[Federal Register: January 15, 2002 (Volume 67, Number 10)]
               
[Page 1964-1966]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-835]

 
Final Results and Partial Rescission of Countervailing Duty 
Administrative Review: Stainless Steel Sheet and Strip in Coils From 
the Republic of Korea

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

ACTION: Notice of final results of countervailing duty administrative 
review.

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SUMMARY: On September 10, 2001, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
and partial rescission of administrative review of the countervailing 
duty order on stainless steel sheet and strip from the Republic of 
Korea for the period November 17, 1998 through December 31, 1999 (66 FR 
47008). The Department has now completed this administrative review in 
accordance with section 751(a) of the Tariff Act of 1930, as amended 
(the Act).
    Based on information received since the preliminary results and our 
analysis of the comments received, the Department has revised the net 
subsidy rate for Inchon Iron and Steel Co. (Inchon). Therefore, the 
final results differ from the preliminary results. The final net 
subsidy rate for the reviewed company is listed below in the section 
entitled ``Final Results of Review.''

EFFECTIVE DATE: January 15, 2002.

FOR FURTHER INFORMATION CONTACT: Tipten Troidl or Darla Brown, Office 
of AD/CVD Enforcement VI, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: 202-482-2786.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Act as amended by the Uruguay Round 
Agreements Act (URAA) effective January 1, 1995. The Department 
conducted this administrative review in accordance with section 751(a) 
of the Act. All citations to the Department's regulations reference 19 
CFR part 351 (2001) (CVD Regulations), unless otherwise indicated.

Background

    Pursuant to 19 CFR 351.213(b), this review covers only those 
producers or exporters of the subject merchandise for which a review 
was specifically requested. Accordingly, this review covers Inchon. 
This review covers the period November 17, 1998 through December 31, 
1999 and fourteen (14) programs.
    On August 6, 1999, the Department published in the Federal Register 
the countervailing duty order on stainless steel sheet and strip in 
coils from the Republic of Korea. See Amended 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 from France, Italy and the Republic of Korea, 64 FR 42923 (August 
6, 1999).
    We published the preliminary results of the instant administrative 
review in the Federal Resister on September 10, 2001 (66 FR 47008). We 
invited interested parties to comment on the results. On October 17, 
2001, we received case briefs from petitioners and respondents. On 
October 22, 2001, we received rebuttal briefs from petitioners and 
respondents.

Scope of the Review

    For purposes of this review, 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 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 review is classified 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 HTS subheadings are provided for convenience and Customs 
purposes, the Department's written description of the merchandise 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) 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 this order. These 
excluded products are described below:
    Flapper valve steel is defined as stainless steel strip in coils 
containing,

[[Page 1965]]

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 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 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.'' \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 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.'' \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 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.''\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 this 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 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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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) dated January 8, 2002, which is hereby adopted by 
this notice. A list of issues which parties have raised and to which we 
have responded, all of which are in the Decision Memorandum, is 
attached to this notice as Appendix I. Parties can find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum, which is on file in room B-
099 of the Main Commerce Building. In addition, a complete version of 
the Decision Memorandum can be accessed directly on the World Wide Web 
at https://enforcement.trade.gov, under the heading ``Federal Register 
notices.'' The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Final Results of Review

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an ad valorem subsidy rate for Inchon. For the period 
November 17, 1998 through December 31, 1999, we determine the net 
subsidy for Inchon to be 4.21 percent ad valorem. 

[[Page 1966]]

    We will instruct the Customs Service (``Customs'') to assess 
countervailing duties as indicated above. The Department will also 
instruct Customs to collect cash deposits of estimated countervailing 
duties in the percentage detailed above of the f.o.b. invoice prices on 
all shipments of the subject merchandise from the producers/exporters 
under review, entered, or withdrawn from warehouse, for consumption on 
or after the date of publication of the final results of this 
administrative review.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2) of the Act. The requested review 
will normally cover only those companies specifically named. See 19 CFR 
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which 
a review was not requested, duties must be assessed at the cash deposit 
rate, and cash deposits must continue to be collected, at the rate 
previously ordered. As such, the countervailing duty cash deposit rate 
applicable to a company can no longer change, except pursuant to a 
request for a review of that company. See Federal-Mogul Corporation and 
The Torrington Company v. United States, 822 F. Supp. 782 (CIT 1993) 
and Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993). 
Therefore, the cash deposit rates for all companies except those 
covered by this review will be unchanged by the results of this review.
    We will instruct Customs to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order will be the rate for that company established in the most 
recently completed administrative proceeding conducted under the URAA. 
If such a review has not been conducted, the rate established in the 
most recently completed administrative proceeding pursuant to the 
statutory provisions that were in effect prior to the URAA amendments 
is applicable. See Certain Carbon Steel Products from Sweden; Final 
Results of Countervailing Duty Administrative Review, 62 FR 16549 
(April 7, 1997). This rate shall apply to all non-reviewed companies 
until a review of a company assigned this rate is requested. In 
addition, for the period November 17, 1998 through December 31, 1999, 
the assessment rates applicable to all non-reviewed companies covered 
by this order are the cash deposit rates in effect at the time of 
entry.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of duties prior to liquidation of the relevant 
entries during this review period.
    This notice serves as a 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 CFR 351.305(a)(3). Timely written 
notification of 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 administrative review and notice are issued and published in 
accordance with section 751(a)(1) of the Act.

    Dated: January 8, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

Summary

Methodology and Background Information

I. Subsidies Valuation Information
    1. Benchmarks for Loans and Discount Rate
    2. Allocation Period
    3. Attribution (Treatment of Subsidies Received by Trading 
Companies)
II. Analysis of Programs
    A. Programs Conferring Subsidies From the Government of Germany
    1. The GOK's Direction of Credit
    2. Article 17 of the Tax Exemption and Reduction Control Act 
(TERCL): Reserve for Overseas Market Development
    3. Electricity Discounts under the Requested Loan Adjustment 
Program (RLA)
    4. POSCO's Provision of Steel Inputs for Less than Adequate 
Remuneration
B. Programs Determined to Be Not Used
    1. Article 16 of the TERCL: Reserve for Export Loss
    2. Investment Tax Credits under Article 10, 18, 25, 26, 27 and 
71 of TERCL
    3. Loans from the National Agricultural Cooperation Federation
    4. Tax Incentives for Highly-Advanced Technology Businesses 
under the Foreign Investment and Foreign Capital Inducement Act
    5. Reserve for Investment under Article 43-5 of TERCL
    6. Export Insurance Rates Provided by the Korean Export 
Insurance Corporation
    7. Special Depreciation of Assets on Foreign Exchange Earnings
    8. Excessive Duty Drawback
    9. Short-Term Export Financing
    10. Export Industry Facility Loans
III. Analysis of Comments
    Comment 1: Ministerial Errors
    Comment 2: Program-wide Change
    Comment 3: U.S. Dollar Interest Rate Benchmark for Inchon's 
Loans

[FR Doc. 02-972 Filed 1-14-02; 8:45 am]
BILLING CODE 3510-DS-P