(Cite as: 47 FR 38375)
NOTICES
DEPARTMENT OF COMMERCE
International Trade Administration
Preliminary Affirmative Countervailing Duty Determinations: Certain Stainless Steel Products From Spain
Tuesday, August 31, 1982
*38375 AGENCY: International Trade Administration, Commerce.
ACTION: Preliminary affirmative countervailing duty determinations.
SUMMARY: We preliminarily determine that certain benefits which constitute subsidies within the meaning of the countervailing duty law are being provided to manufacturers, producers, or exporters in Spain of certain stainless steel products, as described in the "Scope of Investigations" section of this notice. The estimated net subsidy for each firm is indicated in the "Suspension of Liquidation" section of this notice. Therefore, we are directing the U.S. Customs Service to suspend liquidation of all entries of the products subject to these determinations which are entered, or withdrawn from warehouse, for consumption, and to require a cash deposit or the posting of a bond on these products in an amount equal to the estimated net subsidy. If these investigations proceed normally, we will make our final determinations by November 8, 1982.
EFFECTIVE DATE: August 31, 1982.
FOR FURTHER INFORMATION CONTACT:
Holly Kuga, Office of Investigations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230, telephone: (202) 377-0171.
*38376 SUPPLEMENTARY INFORMATION:
Preliminary Determinations
Based upon our investigations, we preliminarily determine that there is reason to believe or suspect that certain benefits which constitute subsidies within the meaning of section 701 of the Tariff Act of 1930, as amended ("the Act"), are being provided to manufacturers, producers, or exporters in Spain of certain stainless steel products, as described in "Scope of Investigations" section of this notice. For purposes of these investigations, the following programs are preliminarily found to confer benefits which constitute subsidies:
1/8 Medium and long-term preferential loans
1/8 Privileged circuit exporter credits--working capital loans (short-term preferential loans)
We estimate the estimated net subsidy to be the amount indicated for each firm in the "Suspension of Liquidation" section of this notice.
Case History
On February 17, 1982, we received a petition in proper form from counsel on behalf of eight domestic manufacturers of stainless steel products. These manufacturers are Al Tech Specialty Corporation, Armco Stainless Steel Division, Carpenter Technology Corporation, Colt Industries, Inc.--Crucible Materials Group, Cyclops Corporation, Guterl Special Steel Corporation, Josyln Stainless Steels and Republic Steel Corporation. The petition alleged that certain benefits which constitute subsidies within the meaning of section 303 of the Act are being provided, directly or indirectly, to the manufacturers, producers, or exporters in Spain of stainless steel wire rod, hot-rolled stainless steel bars and cold-formed stainless steel bars.
We reviewed the petitions and on March 3, 1982, determined that countervailing duty investigations should be initiated (47 FR 10268). In the notice announcing these investigations, we stated that we expected to issue preliminary determinations by May 13, 1982.
Section 303 of the Act applied to these investigations when they were initiated because at that time, Spain was not a "country under the Agreement" within the meaning of section 701(b) of the Act and the products at issue were dutiable. Therefore, the domestic industry was not required to allege, and the U.S. International Trade Commission ("ITC") was not required to determine, whether imports of these products caused or threatened to cause material injury to the U.S. industry in question.
On April 14, 1982, the Office of the U.S. Trade Representative announced that Spain had become a "country under the Agreement" as set out in section 701(b) of the Act. As a result, Title VII applies to all countervailing duty investigations concerning merchandise from Spain. Accordingly, on April 29, 1982, we published a notice in the Federal Register (47 FR 18401) of our termination of the investigations begun on March 3, 1982 under section 303 and our initiation of investigations under Title VII of the Act as of April 14, 1982. Unless extended, the preliminary determinations in these investigations were due no later than June 18, 1982. We subsequently determined that these investigations were "extraordinarily complicated" as defined in section 703(c) of the Act and extended the deadline for making our preliminary determinations for 65 days to August 23, 1982 (47 FR 25392).
Since injury determinations are required for investigations involving a country under the Agreement, we advised the ITC of our initiations and made information from our files available to it, in accordance with section 355.25(b) of the Commerce Department Regulations. On June 10, 1982, the ITC preliminarily determined that there is a reasonable indication that these imports are materially injuring or threatening to materially injure a U.S. industry.
