[Federal Register Volume 67, Number 125 (Friday, June 28, 2002)]
[Notices]
[Pages 43583-43585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16372]


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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 Final Results of Changed Circumstances Antidumping 
Duty Administrative Review

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

ACTION: Notice of Final Results of Changed Circumstances Antidumping 
Duty Administrative Review.

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SUMMARY: On December 31, 2001, the Department of Commerce 
(``Department'') published the notice of preliminary results of its 
changed circumstances review examining whether INI Steel Company 
(``INI'') is the successor-in-interest to Inchon Iron & Steel Co., Ltd. 
(``Inchon'') by virtue of its name change. See Notice of Preliminary 
Results of Changed Circumstances Antidumping Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils from the Republic of 
Korea, 66 FR 67513 (December 31, 2001) (``Preliminary Results''). In 
those Preliminary Results, the Department found that INI is the 
successor-in-interest to Inchon and that INI and Sammi Steel Co. 
(``Sammi'') remain separate legal entities.
    After considering comments from interested parties, the Department 
continues to find that INI is the successor-in-interest to Inchon, and 
that INI should retain the deposit rate assigned to Inchon by the 
Department for all entries of the subject merchandise produced or 
exported by INI; and that INI's acquisition of Sammi has not changed 
the status of either company as separate legal entities. We have now 
completed this changed circumstances review in accordance with 19 
C.F.R. 351.216 and 351.221(c)(3).

EFFECTIVE DATE: June 28, 2002.

FOR FURTHER INFORMATION CONTACT: Cheryl Werner or Laurel LaCivita, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-2667 and (202) 482-4243, 
respectively.

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. In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
regulations at 19 CFR Part 351 (2001).

SUPPLEMENTARY INFORMATION:

Background

    On October 1, 2001, the Department initiated this changed 
circumstances review.
    See Stainless Steel Sheet and Strip in Coils from the Republic of 
Korea: Notice of Initiation of Changed Circumstances Antidumping Duty 
Administrative Review, 66 FR 49927 (October 1, 2001) (``Notice of 
Initiation''). On December 31, 2001, the Department published the 
preliminary results of its changed circumstances review in the above-
named case. See Preliminary Results. We gave interested parties 21 days 
to comment on our preliminary results. On January 22, 2002, petitioners 
submitted comments and on January 28, 2002, INI submitted rebuttal 
comments. See Comments section below.

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

[[Page 43584]]

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 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 ofbetween 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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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memorandum'') from Joseph A. Spetrini, Deputy 
Assistant Secretary, AD/CVD Enforcement Group III, to Faryar Shirzad, 
Assistant Secretary for Import Administration, which is hereby adopted 
by this notice. A list of the issues which parties have raised and to 
which we have responded, all of which are in the Decision Memorandum, 
is attached to this notice as an Appendix. Parties can find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, Room B-099 of the main Department building. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Web at http://ia.ita.doc.gov/frn/frnhome.htm. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

[[Page 43585]]

Successorship and Final Results

    On the basis of the record developed in this proceeding, we 
determine INI to be the successor-in-interest to Inchon for purposes of 
determining antidumping duty liability. Since Inchon was excluded from 
the antidumping duty order based on a calculated weighted-average 
margin of zero in the original investigation, INI is entitled to 
Inchon's exclusion from the antidumping duty order. See Notice of Final 
Determination of Sales at Less Than Fair Value: Stainless Steel Sheet 
and Strip in Coils From the Republic of Korea, 64 FR 30664, 30688 (June 
8, 1999) (``Final Determination'') and Notice of Antidumping Duty 
Order; Stainless Steel Sheet and Strip in Coils from United Kingdom, 
Taiwan and South Korea, 64 FR 40555 (July 27, 1999). For a complete 
discussion of the basis for this decision see Comment 2 of the Issues 
and Decision Memo associated with this notice.
    Further, based on our analysis in the Preliminary Results and 
comments received, we find that INI and Sammi remain separate legal 
entities. INI's acquisition of 68.42 percent of Sammi's equity does not 
by itself provide a basis for the Department to collapse the producers 
nor assign Sammi's cash deposit rate to INI, which is excluded from the 
order. See Final Determination, 64 FR 30664 (June 8, 1999).
    This notice also serves as a final reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Failure to timely notify 
the Department in writing of the return/destruction of APO material is 
a sanctionable violation.
    We are issuing and publishing this finding and notice 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: June 21, 2002
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX I

1. Collapsing INI and Sammi
2. Application of Sammi's antidumping duty rate to INI
[FR Doc. 02-16372 Filed 6-27-02; 8:45 am]
BILLING CODE 3510-DS-S