[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61579-61591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24925]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-815]


Suspension of Antidumping Duty Investigation of Certain Cold-
Rolled Carbon Steel Flat Products From the Russian Federation

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

SUMMARY: The Department of Commerce (``the Department'') has suspended 
the antidumping duty investigation involving certain cold-rolled carbon 
steel flat products (``cold-rolled steel'') from the Russian Federation 
(``Russia''). The basis for this action is an agreement between the 
Department and the Russian cold-rolled steel producers accounting for 
substantially all imports of cold-rolled steel from Russia, wherein 
each signatory producer/exporter individually agrees to make any 
necessary price revisions to eliminate completely any amount by which 
the normal value (NV) of this merchandise exceeds the U.S. price of its 
merchandise subject to the Agreement.

EFFECTIVE DATE: September 23, 2002.

FOR FURTHER INFORMATION CONTACT: Jean Kemp, Jonathan Herzog or Aishe 
Allen at (202) 482-4037, (202) 482-4271, and (202) 482-0172 
respectively, Antidumping and Countervailing Duty Enforcement Group 
III, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On May 9, 2002, the Department published its preliminary 
determination

[[Page 61580]]

in the above-captioned antidumping duty investigation. See Notice of 
Preliminary Determination of Sales at Less Than Fair Value: Certain 
Cold-Rolled Carbon Steel Flat Products From the Russian Federation, 67 
FR 31241 (May 9, 2002) (``Preliminary Determination''). This 
investigation was initiated on October 18, 2001.\1\ See Notice of 
Initiation of Antidumping Duty Investigations: Certain Cold-Rolled 
Carbon Steel Flat Products From Argentina, Australia, Belgium, Brazil, 
France, Germany, India, Japan, Korea, the Netherlands, New Zealand, the 
People's Republic of China, the Russian Federation, South Africa, 
Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela, 66 FR 54198 
(October 26, 2001).
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    \1\ The petitioners in this investigation are Bethlehem Steel 
Corporation, LTV Steel Company, Inc., Nucor Corporation, Steel 
Dynamics, Inc., United States Steel Corporation, WCI Steel, Inc., 
and Weirton Steel Corporation (collectively, the petitioners).
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    On May 13, 2002, the Russian Ministry of Economic Development and 
Trade submitted to the Department a proposed draft of a suspension 
agreement between them and the Department. On May 30, 2002, the Russian 
government requested an extension of the final determination in order 
to have time to negotiate an agreement to suspend this investigation. 
On August 23, 2002, in Washington, DC, representatives from JSC 
Severstal, Novolipetsk Iron and Steel Corporation, and JSC Magnitogorsk 
Iron and Steel Works (collectively the `` Russian cold-rolled steel 
producers'') initialed a proposed suspension agreement. We invited 
comments on the proposed agreement. On September 16, 2002, we received 
comments from petitioners, represented by Dewey Ballantine LLP, 
Skadden, Arps, Slate, Meagher and Flom LLP, Wiley Rein and Fielding 
LLP, Thompson Coburn, and the Russian cold-rolled steel producers 
submitted by Sidley, Austin Brown and Wood LLP.
    On September 23, 2002, the final suspension agreement was signed by 
the Russian cold-rolled steel producers and the Department, the 
effective date being September 23, 2002.

Scope of Investigation

    For a complete description of the scope of the investigation, see 
Agreement Suspending the Antidumping Investigation on Cold-Rolled 
Carbon Steel Flat Products from the Russian Federation, Appendix B, 
signed September 23, 2002, attached hereto.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. Based on our review of these comments, we have 
made changes to the agreement. In accordance with section 734(b) of the 
Act, we have determined that the agreement will eliminate completely 
sales at less than fair value of imported subject merchandise. 
Moreover, in accordance with section 734(d) of the Act, we have 
determined that the agreement is in the public interest, and that the 
agreement can be monitored effectively. We find, therefore, that the 
criteria for suspension of an investigation pursuant to sections 734(b) 
and (d) of the Act have been met. The terms and conditions of this 
agreement, signed September 23, 2002, are set forth in appendix I to 
this notice.
    Pursuant to section 734(f)(2)(A) of the Act, the suspension of 
liquidation of all entries of cold-rolled steel from Russia entered, or 
withdrawn from warehouse, for consumption, as directed in our notice of 
Preliminary Determination, is hereby terminated.
    Any cash deposits on entries of cold-rolled steel from Russia 
pursuant to that suspension of liquidation shall be refunded and any 
bonds shall be released.
    Notwithstanding the suspension agreements, the Department will 
continue the investigation if it receives such a request in accordance 
with section 734(g) of the Act within 20 days after the date of 
publication of this notice.
    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.

    Dated: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Agreement Suspending the Antidumping Investigation on Cold-
Rolled Carbon Steel Flat Products From the Russian Federation (A-821-
815)

    Pursuant to section 734(b) of the Tariff Act of 1930, as amended 
(19 U.S.C. 1673(c)(b)) (the ``Act''), and 19 CFR 351.208 (the 
``Regulations''), the U.S. Department of Commerce (the 
``Department'') and the signatory producers/exporters of Cold-Rolled 
Carbon Steel Flat Products from the Russian Federation (the 
``Signatories'') enter into this suspension agreement (the 
``Agreement''). On the basis of this Agreement, the Department shall 
suspend its antidumping investigation initiated on October 26, 2001 
(66 FR 54198), with respect to cold-rolled carbon steel flat 
products from the Russian Federation, subject to the terms and 
provisions set forth below.

(A) Product Coverage

    For purposes of this Agreement, the products covered are certain 
cold-rolled (cold-reduced), flat-rolled carbon-quality steel 
products, as described in appendix B.

(B) U.S. Import Coverage

    The signatory producers/exporters collectively are the producers 
and exporters in the Russian Federation that, during the antidumping 
investigation on the merchandise subject to the Agreement, accounted 
for substantially all (not less than 85 percent) of the subject 
merchandise imported into the United States, as provided in the 
Department's regulations. The Department may at anytime during the 
period of the Agreement require additional producers/exporters in 
the Russian Federation to sign the Agreement in order to ensure that 
not less than substantially all imports into the United States are 
covered by the Agreement.
    In reviewing the operation of the Agreement for the purpose of 
determining whether this Agreement has been violated or is no longer 
in the public interest, the Department will consider imports into 
the United States from all sources of the merchandise described in 
Section A of the Agreement. For this purpose, the Department will 
consider factors including, but not limited to, the following: 
volume of trade, pattern of trade, whether or not the reseller is an 
original equipment manufacturer, and the reseller's export price 
(EP).

