[Federal Register Volume 68, Number 178 (Monday, September 15, 2003)]
[Notices]
[Pages 53963-53965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23455]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-427-815]


Stainless Steel Sheet and Strip in Coils from France: Final 
Results of Countervailing Duty Administrative Review

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

ACTION: Notice of Final Results of Countervailing Duty Administrative 
Review.

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SUMMARY: The Department is issuing the final results of the second 
administrative review of the countervailing duty order on stainless 
steel sheet and strip in coils from France for the period January 1, 
2001, through December 31, 2001.

EFFECTIVE DATE: September 15, 2003.

FOR FURTHER INFORMATION CONTACT: Jesse Cortes at (202) 482-3986; Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION:

Case History

    Since the publication of the preliminary results in the Federal 
Register (see Stainless Steel Sheet and Strip in Coils from France: 
Preliminary Results of Second Countervailing Duty Administrative 
Review, 68 FR 24921 (May 9, 2003) (``Preliminary Results'')), the 
following events have occurred:
    On June 9, 2003, we received a case brief and request for a hearing 
from Ugine SA, Imphy Ugine Precision, Ugine France Service, Sollac 
Mediterrannee, Usinor Packaging, Sollac Lorraine, Sollac Atlantique, 
CARLAM, G. Fer, IRSID, and Usinor Stainless (collectively referred to 
as ``Usinor''). The petitioners (i.e., Allegheny Ludlum Corporation, AK 
Steel, Inc., North American Stainless, United Steelworkers of America, 
AFL-CIO/CLC, Butler Armco Independent Union, and Zanesville Armco 
Independent Organization) submitted a rebuttal brief on June 16, 2003. 
On July 7, 2003, Usinor withdrew its request for a hearing.

Scope of Review

    The products covered by this countervailing duty order are certain 
stainless steel sheet and strip in coils. Stainless steel is an alloy 
steel containing, by weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements. The 
subject sheet and strip is a flat-rolled product in coils that is 
greater than 9.5 mm in width and less than 4.75 mm in thickness, and 
that is annealed or otherwise heat treated and pickled or otherwise 
descaled. The subject sheet and strip may also be further processed 
(e.g., cold-rolled, polished, aluminized, coated, etc.) provided that 
it maintains the specific dimensions of sheet and strip following such 
processing.
    The merchandise covered by this order is currently classifiable in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') at the 
following subheadings:
    7219.13.00.30, 7219.13.00.50, 7219.13.00.70, 7219.13.00.80, 
7219.14.00.30, 7219.14.00.65, 7219.14.00.90, 7219.32.00.05, 
7219.32.00.20, 7219.32.00.25, 7219.32.00.35, 7219.32.00.36, 
7219.32.00.38, 7219.32.00.42, 7219.32.00.44, 7219.33.00.05, 
7219.33.00.20, 7219.33.00.25, 7219.33.00.35, 7219.33.00.36, 
7219.33.00.38, 7219.33.00.42, 7219.33.00.44, 7219.34.00.05, 
7219.34.00.20, 7219.34.00.25, 7219.34.00.30, 7219.34.00.35, 
7219.35.00.05, 7219.35.00.15, 7219.35.00.30, 7219.35.00.35, 
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60, 
7219.90.00.80, 7220.12.10.00, 7220.12.50.00, 7220.20.10.10, 
7220.20.10.15, 7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 
7220.20.60.10, 7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 
7220.20.70.05, 7220.20.70.10, 7220.20.70.15, 7220.20.70.60, 
7220.20.70.80, 7220.20.80.00, 7220.20.90.30, 7220.20.90.60, 
7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and 7220.90.00.80.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the Department's written

[[Page 53964]]