We presented questionnaires concerning the allegations to the government of Spain at its embassy in Washington, D.C. on March 8, 1982. On May 17, 1982, we received the responses to the questionnaires. Supplemental responses were received on June 21, June 29, and August 4, 1982. Additional data have been submitted since the August 4 submission. Where possible these data have been considered in these preliminary determinations. Data that could not be considered in making our preliminary determinations will be considered in making our final determinations in these cases.
Scope of the Investigations
The products covered by these investigations are:
1/8 Stainless steel wire rod
1/8 Hot-rolled stainless steel bars
1/8 Cold-formed stainless steel bars
The products are fully described in appendix A to this notice.
Olarra, S.A. (Olarra); Roldan, S.A. (Roldan); S.A. Echevarria (Echevarria); Forjas Alavesas, S.A.; and La Calibradora Mecanica, S.A. are the only known producers and exporters in Spain of the subject products which were exported to the United States. The period for which we are measuring subsidization is the 1981 calendar year.
Analysis of Programs
In its responses, the government of Spain provided data for the applicable periods. Additionally, we received information from the following firms, which produced and exported to the United States the products under investigation:
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Firms Product
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Roldan ........ Hot-rolled stainless steel bars, cold-formed stainless steel
bars, and stainless steel wire rod.
Olarra ........ Hot-rolled stainless steel bars and cold-formed stainless steel
bars.
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Certain subsidies discussed in this notice were conveyed through decreases issued by the government of Spain. Those decrees include the following:
Decree 669/74 of March 14, 1974 (Concerted Action)--This decree established the National Steel Industry Program, 1974-1982. To achieve the specific goals established by this program, the government authorized certain benefits for the integrated and non-integrated steel firms which included preferential loans and loan terms, accelerated amortization of non-liquid investments, substantial reduction of certain taxes, and expropriation of land for new plant construction.
Decree 2206/1980 of October 18, 1980--This decree established Sdad. de Aceros Especiales (Aceriales) for the purpose of restructuring the Spanish specialty steel industry. Aceriales is comprised of representatives from the industry, which includes the stainless steel producers, and the government. The Administrative Council of Aceriales is responsible for developing and executing a reconversion plan within the mandates of the government decree. The government has authorized funds for Aceriales through the Spanish Ministry of Industry and Energy and the Basque country regional government to assist the association to achieve its goals.
Based upon our analysis to date of the petitions and the responses to our questionnaires, we have preliminarily determined the following:
I. Program Preliminarily Determined To Be a Subsidy
We preliminarily determine that subsidies are being provided to manufacturers, producers, or exporters in Spain of hot-rolled stainless steel bars, cold- formed stainless steel bars, and stainless steel wire rod under the program listed below.
*38377 Preferential Loans
Petitioners alleged benefits in the form of preferential loans and loan terms. The Department requested from each of the companies under investigation information on all loans outstanding during the period for which we are measuring subsidization. We discuss short-term borrowing and medium and long- term financing separately below.
1. Medium and Long-Term Preferential Loans
Medium-term financing in Spain is from two to five years. Long-term financing is less prevalent and is usually for periods not longer than ten years.
We examined each loan reported to determine if the government was lending or had directed a bank to lend these funds to certain companies, sectors or regions in Spain at preferential rates or terms.
To calculate any subsidy on such loans, we compared the principal and interest payments the company would have made during a given time period on a comparable loan from a normal commercial lender with the amount actually paid on the loans in question.
To determine what the company would have paid on a comparable loan, we used as a benchmark the national average commercial interest rate. On loans directed by the government to a specific company, we use as a benchmark the interest rate the firm received on private commercial loans. While one firm reported such loans, we need additional information to determine if the interest rates on these loans are appropriate benchmarks for these investigations. We used as the national commercial rate the average maximum interest rates published by the Banco de Espana for the year in which the loan in question was received. Where published, the appropriate monthly or quarterly rates were used. The only published information available to us for 1962-1969 were the fixed minimum rates established for that period by the government of Spain. From 1972-1977, rates were published for commercial and industrial banks. We used the industrial banks' maximum rate since these banks lent funds to industry and were the primary source of long-term money during this period. Commercial bank rates were used during all other time periods.
We computed in each year of each loan the differential in payments between the actual loan and the comparable commercial loan. We then calculated the present value of this stream of differentials in the year the loan was made, using as the discount rate for that year the average long-term government-bond yield for Spain. Where the bond yield was not available, we calculated it by dividing the government-bond rate by the commercial-bond rate in the nearest year for which these rates existed and applying the percentage that resulted to the commercial bond rate for the year in question.