(C) Basis of the Agreement

    On and after the effective date of the Agreement, each signatory 
producer/exporter individually agrees to make any necessary price 
revisions to eliminate completely any amount by which the normal 
value (NV) of this merchandise exceeds the U.S. price of its 
merchandise subject to the Agreement. For this purpose, the 
Department will determine the NV in accordance with section 773(e) 
of the Act and U.S. price in accordance with section 772 of the Act.
    (1) For the period from September 23, 2002, the date of signing 
the agreement, through March 31, 2003 (the interim period), each 
signatory producer/exporter agrees not to sell its merchandise 
subject to the Agreement in the United States.
    (2) For all sales occurring on and after April 1, 2003, each 
producer/exporter agrees not to sell its merchandise subject to the 
Agreement to any unaffiliated purchaser in the United States at 
prices that are less than the NV of the merchandise, as determined 
by the Department on the basis of information submitted to the 
Department not later than the dates specified in section D of the 
Agreement and provided to the parties not later than March 20 and 
September 20 of each year.\1\ This NV shall apply to sales

[[Page 61581]]

occurring during the semiannual period beginning on the first day of 
the month following the date the Department provides the NV, as 
stated in this paragraph.
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    \1\ For the first sales period only, April 1 through September 
30, 2003, the issuance of the normal value may be delayed in order 
to resolve issues raised in comments from interested parties or by 
the Department and for the purpose of allowing sufficient time for 
signatories to respond to the Department's request for cost data. 
Some of the these issues may arise due to Russia's new status as a 
market economy with respect to the Department's proceedings. In 
accordance with section 773(f) of the Act, the Department will 
examine prices and costs within Russia and, for any sales period, 
may disregard particular prices or costs when the prices are not in 
the ordinary course of trade, the costs are not in accordance with 
the generally accepted accounting principles, the costs do not 
reasonably reflect the costs associated with the production and sale 
of the merchandise, or in other situations provided for the Act or 
the Department's regulations. Examples of possible areas in which 
adjustments may be necessary include, but are not limited to, costs 
related to energy, depreciation, transactions among affiliates, 
barters, as well as items that are not recognized by the Russian 
Accounting System.
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    (D) Monitoring
    Each signatory producer/exporter will supply to the Department 
all information that the Department decides is necessary to ensure 
that the producer/exporter is in full compliance with the terms of 
the Agreement. As explained below, the Department will provide each 
signatory producer/exporter a detailed request for information and 
prescribe a required format and method of data compilation, not 
later than the beginning of each reporting period.

(1) Sales Information

    The Department will require each producer/exporter to report, on 
computer tape in the prescribed format and using the prescribed 
method of data compilation, each sale of the merchandise subject to 
the Agreement, either directly or indirectly to unaffiliated 
purchasers in the United States, including each adjustment 
applicable to each sale, as specified by the Department.
    The first report of sales data shall be submitted to the 
Department, on computer tape in the prescribed format and using the 
prescribed method of data compilation, not later than October 31, 
2003, and shall contain the specified sales information covering the 
period April 1, 2003 to September 30, 2003. Subsequent reports of 
sales data shall be submitted to the Department not later than April 
30 and October 31 of each year, and each report shall contain the 
specified sales information for the semiannual period ending one 
month prior to the due date, except that if the Department receives 
information that a possible violation of the Agreement may have 
occurred, the Department may request sales data on a monthly, rather 
than semiannual basis.

(2) Cost Information

    Producer/exporters must request NVs for all subject merchandise 
that will be sold in the United States. For those products which the 
producer/exporter is requesting NVs, the Department will require 
each producer/exporter to report: Their actual cost of 
manufacturing; selling, general and administrative (SG&A) expenses; 
and profit data on a semiannual basis, in the prescribed format and 
using the prescribed method of data compilation. As indicated in 
Appendix A, profit will be reported by the producers/exporters on a 
semiannual basis. Each such producer/exporter also must report 
anticipated increases in production costs in the semiannual period 
in which the information is submitted resulting from factors such as 
anticipated changes in production yield, changes in production 
process, changes in production quantities or changes in production 
facilities.
    The first report of cost data shall be submitted to the 
Department not later than November 14, 2002, and shall contain the 
specified cost data covering the period April 1, 2002 through 
September 30, 2002. Each subsequent report shall be submitted to the 
Department not later than May 15 and November 14 of each year, and 
each report shall contain specified information for the semiannual 
period ending 45 days prior to the due date.

(3) Special Adjustment of Normal Value

    If the Department determines that the NV it determined for a 
previous semiannual period was erroneous because the reported costs 
for that period were inaccurate or incomplete, or for any other 
reason, the Department may adjust NV in a subsequent period or 
periods, unless the Department determines that Section F of the 
Agreement applies.

(4) Verification

    Each producer/exporter agrees to permit full verification of all 
cost and sales information annually, or more frequently, as the 
Department deems necessary.

(5) Bundling or Other Arrangements

    Producers/exporters agree not to circumvent the Agreement. In 
accordance with the dates set forth in section D(1) of this 
Agreement, producers/exporters will submit a written statement to 
the Department certifying that the sales reported herein were not, 
or are not part of or related to, any bundling arrangement, on-site 
processing arrangement, discounts/free goods/financing package, swap 
or other exchange where such arrangement is designed to circumvent 
the basis of the Agreement.
    Where there is reason to believe that such an arrangement does 
circumvent the basis of the Agreement, the Department will request 
producers/exporters to provide within 15 days all particulars 
regarding any such arrangement, including, but not limited to, sales 
information pertaining to covered and non-covered merchandise that 
is manufactured or sold by producers/exporters. The Department will 
accept written comments, not to exceed 30 pages, from all parties no 
later than 15 days after the date of receipt of such producer/
exporter information.
    If the Department, after reviewing all submissions, determines 
that such arrangement circumvents the basis of the Agreement, it 
may, as it deems most appropriate, utilize one of two options: (1) 
The amount of the effective price discount resulting from such 
arrangement shall be reflected in the NV in accordance with section 
D(3) of this Agreement, or (2) the Department shall determine that 
the Agreement has been violated and take action according to the 
provisions under section F of this Agreement.

