[Federal Register Volume 64, Number 151 (Friday, August 6, 1999)]
[Notices]
[Pages 42923-42925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20340]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-427-815, C-475-825, and C-580-835]
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 in Coils From France, Italy,
and the Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: August 6, 1999.
FOR FURTHER INFORMATION CONTACT: Marian Wells (France), Cynthia
Thirumalai (Italy), and Eva Temkin (Republic of Korea), Office of AD/
CVD Enforcement, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
6309, (202) 482-4087, and (202) 482-1167, respectively.
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended by
the Uruguay Round Agreements Act effective January 1, 1995 (``the
Act''). In addition, unless otherwise indicated, all citations to the
Department's regulations are to the current regulations codified at 19
CFR Part 351 (April 1998).
Scope of Orders
The products covered by these orders 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 these orders is classified in the
Harmonized Tariff Schedule of the United States (``HTSUS'') at the
following subheadings: 7219.13.00.30, 7219.13.00.50, 7219.13.00.70,
7219.13.00.80, 7219.14.00.30, 7219.14.00.65, 7219.14.00.90,
7219.32.00.05, 7219.32.00.20, 7219.32.00.25, 7219.32.00.35,
7219.32.00.36, 7219.32.00.38, 7219.32.00.42, 7219.32.00.44,
7219.33.00.05, 7219.33.00.20, 7219.33.00.25, 7219.33.00.35,
7219.33.00.36, 7219.33.00.38, 7219.33.00.42, 7219.33.00.44,
7219.34.00.05, 7219.34.00.20, 7219.34.00.25, 7219.34.00.30,
7219.34.00.35, 7219.35.00.05, 7219.35.00.15, 7219.35.00.30,
7219.35.00.35, 7219.90.00.10, 7219.90.00.20, 7219.90.00.25,
7219.90.00.60, 7219.90.00.80, 7220.12.10.00, 7220.12.50.00,
7220.20.10.10, 7220.20.10.15, 7220.20.10.60, 7220.20.10.80,
7220.20.60.05, 7220.20.60.10, 7220.20.60.15, 7220.20.60.60,
7220.20.60.80, 7220.20.70.05, 7220.20.70.10, 7220.20.70.15,
7220.20.70.60, 7220.20.70.80, 7220.20.80.00, 7220.20.90.30,
7220.20.90.60, 7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and
7220.90.00.80. Although the HTSUS subheadings are provided for
convenience and customs purposes, the Department's written description
of the merchandise covered by these orders is dispositive.
Excluded from the scope of these orders 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).
In response to comments by interested parties the Department has
determined that certain specialty stainless steel products are also
excluded from the scope of these orders. 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 these orders. 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.
[[Page 42924]]
Permanent magnet iron-chromium-cobalt alloy stainless strip is also
excluded from the scope of these orders. 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 these orders. 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 these orders. 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 these orders. These include stainless steel
strip in coils used in the production of textile cutting tools (e.g.,
carpet knives).4 This steel is similar to AISI grade 420 but
containing, by weight, 0.5 to 0.7 percent of molybdenum. 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''.5
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\4\ This list of uses is illustrative and provided for
descriptive purposes only.
\5\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary
grades of Hitachi Metals America, Ltd.
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Amended Final Determination
Republic of Korea
On May 20, 1999, the Department released its final determination in
the countervailing duty investigation of stainless steel sheet and
strip in coils from the Republic of Korea (``Korea''). Subsequently, on
June 2, 1999, the petitioners in this investigation alleged that the
Department had made two ministerial errors in calculating the estimated
net countervailable subsidy rate. We disagree with one of the
petitioners' allegations that we made a ministerial error; the
allegation constituted a methodological argument. We agree with the
petitioners that we made a ministerial error with regard to their
second allegation and we have, therefore, made a correction in the
calculations. This correction resulted in the estimated net
countervailable subsidy rate attributable to Inchon Iron & Steel
Company's (``Inchon'') post-1991 variable rate loans increasing from
2.64 percent ad valorem to 2.65 percent ad valorem. The ministerial
error allegations and the Department's analysis are detailed in a June
17, 1999 memorandum to Bernard Carreau, Deputy Assistant Secretary for
AD/CVD Enforcement II, from David Mueller, Director, Office CVD/AD
Enforcement VI (``Allegations of Ministerial Errors in the Final
Results of the Countervailing Duty Investigation: Stainless Steel Sheet
and Strip in Coils from the Republic of Korea''), a public version of
which is on file in the Central Records Unit (Room B-099 of the Main
Commerce Building). Thus, the total estimated net countervailable
subsidy rate is 2.65 percent ad valorem for Inchon. This change does
not alter the ``all others'' rate.
