Stainless Steel Sheet and Strip in Coils from the Republic of Korea: Preliminary Results of Countervailing Duty Changed Circumstances Review, 75937-75940 [E6-21634]
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Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Notices
Decision Memorandum is attached to
this notice as an appendix. The Issues
and Decision Memorandum is a public
document which is on file in the Central
Records Unit (‘‘CRU’’) in room B–099 in
the main Department building, and is
accessible on the Web at https://
ia.ita.doc.gov/frn. The paper copy and
electronic version of the memorandum
are identical in content.
Surrogate Country
In the Preliminary Results, we stated
that we treat the PRC as a non–market
economy (‘‘NME’’) country, and
therefore, we calculated normal value in
accordance with section 773(c) of the
Act which applies to NME countries.
Also, we stated that we had selected
India as the appropriate surrogate
country to use in this review for the
following reasons: (1) It is a significant
producer of comparable merchandise;
and (2) provides contemporaneous
publicly available data to value the
factors of production, pursuant to
section 773(c)(4) of the Act. See
Preliminary Results. For the final
results, we made no changes to our
findings with respect to the selection of
a surrogate country.
hsrobinson on PROD1PC76 with NOTICES
Separate Rates
In proceedings involving NME
countries, the Department begins with a
rebuttable presumption that all
companies within the country are
subject to government control and, thus,
should be assigned a single
antidumping duty deposit rate. It is the
Department’s policy to assign all
exporters of merchandise subject to
review in an NME country this single
rate unless an exporter can demonstrate
that it is free of de jure and de facto
control over its export decisions, so as
to be entitled to a separate rate.
In the Preliminary Results, we found
that CMC demonstrated its eligibility for
separate–rate status. For the final
results, we continue to find that the
evidence placed on the record of this
administrative review by CMC
demonstrates an absence of government
control, both in law and in fact, with
respect to its exports of the merchandise
under review and thus determine CMC
is eligible for separate–rate status.
Changes Since the Preliminary Results
Based on our analysis of comments
received, we have made changes in the
margin calculations for CMC. See Issues
and Decision Memorandum at
Comments 2 and 3.
• For these final results, we have
changed the surrogate value ratio
calculations derived from each of the
two surrogate companies. For ratios
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derived from SKF India Limited, we
have excluded the line item
‘‘consumption of traded goods’’ from the
denominator of the factory overhead
ratio. However, we continue to include
the line item ‘‘consumption of traded
goods’’ in the denominator of the
selling, general, and administrative
expenses (‘‘SG&A’’), profit and interest
ratios. For ratios derived from Timken
India Limited, we have added the line
item ‘‘purchase of products for resale’’
to the denominators of the SG&A, profit,
and interest ratios.
• For the profit ratio derived from
Timken India Limited, we corrected a
clerical error to use the value from
‘‘profit before tax’’ in this calculation.
Final Results of Review
We determine that the following
dumping margins exist for the period
June 1, 2004, through May 31, 2005:
TRBS FROM THE PRC
Producer/Manufacturer/Exporter
Weighted–
Average
Margin
(Percent)
China National Machinery Import
& Export Corporation ..............
0.00
Assessment Rates
The Department intends to issue
assessment instructions to U.S. Customs
and Border Protection (‘‘CBP’’) 15 days
after the date of publication of these
final results of administrative review.
The following deposit requirements
will be effective upon publication of
this notice of final results of
administrative review for all shipments
of TRBs from the PRC entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication, as provided by section
751(a)(1) of the Act: (1) For CMC, the
cash deposit rate will be zero; (2) for
previously reviewed or investigated
companies not listed above that have a
separate rate, the cash deposit rate will
continue to be the company–specific
rate published for the most recent
period; (3) the cash deposit rate for all
other PRC exporters will be 60.95
percent, the current PRC–wide rate; and
(4) the cash deposit rate for all non–PRC
exporters will be the rate applicable to
the PRC exporter that supplied that
exporter. These deposit requirements,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
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Fmt 4703
Sfmt 4703
Notification of Interested Parties
This notice also serves as a final
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of the antidumping
duties occurred and the subsequent
assessment of double antidumping
duties.
This notice also serves as a reminder
to parties subject to administrative
protective orders (‘‘APOs’’) of their
responsibility concerning the return or
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305, which continues
to govern business proprietary
information in this segment of the
proceeding. Timely written notification
of the return/destruction of APO
materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and terms of an APO is a violation
which is subject to sanction.
