[Federal Register Volume 67, Number 145 (Monday, July 29, 2002)]
[Notices]
[Pages 49005-49008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19110]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]


Stainless Steel Sheet and Strip in Coils from Germany: Initiation 
and Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Review

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

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

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SUMMARY: The Department of Commerce (the Department) has received 
information sufficient to warrant initiation of a changed circumstances 
administrative review of the antidumping duty order on stainless steel 
sheet and strip in coils from Germany (64 FR 40557 (July 27, 1999)). On 
June 12, 2002, ThyssenKrupp Nirosta GmbH, formerly Krupp Thyssen 
Nirosta GmbH, informed the Department of its corporate name change 
effective December 19, 2001, and requested that the Department initiate 
and conduct an expedited changed circumstances review. Based on 
information provided in its June 12, 2002 letter, we preliminarily 
determine that ThyssenKrupp Nirosta GmbH is the successor firm to Krupp 
Thyssen Nirosta GmbH.\1\*COM019*
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    \1\ In addition to ThyssenKrupp Nirosta GmbH the following 
companies involved in the production, importation, and U.S. sale of 
subject merchandise have changed their corporate names: Krupp 
Thyssen Nirosta North America, Inc. to ThyssenKrupp Nirosta North 
America, Inc.; Krupp VDM GmbH to ThyssenKrupp VDM GmbH; and Krupp 
VDM Technologies Corporation to ThyssenKrupp VDM USA, Inc.
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    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: July 29, 2002.

FOR FURTHER INFORMATION CONTACT: Patricia Tran or Robert James, AD/CVD 
Enforcement, Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230, telephone: (202) 
482-1121 or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

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

Background

    On July 27, 1999, the Department published the antidumping duty 
order on stainless steel sheet and strip in coils from Germany. See 
Notice of Amended Final Determination of Sales at Less Than Fair Value 
and Antidumping Duty Order; Stainless Steel Sheet and Strip in Coils 
From Germany, 64 FR 40557 (July 27, 1999). In a June 12, 2002 letter to 
the Department, ThyssenKrupp Nirosta GmbH requested that the Department 
initiate and conduct an expedited changed circumstances administrative 
review pursuant to section 751(b) of the Tariff Act to determine 
whether it is the successor-in-interest to Krupp Thyssen Nirosta GmbH 
for purposes of the antidumping duty order on stainless steel sheet and 
strip in coils from Germany. The company also asked the Department to 
issue preliminary results concurrently with the notice of initiation, 
pursuant to 19 CFR 351.221(c)(3)(ii). In its request, ThyssenKrupp 
Nirosta GmbH, formerly Krupp Thyssen Nirosta GmbH, notified the 
Department that effective December 19, 2001, its corporate name had 
changed to ThyssenKrupp Nirosta GmbH, and despite this change in 
corporate name, the management, production facilities, supplier 
relationships, and customer base are identical to those of the former 
Krupp Thyssen Nirosta GmbH. Citing the Department's determination in 
Stainless Steel Sheet and Strip in Coils from the Republic of Korea: 
Notice of Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Review, 66 FR 67513 (December 31, 2001) (S4 from Korea 
Changed Circumstances Review), ThyssenKrupp Nirosta GmbH claimed the 
Department should determine that it is the successor-in-interest to 
Krupp Thyssen Nirosta GmbH.

Scope of the Review

    For purposes of this order, 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

[[Page 49006]]

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 order is classified in the 
Harmonized Tariff Schedule of the United States (HTS) at subheadings: 
7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 7219.13.00.81, 
7219.14.00.30, 7219.14.00.65, 7219.14.00.90, 7219.32.00.05, 
7219.32.00.20, 7219.32.00.25, 7219.32.00.35, 7219.32.00.36, 
7219.32.00.38, 7219.32.00.42, 7219.32.00.44, 7219.33.00.05, 
7219.33.00.20, 7219.33.00.25, 7219.33.00.35, 7219.33.00.36, 
7219.33.00.38, 7219.33.00.42, 7219.33.00.44, 7219.34.00.05, 
7219.34.00.20, 7219.34.00.25, 7219.34.00.30, 7219.34.00.35, 
7219.35.00.05, 7219.35.00.15, 7219.35.00.30, 7219.35.00.35, 
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60, 
7219.90.00.80, 7220.12.10.00, 7220.12.50.00, 7220.20.10.10, 
7220.20.10.15, 7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 
7220.20.60.10, 7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 
7220.20.70.05, 7220.20.70.10, 7220.20.70.15, 7220.20.70.60, 
7220.20.70.80, 7220.20.80.00, 7220.20.90.30, 7220.20.90.60, 
7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. 
Although the HTS subheadings are provided for convenience and Customs 
purposes, the Department's written description of the merchandise under 
review is dispositive.
    Excluded from the scope of this order 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).
    In response to comments by interested parties, the Department has 
determined that certain specialty stainless steel products are also 
excluded from the scope of this order. These excluded products are 
described below.
    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 for 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 order. 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 between 0.002 and 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 order. 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 order. 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 order. 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 order. These include

