[Federal Register Volume 71, Number 127 (Monday, July 3, 2006)]
[Notices]
[Pages 37906-37908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10387]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-580-834)


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 12, 2006, the Department of Commerce (the Department) 
published a notice of initiation and preliminary results of its changed 
circumstances review of the antidumping duty order on stainless steel 
sheet and strip in coils (SSSSC) from the Republic of Korea (Korea). 
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) 
(Preliminary Results). We have now completed that review. For these 
final results, as in the Preliminary Results, we 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) 
SSSSC produced and exported by Hyundai should be excluded from the 
antidumping duty order.

EFFECTIVE DATE: March 10, 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, 14th 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 duty order on SSSSC from

[[Page 37907]]

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 May 12, 2006, the Department published a notice of initiation 
and preliminary results of its changed circumstances review of the 
antidumping duty order on SSSSC from Korea. See Preliminary Results. In 
that determination, we preliminarily found that Hyundai is the 
successor-in-interest to INI. Interested parties were invited to 
comment on the preliminary results. No party submitted comments.

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 subject to the order 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 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 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\
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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 specification B344 and containing, by weight, 36 percent

[[Page 37908]]

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\
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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 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\
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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 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.''
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
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Final Results of Review

    Based on our analysis in the Preliminary Results, we find that 
Hyundai is the successor-in-interest to INI. Based on evidence on the 
record, we find that Hyundai's organizational structure, management, 
production facilities, supplier relationships, and customers have 
remained essentially unchanged since its name change from INI. Further, 
we find that Hyundai operates as the same business entity as INI. 
Because INI is excluded from the antidumping duty order on SSSSC from 
Korea, we will apply this determination retroactively and will instruct 
U.S. Customs and Border Protection to liquidate, without regard to 
antidumping duties, all unliquidated entries of subject merchandise 
produced and exported by Hyundai, and entered, or withdrawn from 
warehouse, for consumption on or after March 10, 2006, the date of 
INI's name change to Hyundai, in accordance with past precedent. See 
Stainless Steel Wire Rod from Italy: Notice of Final Results of Changed 
Circumstances Antidumping Duty Review, 71 FR 24643 (Apr. 26, 2006); 
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 (Nov. 30, 
1999).

Notification

    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 352.305(a)(3). Timely notification of the 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    This determination and notice are issued and published in 
accordance with sections 751(b)(1) and 777(i)(1) of the Tariff Act of 
1930, as amended, and 19 CFR 351.216.

    Dated: June 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-10387 Filed 6-30-06; 8:45 am]
BILLING CODE 3510-DS-S