[Federal Register Volume 67, Number 106 (Monday, June 3, 2002)]
[Notices]
[Pages 38257-38259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13840]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-835]


Stainless Steel Sheet and Strip in Coils from the Republic of 
Korea: Notice of Preliminary Results of Changed Circumstances 
Countervailing Duty Administrative Review

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

ACTION: Notice of Preliminary Results of Changed Circumstances 
Countervailing Duty Administrative Review.

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SUMMARY: On September 28, 2001, the Department of Commerce (Department) 
published a notice of initiation in the above-named case. As a result 
of this review, the Department preliminarily finds that the new name of 
Inchon Iron & Steel Co., Ltd. (Inchon) is INI Steel Company (INI).

FOR FURTHER INFORMATION CONTACT: Tipten Troidl or Richard Herring, AD/
CVD Enforcement Office VI, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone 
(202) 482-2786.

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

    The Department published on June 8, 1999, a Final Affirmative 
Countervailing Duty Determination: Stainless Steel Sheet and Strip in 
Coils from the Republic of Korea, 64 FR 30636, (Sheet and Strip) and 
published on August 6, 1999 the Amended Final Determination: Stainless 
Steel Sheet and Strip in Coils from the Republic of Korea; and Notice 
of Countervailing Duty Orders: Stainless Steel Sheet and Strip in Coils 
from France, Italy, and the Republic of Korea, 64 FR 42923. In the 
original investigation and a subsequent review, the Department 
determined that Inchon received countervailable subsidies and therefore 
the Department calculated a cash deposit rate for Inchon. In an August 
6, 2001, letter to the Department, INI notified the Department that as 
of August 1, 2001, Inchon's corporate name had changed to INI Steel 
Company. On September 28, 2001, the Department published a Notice of 
Initiation of Changed Circumstances Countervailing Duty Administrative 
Review, 66 FR 49639.

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 valve 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,

[[Page 38258]]

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 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\ ``Arnokrome 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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Preliminary Results

    In determining that Inchon changed its name to INI, we reviewed 
documents submitted on the record, including: (1) the minutes of 
Inchon's shareholder's meeting; (2) official certification of name 
change registration; and (3) INI's business registration certificate. 
The minutes of the shareholder's meeting shows that the name change was 
approved under item two: ``Topic of Bill of a Partial Amendment to 
Articles of Incorporation.'' Article 1, which refers to the name of the 
company, shows that, prior to the amendment, the name of the company 
was Inchon Iron & Steel Co., Ltd, and that, after the partial amendment 
to the Articles of Incorporation, the company's name is INI Steel 
Company. We also reviewed a translated copy of the official 
certification of name change that INI provided to the Inchon District 
Court on July 31, 2001. Finally, we reviewed INI's business 
registration certificate as issued on August 1, 2001 by the Inchon City 
Tax Office. This document states that the reason the document was 
issued was for a ``change of company name.''
    Based upon the information on the record, we preliminarily 
determine that Inchon has changed its name to INI Steel company. If the 
final results of this review remain unchanged, we intend to

[[Page 38259]]

update our instructions to U.S. Customs to reflect this name change; 
INI (Inchon) will receive Inchon's cash deposit ad valorem rate.

Public Comments

    Pursuant to 19 CFR 351.310, any interested party may request a 
hearing within 10 days of publication of this notice. Persons 
interested in attending the hearing should contact the Department for 
the date and time of any hearing. Case briefs and/ or written comments 
from interested parties may be submitted no later than 10 days after 
the date of publications of this notice. Rebuttal briefs and rebuttals 
comments, limited to the issues raised in those case briefs or 
comments, may be filed no later than 17 days after the publication of 
this notice. All written comments must be submitted and served on all 
interested parties on the Department's service list in accordance with 
19 CFR 351.303. The Department will publish in the Federal Register a 
notice of final results of this changed circumstance countervailing 
duty administrative review, including the results of its analysis of 
any issues raised in any written comments.
    During the course of this changed circumstance 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 sections 751(b)(1) and 777(i)(1) 
of the Act and 19 CFR 351.221(c)(3) and 19 CFR 351.216.

    Dated: May 28, 2002.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-13840 Filed 5-31-02; 8:45 am]
BILLING CODE 3510-DS-S