description of the merchandise under review is dispositive.
    Excluded from the scope of this order are the following: (1) sheet 
and strip that is not annealed or otherwise heat treated and pickled or 
otherwise descaled; (2) sheet and strip that is cut to length; (3) 
plate (i.e., flat-rolled stainless steel products of a thickness of 
4.75 mm or more); (4) flat wire (i.e., cold-rolled sections, with a 
prepared edge, rectangular in shape, of a width of not more than 9.5 
mm); and (5) razor blade steel. Razor blade steel is a flat-rolled 
product of stainless steel, not further worked than cold-rolled (cold-
reduced), in coils, of a width of not more than 23 mm and a thickness 
of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent 
chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the HTSUS, ``Additional 
U.S. Note'' 1(d).
    Also excluded from the scope of this order are:
    Flapper Valve Steel: Flapper valve steel is defined as stainless 
steel strip in coils containing, by weight, between 0.37 and 0.43 
percent carbon, between 1.15 and 1.35 percent molybdenum, and between 
0.20 and 0.80 percent manganese. This steel also contains, by weight, 
phosphorus of 0.025 percent or less, silicon of between 0.20 and 0.50 
percent, and sulfur of 0.020 percent or less. The product is 
manufactured by means of vacuum arc remelting, with inclusion controls 
for sulphide of no more than 0.04 percent and for oxide of no more than 
0.05 percent. Flapper valve steel has a tensile strength of between 210 
and 300 ksi, yield strength of between 170 and 270 ksi, plus or minus 8 
ksi, and a hardness (Hv) of between 460 and 590. Flapper valve steel is 
most commonly used to produce specialty flapper valves in compressors.
    Suspension Foil: Suspension foil is a specialty steel product used 
in the manufacture of suspension assemblies for computer disk drives. 
Suspension foil is described as 302/304 grade or 202 grade stainless 
steel of a thickness between 14 and 127 microns, with a thickness 
tolerance of plus-or-minus 2.01 microns, and surface glossiness of 200 
to 700 percent Gs. Suspension foil must be supplied in coil widths of 
not more than 407 mm and with a mass of 225 kg or less. Roll marks may 
only be visible on one side, with no scratches of measurable depth. The 
material must exhibit residual stresses of 2 mm maximum deflection and 
flatness of 1.6 mm over 685 mm length.
    Certain Stainless Steel Foil for Automotive Catalytic Converters: 
This stainless steel strip in coils is a specialty foil with a 
thickness of between 20 and 110 microns used to produce a metallic 
substrate with a honeycomb structure for use in automotive catalytic 
converters. The steel contains, by weight, carbon of no more than 0.030 
percent, silicon of no more than 1.0 percent, manganese of no more than 
1.0 percent, chromium of between 19 and 22 percent, aluminum of no less 
than 5.0 percent, phosphorus of no more than 0.045 percent, sulfur of 
no more than 0.03 percent, lanthanum of less than 0.002 or greater than 
0.05 percent, and total rare earth elements of more than 0.06 percent, 
with the balance iron.
    Permanent Magnet Iron-chromium-cobalt Alloy Stainless Strip: This 
ductile stainless steel strip contains, by weight, 26 to 30 percent 
chromium and 7 to 10 percent cobalt, with the remainder of iron, in 
widths 228.6 mm or less, and a thickness between 0.127 and 1.270 mm. It 
exhibits magnetic remanence between 9,000 and 12,000 gauss, and a 
coercivity of between 50 and 300 oersteds. This product is most 
commonly used in electronic sensors and is currently available under 
proprietary trade names such as ``Arnokrome III.''\1\
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    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain Electrical Resistance Alloy Steel: This product is defined 
as a non-magnetic stainless steel manufactured to American Society of 
Testing and Materials (ASTM) specification B344 and containing, by 
weight, 36 percent nickel, 18 percent chromium, and 46 percent iron, 
and is most notable for its resistance to high-temperature corrosion. 
It has a melting point of 1390 degrees Celsius and displays a creep 
rupture limit of 4 kilograms per square millimeter at 1000 degrees 
Celsius. This steel is most commonly used in the production of heating 
ribbons for circuit breakers and industrial furnaces, and in rheostats 
for railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.''\2\
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    \2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain Martensitic Precipitation-hardenable Stainless Steel: This 
high-strength, ductile stainless steel product is designated under the 
Unified Numbering System (UNS) as S45500-grade steel, and contains, by 
weight, 11 to 13 percent chromium and 7 to 10 percent nickel. Carbon, 
manganese, silicon and molybdenum each comprise, by weight, 0.05 
percent or less, with phosphorus and sulfur each comprising, by weight, 
0.03 percent or less. This steel has copper, niobium, and titanium 
added to achieve aging and will exhibit yield strengths as high as 1700 
Mpa and ultimate tensile strengths as high as 1750 Mpa after aging, 
with elongation percentages of 3 percent or less in 50 mm. It is 
generally provided in thicknesses between 0.635 and 0.787 mm, and in 
widths of 25.4 mm. This product is most commonly used in the 
manufacture of television tubes and is currently available under 
proprietary trade names such as ``Durphynox 17.''\3\
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    \3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    Three Specialty Stainless Steels Typically Used in Certain 
Industrial Blades and Surgical and Medical Instruments: These include 
stainless steel strip in coils used in the production of textile 
cutting tools (e.g., carpet knives).\4\ This steel is similar to AISI 
grade 420 but containing, by weight, 0.5 to 0.7 percent of molybdenum. 
The steel also contains, by weight, carbon of between 1.0 and 1.1 
percent, sulfur of 0.020 percent or less, and includes between 0.20 and 
0.30 percent copper and between 0.20 and 0.50 percent cobalt. This 
steel is sold under proprietary names such as ``GIN4 Mo.''\5\ The 
second excluded stainless steel strip in coils is similar to AISI 420-
J2 and contains, by weight, carbon of between 0.62 and 0.70 percent, 
silicon of between 0.20 and 0.50 percent, manganese of between 0.45 and 
0.80 percent, phosphorus of no more than 0.025 percent, and sulfur of 
no more than 0.020 percent. This steel has a carbide density on average 
of 100 carbide particles per 100 square microns. An example of this 
product is ``GIN5'' steel. The third specialty steel has a chemical 
composition similar to AISI 420 F, with carbon of between 0.37 and 0.43 
percent, molybdenum of between 1.15 and 1.35 percent, but lower 
manganese of between 0.20 and 0.80 percent, phosphorus of no more than 
0.025 percent, silicon of between 0.20 and 0.50 percent, and sulfur of 
no more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6.''
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    \4\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \5\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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Period of Review