(6) Rejection of Submissions

    The Department may reject any information submitted after the 
deadlines set forth in this section or any information which it is 
unable to verify to its satisfaction. If information is not 
submitted in a complete and timely fashion or is not fully 
verifiable, the Department may calculate normal value (NV), and/or 
U.S. price based on facts otherwise available, as it determines 
appropriate, unless the Department determines that section F of this 
Agreement applies.

(E) Disclosure and Comment

    (1) The Department may make available to representatives of each 
domestic party to the proceeding, under appropriately drawn 
administrative protective orders, business proprietary information 
submitted to the Department during the reporting period as well as 
results of its analysis under section 777 of the Act.
    (2) For the first sales period, beginning April 1, 2003, the 
Department will disclose to each producer/exporter the preliminary 
results and methodology of the Department's calculations of its NV 
no later that February 20, 2003. At that time, the Department may 
also make available such information to the domestic parties to the 
proceeding in accordance with this section.
    (3) Not later than February 20 and August 20 of each ensuing 
sales period, the Department will disclose to each producer/exporter 
the preliminary results and methodology of the Department's 
calculations of its NV. At that time, the Department may also make 
available such information to the domestic parties to the 
proceeding, in accordance with this section.
    (4) Not later than 7 days after the date of disclosure under 
section E(2) and E(3) of this Agreement, the parties to the 
proceeding may submit written comments to the Department, not to 
exceed 15 pages. After reviewing these submissions, the Department 
will provide to each producer/exporter its NV as provided in section 
C(2) of this Agreement. In addition, the Department may provide such 
information to domestic interested parties as specified in this 
section.

(F) Violations of the Agreement

    If the Department determines that the Agreement is being or has 
been violated or no longer meets the requirements of section 734(b) 
or (d) of the Act, the Department shall take action it determines 
appropriate under section 734(i) of the Act and the regulations.

(G) Other Provisions

    In entering into the Agreement, the signatory producers/
exporters do not admit that any sales of merchandise subject to the 
Agreement have been made at less than fair value.

(H) Termination or Withdrawal

    The Department will not consider requests for termination of 
this suspended investigation prior to September 2007. Termination of 
the suspended investigation will be considered in accordance with 
the five-year review provisions of Sec.  351.222 of the Department's 
regulations.

[[Page 61582]]

    Any producer/exporter may withdraw from the Agreement at any 
time upon notice to the Department. Withdrawal shall be effective 60 
days after such notice is given to the Department. Upon withdrawal, 
the Department shall follow the procedures outlined in section 
734(i)(1) of the Act.

(I) Definitions

    For purposes of the Agreement, the following definitions apply:
    (1) U.S. price means the export price or constructed export 
price at which merchandise is sold by the producer or exporter to 
the first unaffiliated person in the United States, including the 
amount of any discounts, rebates, price protection or ship and debit 
adjustments, and other adjustments affecting the net amount paid or 
to be paid by the unaffiliated purchaser, as determined by the 
Department under section 772 of the Act.
    (2) Normal Value means the constructed value (CV) of the 
merchandise, as determined by the Department under section 773 of 
the Act and the corresponding sections of the Department's 
regulations, and as adjusted in accordance with Appendix A to this 
Agreement.
    (3) Producer/Exporter-means (1) the foreign manufacturer or 
producer, (2) the foreign producer or reseller which also exports, 
and (3) the affiliated person by whom or for whose account the 
merchandise is imported into the United States, as defined in 
section 771(28) of the Act.
    (4) Date of sale means the date of the invoice as recorded in 
the exporter or producer's records kept in the ordinary course of 
business, unless the Department determines that a different date 
better reflects the date on which the exporter or producer 
establishes the material terms of sale, as determined by the 
Department under its regulations.
    The effective date of this Agreement is September 23, 2002.

For the Russian Federation Producers/Exporters

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Neil R. Ellis for JSC Severstal

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Date

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Stanimir A. Alexandrov for Novolipetsk Iron & Steel Corporation

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Date

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Vasily A. Varenov for Magnitogorsk Iron & Steel Works

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Date

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    For U.S. Department of Commerce:

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Faryar Shirzad, Assistant Secretary for Import Administration

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Date

Appendix A--Principles of Cost

General Framework

    The cost information reported to the Department that will form 
the basis of the NV calculations for purposes of the Agreement must 
be \2\:
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    \2\ See footnote 1 in Section C(2) of the Agreement.
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    [sbull] Comprehensive in nature and based on a reliable 
accounting system (i.e., a system based on well-established 
standards that can be tied to the audited financial statements);
    [sbull] Representative of the company's costs incurred for the 
general class of merchandise;
    [sbull] Calculated on a semiannual weighted-average basis of the 
plants or cost centers manufacturing the product;
    [sbull] Based on fully-absorbed costs of production, including 
any downtime;
    [sbull] Valued in accordance with generally accepted accounting 
principles;
    [sbull] Reflective of appropriately allocated common costs so 
that the costs necessary for the manufacturing of the product are 
not absorbed by other products; and
    [sbull] Reflective of the actual cost of producing the product.
    Additionally, a single figure should be reported for each cost 
component.

Cost of Manufacturing (COM)

    Costs of manufacturing are reported by major cost category and 
for major stages of production. Weighted-average costs are used for 
a product that is produced at more than one facility, based on the 
cost at each facility.
    Direct materials is the cost of those materials which are input 
into the production process and physically become part of the final 
product.
    Direct labor are the costs identified with a specific product. 
These costs are not allocated among products except when two or more 
products are produced at the same cost center. Direct labor costs 
should include salary, bonus and overtime pay, training expenses, 
and all fringe benefits. Any contracted-labor expense should reflect 
the actual billed cost or the actual costs incurred by the 
subcontractor when the corporation has influence over the 
contractor.
    Factory overhead is the overhead costs including indirect 
materials, indirect labor, depreciation, and other fixed and 
variable expenses attributable to a production line or factory. 
Because overhead costs are typically incurred for an entire 
production line. Acceptable cost allocation can be based on labor 
hours or machine hours. Overhead costs should reflect any idle or 
downtime and be fully absorbed by the products.

Cost of Production (COP)

    COP is equal to the sum of materials, labor, and overhead (COM) 
plus SG&A expense in the home market (HM).
    SG&A expense are those expenses incurred for the operation of 
the corporation as a whole and not directly related to the 
manufacture of a particular product. They include corporate general 
and administrative expenses, financing expenses, and general 
research and development expenses. Additionally, direct and indirect 
selling expenses incurred in the HM for sales of the product under 
investigation are included. Such expenses are allocated over cost of 
goods sold.

