[Federal Register Volume 68, Number 108 (Thursday, June 5, 2003)]
[Notices]
[Pages 33676-33679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14180]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-824]


Final Results of Anti-Circumvention Review of Antidumping Order: 
Corrosion-Resistant Carbon Steel Flat Products From Japan

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

ACTION: Notice of Final Results of Anti-Circumvention Review of 
Antidumping Order: Corrosion-Resistant Carbon Steel Flat Products from 
Japan.

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SUMMARY: On April 21, 2003, the Department of Commerce (``the 
Department'') published in the Federal Register the preliminary results 
of the anti-circumvention review of the antidumping order on certain 
corrosion-resistant carbon steel flat products from Japan. See Notice 
of Preliminary Results of Anti-Circumvention Review of Antidumping 
Order: Corrosion-Resistant Carbon Steel Flat Products from Japan, 68 FR 
19499 (April 21, 2003) (``Preliminary Results''). Based on the comments 
received, we have not changed our results from the Preliminary Results.

EFFECTIVE DATE: June 5, 2003.

FOR FURTHER INFORMATION CONTACT: Catherine Bertrand or James Doyle, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-3207 and (202) 482-0159, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 21, 2003, the Department published in the Federal Register 
the Preliminary Results. We invited parties to comment on our 
Preliminary Results. On May 5, 2003, we received comments from 
respondents Nippon Steel Corporation (``NSC''), and NKK Steel 
Corporation (``NKK''). We received no comments or rebuttal comments 
from any other parties.

Scope of the Order

    The scope of this order is as follows: The products covered by the 
antidumping duty order include flat-rolled carbon steel products, of 
rectangular shape, either clad, plated, or coated with corrosion-
resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- 
or iron-based alloys, whether or not corrugated or painted, varnished 
or coated with plastics or other nonmetallic substances in addition to 
the metallic coating, in coils (whether or not in successively 
superimposed layers) and of a width of 0.5 inch or greater, or in 
straight lengths which, if of a thickness less than 4.75 millimeters, 
are of a width of 0.5 inch or greater and which measures at least 10 
times the thickness or if of a thickness of 4.75 millimeters or more 
are of a width which exceeds 150 millimeters and measures at least 
twice the thickness, as currently classifiable in the HTSUS under item 
numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 
7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.3000, 
7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 
7217.90.5030, 7217.90.5060, 7217.90.5090. Included in this order are 
corrosion-resistant flat-rolled products of non-rectangular cross-
section where such cross-section is achieved subsequent to the rolling 
process (i.e., products which have been ``worked after rolling'')--for 
example, products which have been beveled or rounded at the edges.
    Excluded from this order are flat-rolled steel products either 
plated or coated with tin, lead, chromium, chromium oxides, both tin 
and lead (``terne plate''), or both chromium and chromium oxides 
(``tin-free steel''), whether or not painted, varnished or coated with 
plastics or other nonmetallic substances in addition to the metallic 
coating.
    Also excluded from this order are clad products in straight lengths 
of 0.1875 inch or more in composite thickness and of a width which 
exceeds 150

[[Page 33677]]

