[Federal Register Volume 66, Number 160 (Friday, August 17, 2001)]
[Notices]
[Pages 43183-43186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20836]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]


Stainless Steel Sheet and Strip in Coils From Germany; Initiation 
and Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Review

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

ACTION: Notice of initiation and preliminary results of changed 
circumstances review of the antidumping duty order, and intent to 
revoke order in part.

-----------------------------------------------------------------------

SUMMARY: In accordance with 19 CFR 351.225(c), Sensormatic Electronics 
Corporation (Sensormatic) filed a request for a clarification of the 
scope of the antidumping duty order on certain stainless steel sheet 
and strip in coils from Germany with respect to the specialty stainless 
steel strip product described in the ``Scope of Changed Circumstances 
Review'' section, below. Alternatively, Sensormatic requested the 
Department conduct a changed circumstances review of the antidumping 
duty order and revoke the order with regard to the specific product at 
issue, in accordance with 19 CFR 351.216(b). Domestic producers of the 
like product have expressed no interest in continuation of the order 
with respect to this particular stainless steel product.
    In response to Sensormatic's request, the Department of Commerce 
(the

[[Page 43184]]

Department) is initiating a changed circumstances review with respect 
to this request and issuing a notice of intent to revoke in part the 
antidumping duty order on certain stainless steel sheet and strip in 
coils from Germany. Interested parties are invited to comment on these 
preliminary results.

EFFECTIVE DATE: August 17, 2001.

FOR FURTHER INFORMATION CONTACT: Robert M. James, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-0649.

SUPPLEMENTARY INFORMATION:

The 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, as amended (the 
Tariff Act), by the Uruguay Round Agreements Act. In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
to the regulations as codified at 19 CFR part 351 (2000).

Background

    The Department published the antidumping duty order on stainless 
steel sheet and strip in coils from Germany on July 27, 1999. See 
Notice of Amended Final Determination of Sales at Less Than Fair Value 
and Antidumping Duty Order, 64 FR 40557. On May 18, 2001, Sensormatic 
requested that the Department determine that a specialty stainless 
steel strip product known as ``SemiVac 90'' is outside the scope of the 
antidumping duty order on stainless steel sheet and strip in coils from 
Germany; in the alternative, Sensormatic requested that the Department 
revoke in part the antidumping duty order on stainless steel sheet and 
strip in coils from Germany on the basis of ``changed circumstances.'' 
Sensormatic described SemiVac 90 stainless steel as a ``magnet iron-
chromium-cobalt alloy stainless steel strip'' which is used to bias the 
resonator in anti-theft labels. Sensormatic likened its SemiVac 90 to 
``Arnokrome III,'' a product specifically excluded from the scope of 
the order, which is reproduced in the ``Scope of the Order'' section, 
below. See Letter from Sandler, Travis & Rosenberg, P.A., May 18, 2001, 
at 2 and 4.
    On July 5, 2001, domestic producers of the like product (Allegheny 
Ludlum Corporation, Armco, Inc., J&L Specialty Steel, Inc., Washington 
Steel Division of Bethlehem Steel Corporation, United Steelworkers of 
America, AFL-CIO/CLC, Butler Armco Independent Union, and Zanesville 
Armco Independent Organization) informed the Department that, 
consistent with the position stated during the less-than-fair-value 
investigation, they have no objection to Sensormatic's request.

Scope of the Order

    The products covered by 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, etc.) provided that it maintains the specific 
dimensions of sheet and strip following such processing.
    The merchandise subject to this order is classified in the 
Harmonized Tariff 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 scope of this 
order 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 HTS, ``Additional 
U.S. Note'' 1(d).
    Flapper valve steel is also excluded from the scope of the order. 
This product 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

[[Page 43185]]

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 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\
---------------------------------------------------------------------------

    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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 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\
---------------------------------------------------------------------------

    \3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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 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\
---------------------------------------------------------------------------

    \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 Armerica, Ltd.
---------------------------------------------------------------------------

Scope of Changed Circumstances Review

    The product subject to this changed circumstances antidumping duty 
administrative review is a permanent magnet iron-chromium-cobalt 
stainless steel strip containing, by weight, 13 percent chromium, 6 
percent cobalt, 71 percent iron, 6 percent nickel and 4 percent 
molybdenum. The product is supplied in widths up to 1.27 cm (12.7 mm), 
inclusive, with a thickness between 45 and 75 microns, inclusive. This 
product exhibits magnetic remanence between 400 and 780 nWb, and 
coercivity of between 60 and 100 oersteds. This product is currently 
supplied under the trade name ``SemiVac 90.''