Constructed Value

    Is equal to the sum of materials, labor and overhead (COM) and 
SG&A expenses plus profit in the comparison market and the cost of 
packing for exportation to the United States.

Calculation of Suspension Agreement NVs

    NVs (for purposes of the Agreement) are calculated by adjusting 
the CV and are provided for both EP and CEP transactions. In effect, 
any expenses uniquely associated with the covered products sold in 
the HM are subtracted from the CV, and any such expenses which are 
uniquely associated with the covered products sold in the United 
States are added to the CV to calculate the NV.
    Export Price--Generally, a U.S. sale is classified as an export 
price sale when the first sale to an unaffiliated person occurs 
before the goods are imported into the United States. In cases where 
the foreign manufacturer knows or has reason to believe that the 
merchandise is ultimately destined for the United States, the 
manufacturer's sales is the sale subject to review. If, on the other 
hand, the manufacturer sold the merchandise to a foreign trader 
without knowledge of the trader's intention to export the 
merchandise to the United States, then the trader's first sale to an 
unaffiliated person is the sale subject to review. For EP NVs, the 
CV is adjusted for movement costs and differences in direct selling 
expenses such as commissions, credit, warranties, technical expenses 
such as commissions, credit, warranties, technical services, 
advertising, and sales promotion.
    Constructed Export Price--Generally, a U.S. sales is classified 
as a constructed export price sale when the first sale to an 
unaffiliated person occurs after importation. However, if the first 
sales to an unaffiliated person is made by a person in the United 
States affiliated with the foreign exporter, constructed export 
price applies even if the sale occurs prior to importation, unless 
the U.S. affiliate performs only clerical functions in connection 
with the sale. For CEP NVs, the CV is adjusted similar to EP sales, 
with differences for adjustment to U.S. and HM indirect-selling 
expenses.
    Home market direct-selling expenses are expenses that are 
incurred as a direct result of a sale. These include such expenses 
as commissions, advertising, discounts and rebates, credit, warranty 
expenses, freight costs, etc. Certain direct-selling expenses are 
treated individually. They include:

    Commission expenses are payments to unaffiliated parties for 
sales in the HM.
    Credit expenses are expenses incurred for the extension of 
credit to HM customers.
    Movement expenses are freight, brokerage and handling, and 
insurance expenses.
    U.S. direct-selling expenses are the same as HM direct-selling 
expenses except that they are incurred for sales in the United 
States.
    Movement expenses are additional expenses incidental to 
importation into the United States. These typically include U.S.

[[Page 61583]]

inland freight, insurance, brokerage and handling expenses, U.S. 
Customs duties, and international freight.
    U.S. indirect-selling expenses include general fixed expenses 
incurred by the U.S. sales subsidiary or affiliated exporter for 
sales to the United States. They may also include a portion of 
indirect expenses incurred in the HM for export sales.

------------------------------------------------------------------------
                           For EP transactions
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+ Direct Materials
+ Direct Labor
+ Factory Overhead
= Cost of Manufacturing (COM)
+ Home Market SG&A
= Cost of Production (COP)
+ U.S. Packing
+ Profit
= Constructed Value
+ U.S. Direct-Selling Expense
+ U.S. Commission Expense
+ U.S. Movement Expense
+ U.S. Credit Expense
- HM Direct-Selling Expense
- HM Commission Expense \1\
- HM Credit Expense
= NV for EP Sales
------------------------------------------------------------------------
\1\ If the company does not have HM commissions, HM indirect expenses
  are subtracted only up to the amount of the U.S. Commissions.


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                          For CEP transactions
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+ Direct Materials
+ Direct Labor
+ Factory Overhead
= Cost of Manufacturing (COM)
+ Home Market SG&A
= Cost of Production (COP)
+ U.S. Packing
+ Profit
= Constructed Value
+ U.S. Direct-selling Expense
+ U.S. Indirect-selling Expense
+ U.S. Commission Expense
+ U.S. Movement Expense
+ U.S. Credit Expense
+ U.S. Further Manufacturing Expenses (if any)
+ CEP Profit
- HM Direct-selling Expense
- HM Commission Expense \1\
- HM Credit Expense
= NV for CEP Sales
------------------------------------------------------------------------
\1\ If the company does not have HM commissions, HM indirect expenses
  are subtracted only up to the amount of the U.S. Commissions.

Appendix B

    For purposes of this Agreement, the products covered are certain 
cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products, neither clad, plated, nor coated with metal, but whether 
or not annealed, painted, varnished, or coated with plastics or 
other non-metallic substances, both in coils, 0.5 inch wide or 
wider, (whether or not in successively superimposed layers and/or 
otherwise coiled, such as spirally oscillated coils), and also in 
straight lengths, which, if less than 4.75 mm in thickness having a 
width that is 0.5 inch or greater and that measures at least 10 
times the thickness; or, if of a thickness of 4.75 mm or more, 
having a width exceeding 150 mm and measuring at least twice the 
thickness. The products described above may be rectangular, square, 
circular or other shape and include products of either rectangular 
or non-rectangular cross-section.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (IF)) steels, 
high strength low alloy (HSLA) steels, and motor lamination steels. 
IF steels are recognized as low carbon steels with micro-alloying 
levels of elements such as titanium and/or niobium added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized 
as steels with micro-alloying levels of elements such as chromium, 
copper, niobium, titanium, vanadium, and molybdenum. Motor 
lamination steels contain micro-alloying levels of elements such as 
silicon and aluminum.
    Steel products included in the scope of this Agreement, 
regardless of definitions in the HTSUS, are products in which: (1) 
Iron predominates, by weight, over each of the other contained 
elements; (2) The carbon content is 2% or less, by weight, and; (3) 
none of the elements listed below exceeds the quantity, by weight, 
respectively indicated: 1.80% of manganese, or 2.25% of silicon, or 
1.00% of copper, or 0.50% of aluminum, or 1.25% of chromium, or 
0.30% of cobalt, or 0.40% of lead, or 1.25% of nickel, or 0.30% of 
tungsten, or 0.10% of molybdenum, or 0.10% of niobium (also called 
columbium), or 0.15% of vanadium, or 0.15% of zirconium.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this Agreement 
unless specifically excluded.
    The following products, by way of example, are outside and/or 
specifically excluded from the scope of this Agreement:
    [sbull] SAE grades (formerly also called AISI grades) above 
2300;
    [sbull] Ball bearing steels, as defined in the HTSUS;
    [sbull] Tool steels, as defined in the HTSUS;
    [sbull] Silico-manganese steel, as defined in the HTSUS;
    [sbull] Silicon-electrical steels, as defined in the HTSUS, that 
are grain-oriented;
    [sbull] Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level exceeding 
2.25%;
    [sbull] All products (proprietary or otherwise) based on an 
alloy ASTM specification (sample specifications: ASTM A506, A507);
    [sbull] Non-rectangular shapes, not in coils, which are the 
result of having been processed by cutting or stamping and which 
have assumed the character of articles or products classified 
outside chapter 72 of the HTSUS;
    [sbull] Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level less than 
2.25%, and (a) fully-processed, with a core loss of less than 0.14 
watts/pound per mil (0.001 inch), or (b) semi-processed, with core 
loss of less than 0.085 watts/pound per mil (0.001 inch);
    [sbull] Certain shadow mask steel, which is aluminum killed 
cold-rolled steel coil that is open coil annealed, has an ultra-
flat, isotropic surface, and which meets the following 
characteristics:
Thickness: 0.001 to 0.010 inch
Width: 15 to 32 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element........................................  C
Weight.........................................  < 0.002%
------------------------------------------------------------------------

