[Federal Register Volume 71, Number 92 (Friday, May 12, 2006)]
[Notices]
[Pages 27680-27682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7283]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-834]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on stainless steel sheet and strip 
in coils (SSSSC) from the Republic of Korea (Korea). Based on this 
information, we preliminarily determine that: (1) Hyundai Steel Company 
(Hyundai) is the successor-in-interest to INI Steel Company (INI), 
formerly Inchon Iron and Steel Co., Ltd. (Inchon), a respondent in the 
less-than-fair-value (LTFV) investigation; and (2) merchandise from 
Hyundai should be excluded from the antidumping duty order. Interested 
parties are invited to comment on these preliminary results.

EFFECTIVE DATE: May 12, 2006.

FOR FURTHER INFORMATION CONTACT: Irina Itkin or Brianne Riker, AD/CVD 
Operations, Office 2, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14\th\ Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
0656 and (202) 482-0629, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 27, 1999, the Department published in the Federal Register 
(64 FR 40555) the antidumping duty order on SSSSC from Korea. Inchon 
was excluded from the order because its dumping margin was de minimis 
in the LTFV investigation. In 2001, INI requested that the Department 
conduct a changed circumstances review to confirm that INI was the 
successor-in-interest to Inchon. On June 28, 2002, the Department found 
that INI was the successor-in-interest to Inchon and that INI should be 
excluded from the antidumping order on SSSSC from Korea consistent with 
the exclusion determination for Inchon in the LTFV investigation. See 
Stainless Steel Sheet and Strip in Coils from the Republic of Korea: 
Notice of Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 67 FR 43583 (June 28, 2002). On March 22, 2006, 
Hyundai submitted a written request that the Department conduct a 
changed circumstances review to confirm that Hyundai is the successor-
in-interest to INI and that subject merchandise produced by this entity 
should not be subject to antidumping duties. On April 7, 2006, April 
13, 2006, and April 24, 2006, the Department requested additional 
information from Hyundai to supplement its request for a changed 
circumstances review. Hyundai submitted information to address the 
additional questions raised by the Department on April 11, 2006, April 
20, 2006, and April 27, 2006, respectively.

Scope of 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 millimeters in width and less 
than 4.75 millimeters 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 order 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 millimeters 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 millimeters); 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 
millimeters and a thickness of 0.266 millimeters 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).
    Flapper valve steel is also excluded from the scope. 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

[[Page 27681]]

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, 
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 that is 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 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 millimeters, and with a 
mass of 225 kilograms or less. Roll marks may only be visible on one 
side, with no scratches of measurable depth. The material must exhibit 
residual stresses of two millimeter depth. The material must exhibit 
residual stresses of two millimeters maximum deflection, and flatness 
of 1.6 millimeters over 685 millimeters 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 
one percent, manganese of no more than one 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 order. This ductile stainless steel 
strip contains, by weight, 26 to 30 percent chromium, and seven to 10 
percent cobalt, with the remainder of iron, in widths 228.6 millimeters 
or less, and a thickness between 0.127 and 1.270 millimeters. 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\
---------------------------------------------------------------------------

    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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 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 1,390 degrees Celsius and displays a creep rupture limit of 
four kilograms per square millimeter at 1,000 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\
---------------------------------------------------------------------------

    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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 as S45500-grade steel, and contains, by weight, 11 to 13 percent 
chromium, and seven 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 1,700 Mpa and ultimate 
tensile strengths as high as 1,750 Mpa after aging, with elongation 
percentages of 3 percent or less in 50 millimeters. It is generally 
provided in thicknesses between 0.635 and 0.787 millimeters, and in 
widths of 25.4 millimeters. 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\
---------------------------------------------------------------------------

    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

Initiation and Preliminary Results of Review

    In March and April 2006, Hyundai provided information to the 
Department to demonstrate that it is the successor-in-interest to INI 
and that subject merchandise produced by it should not be subject to 
antidumping duties, given that INI was excluded from the antidumping 
duty order as a result of a changed circumstances review. See 64 FR 
40555 (July 27, 1999).
    Thus, in accordance with section 751(b) of the Tariff Act of 1930, 
as amended (the Act) and 19 CFR 351.216 and 351.221(c)(3), the 
Department is initiating a changed circumstances review to determine 
whether Hyundai is the successor-in-interest to INI, and thus entitled 
to exclusion from the antidumping duty order on SSSSC from Korea.
    Hyundai has presented evidence to establish a prima facie case that 
its change in corporate name from INI to Hyundai did not affect the 
company's operations (i.e., management, production facilities, supplier 
relationships, or customer relationships) so that they are materially 
dissimilar to those of its predecessor. As a consequence, we find that 
it is appropriate to issue the preliminary results of our review in 
combination

[[Page 27682]]

with the notice of initiation of the changed circumstances review in 
accordance with 19 CFR 351.221(c)(3)(ii). Because the evidence 
indicates that Hyundai has essentially the same corporate structure and 
operations as INI, we preliminarily determine that merchandise from 
Hyundai should be excluded from the antidumping duty order. Thus, if 
these preliminary results are adopted in our final results of this 
changed circumstances review, we will instruct U.S. Customs and Border 
Protection to liquidate, without regard to antidumping duties, all 
entries of SSSSC produced and exported by Hyundai, entered, or 
withdrawn from warehouse, for consumption on or after March 10, 2006, 
the date of INI's name change to Hyundai. This action is in accordance 
with the Department's practice of applying the results of changed 
circumstances determinations retroactively where the company in 
question was never subject to the order. See Certain Hot-Rolled Lead 
and Bismuth Carbon Steel Products from the United Kingdom: Final 
Results of Changed-Circumstances Antidumping and Countervailing Duty 
Administrative Reviews, 64 FR 66880, 66881 (Nov. 30, 1999). For further 
discussion of this issue, see the memorandum from Irene Darzenta 
Tzafolias to Stephen J. Claeys, entitled ``Preliminary Successor-In-
Interest Determination for Hyundai Steel Company in the Changed 
Circumstances Review of Stainless Steel Sheet and Strip in Coils from 
the Republic of Korea,'' dated concurrently with this notice.
    Interested parties are invited to comment on these preliminary 
results. Any written comments may be submitted no later than 14 days 
after date of publication of this notice. Rebuttal briefs, limited to 
arguments raised in case briefs, are due five days after the case brief 
deadline. Case briefs and rebuttal briefs must be served on interested 
parties in accordance with 19 CFR 351.309. In accordance with 19 CFR 
351.216(e), the Department will publish the final results of the 
changed circumstances review including the results of its analysis of 
any issues raised in any such comments within 270 days after the date 
on which the changed circumstances review was initiated.
    This initiation of review, preliminary results of review, and 
notice are in accordance with sections 751(b) and 777(i)(1) of the Act.

    Dated: May 8, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-7283 Filed 5-11-06; 8:45 am]
BILLING CODE 3510-DS-S