We are issuing and publishing this
determination and notice in accordance
with sections 751(a)(1) and 77(i)(1) of
the Act.
Dated: December 11, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
Appendix
List of Comments and Issues in the
Decision Memorandum
Cash Deposit Requirements
PO 00000
75937
Comment 1: Outdated TRBs tariff
classification
Comment 2: Remove ‘‘consumption of
Traded Goods’’ from surrogate financial
ratio
Comment 3: Ministerial error on Timken
India Limited’s ‘‘profit before tax’’
[FR Doc. E6–21632 Filed 12–18–06; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–835]
Stainless Steel Sheet and Strip in Coils
from the Republic of Korea:
Preliminary Results of Countervailing
Duty Changed Circumstances Review
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
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Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Notices
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) initiated a
changed circumstances review of the
countervailing duty (CVD) order on
stainless steel sheet and strip in coils
(SSSS) from the Republic of Korea
(Korea). 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) (Initiation
Notice). We invited interested parties to
comment on our Initiation Notice. We
received no comments.
Based on the information submitted
by Hyundai, we preliminarily determine
that: (1) Hyundai is the successor–ininterest to INI, formerly Inchon Iron and
Steel Co., Ltd. (Inchon); and (2) upon
publication of the final results of this
review, INI’s current CVD cash deposit
rate shall be applied to entries of subject
merchandise made by Hyundai.
Interested parties are invited to
comment on these preliminary results.
EFFECTIVE DATE: December 19, 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:
hsrobinson on PROD1PC76 with NOTICES
Background
On August 6, 1999, the Department
published in the Federal Register the
CVD order on SSSS 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
order1 and is currently conducting a
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
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17:07 Dec 18, 2006
Jkt 211001
fourth review.2 In September 2001 and
June 2002, respectively, the Department
initiated and published 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
Hyundai asserts that INI changed its
corporate name to Hyundai effective
March 10, 2006. 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 SSSS
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–ininterest to INI and merchandise from
Hyundai should be excluded from the
AD order.6
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).
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,
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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,
7219.1300.817, 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 this order 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)
2006) (AD Changed Circumstances Preliminary
Results).
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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19DEN1
hsrobinson on PROD1PC76 with NOTICES
Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Notices
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
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17:07 Dec 18, 2006
Jkt 211001
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–chromiumcobalt 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
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
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
8 ‘‘Arnokrome III’’ is a trademark of the Arnold
Engineering Company.
9 ‘‘Gilphy 36’’ is a trademark of Imphy, S.A.
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75939
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
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
processing, and is supplied as, for
example, ‘‘GIN6’’.
Preliminary Results of Changed
Circumstances Review
In accordance with section 751(b) of
the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.216 and 19 CFR
10 ‘‘Durphynox
17’’ is a trademark of Imphy, S.A.
list of uses is illustrative and provided for
descriptive purposes only.
11 This
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Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Notices
351.221, the Department initiated this
changed circumstances review of the
CVD order to determine whether
Hyundai is the successor–in-interest to
INI. In the context of changed
circumstances reviews of an AD order
involving, E.G., a change in a company’s
name, structure or ownership, the
Department relies on its successor–ininterest analysis to determine whether
the newly named or structured company
remains essentially the same as the
predecessor company. See, e.g., Notice
of Final Results of Antidumping Duty
Changed Circumstances Review; Certain
Forged Stainless Steel Flanges From
India, 71 FR 31156 (June 1, 2006), CITING
hsrobinson on PROD1PC76 with NOTICES
INDUSTRIAL PHOSPHORIC ACID FROM
ISRAEL; FINAL RESULTS OF ANTIDUMPING
DUTY CHANGED CIRCUMSTANCES REVIEW,
59 FR 6944, 6945 (February 14, 1994).
If the evidence demonstrates that, with
respect to the production and sale of the
subject merchandise, the successor
company operates as the same business
entity as its predecessor, the Department
will assign the successor the existing
cash deposit rate of its predecessor.