    [sbull] Certain flapper valve steel, which is hardened and 
tempered, surface polished, and which meets the following 
characteristics:

Thickness: <=1.0 mm
Width: <=152.4 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                       Si                      Mn                      P                       S
Weight%.........................  0.90-1.05               0.15-0.35               0.30-0.50               <=0.03                  <=0.006
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                              Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Tensile Strength...............................  = 162 Kgf/mm\2\

[[Page 61584]]

 
Hardness.......................................  = 475 Vickers number hardness
----------------------------------------------------------------------------------------------------------------


                                               Physical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Flatness.......................................  <0.2% of nominal strip width
----------------------------------------------------------------------------------------------------------------

Microstructure: Completely free from decarburization. Carbides are 
spheroidal and fine within 1% to 4% (area percentage) and are 
undissolved in the uniform tempered martensite.

                         Non-Metallic Inclusion
------------------------------------------------------------------------
                                                   Area Percentage
------------------------------------------------------------------------
Sulfide Inclusion..........................  <= 0.04%
Oxide Inclusion............................  <= 0.05%
------------------------------------------------------------------------

Compressive Stress: 10 to 40 Kgf/mm2
Surface Roughness:

------------------------------------------------------------------------
               Thickness (mm)                     Roughness ([mu]m)
------------------------------------------------------------------------
t <= 0.209.................................  Rz <= 0.5
0.209 < t <= 0.310.........................  Rz <= 0.6
0.310 < t <= 0.440.........................  Rz <= 0.7
0.440 < t <= 0.560.........................  Rz <= 0.8
0.560 < t..................................  Rz <= 1.0
------------------------------------------------------------------------

    [sbull] Certain ultra thin gauge steel strip, which meets the 
following characteristics:

Thickness: <= 0.100 mm +/- 7%
Width: 100 to 600 mm

                                                                   Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element......................  C                    Mn                   P                    S                   Al                  Fe
Weight %.....................  <=0.07               0.2-0.5              <=0.05               <=0.05              <=0.07              Balance
--------------------------------------------------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness.....................  Full Hard (Hv 180 minimum)
Total Elongation.............  <3%
Tensile Strengh..............  600 to 850 N/mm
------------------------------------------------------------------------


                                               Physical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Surface Finish...............................  <=0.3 micron
Camber (in 2.0 m)............................  <3.0 mm
Flatness (in 2.0 m)..........................  <=0.5 mm
Edge Burr....................................  <0.01 mm greater than thickness
Coil Set (in 1.0 m)..........................  <75.0 mm
----------------------------------------------------------------------------------------------------------------

    [sbull] Certain silicon steel, which meets the following 
characteristics:

Thickness: 0.024 inch +/- 0.0015 inch
Width: 33 to 45.5 inches

                                                                   Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element...........................................                C              Mn                P                S               Si               Al
Min. Weight %.....................................  ...............  ...............  ...............  ...............            0.65   ...............
Max. Weight %.....................................           0.004              0.4             0.09            0.009   ...............             0.4
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 61585]]


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness..................................  B 60-75 (AIM 65)
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Finish....................................  Smooth (30-60 microinches)
Gamma Crown (in 5 inches).................  0.0005 inch, start measuring
                                             one-quarter inch from slit
                                             edge
Flatness..................................  20 I-UNIT max.
Coating...................................  C3A-.08A max. (A2 coating
                                             acceptable)
Camber (in any 10 feet)...................  \1/16\ inch
Coil Size I.D.............................  20 inches
------------------------------------------------------------------------


                           Magnetic Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS..  3.8 Watts/Pound max.
Permeability (1.5T/60 Hz)      1700 gauss/oersted typical
 NAAS.                         1500 minimum
------------------------------------------------------------------------

    [sbull] Certain aperture mask steel, which has an ultra-flat 
surface flatness and which meets the following characteristics:

Thickness: 0.025 to 0.245 mm
Width: 381-1000 mm

                                               Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                          DN                         Al
Weight %.......................  <0.01                      0.004 to 0.007             < 0.007
----------------------------------------------------------------------------------------------------------------

    [sbull] Certain annealed and temper-rolled cold-rolled 
continuously cast steel, which meets the following characteristics:

                                                                   Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................         C       Mn         P                S        Si               Al        As          Cu       B                N
Min. Weight %..................     0.02      0.20   ........  ...............  ........            0.03   ........  ........  ........           0.003
Max Weight %...................     0.06      0.40      0.02    0.023 (Aiming      0.03     0.08 (Aiming      0.02      0.08   ........   0.008 (Aiming
                                                                  0.018 Max.)                      0.05)                                         0.005)
--------------------------------------------------------------------------------------------------------------------------------------------------------

Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides  1 micron (0.000039 inch) and 
inclusion groups or clusters shall not exceed 5 microns (0.000197 
inch) in length.
Surface Treatment as follows: The surface finish shall be free of 
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable 
for nickel plating.