This lump-sum benefit (present value of stream of differentials) was then allocated in constant nominal amounts over the life of the loan. The 1981 portion of the benefit was then further allocated over the total sales value of steel production reported by the company under investigation.
The preferential loans reported by the responding Spanish firm contained provisions for deferred principal repayments. Information gathered in the context of other investigations involving Spain indicates that private commercial banks offer similar terms to manufacturers, producers, or exporters of such products as those under investigation. Therefore, for purposes of these preliminary determinations, we are treating deferred principal payments as being not preferential and thus not a countervailable subsidy.
A discussion of our treatment of these loans on a company-by-company basis follows:8
(1) Roldan
Roldan reported loans outstanding during the period for which we are measuring subsidization. They included loans from Banco Credito Industrial (BCI), a government credit institution which issues loans directed by the government to the Spanish steel industry. We found a subsidy flowing from these loans when the interest rates were less than the benchmark discussed earlier.
The complete terms of one BCI loan were not reported. We established the amount of the loan for purposes of these preliminary determinations by treating it as issued the year of the earliest submitted financial statement containing evidence of the obligation. Multiple disbursements made under another BCI loan were treated as individual loans. In such cases we used as the benchmark the commercial interest rate at the time of the disbursement.
We preliminarily determine that the ad valorem subsidy for preferential medium and long-term loans to Roldan is 1.45 percent.
(2) Olarra
Olarra's response indicates that the company went into receivership in 1979. Bank credits obtained by the company subsequent to its receivership consist entirely of short-term loans. Bank loans obtained prior to this time have been aggregated in the receivership debt. We will seek additional information concerning the specific details of the loans obtained prior to receivership before reaching a final determination in this case. Olarra received no funds from Aceriales and no allegations were made concerning its participation in Concerted Action. Therefore, in the absence of specific loan information, we preliminarily determine the ad valorem subsidy for medium- and long-term loans to Olarra to be zero.
(3) Echevarria
Echevarria did not respond to our questionnaire but was identified by the government of Spain as a producer and exporter of all three products under investigation. Petitioners alleged that, in addition to the other programs available to exporters and firms in the Spanish steel industry, Echevarria received benefits that were specifically directed to it by the government of Spain. The Department had information on certain benefits directed to Echevarria from this and other investigations involving Spain. As petitioners did not quantify the benefits they claimed were specifically directed to Echevarria, we used the department's information on benefits to this firm for purposes of these preliminary determinations.
Our information indicates that in 1979 Echevarria received a government loan of 1.25 billion pesetas through the Council of Ministers. A Ministry of Economy Order dated January 15, 1980 granted 2.5 billion peseta loan to Echevarria through the official lending institution, the Instituto de Credito Official. Additionally, Aceriales reports disbursing 477 million pesetas to Echevarria in 1980 and 1.3 billion pesetas in 1981.
As discussed earlier, Aceriales has received a portion of its funding from the government. We have information that indicates that Aceriales has disbursed its funds to other firms in the form of loans. Therefore, we are treating Aceriales' disbursements to Echevarria as government directed loans for purposes of these preliminary determinations.
We find a subsidy flowing from such loans when the interest rate is less than the benchmark discussed earlier. We do not have information on the terms and conditions of the loans described above. We have no information on the terms and conditions of loans made by Aceriales to other firms. In the absence *38378 of a response from Echevarria, we treated these loans as bearing an interest rate of zero. The loan length was based on the long-term loan experience of another company subject to these investigations.
Any subsidy flowing from the 1981 disbursement by Aceriales would occur outside the period for which we are measuring subsidization and would be part of an annual review should countervailing duty orders be issued in these investigations. Consequently the subsidy from the 1981 loan has not been included in our estimated net subsidy rate.
We calculated the benefit from the remaining loans and allocated it over the estimated total sales value of Echevarria's steel production in 1981. Information available to us on Echevarria's 1979 and 1980 sales was used to estimate its total sales in 1981 by applying the percentage increase in Echevarria's total sales between 1979 and 1980 to the 1980 total sales figure.
We preliminarily determine, therefore, that the ad valorem subsidy for these loans to Echevarria is 5.61 percent.
