[Federal Register: January 15, 2008 (Volume 73, Number 10)]
[Notices]
[Page 2456-2458]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15ja08-26]

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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 Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,
Department of Commerce.

Background: On September 10, 2007, the Department of Commerce (“the
Department”) published in the Federal Register its preliminary results
of administrative review of the countervailing duty (“CVD”) order on
stainless steel sheet and strip in coils from the Republic of Korea
(“Korea”) for the period January 1, 2005, through December 31, 2005.
See Stainless Steel Sheet and Strip in Coils from the Republic of
Korea: Preliminary Results of Countervailing Duty Administrative
Review, 72 FR 51615 (September 10, 2007) (“Preliminary Results”). The
Department preliminarily found that Dai Yang Metal Co., Ltd. (“DMC”),
the producer/exporter of subject merchandise covered by this review,
had a de minimis net subsidy rate during the period of review
(“POR”).

[[Page 2457]]

We did not receive any comments on our preliminary results and have
made no revisions to those results.

EFFECTIVE DATE: January 15, 2008

FOR FURTHER INFORMATION CONTACT: Eric Greynolds, AD/CVD Operations,
Office 3, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-6071.

SUPPLEMENTARY INFORMATION:

Scope of the Order

    The products subject to this 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), provided that it maintains the specific dimensions
of sheet and strip following such processing.

    The merchandise subject to this order is currently classifiable 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 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.”\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 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.”\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 this order. This high-strength, ductile
stainless steel product is designated under the Unified Numbering
System (“UNS”) as

[[Page 2458]]

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 this 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 ASTM grade 440F, 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 HI-C.” 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 square micron. 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 mor 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.

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Final Results of Review

    As noted above, the Department received no comments concerning the
Preliminary Results. Therefore, consistent with the Preliminary
Results, we continue to find the net subsidy for DMC to be 0.03 percent
ad valorem, which is de minimis. See 19 CFR 351.106(c)(1). As there
have been no changes to or comments on the Preliminary Results, we are
not attaching a decision memorandum to this Federal Register notice.
For further details of the programs included in this proceeding, see
the Preliminary Results.

Assessment Rates/Cash Deposits

    The Department intends to issue assessment instructions to U.S.
Customs and Border Protection (“CBP”) 15 days after the date of
publication of these final results of this review, to liquidate
shipments of subject merchandise by DMC entered, or withdrawn from
warehouse, for consumption on or after January 1, 2005, through
December 31, 2005, without regard to countervailing duties. We will
also instruct CBP not to collect cash deposits of estimated
countervailing duties on shipments of the subject merchandise by DMC
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of the final results of this review.

    For all non-reviewed companies, we will instruct CBP to continue to
collect cash deposits at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit
rates that will be applied to non-reviewed companies covered by this
order are those established in the most recently completed
administrative proceeding. See Final Results of Countervailing Duty
Administrative Review: Stainless Steel Sheet and Strip in Coils from
the Republic of Korea, 72 FR 120 (January 3, 2007). These rates shall
apply to all non-reviewed companies until a review of a company
assigned these rates is completed.

Return of Destruction of Proprietary Information

    This notice also 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(a)(3). Timely written
notification of the 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 these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.

Dated: January 8, 2008.

David M. Spooner,
Assistant Secretary for Import Administration.

[FR Doc. E8-558 Filed 1-14-08; 8:45 am]

BILLING CODE 3510-DS-S