[Federal Register Volume 74, Number 138 (Tuesday, July 21, 2009)]
[Notices]
[Pages 35845-35847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17280]


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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: Rescission of Countervailing Duty Changed Circumstances Review

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

EFFECTIVE DATE: July 21, 2009.
SUMMARY: The Department of Commerce (the ``Department'') is rescinding 
the countervailing duty (``CVD'') changed circumstances review of 
stainless steel sheet and strip in coils (``S4'') from the Republic of 
Korea (``Korea''), as INI Steel Company (``INI'') was found to be the 
successor-in-interest to Inchon Iron and Steel Co., Ltd. (``Inchon'') 
in other segments of this proceeding.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Howard Smith, AD/CVD 
Enforcement Office IV, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-4162 
and (202) 482-5193.

SUPPLEMENTARY INFORMATION:

Background

    On September 21, 2001, the Department initiated the instant changed 
circumstances review to examine whether INI was the successor-in-
interest to Inchon. 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). The Department published its preliminary results in this changed 
circumstances review on June 3, 2002, and preliminarily determined that 
Inchon was the successor-in-interest to INI. See 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) (``Preliminary Results''). We gave 
interested parties 10 days to comment on the Preliminary Results. The 
Department received no comments.

Scope of the Order

    The products subject to the 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), provided that it maintains the specific dimensions 
of sheet and strip following such processing.
    The merchandise subject to the order is currently classifiable in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') at 
subheadings: 7219.13.00.30, 7219.13.00.50, 7219.13.00.70, 
7219.13.00.80, 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 HTSUS subheadings are 
provided for convenience and customs purposes, the Department's written 
description of the merchandise is dispositive.
    Excluded from the scope of the 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 specialty stainless 
steel products are also excluded from the scope of the 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

[[Page 35846]]

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 the 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 the 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.'' \1\
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    \1\ ``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 the 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.'' \2\
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    \2\ ``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 the 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 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.'' \3\
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    \3\ ``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 the order. These include stainless steel 
strip in coils used in the production of textile cutting tools (e.g., 
carpet knives).\4\ This steel is similar to AISI grade 420 but 
containing, by weight, 0.5 to 0.7 percent of molybdenum. 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 HI-C.'' 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.''
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    \4\ This list of uses is illustrative and provided for 
descriptive purposes only.
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Rescission of Changed Circumstances Review

    Since the publication of the Preliminary Results, the Department 
has completed a number of administrative reviews of the order. See, 
e.g., Final Results and Partial Rescission of Countervailing Duty 
Administrative Review: Stainless Steel Sheet and Strip From the 
Republic of Korea, 68 FR 13267 (March 19, 2003) (``Second Review''); 
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) (``Third Review''), covering calendar years 2000 and 
2001, respectively.
    In both of these segments of the proceeding, the Department's 
determination reflected INI's status as the successor-in-interest to 
Inchon. Specifically, in the Second Review, 68 FR at 13269, which 
examined Inchon, the Department stated in the ``Final Results of 
Review'' section of the notice: ``As of April 1, 2001, Inchon, changed 
its name to INI. Thus, for all of Inchon's shipments of the subject 
merchandise from the producers/exporters under review, entered, or 
withdrawn from warehouse, for consumption on or after April 1, 2001, we 
will instruct customs to assign Inchon's cash deposit to INI.'' In the 
Third Review, the Department stated ``{f{time} or the period January 1, 
2001

[[Page 35847]]

through December 31, 2001, {which covers the time period when the name 
change took place{time}  we determine the net subsidy for INI/Sammi to 
be 0.55 percent ad valorem. This rate will also apply to shipments by 
Inchon entered or withdrawn from warehouse for the period January 1, 
2001 through December 31, 2001.'' See Third Review, 69 FR at 2115 
(unchanged in Amended Final Results of Countervailing Duty 
Administrative Review: Stainless Steel Sheet and Strip in Coils from 
the Republic of Korea, 69 FR 7419 (February 17, 2004)). Since the 
Department's decisions in these administrative reviews reflect INI's 
status as the successor-in-interest to Inchon, there is no need for the 
Department to make a determination on this issue in the context of a 
CVD changed circumstances review. The Department noted this fact in the 
changed circumstances review of the CVD order on S4 from Korea that was 
initiated on June 30, 2006, to examine whether Hyundai Steel Company 
was the successor-in-interest to INI.  See Stainless Steel Sheet and 
Strip in Coils From the Republic of Korea: Initiation of Countervailing 
Duty Changed Circumstances Review, 71 FR 37541 (June 30, 2006) (``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.\5\ 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.\6\ ''). Therefore, we are rescinding the 
instant CVD changed circumstances review.
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    \5\ 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).
    \6\ See Second Review Decision Memorandum at section ``C: Name 
Changes.''
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Administrative Protective Orders

    This notice also serves as a final reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 C.F.R. Sec.  351.305(a)(3). Failure to timely 
notify the Department in writing of the return/destruction of APO 
material is a sanctionable violation.
    This notice is in accordance with sections 751(b)(1) and 777(i)(1) 
of the Tariff Act of 1930, as amended, and 19 C.F.R. Sec.  
351.221(c)(3) and 19 CFR Sec.  351.216.

    Dated: July 13, 2009.
Ronald K. Lorentzen ,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-17280 Filed 7-20-09; 8:45 am]
BILLING CODE 3510-DS-S