millimeters and measures at least twice the thickness.
    Also excluded from this order are certain clad stainless flat-
rolled products, which are three-layered corrosion-resistant carbon 
steel flat-rolled products less than 4.75 millimeters in composite 
thickness that consist of a carbon steel flat-rolled product clad on 
both sides with stainless steel in a 20%-60%-20% ratio.
    Also excluded from this order are certain corrosion-resistant 
carbon steel flat products meeting the following specifications: (1) 
Widths ranging from 10 millimeters (0.394 inches) through 100 
millimeters (3.94 inches); (2) thicknesses, including coatings, ranging 
from 0.11 millimeters (0.004 inches) through 0.60 millimeters (0.024 
inches); and (3) a coating that is from 0.003 millimeters (0.00012 
inches) through 0.005 millimeters (0.000196 inches) in thickness and 
that is comprised of either two evenly applied layers, the first layer 
consisting of 99% zinc, 0.5% cobalt, and 0.5% molybdenum, followed by a 
layer consisting of chromate, or three evenly applied layers, the first 
layer consisting of 99% zinc, 0.5% cobalt, and 0.5% molybdenum followed 
by a layer consisting of chromate, and finally a layer consisting of 
silicate.
    Also excluded from this order are carbon steel flat products 
measuring 1.84 millimeters in thickness and 43.6 millimeters or 16.1 
millimeters in width consisting of carbon steel coil (SAE 1008) clad 
with an aluminum alloy that is balance aluminum, 20% tin, 1% copper, 
0.3% silicon, 0.15% nickel, less than 1% other materials and meeting 
the requirements of SAE standard 783 for Bearing and Bushing Alloys.
    Also excluded from this order are carbon steel flat products 
measuring 0.97 millimeters in thickness and 20 millimeters in width 
consisting of carbon steel coil (SAE 1008) with a two-layer lining, the 
first layer consisting of a copper-lead alloy powder that is balance 
copper, 9% to 11% tin, 9% to 11% lead, less than 1% zinc, less than 1% 
other materials and meeting the requirements of SAE standard 792 for 
Bearing and Bushing Alloys, the second layer consisting of 45% to 55% 
lead, 38% to 50% PTFE, 3% to 5% molybdenum disulfide and less than 2% 
other materials.
    Also excluded from this order are doctor blades meeting the 
following specifications: Carbon steel coil or strip, plated with 
nickel phosphorous, having a thickness of 0.1524 millimeters (0.006 
inches), a width between 31.75 millimeters (1.25 inches) and 50.80 
millimeters (2.00 inches), a core hardness between 580 to 630 HV, a 
surface hardness between 900-990 HV; the carbon steel coil or strip 
consists of the following elements identified in percentage by weight: 
0.90% to 1.05% carbon; 0.15% to 0.35% silicon; 0.30% to 0.50% 
manganese; less than or equal to 0.03% of phosphorous; less than or 
equal to 0.006% of sulfur; other elements representing 0.24%; and the 
remainder of iron.
    Also excluded from this order are products meeting the following 
specifications: Carbon steel flat products measuring 1.64 millimeters 
in thickness and 19.5 millimeters in width consisting of carbon steel 
coil (SAE 1008) with a lining clad with an aluminum alloy that is 
balance aluminum; 10 to 15% tin; 1 to 3% lead; 0.7 to 1.3% copper; 1.8 
to 3.5% silicon; 0.1 to 0.7% chromium, less than 1% other materials and 
meeting the requirements of SAE standard 783 for Bearing and Bushing 
Alloys.
    Also, excluded from this order are products meeting the following 
specifications: Carbon steel coil or strip, measuring 1.93 millimeters 
or 2.75 millimeters (0.076 inches or 0.108 inches) in thickness, 87.3 
millimeters or 99 millimeters (3.437 inches or 3.900 inches) in width, 
with a low carbon steel back comprised of: Carbon under 8%, manganese 
