are to remain 
unchanged and unaffected by the adoption of the new corporate name. INI 
provided documentation to support this claim consisting of: the minutes 
of Inchon's July 27, 2001 shareholders' meeting where the name change 
was approved; the Inchon District Court's official certification of the 
name change registered on July 31, 2001; and INI's Business 
Registration Certificate issued on August 1, 2001 by the Inchon Tax 
Office.

Scope of the Review

    For purposes of this changed circumstances review, the products 
covered are certain stainless steel sheet and strip in coils. Stainless 
steel is an alloy steel containing, by weight, 1.2 percent or less of 
carbon and 10.5 percent or more of chromium, with or without other 
elements. The subject sheet and strip is a flat-rolled product in coils 
that is greater than 9.5 mm in width and less than 4.75 mm in 
thickness, and that is annealed or otherwise heat treated and pickled 
or otherwise descaled. The subject sheet and strip may also be further 
processed (e.g., cold-rolled, polished, aluminized, coated, etc.) 
provided that it maintains the specific dimensions of sheet and strip 
following such processing.
    The merchandise subject to this review is classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 
7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.1300.81\1\, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.32.0005, 7219.32.0020, 
7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 
7219.32.0044, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 
7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.34.0005, 
7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.35.0005, 
7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.90.0010, 7219.90.0020, 
7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 
7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 
7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.20.8000, 
7220.20.9030, 7220.20.9060, 7220.90.0010, 7220.90.0015, 7220.90.0060, 
and 7220.90.0080. Although the HTSUS subheadings are provided for 
convenience and Customs purposes, the Department's written description 
of the merchandise under review is dispositive.
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    \1\ Due to changes to the HTSUS numbers in 2001, 7219.13.0030, 
7219.13.0050, 7219.13.0070, and 7219.13.0080 are now 7219.13.0031, 
7219.13.0051, 7219.13,0071, and 7219.13.0081, respectively.
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    Excluded from the scope of this review are the following: (1) Sheet 
and strip that is not annealed or otherwise heat treated and pickled or 
otherwise descaled, (2) sheet and strip that is cut to length, (3) 
plate (i.e., flat-rolled stainless steel products of a thickness of 
4.75 mm or more), (4) flat wire (i.e., cold-rolled sections, with a 
prepared edge, rectangular in shape, of a width of not more than 9.5 
mm), and (5) razor blade steel. Razor blade steel is a flat-rolled 
product of stainless steel, not further worked than cold-rolled (cold-
reduced), in coils, of a width of not more than 23 mm and a thickness 
of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent 
chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the HTSUS, ``Additional 
U.S. Note'' 1(d).
    The Department has determined that certain additional specialty 
stainless steel products are also excluded from the scope of this 
review. These excluded products are described below.
    Flapper value steel is excluded from this review. Flapper valve 
steel is defined as stainless steel strip in coils containing, by 
weight, between 0.37 and 0.43 percent carbon, between 1.15 and 1.35 
percent molybdenum, and between 0.20 and 0.80 percent manganese. This 
steel also contains, by weight, phosphorus of 0.025 percent or less, 
silicon of between 0.20 and 0.50 percent, and sulfur of 0.020 percent 
or less. The product is manufactured by means of vacuum arc remelting, 
with inclusion controls for sulphide of no more than 0.04 percent and 
for oxide of no more than 0.05 percent. Flapper valve steel has a 
tensile strength of between 210 and 300 ksi, yield strength of between 
170 and 270 ksi, plus or minus 8 ksi, and a hardness (Hv) of between 
460 and 590. Flapper valve steel is most commonly used to produce 
specialty flapper valves in compressors.
    Also excluded is a product referred to as suspension foil, a 
specialty steel product used in the manufacture of

[[Page 49928]]