    The period of review (``POR'') for which we are measuring subsidies 
is January 1, 2001, through December 31, 2001.

Attribution of Subsidies

    Usinor has filed its responses on behalf of its French affiliates 
involved in the manufacture, production or

[[Page 53965]]

exportation of the subject merchandise (i.e., Ugine SA, Imphy Ugine 
Precision, Ugine France Service, Sollac Mediterrannee, Usinor 
Packaging, Sollac Lorraine, Sollac Atlantique, CARLAM, G. Fer, IRSID, 
and Usinor Stainless). Usinor holds a majority interest in all of these 
companies. Therefore, in accordance with 19 CFR 351.525(b)(6)(iii), we 
have attributed subsidies received by these companies to the total 
sales by Usinor of French-produced merchandise.

Analysis of Comments Received

    All issues raised in Usinor's case brief and the petitioners' 
rebuttal brief filed in this administrative review are addressed in the 
``Issues and Decision Memorandum'' from Jeffrey A. May, Deputy 
Assistant Secretary, to Joseph A. Spetrini, Acting Assistant Secretary 
for Import Administration, dated September 8, 2003 (``Decision 
Memorandum''), which is hereby adopted by this notice. Attached to this 
notice as Appendix I is a list of the issues which parties have raised 
and to which we have responded in the Decision Memorandum. Parties can 
find a complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in the Central Records Unit, Room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Internet at http://ia.ita.doc.gov/frn/summary/list.htm under the heading ``France.'' The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for the producer/exporter subject to this 
administrative review. For the period January 1, 2001 through December 
31, 2001, we determine the net subsidy rate for Usinor to be 1.11 
percent ad valorem. In a change from the Preliminary Results and for 
the reasons set forth in the Decision Memorandum at Comment 3, no duty 
deposit is required.
    As a result of the injunction issued December 22, 1999, by the U.S. 
Court of International Trade, enjoining us from liquidating any entries 
of the subject merchandise after August 6, 1999, we will not order 
liquidation of entries of stainless steel sheet and strip in coil from 
France at this time. Liquidation will occur at the rates described in 
this notice at such time as the injunction is lifted.
    The cash deposit rates for all companies not covered by this review 
are not changed by the results of this review. Thus, we will instruct 
the United States Bureau of Customs and Border Protection to continue 
to collect cash deposits for non-reviewed companies at the most recent 
rate applicable to the company. These rates shall apply to all non-
reviewed companies until a review of the companies assigned these rates 
is completed. In addition, for the POR, the assessment rates applicable 
to all non-reviewed companies covered by this order are the cash 
deposit rates in effect at the time of entry.
    This notice serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i) of the Act.

    Dated: September 8, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX I

List of Comments and Issues in the Decision Memorandum

Comment 1: Treatment of Usinor's Pre-Privatization Benefits
Comment 2: Appropriate AUL for 1988 FIS Bonds Conversion
Comment 3: Cash Deposit Rate
[FR Doc. 03-23455 Filed 9-12-03; 8:45 am]
BILLING CODE 3510-DS-S