under 0.4%, phosphorous under 0.04%, and sulfur under 0.05%; clad with 
aluminum alloy comprised of: 0.7% copper, 12% tin, 1.7% lead, 0.3% 
antimony, 2.5% silicon, 1% maximum total other (including iron), and 
remainder aluminum.
    Also excluded from this order are products meeting the following 
specifications: Carbon steel coil or strip, clad with aluminum, 
measuring 1.75 millimeters (0.069 inches) in thickness, 89 millimeters 
or 94 millimeters (3.500 inches or 3.700 inches) in width, with a low 
carbon steel back comprised of: Carbon under 8%, manganese under 0.4%, 
phosphorous under 0.04%, and sulfur under 0.05%; clad with aluminum 
alloy comprised of: 0.7% copper, 12% tin, 1.7% lead, 2.5% silicon, 0.3% 
antimony, 1% maximum total other (including iron), and remainder 
aluminum.
    Also excluded from this order are products meeting the following 
specifications: Carbon steel coil or strip, measuring a minimum of and 
including 1.10mm to a maximum of and including 4.90mm in overall 
thickness, a minimum of and including 76.00mm to a maximum of and 
including 250.00mm in overall width, with a low carbon steel back 
comprised of: Carbon under 0.10%, manganese under 0.40%, phosphorous 
under 0.04%, sulfur under 0.05%, and silicon under 0.05%; clad with 
aluminum alloy comprised of: Under 2.51% copper, under 15.10% tin, and 
remainder aluminum as listed on the mill specification sheet.
    Also excluded from this order are products meeting the following 
specifications: (1) Diffusion annealed, non-alloy nickel-plated carbon 
products, with a substrate of cold-rolled battery grade sheet 
(``CRBG'') with both sides of the CRBG initially electrolytically 
plated with pure, unalloyed nickel and subsequently annealed to create 
a diffusion between the nickel and iron substrate, with the nickel 
plated coating having a thickness of 0-5 microns per side with one side 
equaling at least 2 microns; and with the nickel carbon sheet having a 
thickness of from 0.004'' (0.10mm) to 0.030'' (0.762mm) and conforming 
to the following chemical specifications (%): C <= 0.08; Mn <= 0.45; P 
<= 0.02; S <= 0.02; Al <= 0.15; and Si <= 0.10; and the following 
physical specifications: Tensile = 65 KSI maximum; Yield = 32-55 KSI; 
Elongation = 18% minimum (aim 34%); Hardness = 85-150 Vickers; Grain 
Type = Equiaxed or Pancake; Grain Size (ASTM) = 7-12; Delta r value = 
aim less than +/-0.2; Lankford value = =1.2.; and (2) next 
generation diffusion-annealed nickel plate meeting the following 
specifications: (a) Nickel-graphite plated, diffusion annealed, tin-
nickel plated carbon products, with a natural composition mixture of 
nickel and graphite electrolytically plated to the top side of 
diffusion annealed tin-nickel plated carbon steel strip with a cold 
rolled or tin mill black plate base metal conforming to chemical 
requirements based on AISI 1006; having both sides of the cold rolled 
substrate electrolytically plated with natural nickel, with the top 
side of the nickel plated strip electrolytically plated with tin and 
then annealed to create a diffusion between the nickel and tin layers 
in which a nickel-tin alloy is created, and an additional layer of 
mixture of natural nickel and graphite then electrolytically plated on 
the top side of the strip of the nickel-tin alloy; having a coating 
thickness: top side: nickel-graphite, tin-nickel layer = 1.0 
micrometers; tin layer only = 0.05 micrometers, nickel-
graphite layer only  0.2 micrometers, and bottom side: 
nickel layer = 1.0 micrometers; (b) nickel-graphite, 
diffusion annealed, nickel plated carbon products, having a natural 
composition mixture of nickel and graphite electrolytically plated to 
the top side of diffusion annealed nickel plated steel strip with a 
cold rolled or tin mill black plate base metal