The government of Spain requires all Spanish commercial banks to maintain a specific percentage of their lendable funds in privileged circuit accounts. These funds are made available to exporters at preferential interest rates through a variety of credit programs. While there is no direct outlay of government funds, the benefits conferred on the companies are the result of a government-mandated program to promote exports. Of the four privileged circuit programs identified in the notice of initiation, we determined that stainless steel producers benefited from one, the working-capital loans program.
Under the privileged circuit program, firms may obtain working-capital loans for less than one year, the total of which is not to exceed a specified percentage of their previous year's exports. In 1981 this percentage for firms without exporter's cards was 20 percent until November, when it was decreased to 16 percent. For firms with government-issued exporter's cards, the applicable rates were 30 percent before November and 24 percent thereafter. On April 14, 1982 the percentage was further reduced to 22.5 percent with exporter's card and to 15 percent for firms without such cards.
In 1981, the privileged circuit working capital loan interest rate ceiling mandated by the government was 10 percent, including fees and commissions. Working capital loans are available throughout Spain to all exporters meeting eligibility requirements. In such instances we calculate the subsidy by comparing the preferential interest rate with the national average commercial interest rate on loans with similar terms and conditions.
Of the two companies responding, only Roldan obtained working capital loans during the period for which we are measuring subsidization. While Olarra has used the program in the past, it has not obtained privileged circuit working- capital loans as recently as calendar years 1980 and 1981.
The loans obtained by Roldan were approximately one year in length. We determined that during the period that Roldan received its working-capital loans, the average prime interest rate was 16.94 percent for loans of approximately one year and that the average borrower paid 2 percentage points over the prime rate for loans of this type.
As the 10 percent working-capital loan rate includes fees and commissions, we also made an addition of 0.5 percent to the commercial rate, which by Spanish law is the maximum allowable charge for fees and commissions. Based on these data we determined the national average commercial interest rate to average borrowers to be 19.44 percent for one year loans, including fees and commissions.
While the Privileged Circuit Exporter Credit program is a government mandated program, commercial banks are free to select the firm that will receive such loans. It is extremely unlikely that a company in receivership such as Olarra would be considered qualified by commercial banks to participate in this program. Olarra indicates in its response that it has not participated in the program in the last two years. Therefore, for purposes of these preliminary determinations, we have excluded Olarra from our calculation of this benefit. Since Roldan is the remaining principal exporter to the United States of the products under investigation, we used its participation in the program to determine the ad valorem subsidy conferred by this program on the stainless steel producers.
To determine the benefit, the interest differential of 9.44 percent was applied to the total privileged circuit working-capital loans received by Roldan in 1981. This benefit was prorated over the sales value of Roldan's total exports to arrive at a preliminary ad valorem subsidy to stainless steel producers, with the exception of Olarra, of 1.0 percent.
II. Program Preliminarily Determined Not To Be a Subsidy
We preliminarily determine that a subsidy is not being provided to manufacturers, producers, or exporters in Spain of the products under investigation, under the following program.
A. Desgravacion Fiscal a la Exportacion (DFE)
Spain employs a cascading tax system. A turnover tax ("IGTE") is levied on each sale of a product through its various stages of production, up to (but not including) the ultimate sale at the retail level. The DFE is the mechanism used in Spain for the rebate of these accumulated taxes (hereafter referred to as "indirect taxes") upon exportation of that product. In calculating the DFE payments to be rebated to exporters, the Spanish used an input-output table of the economy that defined indirect tax incidences on a sectoral basis. This is the basis for a schedule of border taxes ("ICGI") designed to subject imported goods to a tax burden equivalent to that borne by an identical or similar item produced in Spain. The DFE is tied by law to the level of the ICGI.
To demonstrate the actual indirect tax incidence on each product under investigation, the government of Spain provided a "structure of cost" analysis of each product. This identified inputs incorporated into each product, the percent each input comprised of the total cost of producing each product, and the indirect tax incidence burdening each input.
Based on the 1980 IGTE tax rate of 2.4 percent, the total indirect tax burden (including two final stage taxes) in 1980 on each product under investigation was 12.04 percent for hot-rolled stainless steel bars, 13.01 percent for cold- formed stainless steel bars and 11.11 percent for stainless wire rod. The DFE rate in 1980 did constitute an overrebate of indirect taxes because the DFE rebate for each product was 15.5 percent. However, in January, 1981, the government of Spain increased the IGTE rate by 58 percent to 3.8 percent; and in January, 1982 further increased the IGTE to 4.6 percent. As a result of these increases in the tax rate the indirect tax burden on each product exceeds the 15.5 percent DFE rate and the overrebate is eliminated. Therefore, we preliminarily determine that the current DFE rebate of 15.5 percent is loss than the indirect tax burden currently borne by each product and *38379 thus, in these cases, the DFE is not a benefit which constitutes a subsidy.