For similar changed circumstances in
a CVD order, the appropriate focus of
the analysis for determining the cash
deposit rate for a successor company is
usually whether the successor company
operates as the same business entity as
its predecessor. For such determinations
in the context of a CVD order, however,
such an analysis may not always be
sufficient, in itself, to determine
whether it is appropriate to assign the
predecessor’s CVD cash deposit rate to
the successor where the circumstances
indicate that a change relevant to the
subsidy analysis may have occurred. We
do not find, however, that there are any
such circumstances in the instant
review, such as a privatization or sale of
a company, that would warrant going
beyond the Department’s standard
successor–in-interest analysis. In the
instant proceeding, we are only
examining a change in the name of the
company. Further, Hyundai has
presented evidence establishing that its
change in corporate name from INI to
Hyundai did not affect the company’s
operations such that they are materially
different to those of its predecessor. See
Hyundai’s March 22, 2006, submission
at Exhibits 2 though 4; see also
Hyundai’s April 11, 2006, submission at
page 3 and Exhibit 7. The evidence
indicates that Hyundai has essentially
the same corporate structure and
operations as INI.
Therefore, based on the record
evidence, and consistent with the
Department’s findings in the AD
Changed Circumstances Preliminary
Results, we preliminarily determine that
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17:07 Dec 18, 2006
Jkt 211001
the current cash deposit rate applicable
to INI shall be applicable to entries of
subject merchandise made by Hyundai,
entered on or after the publication date
of the final results of this changed
circumstances review. Thus, if these
preliminary results are adopted in the
final results of this changed
circumstances review, we will instruct
U.S. Customs and Border Protection to
collect a cash deposit at the rate of 0.54
percent ad valorem on all entries of
SSSS produced and exported by
Hyundai on or after the publication of
the final results of this review. This cash
deposit rate shall remain in effect until
publication of the final results of the
next administrative review in which
Hyundai participates.
In addition, the Department intends to
further consider the issue of whether
alternative or additional successorship
criteria would be appropriate in the
CVD context, and therefore, the
Department anticipates releasing a
separate Federal Register notice shortly
hereafter inviting parties to submit
public comments on the issue.
Public Comment
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 notice is in accordance with
section 751(b)(1) of the Act and 19 CFR
351.216 and 351.221.
Dated: December 12, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6–21634 Filed 12–18–06; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
North American Free-Trade
Agreement, Article 1904; NAFTA Panel
Reviews; Completion of Panel Review
NAFTA Secretariat, United
States Section, International Trade
AGENCY:
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
Administration, Department of
Commerce.
ACTION: Notice of Completion of Panel
Review of the final injury determination
made by the U.S. International Trade
Commission, in the matter of
Magnesium from Canada, Secretariat
File No. USA–CDA–00–1904–09.
SUMMARY: Pursuant to the Order of the
Binational Panel dated October 6, 2006,
affirming the final remand
determination described above, the
panel review was completed on
November 17, 2006.
FOR FURTHER INFORMATION CONTACT:
Caratina L. Alston, United States
Secretary, NAFTA Secretariat, Suite
2061, 14th and Constitution Avenue,
Washington, DC 20230, (202) 482–5438.
SUPPLEMENTARY INFORMATION: On
October 6, 2006, the Binational Panel
issued an order which affirmed the final
determination of the United States
International Trade Commission (ITC)
concerning Magnesium from Canada
Injury Determination. The Secretariat
was instructed to issue a Notice of
Completion of Panel Review on the 31st
day following the issuance of the Notice
of Final Panel Action, if no request for
an Extraordinary Challenge was filed.
No such request was filed. Therefore, on
the basis of the Panel Order and Rule 80
of the Article 1904 Panel Rules, the
Panel Review was completed and the
panelists discharged from their duties
effective November 17, 2006.
Dated: December 14, 2006.
Caratina L. Alston,
United States Secretary, NAFTA Secretariat.
[FR Doc. E6–21620 Filed 12–18–06; 8:45 am]
BILLING CODE 3510–GT–P
DEPARTMENT OF COMMERCE
International Trade Administration
North American Free-Trade
Agreement, Article 1904 NAFTA Panel
Reviews; Request for Panel Review
NAFTA Secretariat, United
States Section, International Trade
Administration, Department of
Commerce.
ACTION: Notice of First Request for Panel
Review.
AGENCY:
SUMMARY: On November 27, 2006, the
Northwest Fruit Exporters filed a First
Request for Panel Review with the
Mexican Section of the NAFTA
Secretariat pursuant to Article 1904 of
the North American Free Trade
Agreement. Panel review was requested
of the final revocation of the
antidumping investigation, respecting
E:\FR\FM\19DEN1.SGM
19DEN1
]]>Agencies
[Federal Register Volume 71, Number 243 (Tuesday, December 19, 2006)]
[Notices]
[Pages 75937-75940]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21634]
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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: Preliminary Results of Countervailing Duty Changed Circumstances
Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
[[Page 75938]]
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)
initiated a changed circumstances review of the countervailing duty
(CVD) order on stainless steel sheet and strip in coils (SSSS) from the
Republic of Korea (Korea). 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) (Initiation Notice).
