[Federal Register Volume 75, Number 194 (Thursday, October 7, 2010)]
[Notices]
[Pages 62101-62103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25304]
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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: Final Results of Expedited Second Sunset Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On June 2, 2010, the Department of Commerce (``the
Department'') initiated the second sunset review of the countervailing
duty order (``CVD'') on stainless steel sheet and strip in coils from
the Republic of Korea (``Korea'') pursuant to section 751(c) of the
Tariff Act of 1930, as amended (``the Act''). On the basis of a notice
of intent to participate and an adequate substantive response filed on
behalf of the domestic interested parties and an inadequate response
from respondent interested parties (in this case, no response), the
Department conducted an expedited sunset review of the CVD order
pursuant to section 751(c)(3)(B) of the Act and 19 CFR
351.218(e)(1)(ii)(B). As a result of this sunset review, the Department
finds that revocation of the CVD order would be likely to lead to
continuation or recurrence of a countervailable subsidy at the level
indicated in the ``Final Results of Review'' section of this notice.
DATES: Effective Date: October 7, 2010.
FOR FURTHER INFORMATION CONTACT: Eric Greynolds or David Goldberger,
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-
6071 or (202) 482-4136, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 2, 2010, the Department initiated the second sunset review
of the CVD order on stainless steel sheet and strip in coils from Korea
pursuant to section 751(c) of the Act. See Initiation of Five-Year
(``Sunset'') Reviews, 75 FR 30777 (June 2, 2010). The Department
received a notice of intent to participate from the following domestic
interested parties: AK Steel Corporation; Allegheny Ludlum Corporation;
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union; United Auto
Workers, Local 3303; and United Auto Workers, Local 4104 (collectively,
``domestic interested parties''), within the deadline specified in 19
CFR 351.218(d)(1)(i). The domestic interested parties claimed
interested party status under sections 771(9)(C) and (D) of the Act, as
domestic producers of stainless steel sheet and strip in coils in the
United States and certified unions representing workers in the domestic
industry producing stainless steel and strip in coils in the United
States.
The Department received an adequate substantive response
collectively from the domestic interested parties within the 30-day
deadline specified in 19 CFR 351.218(d)(3)(i). However, the Department
did not receive a substantive response from any government or
respondent interested party to this proceeding. As a result, pursuant
to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2),
the Department conducted an expedited review of the CVD order.
Scope of the Order
The merchandise subject to the CVD order consists of stainless
steel sheet and strip in coils from Korea. 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 the order is classified in the
Harmonized Tariff
[[Page 62102]]
Schedule of the United States (``HTS'') 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 subject to the
order is dispositive.
Excluded from the scope of the 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 HTS, ``Additional
U.S. Note'' 1(d).
In response to comments by interested parties, the Department
determined that certain specialty stainless steel products are also
excluded from the scope of the 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 the 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 the 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 the 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 the 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 the 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 AISI grade 420 but
containing, by weight, 0.5 to 0.7 percent of
[[Page 62103]]
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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Analysis of Comments Received
All issues raised in this review are addressed in the Issues and
Decision Memorandum (``Decision Memorandum'') from Susan H. Kuhbach,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for
Import Administration, dated September 30, 2010, which is hereby
adopted by this notice. 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 the Central Records Unit,
located in room 7046 of the main Commerce building. The issues include
the likelihood of continuation or recurrence of a countervailable
subsidy, the net countervailable subsidy likely to prevail, and the
nature of the subsidy. In addition, a complete version of the Decision
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the
Decision Memorandum are identical in content.
Final Results of Review
The Department determines that revocation of the CVD order would be
likely to lead to continuation or recurrence of a countervailable
subsidy at the following weighted-average percentage rates:
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Weighted-average
Manufacturers/exporters/producers subsidy rate
(percent)
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Hyundai Steel Company--(formerly known as INI/BNG 0.54
and as Inchon).....................................
Dai Yang Metal Company.............................. 0.67
Taihan.............................................. 4.64
All Others.......................................... 0.63
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Notification Regarding Administrative Protective Order
This notice serves as the only reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305. Timely
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.
We are issuing and publishing the results and notice in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: September 30, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-25304 Filed 10-6-10; 8:45 am]
BILLING CODE 3510-DS-P