[[Page 33678]]

conforming to chemical requirements based on AISI 1006; with both sides 
of the cold rolled base metal initially electrolytically plated with 
natural nickel, and the material then annealed to create a diffusion 
between the nickel and the iron substrate; with an additional layer of 
natural nickel-graphite then electrolytically plated on the top side of 
the strip of the nickel plated steel strip; with the nickel-graphite, 
nickel plated material sufficiently ductile and adherent to the 
substrate to permit forming without cracking, flaking, peeling, or any 
other evidence of separation; having a coating thickness: top side: 
nickel-graphite, tin-nickel layer = 1.0 micrometers; nickel-
graphite layer = 0.5 micrometers; bottom side: nickel layer 
= 1.0 micrometers; (c) diffusion annealed nickel-graphite 
plated products, which are cold-rolled or tin mill black plate base 
metal conforming to the chemical requirements based on AISI 1006; 
having the bottom side of the base metal first electrolytically plated 
with natural nickel, and the top side of the strip then plated with a 
nickel-graphite composition; with the strip then annealed to create a 
diffusion of the nickel-graphite and the iron substrate on the bottom 
side; with the nickel-graphite and nickel plated material sufficiently 
ductile and adherent to the substrate to permit forming without 
cracking, flaking, peeling, or any other evidence of separation; having 
coating thickness: top side: nickel-graphite layer = 1.0 
micrometers; bottom side: nickel layer = 1.0 micrometers; 
(d) nickel-phosphorous plated diffusion annealed nickel plated carbon 
product, having a natural composition mixture of nickel and phosphorus 
electrolytically plated to the top side of a diffusion annealed nickel 
plated steel strip with a cold rolled or tin mill black plate base 
metal conforming to the chemical requirements based on AISI 1006; with 
both sides of the base metal initially electrolytically plated with 
natural nickel, and the material then annealed to create a diffusion of 
the nickel and iron substrate; another layer of the natural nickel-
phosphorous then electrolytically plated on the top side of the nickel 
plated steel strip; with the nickel-phosphorous, nickel plated material 
sufficiently ductile and adherent to the substrate to permit forming 
without cracking, flaking, peeling or any other evidence of separation; 
having a coating thickness: top side: nickel-phosphorous, nickel layer 
= 1.0 micrometers; nickel-phosphorous layer = 0.1 
micrometers; bottom side: nickel layer = 1.0 micrometers; 
(e) diffusion annealed, tin-nickel plated products, electrolytically 
plated with natural nickel to the top side of a diffusion annealed tin-
nickel plated cold rolled or tin mill black plate base metal conforming 
to the chemical requirements based on AISI 1006; with both sides of the 
cold rolled strip initially electrolytically plated with natural 
nickel, with the top side of the nickel plated strip electrolytically 
plated with tin and then annealed to create a diffusion between the 
nickel and tin layers in which a nickel-tin alloy is created, and an 
additional layer of natural nickel then electrolytically plated on the 
top side of the strip of the nickel-tin alloy; sufficiently ductile and 
adherent to the substrate to permit forming without cracking, flaking, 
peeling or any other evidence of separation; having coating thickness: 
top side: nickel-tin-nickel combination layer = 1.0 
micrometers; tin layer only = 0.05 micrometers; bottom side: 
nickel layer = 1.0 micrometers; and (f) tin mill products 
for battery containers, tin and nickel plated on a cold rolled or tin 
mill black plate base metal conforming to chemical requirements based 
on AISI 1006; having both sides of the cold rolled substrate 
electrolytically plated with natural nickel; then annealed to create a 
diffusion of the nickel and iron substrate; then an additional layer of 
natural tin electrolytically plated on the top side; and again annealed 
to create a diffusion of the tin and nickel alloys; with the tin-
nickel, nickel plated material sufficiently ductile and adherent to the 
substrate to permit forming without cracking, flaking, peeling or any 
other evidence of separation; having a coating thickness: top side: 
nickel-tin layer = 1 micrometer; tin layer alone 
= 0.05 micrometers; bottom side: nickel layer = 
1.0 micrometer.
    Also excluded from this order are products meeting the following 
specifications: (1) Widths ranging from 10 millimeters (0.394 inches) 
through 100 millimeters (3.94 inches); (2) thicknesses, including 
coatings, ranging from 0.11 millimeters (0.004 inches) through 0.60 
millimeters (0.024 inches); and (3) a coating that is from 0.003 
millimeters (0.00012 inches) through 0.005 millimeters (0.000196 
inches) in thickness and that is comprised of either two evenly applied 
layers, the first layer consisting of 99% zinc, 0.5% cobalt, and 0.5% 
molybdenum, followed by a layer consisting of phosphate, or three 
evenly applied layers, the first layer consisting of 99% zinc, 0.5% 
cobalt, and 0.5% molybdenum followed by a layer consisting of 
phosphate, and finally a layer consisting of silicate.
    Also, excluded from this order are products meeting the following 
specifications: (1) Flat-rolled products (provided for in HTSUS 
subheading 7210.49.00), other than of high-strength steel, known as 
``ASE Iron Flash'' and either: (A) Having a base layer of zinc-based 
zinc-iron alloy applied by hot-dipping and a surface layer of iron-zinc 
alloy applied by electrolytic process, the weight of the coating and 
plating not over 40 percent by weight of zinc; or (B) two-layer-coated 
corrosion-resistant steel with a coating composed of (a) a base coating 
layer of zinc-based zinc-iron alloy by hot-dip galvanizing process, and 
(b) a surface coating layer of iron-zinc alloy by electro-galvanizing 
process, having an effective amount of zinc up to 40 percent by weight, 
and (2) corrosion resistant continuously annealed flat-rolled products, 
continuous cast, the foregoing with chemical composition (percent by 
weight): carbon not over 0.06 percent by weight, manganese 0.20 or more 
but not over 0.40, phosphorus not over 0.02, sulfur not over 0.023, 
silicon not over 0.03, aluminum 0.03 or more but not over 0.08, arsenic 
not over 0.02, copper not over 0.08 and nitrogen 0.003 or more but not 
over 0.008; and meeting the characteristics described below: (A) 
Products with one side coated with a nickel-iron-diffused layer which 
is less than 1 micrometer in thickness and the other side coated with a 
two-layer coating composed of a base nickel-iron-diffused coating layer 
and a surface coating layer of annealed and softened pure nickel, with 
total coating thickness for both layers of more than 2 micrometers; 
surface roughness (RA-microns) 0.18 or less; with scanning electron 
microscope (SEM) not revealing oxides greater than 1 micron; and 
inclusion groups or clusters shall not exceed 5 microns in length; (B) 
products having one side coated with a nickel-iron-diffused layer which 
is less than 1 micrometer in thickness and the other side coated with a 
four-layer coating composed of a base nickel-iron-diffused coating 
layer; with an inner middle coating layer of annealed and softened pure 
nickel, an outer middle surface coating layer of hard nickel and a 
topmost nickel-phosphorus-plated layer; with combined coating thickness 
for the four layers of more than 2 micrometers; surface roughness (RA-
microns) 0.18 or less; with SEM not revealing oxides greater than 1 
micron; and inclusion groups or clusters shall not exceed 5 microns in 
length; (C) products having one side coated with a nickel-iron-