Initiation of Changed Circumstances Antidumping Duty Administrative 
Review, and Intent To Revoke Order in Part

    Pursuant to sections 751(d)(1) and 782(h)(2) of the Tariff Act, the 
Department may revoke an antidumping or countervailing duty order, in 
whole or in part, based on a review under section 751(b) of the Tariff 
Act (i.e., a changed circumstances review) where the Department 
determines that producers accounting for substantially all of the 
production of that domestic like product have expressed a lack of 
interest in continuance of an order. Section 751(b)(1) of the Tariff 
Act requires a changed circumstances review to be conducted upon 
receipt of a request which shows changed circumstances sufficient to 
warrant a review. Section 351.222(g) of the Department's regulations 
provides that the Department will conduct a changed circumstances 
administrative review under 19 CFR 351.216, and may revoke an order (in 
whole or in part), if it determines that producers accounting for 
substantially all of the production of the domestic like product to 
which the order pertains have expressed a lack of interest in the 
relief provided by the order, in whole or in part, or if other changed 
circumstances sufficient to warrant revocation exist. In addition, in 
the event that the Department concludes that expedited action is 
warranted, 19 CFR 351.221(c)(3)(ii) permits the Department to combine 
the notices of initiation and preliminary results.
    In accordance with sections 751(d)(1) and 782(h)(2) of the Tariff 
Act, and 19 CFR 351.216 and 351.222(g), domestic producers of the like 
product, Allegheny Ludlum Corporation, Armco, Inc., J&L Specialty 
Steel, Inc., Washington Steel Division of Bethlehem Steel Corporation, 
United Steelworkers of America, AFL-CIO/CLC, Butler Armco Independent 
Union, and Zanesville Armco Independent Organization, have made 
affirmative statements that no further interest exists in continuing 
the order with respect to the permanent magnet iron-chromium-cobalt 
stainless steel strip product known as SemiVac 90 described above (see 
petitioners' July

[[Page 43186]]

5, 2001 letter to the Department). Accordingly, we are initiating this 
changed circumstances administrative review. Furthermore, because 
petitioners have expressed a lack of interest, we determine expedited 
action is warranted, and we preliminarily determine that continued 
application of the order with respect to the specific stainless steel 
strip product at issue is no longer of interest to domestic interested 
parties. Because we have concluded that expedited action is warranted, 
we are combining these notices of initiation and preliminary results.
    Therefore, we are hereby notifying the public of our intent to 
revoke in part the antidumping duty order with respect to imports of 
the specialty magnet stainless steel strip product from Germany, 
currently supplied as SemiVac 90, meeting the specifications outlined 
above.
    If the final revocation in part occurs, we intend to instruct the 
U.S. Customs Service to liquidate without regard to antidumping duties, 
as applicable, and to refund any estimated antidumping duties collected 
for all unliquidated entries of certain stainless steel strip products 
meeting the specifications indicated above, not subject to final 
results of administrative review as of the date of publication in the 
Federal Register of the final results of this changed circumstances 
review, in accordance with 19 CFR 351.222(g)(4). We will also instruct 
the Customs Service to pay interest on such refunds in accordance with 
section 778 of the Tariff Act. The current requirement for a cash 
deposit of estimated antidumping duties on certain stainless steel 
strip products meeting the above specifications will continue unless 
and until we publish a final determination to revoke in part.

Public Comment

    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument in this proceeding are requested 
to submit with the argument (i) a statement of the issue, and (ii) a 
brief summary of the argument. Parties to the proceedings may request a 
hearing within 14 days of publication of this notice. Any hearing, if 
requested, will be held no later than two days after the deadline for 
the submission of rebuttal briefs, or the first workday thereafter. 
Case briefs may be submitted by interested parties not later than 14 
days after the date of publication of this notice. Rebuttal briefs and 
rebuttals to written comments, limited to the issues raised in those 
comments, may be filed not later than five days after the deadline for 
submission of case briefs. All written comments shall be submitted in 
accordance with 19 CFR 351.303 and shall be served on all interested 
parties on the Department's service list in accordance with 19 CFR 
351.303. Persons interested in attending the hearing should contact the 
Department for the date and time of the hearing.
    The Department intends to publish in the Federal Register the final 
results of this changed circumstances review, including the results of 
its analysis of issues raised in any written comments, no later than 45 
days after the date of publication of this notice. See 19 CFR 
351.216(e).
    This notice is published in accordance with section 751(b)(1) of 
the Tariff Act and 19 CFR 351.216 and 351.222.

    Dated: August 10, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-20836 Filed 8-16-01; 8:45 am]
BILLING CODE 3510-DS-P