III. Programs Preliminarily Determine Not To Be Utilized or Not Applicable
We have preliminarily determined that the following programs which were identified in the notice of "Initiation of Countervailing Duty Investigations" are not applicable to these investigations or are not utilized by the manufacturers, producers, or exporters in Spain of the products under investigation.
A. Certain Privileged Circuit Exporter Credits
Privileged Circuit Export Credits were discussed in general earlier in this notice. One program, working-capital loans, has been preliminarily determined to provide subsidies to manufacturers, producers, or exporters of the products under investigation. The three remaining privileged circuit programs identified in our notice of initiations were not utilized. They are:
Exporters may obtain preferential loans to establish, expand or acquire commercial services in export markets or to maintain stocks for export. Commercial services loans may cover 60-65 percent of the real investment while stock maintenance loans may cover 30-35 percent of the average annual value of the stock.
Companies with firm orders for export can qualify for preferential short-term export credit. The loan amounts are limited to 80-90 percent of the total contract price of the exported goods.
Companies that manufacture certain capital and consumer products can qualify for preferential short-term financing with firm orders for export of these items. The loan amounts are limited to 80-85 percent of the contract price of exported products.
B. Warehouse Construction Loans
Exporters desiring to construct warehouse facilities adjacent to loading zones may borrow 70-75 percent of the total investment. Respondents state they received no loans under this program.
Petitioners alleged that the government of Spain obtained 51 percent ownership in Olarra during the formation of Aceriales in 1980. Olarra states that it received no funds from Aceriales and that it has been a privately held company since at least 1980. The information provided in Aceriales' response to these investigations confirms the fact that Olarra received no funds from Aceriales in 1980 or 1981. We, therefore, preliminarily determine that this allegation concerning Olarra does not apply to these investigations.
D. Special Credits to Aceros de Llodio
Petitioners considered Aceros de Llodio a producer and exporter of the stainless steel products under investigation and included it in their allegations as the recipient of special credits from the government of Spain. However, the government did not identify this company as an exporter of the products under investigation.
Therefore, we have preliminarily determined that this allegation does not apply to the investigations concerning the stainless steel products described in this notice.
IV. Programs for Which Additional Information Is Needed
The programs listed below are also included in our investigations. At this time, we do not have sufficient information from petitioners or respondents to quantify or to determine whether these programs are providing manufacturers, producers, or exporters in Spain of the products under investigation benefits which constitute subsidies within the meaning of the countervailing duty law. We will seek additional information regarding these programs before reaching final determinations.
The Compania Espanola de Seguros de Credito a la Exportacion, S.A. ("CESCE"), 51 percent of which is owned by the government of Spain, provides export insurance to cover commercial, political, exchange rate fluctuations and inflation risks. We do not have sufficient information about CESCE to evaluate its operations. Therefore, we will seek this additional information before determining whether this program is providing benefits which constitute a subsidy within the countervailing duty law.
B. Research and Development (R&D) Incentives
Firms located in Spain may receive government grants covering up to 50 percent or more of the cost of R & D projects. At this time we have insufficient information from both the government of Spain and the companies upon which to determine whether this program is being used by the manufacturers, producers, or exporters in Spain of the products subject to these investigations and whether it provides benefits which constitute a subsidy within the meaning of the U.S. countervailing duty law. We will seek additional information regarding these programs before reaching final determinations.
C. Regional Investment Incentive Programs
The government of Spain, as well as regional and municipal authorities, provide a wide variety of investment incentive programs which vary according to the region of the country. They include reduction in taxes, reduced import duties on imported tools and equipment, cash grants, preferential access to official credit, and free or inexpensive land. At this time we have insufficient information from both the government of Spain and the companies upon which to determine whether programs of this nature are being used by manufacturers, producers, or exporters in Spain of the products subject to these investigations and whether they provide benefits which constitute a subsidy within the meaning of the U.S. countervailing duty law. We will seek additional information regarding these programs before reaching final determinations.