                                                  Surface Finish
----------------------------------------------------------------------------------------------------------------
                                                                    Roughness, RA Microinches (Micrometers)
                                                              --------------------------------------------------
                                                                     Aim              Min.             Max.
----------------------------------------------------------------------------------------------------------------
Extra Bright.................................................          5(0.1)             0(0)           7(0.2)
----------------------------------------------------------------------------------------------------------------

    [sbull] Certain annealed and temper-rolled cold-rolled 
continuously cast steel, in coils, with a certificate of analysis 
per Cable System International (``CSI'') Specification 96012, with 
the following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P                S
Max. Weight %...............................            0.13             0.60             0.02             0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Base Weight...............................  55 pounds
Theoretical Thickness.....................  0.0061 inch (+/-10% of
                                             theoretical thickness)

[[Page 61586]]

 
Width.....................................  787 mm to 813 mm
Tensile Strength..........................  45,000-55,000 psi
Elongation................................  minimum of 15% in 2 inches
------------------------------------------------------------------------

    [sbull] Concast cold-rolled drawing quality sheet steel, ASTM a-
620-97, Type B, or single reduced black plate, ASTM A-625-92, Type 
D, T-1, ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/
luster 7a both sides, RMS 12 max. Thickness range of 0.0088 to 0.038 
inches, width of 23.0 inches to 36.875 inches.
    [sbull] Certain single reduced black plate, meeting ASTM A-625-
98 specifications, 53 pound base weight (0.0058 inch thick) with a 
Temper classification of T-2 (49-57 hardness using the Rockwell 30 T 
scale).
    [sbull] Certain single reduced black plate, meeting ASTM A-625-
76 specifications, 55 pound base weight, MR type matte finish, TH 
basic tolerance as per A263 trimmed.
    [sbull] Certain single reduced black plate, meeting ASTM A-625-
98 specifications, 65 pound base weight (0.0072 inch thick) with a 
Temper classification of T-3 (53-61 hardness using the Rockwell 30 T 
scale).
    [sbull] Certain cold-rolled black plate bare steel strip, 
meeting ASTM A-625 specifications, which meet the following 
characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P                S
Max. Weight %...............................            0.13             0.60             0.02             0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness.....................  0.0058 inch +/- 0.0003 inch
Hardness......................  T2/HR 30T 50-60 aiming
Elongation....................  =15%
Tensile Strength..............  51,000.0 psi +/- 4.0 aiming
------------------------------------------------------------------------

    [sbull] Certain cold-rolled black plate bare steel strip, in 
coils, meeting ASTM A-623, Table II, Type MR specifications, which 
meet the following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P                S
Max Weight%.................................            0.13             0.60             0.04             0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness...................  0.0060 inch (+/- 0.005 inch)
Width.......................  10 inches (+\1/4\ to \3/8\ inch/-0)
Tonsile Strength............  55,000 psi max.
Elongation..................  Minimum of 15% in 2 inches
------------------------------------------------------------------------

    [sbull] Certain ``blued steel'' coil (also known as ``steamed 
blue steel'' or ``blue oxide''), with a thickness of 0.30 mm to 0.42 
mm and width of 609 mm to 1219 mm, in coil form;
    [sbull] Certain cold-rolled steel sheet, coated with porcelain 
enameling prior to importation, which meets the following 
characteristics:

Thickness (nominal): <=0.019 inch
Width: 35 to 60 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element......................................................                C               O                B
Max. Weight %................................................           0.004   ...............  ...............
Min. Weight%.................................................  ...............           0.010            0.012
----------------------------------------------------------------------------------------------------------------

    [sbull] Certain cold-rolled steel, which meets the following 
characteristics:

Width: 66 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P               Si
Max. Weight %...............................            0.07             0.67             0.14             0.03
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm).........................  0.800-2.000

[[Page 61587]]

 
Min. Yield Point (MPa).......................  265
Max. Yield Point (MPa).......................  365
Min. Tensile Strength (MPa)..................  440
Min. Elongation %............................  26
------------------------------------------------------------------------

    [sbull] Certain band saw steel, which meets the following 
characteristics:

Thickness: <=1.31 mm
Width: <=80 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.....................  C                     Si                    Mn                    P           S           Cr                    Ni
Weight %....................  1.2 to 1.3            0.15 to 0.35          0.20 to 0.35          <=0.03      <=0.007     0.3 to 0.5            <=0.25
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Other properties:

Carbide: Fully spheroidized having  80% of carbides, 
which are <= 0.003 mm and uniformly dispersed
Surface finish: Bright finish free from pits, scratches, rust, 
cracks, or seams
Smooth edges
Edge camber (in each 300 mm of length): <=7 mm arc height
Cross bow (per inch of width): 0.015 mm max.

    [sbull] Certain transformation-induced plasticity (TRIP) steel, 
which meets the following characteristics:

Variety 1

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element......................................................                C              Si               Mn
Min. Weight %................................................            0.09              1.0             0.90
Max. Weight %................................................            0.13              2.1              1.7
----------------------------------------------------------------------------------------------------------------


                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Thickness Range (mm).....................  1.000-2.300 (inclusive)
Min. Yield Point (MPa)...................  320
Max. Yield Point (MPa)...................  480
Min. Tensile Strength (MPa)..............  590
Min. Elongation %........................  24 (if 1.000-1.199 thickness range)
                                           25 (if 1.200-1.599 thickness range)
                                           26 (if 1.600-1.999 thickness range)
                                           27 (if 2.000-2.300 thickness range)
----------------------------------------------------------------------------------------------------------------

Variety 2

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
-------------------------------------------------------------------------------------------------
Element.......................................                C              Si               Mn
Min. Weight %.................................            0.12              1.5              1.1
Max. Weight %.................................            0.16              2.1              1.9
----------------------------------------------------------------------------------------------------------------


                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Thickness Range (mm).....................  1.000-2.300 (inclusive)
Min. Yield Point (MPa)...................  340
Max. Yield Point (MPa)...................  520
Min. Tensile Strength (MPa)..............  690
Min. Elongation %........................  21 (if 1.000-1.199 thickness range)
                                           22 (if 1.200-1.599 thickness range)
                                           23 (if 1.600-1.999 thickness range)
                                           24 (if 2.000-2.300 thickness range)
----------------------------------------------------------------------------------------------------------------

Variety 3

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element......................................................                C              Si               Mn
Min. Weight %................................................            0.13              1.3              1.5

[[Page 61588]]

 
Max. Weight %................................................            0.21              2.0              2.0
----------------------------------------------------------------------------------------------------------------


                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Thickness Range (mm).....................  1.200-2.300 (inclusive)
Min. Yield Point (MPa)...................  370
Max. Yield Point (MPa)...................  570
Min. Tensile Strength (MPa)..............  780
Min. Elongation %........................  18 (if 1.200-1.599 thickness range)
                                           19 (if 1.600-1.999 thickness range)
                                           20 (if 2.000-2.300 thickness range)
----------------------------------------------------------------------------------------------------------------