[[Page 49007]]

stainless steel strip in coils used in the production of textile 
cutting tools (e.g., carpet knives).\5\ This steel is similar to ASTM 
grade 440F, 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 square micron. 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 and Preliminary Results of Changed Circumstances 
Antidumping Duty Administrative Review

    In accordance with section 751(b) of the Tariff Act, the Department 
is initiating a changed circumstances administrative review to 
determine whether ThyssenKrupp Nirosta GmbH is the successor company to 
Krupp Thyssen Nirosta GmbH. In making such a determination, 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., S4 from Korea Changed 
Circumstances Review, 66 FR 67513, 67515 and Brass Sheet and Strip from 
Canada; Final Results of Changed Circumstances Review, 57 FR 20460, 
20461 (May 13, 1992). While no one or several of these factors will 
necessarily provide a dispositive indication, the Department will 
generally consider the new company to be the successor to the previous 
company if its resulting operation is similar to that of the 
predecessor. See, e.g., Industrial Phosphoric Acid from Israel; Final 
Results of Antidumping Duty Changed Circumstances Review, 59 FR 6944, 
6946 (February 14, 1994). Thus, if evidence demonstrates that, with 
respect to the production and sale of the subject merchandise, the new 
company operates as the same entity as the former company, the 
Department will treat the new company as the successor-in-interest to 
the predecessor.
    We have examined the information provided by ThyssenKrupp Nirosta 
GmbH in its June 12, 2002 letter and preliminarily determine that 
ThyssenKrupp Nirosta GmbH has established a prima facie case that it is 
the successor-in-interest to Krupp Thyssen Nirosta GmbH. In addition, 
we preliminarily determine ThyssenKrupp Nirosta North America, Inc., 
ThyssenKrupp VDM GmbH, and ThyssenKrupp VDM USA, Inc. are successors-
in-interest to Krupp Thyssen Nirosta North America, Inc., Krupp VDM 
GmbH, and Krupp VDM Technologies Corp., respectively. ThyssenKrupp 
Nirosta GmbH has provided sufficient documentation to support our 
preliminary finding. Exhibits 8-A of ThyssenKrupp Nirosta GmbH's letter 
of June 12, 2002 illustrates that the management and supervisory Board 
of ThyssenKrupp Nirosta GmbH is identical to the management and 
supervisory Board of Krupp Thyssen Nirosta GmbH after the December 19, 
2001 name change. It lists Jurgen H. Fechter as the chairman of the 
management board and Dr. Helmut Hadrys as the chairman of the 
supervisory board for both Krupp Thyssen Nirosta GmbH and ThyssenKrupp 
Nirosta GmbH. Exhibit 8-B illustrates the Board of Directors for Krupp 
Thyssen Nirosta North America, Inc. is identical to ThyssenKrupp 
Nirosta North America, Inc. See proprietary version of Exhibit 8-B of 
ThyssenKrupp Nirosta GmbH's June12, 2002 submission. Exhibit 8-C lists 
Rolf-Dieter Grosskopf as chairman of the management board and Dr. 
Helmut Hadrys the chairman of the supervisory board for Krupp VDM GmbH 
and ThyssenKrupp VDM GmbH. The board membership for Krupp VDM 
Technologies Corp. is identical to ThyssenKrupp VDM USA, Inc. as listed 
in Exhibit 8-D. Exhibit 7 of ThyssenKrupp Nirosta GmbH's June 12, 2002 
letter demonstrates there has been no change in the ownership. As 
determined in the original investigation of stainless steel sheet and 
strip in coils from Germany, the former Krupp Thyssen Nirosta GmbH was 
a privately-held company; ThyssenKrupp Nirosta GmbH is also a privately 
held company with an ownership structure identical to that found in the 
most recently-completed administrative review of stainless steel sheet 
and strip in coils from Germany. In addition to ThyssenKrupp Nirosta 
GmbH, we preliminarily find ThyssenKrupp Nirosta North America, Inc., 
ThyssenKrupp VDM GmbH, and ThyssenKrupp VDM USA, Inc. are also 
privately held companies with an ownership structure identical to the 
ownership structure found in the most recently-completed administrative 
review of Krupp Thyssen Nirosta North America, Inc., Krupp VDM GmbH, 
Krupp VDM Technologies Corp., respectively. Exhibit 10-A of the June 
12, 2002 submission contains an affidavit from Dorothea Kettendorf, a 
solicitor in the legal department of ThyssenKrupp Steel A.G., 
certifying that i) the corporate name change was pursuant to a 
directive issued by ThyssenKrupp A.G.; ii) the shareholders of Krupp 
Thyssen Nirosta GmbH and Krupp VDM GmbH approved the changes in the 
companies' respective corporate names; and iii) the changes have been 
registered with the relevant government authorities in Germany. She 
also states ThyssenKrupp Nirosta GmbH and ThyssenKrupp VDM GmbH did not 
undergo any material changes in operations resulting from the corporate 
name changes. Exhibit 10-B of the June 12, 2002 submission contains an 
affidavit from Erhard Meier, the treasurer of ThyssenKrupp Nirosta 
North America, Inc., stating effective December 27, 2001 Krupp Thyssen 
Nirosta North America, Inc. officially changed its corporate name to 
ThyssenKrupp Nirosta North America, Inc. Mr. Meier certified the 
company underwent a name change and it has not affected the ownership, 
management, corporate structure, production facility, production 
process, sales operation, customer base, or supplier base as a result 
of the name change. Exhibit 10-C of the June 12, 2002 submission 
contains an affidavit from Vincent D. Coppolecchia, President of 
ThyssenKrupp VDM USA, Inc., stating effective May 23, 2002 Krupp VDM 
Technologies Corp. officially changed its corporate name to 
ThyssenKrupp VDM USA, Inc. Mr. Coppolecchia certified the company 
underwent a name change and it has not affected the ownership, 
management, corporate structure, production facility, production 
process, sales operation,