Countervailing Duty Orders
In accordance with section 705(d) of the Act, on June 8, 1999, the
Department published its final determinations in the countervailing
duty investigations of certain stainless steel sheet and strip in coils
from France (64 FR 30774), Italy (64 FR 30624), and Korea (64 FR
30636). On July 19,1999, the International Trade Commission (``ITC'')
notified the Department of its final determination, pursuant to section
705(b)(1)(A)(i) of the Act, that an industry in the United States
suffered material injury as a result of subsidized imports of stainless
steel sheet and strip in coils from France, Italy, and Korea.
Therefore, countervailing duties will be assessed on all
unliquidated entries of stainless steel sheet and strip in coils from
France, Italy, and Korea entered, or withdrawn from warehouse, for
consumption on or after November 17, 1998, the date on which the
Department published its preliminary countervailing duty determinations
in the Federal Register, and before March 17, 1999, the date the
Department instructed the U.S. Customs Service to discontinue the
suspensions of liquidation in accordance with section 703(d) of the
Act, and on all entries and withdrawals on or after the date of
publication of these countervailing duty orders in the Federal
Register. Section 703(d) states that the suspension of liquidation
pursuant to a preliminary determination may not remain in effect for
more than four months. Entries of stainless steel sheet and strip in
coils made on or after March 17, 1999, and prior to the date of
publication of these orders in the Federal Register are not liable for
the
[[Page 42925]]
assessment of countervailing duties due to the Department's
discontinuation, effective March 17, 1999, of the suspensions of
liquidation.
In accordance with section 706 of the Act, the Department will
direct U.S. Customs officers to reinstitute the suspensions of
liquidation and to assess, upon further advice by the Department
pursuant to section 706(a)(1) of the Act, countervailing duties for
each entry of the subject merchandise in an amount based on the net
countervailable subsidy rate for the subject merchandise.
On or after the date of publication of this notice in the Federal
Register, U.S. Customs officers must require, at the same time as
importers would normally deposit estimated duties on this merchandise,
a cash deposit equal to the countervailable subsidy rates noted below.
The All Others rates apply to all producers and exporters of stainless
steel sheet and strip in coils from France, Italy, and Korea not
specifically listed below. The cash deposit rates are as follows:
------------------------------------------------------------------------
Net subsidy
rate
Producer/exporter (percent ad
valorem)
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France:
Usinor................................................... 5.38
All Others............................................... 5.38
Italy:
Acciai Speciali Terni S.p.A.............................. 12.22
Arinox S.r.L............................................. 1.03
All Others............................................... 12.09
Korea:
Inchon................................................... 2.65
Dai Yang................................................. 1.58
Taihan................................................... 7.00
Sammi.................................................... 59.30
All Others............................................... 1.68
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The Korean steel producer POSCO is excluded from these orders
because it received a de minimis net subsidy rate of 0.65 percent ad
valorem.
This notice constitutes the countervailing duty orders with respect
to stainless steel sheet and strip in coils from France, Italy, and
Korea, pursuant to section 706(a) of the Act. Interested parties may
contact the Central Records Unit, Room B-099 of the Main Commerce
Building, for copies of an updated list of countervailing duty orders
currently in effect.
These countervailing duty orders and amended final determination
are published in accordance with section 706(a) and 705 of the Act and
19 CFR 351.211 and 351.224.
Dated: August 2, 1999.
Susan H. Kuhbach,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 99-20340 Filed 8-5-99; 8:45 am]
BILLING CODE 3510-DS-P