    [sbull] Certain cold-rolled steel, which meets the following 
characteristics:

Variety 1

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P                 Cu
Min. Weight %...............................  ...............  ...............  ...............            0.15
Max. Weight %...............................            0.10             0.40             0.10             0.35
----------------------------------------------------------------------------------------------------------------


                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Thickness Range (mm)................  0.600-0.800
Min. Yield Point (MPa)..............  185
Max. Yield Point (MPa)..............  285
Min. Tensile Strength (MPa).........  340
Min. Elongation.....................  31 (ASTM standard 31% = JIS standard 35%)
----------------------------------------------------------------------------------------------------------------

Variety 2

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................................                C              Mn                P                 Cu
Min. Weight %...............................  ...............  ...............  ...............            0.15
Max. Weight %...............................            0.05             0.40             0.08             0.35
----------------------------------------------------------------------------------------------------------------


                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Thickness Range (mm)................  0.800-1.000
Min. Yield Point (MPa)..............  145
Max. Yield Point (MPa)..............  245
Min. Tensile Strength (MPa).........  295
Min. Elongation %...................  31 (ASTM standard 31% = JIS standard 35%)
----------------------------------------------------------------------------------------------------------------

Variety 3

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.....................................         C       Si        Mn         P         S              Cu      Ni        Al   Nb,V, Ti, B        Mo
Max. Weight %...............................     0.01      0.05      0.40      0.10     0.023      0.15-.35      0.35      0.10          0.10      0.30
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness (mm)..................................  0.7
Elongation %....................................  = 35
------------------------------------------------------------------------

    [sbull] Porcelain enameling sheet, drawing quality, in coils, 
0.014 inch in thickness, +0.002,-0.000, meeting ASTM A-424-96 Type 1 
specifications, and suitable for two coats.
    [sbull] Porcelain-enameling sheet whether or not coated prior to 
importation with the following additional characteristics:
    Cold-rolled steel for porcelain enameling, the foregoing being 
continuous annealed cold-reduced steel with a nominal thickness of 
not more than 0.48 mm and widths from 762 mm to 1,524 mm, having a 
chemical composition, by weight, of not more than 0.004 percent 
carbon, nor more than 0.010

[[Page 61589]]

percent aluminum, 0.006 percent or more of nitrogen, 0.012 percent 
or more of boron, and more than 0.005 percent silicon, and 0.010 
percent or more of oxygen; having no intentional addition of and 
less than 0.002 percent by weight of titanium, no intentional 
addition of and less than 0.002 percent by weight of vanadium, no 
intentional addition of and less than 0.002 percent by weight of 
niobium, and no intentional addition of and less than 0.002 percent 
of antimony; having a yield strength of from 179.3 MPa to 344.7 MPa, 
a tensile strength of from 303.7 MPa to 413.7 MPa, a percent of 
elongation of from 28 percent to 46 percent on a standard ASTM 
sample with a 5.08 mm gauge length; for Fishscale resistance; 
hydrogen traps provided; with a product shape of flat after 
annealing, with flat defined as less than or equal to 1 I unit with 
no coil set.
    [sbull] Cold-rolled steel strip to specification SAE 4130, with 
the following characteristics:

HTSUS item number 7226.92.80.50
Width up to 24 inches
Gauge of ``0.050-0.014 inches,'' and gauge tolerance of +/-0.0018 
inches

    [sbull] Texture-rolled steel strip (SORBITEX), with the 
following characteristics:

Thickness: 0.0039 to 0.0600 inches
Width: 0.118 to < 0.5 inches (3 to < 12.7 mm)

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
        C                Si                Mn             P         S        Al        Cr        Ni        Cu
----------------------------------------------------------------------------------------------------------------
0.76-0.96%        0.10-0.35%        0.30-0.60%        < .025%   < .020%   < .060%   < .30%    < .20%    < .20%
----------------------------------------------------------------------------------------------------------------

Tensile strength ranges: 245,000 to 365,000 psi.
HTSUS 7211.29.20.30 and HTSUS 7211.29.45.00

    [sbull] Reed steel, with the following characteristics:

Grades Eberle 18, 18C (SAE 1095 modified alloyed steel)
HTSUS 7211.90.00

                        Physical Characteristics
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0008 to 0.04 inches (0.0203
                                          to 1.015 mm)
Width..................................  0.276 to 0.472 inches (7 mm to
                                          12.0 mm), with width
                                          tolerances of +/-0.04 to 0.06
                                          mm
Tensile strength.......................  1599 Mpa to 2199 Mpa.
------------------------------------------------------------------------


                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
          C                     Si                    Mn                        P                            S                            Cr
--------------------------------------------------------------------------------------------------------------------------------------------------------
 0.95-1.05%            0.15-0.30%            0.25-0.50%            Less than 0.015%             Less than 0.012%             Less than 0.40%
--------------------------------------------------------------------------------------------------------------------------------------------------------

Surface: Rmax 1.5 to 3.0 micrometers
Straightness: Max. deviation of 0.56 mm/m
Flatness: Deviation of 0.1 to 0.3% of the width
    [sbull] Feeler gauge steel, with the following characteristics:

Polished surface and deburred or rounded edges
Grades Eberle 18, 18C (SAE 1095 modified alloyed steel)
HTSUS 7211.90.00

                                       Physical and Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Max. width.....................................  0.4975 inches
Thickness Range................................  0.001-0.045 inches
Thickness tolerances...........................  T2-T4 international standard
Tensile strength UTS...........................  246-304 ksi
----------------------------------------------------------------------------------------------------------------

    [sbull] Wood Band Saw Steel with Nickel Content Exceeding 1.25% 
by Weight, with the following characteristics:

    Both variety 1 and variety 2 are classified under HTSUS item 
number 7226.99.00.00.

