[Federal Register Volume 71, Number 126 (Friday, June 30, 2006)]
[Notices]
[Pages 37541-37543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10379]


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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: Initiation of Countervailing Duty Changed Circumstances Review

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

SUMMARY: In response to a March 22, 2006, request by Hyundai Steel 
Company (Hyundai), claiming to be the successor-in-interest to INI 
Steel Company (INI), the Department of Commerce (the Department) is 
initiating a changed circumstances review of the countervailing duty 
(CVD) order on stainless steel sheet and strip in coils (SSSSC) from 
the Republic of Korea (Korea). Hyundai claims that INI changed its 
corporate name to Hyundai effective March 10, 2006. Therefore, Hyundai 
maintains it is entitled to INI's cash deposit rate for the CVD order 
on SSSSC from Korea. Interested parties are invited to comment on this 
notice of initiation.

EFFECTIVE DATE: June 30, 2006.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Preeti Tolani, AD/CVD 
Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, Room 4014, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-2849 
or (202) 482-0395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 1999, the Department published in the Federal Register 
the CVD order on SSSSC from Korea. See Amendment to 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 
South Korea, 64 FR 42923 (August 6, 1999). The Department has completed 
three administrative reviews of this CVD order \1\ and is currently 
conducting a fourth review.\2\ In September 2001 and June 2002, 
respectively, the Department initiated and issued the preliminary 
results of a changed circumstances review to determine whether INI was 
entitled to Inchon's cash deposit rate.\3\ In the Second Review the 
Department determined to assign Inchon's cash deposit rate to INI, 
thereby eliminating the need to complete the changed circumstances 
review.\4\ The Department has also published notice of continuation of 
this order upon completion of the first five-year (sunset) review.\5\
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    \1\ See Final Results and Partial Rescission of Countervailing 
Duty Administrative Review: Stainless Steel Sheet and Strip in Coils 
from the Republic of Korea, 67 FR 1964 (January 15, 2002), as 
amended, Stainless Steel Sheet and Strip in Coils from Korea: 
Amended Final Results of Countervailing Duty Administrative Review, 
67 FR 8229 (February 22 2002); Final Results and Partial Rescission 
of Countervailing Duty Administrative Review: Stainless Steel Sheet 
and Strip in Coils from the Republic of Korea, 68 FR 13267 (March 
19, 2003), and accompanying Issues and Decision Memorandum (Second 
Review); and Final Results of Countervailing Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils from the Republic 
of Korea, 69 FR 2113 (January 14, 2004), as amended, Amended Final 
Results of Countervailing Duty Administrative Review: Stainless 
Steel Sheet and Strip in Coils from Korea, 69 FR 7419 (February 17, 
2004).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 70 FR 
56631 (September 28, 2005) (initiation of review of Dai Yang Metal 
Co., Ltd.).
    \3\ See Stainless Steel Sheet and Strip in Coils from the 
Republic of Korea; Notice of Initiation of Changed Circumstances 
Countervailing Duty Administrative Review, 66 FR 49639 (September 
28, 2001), and Stainless Steel Sheet and Strip in Coils from the 
Republic of Korea; Notice of Preliminary Results of Changed 
Circumstances Countervailing Duty Administrative Review, 67 FR 38257 
(June 3, 2002).
    \4\ See Second Review Decision Memorandum at section ``C: Name 
Changes.''
    \5\ See Continuation of Antidumping Duty Orders on Stainless 
Steel Sheet and Strip in Coils from Germany, Italy, Japan, the 
Republic of Korea, Mexico, and Taiwan, and Countervailing Duty 
Orders on Stainless Steel Sheet and Strip in Coils from Italy and 
the Republic of Korea, 70 FR 44886 (August 4, 2005).
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    On March 22, 2006, Hyundai requested that the Department confirm 
that Hyundai is entitled to INI's cash deposit rate for the CVD order. 
Simultaneously, Hyundai requested a changed circumstances review of the 
antidumping duty (AD) order on SSSSC from Korea for the purpose of 
determining whether Hyundai is the successor-in-interest to INI and is 
entitled to INI's exclusion from the AD order. On April 11, 20, and 27, 
2006, Hyundai submitted additional information in response to three 
requests from the Department for additional information. In response to 
Hyundai's request regarding the AD order, on May 12, 2006, the 
Department initiated a changed circumstances review and preliminarily 
determined that Hyundai is the successor-in-interest to INI and 
merchandise from Hyundai should be excluded from the AD order.\6\
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    \6\ See Notice of Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Review: Stainless Steel Sheet and 
Strip in Coils from the Republic of Korea, 71 FR 27680 (May 12, 
2006) (AD Changed Circumstances Preliminary Results).
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Scope of the Order

    The products covered by this order 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 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\7\, 
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

[[Page 37542]]

Department's written description of the merchandise subject to this 
order is dispositive.
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    \7\ 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 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).
    The Department has determined that certain additional specialty 
stainless steel products are also excluded from the scope of this 
order. These excluded products are described below.
    Flapper valve steel is excluded from the scope of this order. 
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 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 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 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.''\8\
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    \8\ ``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.''\9\
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    \9\ ``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.''\10 \
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    \10\ ``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 stainless steel 
strip in coils used in the production of textile cutting tools (e.g., 
carpet knives).\11\ 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

[[Page 37543]]

processing, and is supplied as, for example, ``GIN6''.
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    \11\ This list of uses is illustrative and provided for 
descriptive purposes only.
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Initiation of Changed Circumstances Reviews

    Section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 
requires a changed circumstances review to be conducted upon receipt of 
a request containing information concerning changed circumstances 
sufficient to warrant a review. The Department has recognized that a 
corporate name change constitutes changed circumstances sufficient to 
warrant a review. See AD Changed Circumstances Preliminary Results.
    In the context of changed circumstances reviews of an AD order 
based on a name change or a change in the company's ownership or 
structure, the Department relies on its ``successor-in-interest'' 
analysis to determine whether the successor remains essentially the 
same entity as the predecessor so that it is appropriate to impose the 
existing AD cash deposit rate of the predecessor on the successor. 
However, the successor-in-interest test for AD purposes may not fully 
address whether it is appropriate to apply the CVD cash deposit rate of 
a previously examined company to its claimed successor. As a result, 
the Department's preliminary results in the AD changed circumstances 
review that Hyundai is the successor-in-interest to INI may not be 
instructive with respect to the CVD order.
    However, as noted above, the Department has recognized that INI's 
corporate name change to Hyundai constitutes changed circumstances 
sufficient to warrant a review. We also note that there is no 
concurrent administrative review of INI in which this name change could 
be examined. Therefore, in accordance with section 751(b) of the Act 
and 19 CFR 351.216 and 351.221, based on information concerning changed 
circumstances sufficient to warrant a review, as described above, we 
are initiating this changed circumstances administrative review of the 
CVD order.

Public Comment

    Interested parties are invited to comment on the initiation of this 
changed circumstances review. Parties who submit argument in this 
proceeding are requested to submit with the argument (1) a statement of 
the issue, and (2) a brief summary of the argument. All written 
comments may be submitted by interested parties not later than 14 days 
after the date of publication of this notice in accordance with 19 CFR 
351.303.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances review, in accordance with 
19 CFR 351.221(c)(3), which will set forth the factual and legal 
conclusions upon which our preliminary results are based, and a 
description of any action proposed based on those results.
    This notice is in accordance with section 751(b)(1) of the Act and 
19 CFR 351.216 and 351.221.

    Dated: June 15, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-10379 Filed 6-29-06; 8:45 am]
BILLING CODE 3510-DS-P