We invited interested parties to comment on our Initiation Notice. We
received no comments.
Based on the information submitted by Hyundai, we preliminarily
determine that: (1) Hyundai is the successor-in-interest to INI,
formerly Inchon Iron and Steel Co., Ltd. (Inchon); and (2) upon
publication of the final results of this review, INI's current CVD cash
deposit rate shall be applied to entries of subject merchandise made by
Hyundai. Interested parties are invited to comment on these preliminary
results.
EFFECTIVE DATE: December 19, 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 SSSS 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 published 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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Hyundai asserts that INI changed its corporate name to Hyundai
effective March 10, 2006. 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 SSSS 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 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)
[[Page 75939]]
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 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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Preliminary Results of Changed Circumstances Review
In accordance with section 751(b) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 351.216 and 19 CFR
[[Page 75940]]
351.221, the Department initiated this changed circumstances review of
the CVD order to determine whether Hyundai is the successor-in-interest
to INI. In the context of changed circumstances reviews of an AD order
involving, e.g., a change in a company's name, structure or ownership,
the Department relies on its successor-in-interest analysis to
determine whether the newly named or structured company remains
essentially the same as the predecessor company. See, e.g., Notice of
Final Results of Antidumping Duty Changed Circumstances Review; Certain
Forged Stainless Steel Flanges From India, 71 FR 31156 (June 1, 2006),
citing Industrial Phosphoric Acid from Israel; Final Results of
Antidumping Duty Changed Circumstances Review, 59 FR 6944, 6945
(February 14, 1994). If the evidence demonstrates that, with respect to
the production and sale of the subject merchandise, the successor
company operates as the same business entity as its predecessor, the
Department will assign the successor the existing cash deposit rate of
its predecessor.
For similar changed circumstances in a CVD order, the appropriate
focus of the analysis for determining the cash deposit rate for a
successor company is usually whether the successor company operates as
the same business entity as its predecessor. For such determinations in
the context of a CVD order, however, such an analysis may not always be
sufficient, in itself, to determine whether it is appropriate to assign
the predecessor's CVD cash deposit rate to the successor where the
circumstances indicate that a change relevant to the subsidy analysis
may have occurred. We do not find, however, that there are any such
circumstances in the instant review, such as a privatization or sale of
a company, that would warrant going beyond the Department's standard
successor-in-interest analysis. In the instant proceeding, we are only
examining a change in the name of the company. Further, Hyundai has
presented evidence establishing that its change in corporate name from
INI to Hyundai did not affect the company's operations such that they
are materially different to those of its predecessor. See Hyundai's
March 22, 2006, submission at Exhibits 2 though 4; see also Hyundai's
April 11, 2006, submission at page 3 and Exhibit 7. The evidence
indicates that Hyundai has essentially the same corporate structure and
operations as INI.
Therefore, based on the record evidence, and consistent with the
Department's findings in the AD Changed Circumstances Preliminary
Results, we preliminarily determine that the current cash deposit rate
applicable to INI shall be applicable to entries of subject merchandise
made by Hyundai, entered on or after the publication date of the final
results of this changed circumstances review. Thus, if these
preliminary results are adopted in the final results of this changed
circumstances review, we will instruct U.S. Customs and Border
Protection to collect a cash deposit at the rate of 0.54 percent ad
valorem on all entries of SSSS produced and exported by Hyundai on or
after the publication of the final results of this review. This cash
deposit rate shall remain in effect until publication of the final
results of the next administrative review in which Hyundai
participates.
In addition, the Department intends to further consider the issue
of whether alternative or additional successorship criteria would be
appropriate in the CVD context, and therefore, the Department
anticipates releasing a separate Federal Register notice shortly
hereafter inviting parties to submit public comments on the issue.
Public Comment
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 notice is in accordance with section 751(b)(1) of the Act and
19 CFR 351.216 and 351.221.
Dated: December 12, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-21634 Filed 12-18-06; 8:45 am]
BILLING CODE 3510-DS-S