Verification
In accordance with section 776(a) of the Act, we will verify data used in making our final determinations.
Suspension of Liquidation
In accordance with section 703 of the Act, we are directing the U.S. Customs Service to suspend liquidation of all entries of hot-rolled stainless steel bars, cold-formed stainless steel bars, and stainless steel wire rod which are entered, or withdrawn from warehouse, for consumption, on or after the date of publication of this notice in the Federal Register. The Customs Service shall require a cash deposit or bond for each such entry of the merchandise in the amounts indicated below:
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Manufacturer/producer/exporter Ad valorem rate
(percent)
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Roldan, S.A .............................................................. 2.45
Olarra, S.A .............................................................. 0.00
S.A. Echevarria .......................................................... 6.61
All other producers, manufacturers, or exporters of the
products under investigation ........................................... 6.61
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Where a company specifically listed above has not exported one of the products under investigation during the period for which we are measuring *38380 subsidization, the cash deposit or bond amount for these products should be based on the rate for the investigated products that were exported by that company. If the manufacturer is unknown, the rate for all other manufacturers/producers/exporters shall be used.
This suspension will remain in effect until further notice.
ITC Notifications
In accordance with section 703(f) of the Act, we will notify the ITC of our determinations. In addition, we are making available to the ITC all nonprivileged and nonconfidential information relating to these investigations. We will allow the ITC access to all privileged and confidential information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order, without the written consent of the Deputy Assistant Secretary for Import Administration.
Public Comment
In accordance with s 355.35 of the Commerce Department Regulations, if requested, we will hold a public hearing to afford interested parties an opportunity to comment on these preliminary determinations at 10:00 a.m. on September 30, 1982, at the U.S. Department of Commerce, Conference Room D, 14th Street and Constitution Avenue, NW., Washington, D.C. 20230. Individuals who wish to participate in the hearing must submit a request to the Deputy Assistant Secretary for Import Administration, Room 3073B, at the above address within ten days of this notice's publication. Requests should contain: (1) The party's name, address, and telephone number; (2) the number of participants; (3) the reason for attending; and (4) a list of the issues to be discussed. In addition, prehearing briefs must be submitted to the Deputy Assistant Secretary by September 23, 1982. Oral presentations will be limited to issues raised in the briefs.
All written views should be filed in accordance with 19 CFR 355.34, within thirty days of this notice's publication, at the above address and in at least ten copies.
Dated: August 23, 1982.
Gary N. Horlick,
Deputy Assistant Secretary for Import Administration.
Appendix A
For purpose of these investigations:
1. The term "stainless steel wire rod" covers a coiled, semi-finished, hot- rolled stainless steel product of solid cross section, approximately round in cross section, not under 0.20 inches nor over 0.74 inch in diameter, not tempered, not treated, and not partly manufactured as currently provided for in item 607.26 of the Tariff Schedules of the United States (TSUS) or if tempered, treated, or partly manufactured as provided for in item 607.43 of the TSUS.
2. The term "hot-rolled stainless steel bars" covers hot-rolled stainless steel products of solid section having cross sections in the shape of circles, segments of circles, ovals, triangles, rectangles, hexagons or octagons, not coated or plated with metal as currently provided for in item 606.9010 of the Tariff Schedules of the United States Annotated.
3. The term "cold-formed stainless steel bars" covers cold-formed stainless steel products of solid section having cross sections in the shape of circles, segments of circles, ovals, triangles, rectangles, hexagons or octagons, not coated or plated with metal as currently provided for in item 606.9005 of the Tariff Schedules of the United States Annotated.
Stainless steel is an alloy steel which contains by weight less than 1 percent of carbon and over 11.5 percent of chromium. Iron must predominate by weight and the alloy is malleable as first cast. Alloy steel is defined as a steel which contains one or more of the following elements in the quantity, by weight, respectively indicated:
Over 1.65 percent of manganese, or
Over 0.25 percent of phosphorus, or
Over 0.35 percent of sulphur, or
Over 0.60 percent of silicon, or
Over 0.60 percent of copper, or
Over 0.30 percent of aluminum, or
Over 0.20 percent of chromium, or
Over 0.30 percent of cobalt, or
Over 0.35 percent of lead, or
Over 0.50 percent of nickel, or
Over 0.30 percent of tungsten, or
Over 0.10 percent of any other metallic element.