Variety 1

    Nickel-alloyed Band Saw Steel, which meets the following 
characteristics:

Thickness: 1.1 mm, <=3.00 mm
Width: <400 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................            C          Si           Mn             P             S             Cr         Ni              Cu         Al
Weight %........................   0.70-0.80    0.20-0.35    0.30-0.45    max. 0.020    max. 0.006    0.05-0.20    1.90-2.10     max. 0.15    0.02-0.04
--------------------------------------------------------------------------------------------------------------------------------------------------------

Microstructure: Tempered Martensite with Bainite, no surface 
decarburization
Mechanical Properties:
    Hardness: 446 +12/-23 HV respectively 45 +1/-2 HRC
    Surface Finish : bright, polished
    Edges: treated edges
    Cross Bow: max. 0.1 mm per mm width

Variety 2

UHB15N20 band saw steel according to the alloy composition:

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element..........................  C                      Si                     Mn                     P                      S                      Cr                    Ni

[[Page 61590]]

 
Weight %.........................  0.70-0.80              0.20-0.35              0.30-0.45              max. 0.020             max. 0.016             ....................  1.90-2.10
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Typical material properties:Hardened and tempered:

Tensile Strength: 1450 N/mm2 for thickness <2 mm and 1370 
N/mm2 for thickness 2 mm
Width tolerance: B1 = +/- 0.35 mm
Thickness tolerance: T1 (+/- 0.039 mm)
Flatness: P4 (max. deviation 0.1% of width of strip)
Straightness: (+/-0.25 mm/1000 mm)
Dimensions:
    Widths: 6.3-412.8 mm
    Thickness: 0.40 to 3.05 mm

    [sbull] 2% nickel T5 tolerances and ra less than 8 my, with the 
following characteristics:
    Thickness: 0.5-3.5 mm
    Width: 50-650 mm

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                   Si                  Mn                  P                   S                   Al                  Cr                  Ni
% in Weight.....................  0.70-0.80           0.15-0.35           0.30-0.50           max. 0.020          max. 0.010          max. 0.020          0.05-0.30           1.90-2.20
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

High precision T5 tolerance
Roughness: Ra (RMS) max. 8 inches
The product is classified under HTSUS item number 7226.92.50.00

    [sbull] Ski-edge profile steel, with the following 
characteristics:

For both Grade SAE 1070 and German Grade SAE X35CrMo17:

HTSUS item numbers 7228.60.80 and 7216.69.00
Hardened and tempered, HRC 44-52
Surface: Bright finished, sandblasted or primer coated
Stamped condition

                                                   Dimensions
----------------------------------------------------------------------------------------------------------------
                                                     Width mm        Width mm      Thickness mm    Thickness mm
----------------------------------------------------------------------------------------------------------------
Ski 39..........................................            6               1.90            2               0.50
Ski 40..........................................            6               1.70            2               0.50
Ski 129.........................................            7.70            2.00            2.20            0.60
----------------------------------------------------------------------------------------------------------------


                                                                             Chemical Composition for Grade SAE 1070
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element...........................  C                               Si                              Mn                              P                              S
% in Weight.......................  0.65-0.75                       max. 0.40                       max. 0.60-0.90                  max. 0.04                      max. 0.05
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                       Chemical Composition for German Grade SAE X35CrMo17
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                   Si                  Mn                  P                   S                   CR                  Mo                  Ni
% in Weight.....................  0.33-0.45           max. 1.0            max. 1.50           max. 0.04           max. 0.025          15.5-17.5           0.8-1.3             max. 1.0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Note that this is an angle shape or section steel that is not 
covered by this scope.
    [sbull] Flat wire, with the following characteristics:

SAE 1074 alloyed, annealed, skin passed
Hardened and tempered
Formed edges
Widths of less than 12.7 mm
Thickness from 0.50-2.40 mm
[sbull] Shadow/aperture mask steel, which is Aluminum killed cold-
rolled steel coil that is open coil annealed, has an ultra-flat, 
isotropic surface, and meets the following characteristics:

Thickness: 0.001 to 0.010 inch
Width: 15 to 35 inches
Increased tensile strength of 800 to 1,200 N/mm2

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element..........................  C                          N                         Mn
Weight %.........................  <0.01%                     0.01-0.017%               0.06-0.85%
----------------------------------------------------------------------------------------------------------------

HTSUS item numbers 7209.18.25.10 or 7211.23.60.75, depending on the 
width of the material.
    [sbull] Grade 13C cement kiln steel, with the following 
specifications:

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................  C                        Si                      Mn                      P                       S
Weight %.......................  0.65                     0.25                    0.65                    max. 0.020              max. 0.010
--------------------------------------------------------------------------------------------------------------------------------------------------------

Microstructure: Fine grained and homogenous. Matrix of tempered 
martensite with a small amount of undissolved carbides
Decarburization: No free ferrit is allowed. Total decarburization 
should not exceed

[[Page 61591]]

4% per plane
Mechanical Properties: Tensile strength: 1200-1700 N/mm 
2, (Standard 1280 +/-80 N/mm2)
Surface Finish: Gray hardened condition. Ra/CLA--max. 0.25 m. Cut 
off 0.25 mm Rmax--max. 2.5 m
Edge Condition: Slit edges free from cracks and damages
Dimensions:
    Thickness: 0.4-1.40 mm2, Tolerance: T1
    Width: 250-1200 mm, Tolerance: B1
Flatness: Unflatness Across Strip: max. 0.4% of the nominal strip 
width
Coil Size: Inside Diameter: 600 mm
Coil Weight: max. 6.5 kg/mm strip width

    [sbull] Certain valve steel (type 2), with the following 
specifications: Hardened tempered high-carbon strip, characterized 
by high fatigues strength and wear resistance, hardness combined 
with ductility, surface and end-finishes, and good blanking and 
forming properties.

HTSUS item number: 7211.90.00.00
Typical size ranges:
    Thickness: 0.15-1.0 mm
    Width: 10.0-140 mm

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element..........................  C                      Si                     Mn                     P                      S                      Ni                    Cr
Weight %.........................  0.7-0.8                0.2-0.35               0.3-0.45               Max. 0.020             Max. 0.016             1.9-2.1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    The merchandise subject to this Agreement is typically 
classified in the HTSUS at item numbers: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 
7209.17.0090, 7209.18.1530, 7209.18.1560, 7209.18.2550, 
7209.18.6000. 7209.25.0000, 7209.26.0000, 7209.27.0000, 
7209.28.0000, 7209.90.0000, 7210.70.3000, 7210.90.9000, 
7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 
7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 
7225.19.0000, 7225.50.6000, 7225.50.7000, 7225.50.8010, 
7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000, 
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
    Although the HTSUS item numbers are provided for convenience and 
Customs purposes, the written description of the merchandise under 
Agreement is dispositive.

[FR Doc. 02-24925 Filed 9-30-02; 8:45 am]
BILLING CODE 3510-DS-P