[[Page 49008]]

customer base, or supplier base as a result of the name change. 
Finally, ThyssenKrupp Nirosta GmbH, ThyssenKrupp Nirosta North America, 
Inc., ThyssenKrupp VDM GmbH, and ThyssenKrupp VDM USA, Inc., have 
provided sufficient documentation of the name change. See, e.g., 
Exhibits 3 through 6 of the June 12, 2002 submission (notarized 
document that at the general meeting of the company it agreed to change 
the name of the company, and certificate of amendment to the 
certificate of incorporation). Therefore, we preliminarily determine 
that ThyssenKrupp Nirosta GmbH, ThyssenKrupp Nirosta North America, 
Inc., ThyssenKrupp VDM GmbH, and ThyssenKrupp VDM USA, Inc., have 
maintained the same management, production facilities, supplier 
relationships, and customer bases as did Krupp Thyssen Nirosta GmbH, 
Krupp Thyssen Nirosta North America, Inc., Krupp VDM GmbH, Krupp VDM 
Technologies Corp., respectively. Based upon the foregoing, we 
preliminarily determine that ThyssenKrupp Nirosta GmbH, ThyssenKrupp 
Nirosta North America, Inc., ThyssenKrupp VDM GmbH, and ThyssenKrupp 
VDM USA, Inc. are the successors-in-interest to Krupp Thyssen Nirosta 
GmbH, Krupp Thyssen Nirosta North America, Inc., Krupp VDM GmbH, Krupp 
VDM Technologies Corp., respectively, and we find it appropriate to 
issue the preliminary results in combination with the notice of 
initiation in accordance with 19 CFR 351.221(c)(3)(ii). If there are no 
changes in the final results of the changed circumstances review, 
ThyssenKrupp Nirosta GmbH and ThyssenKrupp VDM GmbH will retain the 
antidumping duty cash deposit rate assigned to Krupp Thyssen Nirosta 
GmbH and Krupp VDM GmbH in the most recent administrative review of the 
subject merchandise.

Public Comment

    Pursuant to 19 CFR 351.310, any interested party may request a 
hearing within 10 days of publication of this notice. Case briefs and/
or written comments from interested parties may be submitted no later 
than 21 days after the date of publication 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 28 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. Any hearing, if requested, will be held 
no later than 30 days after the date of publication of this notice, or 
the first working day thereafter. Persons interested in attending the 
hearing should contact the Department for the date and time of the 
hearing. The Department will publish in the Federal Register a notice 
of final results of this changed circumstances antidumping duty 
administrative review, including the results of its analysis of any 
issues raised in any written comments.
    During the course of this changed circumstances review, we will not 
change any cash deposit instructions on the merchandise subject to this 
review, unless a change is determined to be warranted pursuant to the 
final results of this review.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(b) and 777(i)(1) of the Tariff Act and 19 
CFR 351.221(c)(3) and 19 CFR 351.216.

    Dated: July 16, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-19110 Filed 7-26-02; 8:45 am]
BILLING CODE 3510-DS-S