67 FR 62097, October 3, 2002
DEPARTMENT OF COMMERCE
International Trade Administration
[C-427-815]
Stainless Steel Sheet and Strip in Coils From France: Final
Results of Countervailing Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of countervailing duty administrative
review.
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SUMMARY: The Department is issuing the final results of the first
administrative review of the countervailing duty order on stainless
steel sheet and strip in coils from France for the period January 1,
2000, through December 31, 2000.
EFFECTIVE DATE: October 3, 2002.
FOR FURTHER INFORMATION CONTACT: Suresh Maniam at (202) 482-0176;
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 (the ``Act'') by
the Uruguay Round Agreements Act. In addition, unless otherwise
indicated, all citations to the Department of Commerce's (the
``Department'') regulations are references to the provisions codified
at 19 CFR part 351 (April 2001).
Case History
Since the publication of the preliminary results in the Federal
Register (see Stainless Steel Sheet and Strip in Coils from France:
Preliminary Results of Countervailing Duty Administrative Review, 67 FR
31774 (May 10, 2002) (``Preliminary Results'')), the following events
have occurred:
On June 10 and 17, 2002, we received case briefs and rebuttals,
respectively, from the petitioners and Usinor/the Government of France
(``GOF''). No hearing was held because no party requested a hearing.
On September 12, 2002, we published a Federal Register notice
extending the time limit for completion of these final results for 14
days until September 23, 2002. See Stainless Steel Sheet and Strip in
Coils from France: Notice of Extension of Time Limit for Countervailing
Duty Administrative Review, 67 FR 57793 (September 12, 2002).
Scope of Review
The products covered by this countervailing duty order 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 covered by this order is currently classifiable 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 under review 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).
Also excluded from the scope of this order are:
Flapper Valve Steel: 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.
Suspension Foil: Suspension foil is 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:
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
[[Page 62099]]
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: 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\
Certain Electrical Resistance Alloy Steel: 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\
Certain Martensitic Precipitation-hardenable Stainless Steel: 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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\1\ ``Arnokrome III'' is a trade mark of the Arnold Engineering
Company.
\2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
\3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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Three Specialty Stainless Steels Typically Used in Certain
Industrial Blades and Surgical and Medical Instruments: 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.'' \5\ 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.''
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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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Period of Review
The period of review (``POR'') for which we are measuring subsidies
is January 1, 2000, through December 31, 2000.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the ``Issues and Decision
Memorandum'' from Susan H. Kuhbach, Senior Office Director, Import
Administration to Faryar Shirzad, Assistant Secretary, Import
Administration, dated September 23, 2002 (``Decision Memorandum''),
which is hereby adopted by this notice. Attached to this notice as
Appendix II is a list of the issues which parties have raised and to
which we have responded in the Decision Memorandum. 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, room B-099 of the main Department
building. In addition, a complete version of the Decision Memorandum
can be accessed directly on the Internet at https://enforcement.trade.gov/frn/
under the heading ``France.'' The paper copy and electronic version of
the Decision Memorandum are identical in content.
Final Results of Review
In accordance with 19 CFR 351.221(b)(5), we calculated an
individual subsidy rate for the producer/exporter subject to this
administrative review. For the period January 1, 2000 through December
31, 2000, we determine the net subsidy rate for Usinor to be 1.90
percent ad valorem.
Due to the injunction issued December 22, 1999 by the U.S. Court of
International Trade, we will not order liquidation of entries of
stainless steel sheet and strip in coil from France at this time.
Liquidation will occur at the rates described in this notice at such
time as the injunction is lifted.
The cash deposit rates for all companies not covered by this review
are not changed by the results of this review. Thus, we will instruct
the United States Customs Service to continue to collect cash deposits
for non-reviewed companies at the most recent rate applicable to the
company. These rates shall apply to all non-reviewed companies until a
review of the companies assigned these rates is completed. In addition,
for the period January 1, 2000 through December 31, 2000, the
assessment rates applicable to all non-reviewed companies covered by
this order is the cash deposit rates in effect at the time of entry.
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. Timely written notification of
return or 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.
[[Page 62100]]
This administrative review and notice are in accordance with
section 751(a)(1) of the Act.
Dated: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--List of Comments and Issues in the Decision Memorandum
Comment 1: 1995 Capital Increase for Usinor
Comment 2: Characterization of Programs Providing No Benefit During
the POR
Comment 3: Post-Privatization Treatment of Usinor's Pre-
Privatization Benefits
Comment 4: Appropriate AUL for Usinor
Comment 5: ECSC Article 55 Benefits
[FR Doc. 02-24783 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P