[[Page 33679]]

diffused layer which is less than 1 micrometer in thickness and the 
other side coated with a three-layer coating composed of a base nickel-
iron-diffused coating layer, with a middle coating layer of annealed 
and softened pure nickel and a surface coating layer of hard, luster-
agent-added nickel which is not heat-treated; with combined coating 
thickness for all three layers of more than 2 micrometers; surface 
roughness (RA-microns) 0.18 or less; with SEM not revealing oxides 
greater than 1 micron; and inclusion groups or clusters shall not 
exceed 5 microns in length; or (D) products having one side coated with 
a nickel-iron-diffused layer which is less than 1 micrometer in 
thickness and the other side coated with a three-layer coating composed 
of a base nickel-iron-diffused coating layer, with a middle coating 
layer of annealed and softened pure nickel and a surface coating layer 
of hard, pure nickel which is not heat-treated; with combined coating 
thickness for all three layers of more than 2 micrometers; surface 
roughness (RA-microns) 0.18 or less; SEM not revealing oxides greater 
than 1 micron; and inclusion groups or clusters shall not exceed 5 
microns in length.

Analysis of Comments Received

    As stated above, the only comments the Department received on the 
Preliminary Results were from two respondents, NKK and Nippon, who each 
expressed support of the Department's analysis and decision. Since we 
received no comments in opposition to the Preliminary Results, we find 
it is not necessary to discuss these comments which were in support of 
the Department's decision.

Changes Since the Preliminary Results

    As none of the submitted comments recommended changing the 
Preliminary Results and as the Department's analysis has not changed 
regarding any aspect of the Preliminary Results, we have not changed 
our results from the Preliminary Results.

Final Results

    After our analysis, the Department found the following: (1) The 
increase of imports from Japan to the United States of corrosion-
resistant steel (``CRS'') with boron-added was only temporary; (2) 
there were imports to the United States from Japan of boron-added CRS 
at the time the scope of the order was proposed by the domestic 
industry and published by the Department; (3) there are commercially 
and metallurgically viable reasons for the addition of boron in the 
context of the Continuous Annealing Process (``CAP''), which was used 
by the two respondents who exported the vast majority of the boron-
added CRS to the United States; and (4) under the five factor test 
normally applied to determine if an article has been altered in form or 
appearance in minor respects so as to result in circumvention of the 
order, which includes an analysis of the overall physical 
characteristics, the expectations of the ultimate users, the use of the 
merchandise, the channels of marketing and the cost of modification, we 
found that, for companies that use the CAP, the addition of boron is 
not a minor alteration. Therefore, the evidence on the record of this 
inquiry, taken as a whole, leads to our final results that the United 
States imports of boron-added corrosion-resistant carbon steel flat 
products from the respondents were not minor alterations of the subject 
merchandise, within the meaning of section 781(c) of the Act, and are 
not circumventing the antidumping duty order on CRS from Japan.
    We are issuing and publishing this notice in accordance with 
section 781(c) of the Act and Sec. 351.225(i) of the Department's 
regulations.

    Dated: May 29, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-14180 Filed 6-4-03; 8:45 am]
BILLING CODE 3510-DS-P