suspension assemblies for computer disk drives. Suspension foil is 
described as 302/304 grade or 202 grade stainless steel of a thickness 
between 14 and 127 microns, with a thickness tolerance of plus-or-minus 
2.01 microns, and surface glossiness of 200 to 700 percent Gs. 
Suspension foil must be supplied in coil widths of not more than 407 
mm, and with a mass of 225 kg or less. Roll marks may only be visible 
on one side, with no scratches of measurable depth. The material must 
exhibit residual stresses of 2 mm maximum deflection, and flatness of 
1.6 mm over 685 mm length.
    Certain stainless steel foil for automotive catalytic converters is 
also excluded from the scope of this review. This stainless steel strip 
in coils is a specialty foil with a thickness of between 20 and 110 
microns used to produce a metallic substrate with a honeycomb structure 
for use in automotive catalytic converters. The steel contains, by 
weight, carbon of no more than 0.030 percent, silicon of no more than 
1.0 percent, manganese of no more than 1.0 percent, chromium of between 
19 and 22 percent, aluminum of no less than 5.0 percent, phosphorus of 
no more than 0.045 percent, sulfur of no more than 0.03 percent, 
lanthanum of less than 0.002 or greater than 0.05 percent, and total 
rare earth elements of more than 0.06 percent, with the balance iron.
    Permanent magnet iron-chromium-cobalt alloy stainless strip is also 
excluded from the scope of this review. This ductile stainless steel 
strip contains, by weight, 26 to 30 percent chromium, and 7 to 10 
percent cobalt, with the remainder of iron, in widths 228.6 mm or less, 
and a thickness between 0.127 and 1.270 mm. It exhibits magnetic 
remanence between 9,000 and 12,000 gauss, and a coercivity of between 
50 and 300 oersteds. This product is most commonly used in electronic 
sensors and is currently available under proprietary trade names such 
as ``Arnokrome III.'' \2\
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    \2\ ``Armokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of this review. This product is defined as a non-magnetic 
stainless steel manufactured to American Society of Testing and 
Materials (``ASTM'') specification B344 and containing, by weight, 36 
percent nickel, 18 percent chromium, and 46 percent iron, and is most 
notable for its resistance to high temperature corrosion. It has a 
melting point of 1390 degrees Celsius and displays a creep rupture 
limit of 4 kilograms per square millimeter at 1000 degrees Celsius. 
This steel is most commonly used in the production of heating ribbons 
for circuit breakers and industrial furnaces, and in rheostats for 
railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.'' \3\
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    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel is 
also excluded from the scope of this review. This high-strength, 
ductile stainless steel product is designated under the Unified 
Numbering System (``UNS'') as S45500-grade steel, and contains, by 
weight, 11 to 13 percent chromium, and 7 to 10 percent nickel. Carbon, 
manganese, silicon and molybdenum each comprise, by weight, 0.05 
percent or less, with phosphorus and sulfur each comprising, by weight, 
0.03 percent or less. This steel has copper, niobium, and titanium 
added to achieve aging, and will exhibit yield strengths as high as 
1700 Mpa and ultimate tensile strengths as high as 1750 Mpa after 
aging, with elongation percentages of 3 percent or less in 50 mm. It is 
generally provided in thicknesses between 0.635 and 0.787 mm, and in 
widths of 25.4 mm. This product is most commonly used in the 
manufacture of television tubes and is currently available under 
proprietary trade names such as ``Durphynox 17.'' \4\
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    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    Finally, three specialty stainless steels typically used in certain 
industrial blades and surgical and medical instruments are also 
excluded from the scope of this review. These include stainless steel 
strip in coils used in the production of textile cutting tools (e.g., 
carpet knives).\5\ This steel is similar to AISI grade 420 but 
containing, by weight, 0.5 to 0.7 percent of molybdenum. The steel also 
contains, by weight, carbon of between 1.0 and 1.1 percent, sulfur of 
0.020 percent or less, and includes between 0.20 and 0.30 percent 
copper and between 0.20 and 0.50 percent cobalt. This steel is sold 
under proprietary names such as ``GIN4 Mo.'' The second excluded 
stainless steel strip in coils is similar to AISI 420-J2 and contains, 
by weight, carbon of between 0.62 and 0.70 percent, silicon of between 
0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent, 
phosphorus of no more than 0.025 percent and sulfur of no more than 
0.020 percent. This steel has a carbide density on average of 100 
carbide particles per 100 square microns. An example of this product is 
``GIN5'' steel. The third specialty steel has a chemical composition 
similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent, 
molybdenum of between 1.15 and 1.35 percent, but lower manganese of 
between 0.20 and 0.80 percent, phosphorus of no more than 0.025 
percent, silicon of between 0.20 and 0.50 percent, and sulfur of no 
more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6''.\6\
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \6\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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Initiation of Changed Circumstance AD Review

    At the request of INI, and in accordance with sections 751(b)(1) of 
the Act, and section 351.216 of the Department's regulations, the 
Department is initiating a changed circumstance review of stainless 
steel sheet and strip in coils from Korea to determine whether INI is 
the successor-in-interest to Inchon Iron and Steel, Co., Ltd. In making 
successor-in-interest determinations, the Department examines several 
factors including, but not limited to, changes in: (1) Management; (2) 
production facilities; (3) supplier relationships; and (4) customer 
base. See e.g., Brass Sheet and Strip from Canada; Final Results of 
Antidumping Duty Administrative Review, 57 FR 20460, 20461 (May 13, 
1992). While no single factor, or combination of factors, will 
necessarily be dispositive, the Department will generally consider the 
new company to be the successor to its predecessor company if the 
resulting operations are essentially the same as the predecessor 
company. See e.g., id. and Industrial Phosphoric Acid from Israel; 
Final Results of Changed Circumstances Review, 59 FR 6944, 6945 
(February 14, 1994). Thus, if the evidence demonstrates that, with 
respect to the production and sale of the subject merchandise, the new 
company operates as the same business entity as its predecessor, the 
Department will treat the new company as the successor-in-interest to 
the predecessor.
    The information submitted by INI shows changed circumstances 
sufficient to warrant a review under 19 CFR 351.216. We will publish in 
the Federal Register a notice of preliminary results of antidumping 
duty changed circumstances review, in accordance with 19 CFR 
351.221(b)(4) and 351.221(c)(3)(i), which will set forth the factual 
and legal conclusions upon which our preliminary results are based and 
a description of any action

[[Page 49929]]

proposed based on those results. As per 351.221(b)(4), interested 
parties will have an opportunity to comment. The Department will issue 
its final results of review in accordance with the time limitations set 
forth in 19 CFR 351.216(e). All written comments must be submitted to 
the Department and served on all interested parties on the Department's 
service list in accordance with 19 CFR 351.303.
    During the course of this changed circumstances review, we will not 
change any cash deposit instructions on the merchandise subject to this 
changed circumstances review, unless a change is determined to be 
warranted pursuant to the final results of this review.
    This notice is in accordance with section 751(b)(1) of the Act and 
19 CFR 351.216 and 351.221.

    Dated: September 24, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-24505 Filed 9-28-01; 8:45 am]
BILLING CODE 3510-DS-P