69 FR 7419, February 17, 2004

DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-835]

Amended Final Results 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 Amended Final Results of Countervailing Duty 
Administrative Review.

-----------------------------------------------------------------------

SUMMARY: On January 14, 2004, the Department of Commerce (the 
Department) published in the Federal Register its final results of the 
administrative review of the countervailing duty order on stainless 
steel sheet and strip in coils from the Republic of Korea for the 
period January 1, 2001, through December 31, 2001 (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) (Final Results)). On January 13, 2004, we received timely-filed 
ministerial error allegations from respondents, INI Steel Company 
(INI)\1\ and Sammi Steel Co., Ltd. (Sammi).\2\ Based on our analysis of 
this information, the Department has revised the net subsidy rate for 
INI and Sammi.
---------------------------------------------------------------------------

    \1\ Formerly known as Inchon Iron and Steel Co. (Inchon). As of 
April 2001, Inchon changed its name to INI.
    \2\ As of April 2002, Sammi changed its name to BNG Steel Co., 
Ltd. (BNG).

---------------------------------------------------------------------------
EFFECTIVE DATE: February 17, 2004.

FOR FURTHER INFORMATION CONTACT: Carrie Farley or Darla Brown (202) 
482-0395, (202) 482-2849, respectively, Office of AD/CVD Enforcement 
VI, Import Administration, International Trade Administration, U.S. 
Department

[[Page 7420]]

of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION:

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: 
7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 7219.13.00.81, 
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 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, 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.''\3\
---------------------------------------------------------------------------

    \3\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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.''\4\
---------------------------------------------------------------------------

    \4\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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

[[Page 7421]]

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.''\5\
---------------------------------------------------------------------------

    \5\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.''\3\
---------------------------------------------------------------------------

    \3\ ``ArnokromCountervailing Duty Administrative Review: 
Stainless Steel Sheet and Strip in Coils from the Republic of Korea, 
69 FR 2113 (January 14, 2004) (Final Results).
---------------------------------------------------------------------------

    Respondents alleged that the Department made three ministerial 
errors in calculating the final ad valorem rate. Respondents alleged 
that the Department: (1) applied the wrong benchmark interest rate for 
certain countervailable loans received by INI and Sammi; (2) 
incorrectly applied the formula for calculating the number of days for 
which interest was payable on several of Sammi's interest payments; and 
(3) inadvertently misplaced aclosing parenthesis in the formula for 
calculating a benchmark interest rate for uncreditworthy companies, 
which resulted in the calculation of an incorrect discount rate when 
calculating the benefit to Sammi from POSCO's purchase of Sammi's 
Changwon bar and pipe facility.
    We agree with respondent that the first two allegations were 
ministerial in nature, and we have recalculated the benefits under 
those programs using the corrected data. However, the Department 
disagrees with respondents' third allegation. Rather, the Department 
finds that its placement of the closing parenthesis in the formula was 
correct and that the calculation of the discount rate was also correct. 
Therefore, we are not making any adjustments to the calculations for 
this program. See the February 10, 2004, memorandum to Jeffrey A. May, 
Acting Assistant Secretary for Import Administration, from Holly A. 
Kuga, Acting Deputy Assistant Secretary for AD/CVD Enforcement II. The 
public version of this memorandum is on file in the Central Records 
Unit (CRU), room B-099 of the Main Commerce Building.
    As a result of our corrections, for the period January 1, 2001, 
through December 31, 2001, the estimated net countervailable subsidy 
rate attributable to INI/Sammi decreased from 0.55 percent ad valorem 
to 0.54 percent ad valorem.
    The Department will instruct U.S. Customs and Border Protection 
(CBP) to assess countervailing duties on all appropriate entries on or 
after January 1, 2001, and on or before December 31, 2001. The 
Department will issue liquidation instructions directly to the CBP. The 
amended cash deposit requirements are effective for all shipments from 
INI/Sammi of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice and shall remain in effect until publication of the final 
results of the next administrative review.
    These amended final results are issued and published in accordance 
with sections 706(a) and 705 of the Act and 19 CFR 351.211 and 351.224.

    Dated: February 10, 2004.
Jeffrey A. May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 04-3389 Filed 2-13-04; 8:45 am]