MESSAGE NO: 9329112 DATE: 11 25 1998
CATEGORY: CVD TYPE: PRE
REFERENCE: REFERENCE DATE:
CASES: C - 580 - 835 A - 580 - 834
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PERIOD COVERED: 11 17 1998 TO

LIQ SUSPENSION DATE:

TO: CMC DIRECTORS,
PORT DIRECTORS

FROM: DIRECTOR, IMPORT OPERATIONS

RE: NOTICE OF PRELIMINARY DETERMINATION IN A COUNTERVAILING
DUTY INVESTIGATION OF STAINLESS STEEL & STRIP IN COIL
FROM REPUBLIC OF KOREA (C-580-835 CROSS REF (A-580-834)

1. ON NOVEMBER 17, 1998, THE DEPARTMENT OF COMMERCE PUBLISHED
IN THE FEDERAL REGISTER ITS PRELIMINARY AFFIRMATIVE
DETERMINATION AND ALIGNMENT OF ITS FINAL COUNTERVAILING DUTY
DETERMINATION OF STAINLESS STEEL SHEET AND STRIP IN COILS
FROM THE REPUBLIC OF KOREA, (C-580-835) AND FOR ANTIDUMPING
DUTY (A-580-834) FROM 1/23/99 UNTIL NO LATER THAN 3/2/99,
THEREBY ALIGNING IT WITH THE DUE DATE FOR THE FINAL
DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGATION OF
STAINLESS STEEL SHEET AND STRIP FROM THE REPUBLIC OF KOREA.

2. FOR PURPOSES OF THESE INVESTIGATIONS, 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 4.75MM 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 INVESTIGATION 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 WRITTEN DESCRIPTION OF THE MERCHANDISE UNDER
INVESTIGATION IS DISPOSITIVE.
EXCLUDED FROM THE SCOPE OF THIS INVESTIGATION 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,
RECTANGULAR IN SHAPE, OF A WIDTH OF NOT MORE THAN 9.5 MM,
AND A THICKNESS OF NOT MORE THAN 6.35 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 23MM
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
THESE INVESTIGATIONS. THESE EXCLUDED PRODUCTS ARE DESCRIBED
BELOW:

FLAPPER VALVE STEEL IS DEFINED AS STAINLESS STEEL STRIP IN
COILS WITH A CHEMICAL COMPOSITION SIMILAR TO THAT OF AISI
420F GRADE STEEL AND 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 185 KGF/MM2, PLUS OR MINUS
10, YIELD STRENGTH OF 150 KGF/MM2, PLUS OR MINUS 8, AND
HARDNESS (HV) OF 540, PLUS OR MINUS 30.
ALSO EXCLUDED IS SUSPENSION FOIL, A SPECIALTY STEEL PRODUCT
USED, E.G., 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 MM, WITH A THICKNESS TOLERANCE OF
PLUS-OR-MINUS 2.01 MM, 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, AND MUST EXHIBIT RESIDUAL
STRESSES OF 2 MM MAXIMUM DEFLECTION, AND FLATNESS OF 1.6 MM
OVER 685 MM LENGTH.

PERMANENT MAGNET IRON-CHROMIUM-COBALT ALLOY STAINLESS STRIP
IS ALSO EXCLUDED FROM THE SCOPE OF THESE INVESTIGATIONS.
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 OF 1.016 TO 228.6 MM, AND A
THICKNESS BETWEEN 0.0127 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, E.G., UNDER THE TRADE NAME "ARNOKROME III."
ELECTRICAL RESISTANCE ALLOY STEEL IS ALSO NOT INCLUDED IN
THE SCOPE OF THESE INVESTIGATIONS. 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, E.G., UNDER THE TRADE NAME
"GILPHY 36."

FINALLY, CERTAIN STAINLESS STEEL STRIP IN COILS USED IN THE
PRODUCTION OF TEXTILE CUTTING TOOLS (E.G., CARPET KNIVES) IS
ALSO EXCLUDED. THIS STEEL IS SIMILAR TO ASTM GRADE 440F,
BUT CONTAINING HIGHER LEVELS OF MOLYBDENUM. THIS STEEL
CONTAINS, BY WEIGHT, CARBON OF BETWEEN 1.0 AND 1.1 PERCENT,
SULPHUR OF 0.020 PERCENT OR LESS, AND INCLUDES BETWEEN 0.20
AND 0.30 PERCENT COPPER AND COBALT. THIS STEEL IS SOLD
UNDER, E.G. THE PROPRIETARY NAME GIN4MO.

3. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED
INVESTIGATION NUMBER C-580-835.

4. FOR IMPORTS OF STAINLESS STEEL SHEET AND STRIP IN COILS FROM
THE REPUBLIC OF KOREA, THE CUSTOMS SERVICE SHALL SUSPEND
LIQUIDATIONS OF SUCH SHIPMENTS ENTERED OR WITHDRAWN FROM
WAREHOUSE, FOR CONSUMPTION ON OR AFTER NOVEMBER 17, 1998.
EFFECTIVE NOVEMBER 17, 1998 CUSTOMS SHALL REQUIRE, FOR SUCH
ENTRIES, A CASH DEPOSIT OR THE POSTING OF A BOND EQUAL TO
THE SUBSIDY RATES SHOWN BELOW:

MFR/PRODUCER CUSTOMS ID (MARGIN/AD VALOREM)
EXPORTER NUMBER (PERCENTAGE/SUBSIDY RATE)
INCHON IRON &
STEEL CO., LTD. C-580-835-001 5.77
A-580-834-000
TAIHAN ELECTRIC
WIRE CO., LTD. C-580-835-002 10.15
A-580-834-000
SAMMI STEEL
CO., LTD. C-580-835-003 29.23
A-580-834-000
ALL OTHERS C-580-835-000 5.77
A-580-834-000

5. FOR IMPORTS OF STAINLESS STEEL SHEET AND STRIP IN COILS FROM
THE REPUBLIC OF KOREA FROM DAI YANG METAL CO. LTD AND POHANG
IRON & STEEL CO. LTD, NO SUSPENSION OF LIQUIDATION IS
REQUIRED AT THIS TIME.

6. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, PLEASE CONTACT, VIA E-MAIL, THROUGH THE
APPROPRIATE SUPERVISORY CHANNELS, OTHER GOVERNMENT AGENCY
LIAISON, USING THE ATTRIBUTE "HQ OAB." THE IMPORTING PUBLIC
AND OTHER INTERESTED PARTIES SHOULD CONTACT EVA TEMKIN,
OFFICE OF AD/CVD ENFORCEMENT, IMPORT ADMINISTRATION,
INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF
COMMERCE, AT (202) 482-1767.

7. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS
INFORMATION.



PAUL SCHWARTZ