[Federal Register Volume 70, Number 85 (Wednesday, May 4, 2005)]
[Notices]
[Pages 23094-23096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-8910]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-825]


Stainless Steel Sheet and Strip in Coils From Italy: Final 
Results of the Full Sunset Review of the Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On June 1, 2004, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
(``CVD'') order on stainless steel sheet and strip in coils (``SSSS'') 
from Italy pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). See Initiation of Five-Year (Sunset) Reviews, 69 
FR 30874 (June 1, 2004). On the basis of a notice of intent to 
participate and an adequate substantive response filed on behalf of the 
interested parties, the Department conducted a full (240-day) sunset 
review. As a result of this review, the Department finds that 
revocation of the CVD order would likely lead to continuation or 
recurrence of subsidies at the levels indicated in the ``Final Results 
of Review'' section of this notice.

EFFECTIVE DATE: May 4, 2005.

FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq., Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-4340.

SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2004, the Department initiated a sunset review of the 
CVD order on SSSS from Italy pursuant to section 751(c) of the Act. See 
Initiation of Five-Year (Sunset) Reviews, 69 FR 30874 (June 1, 2004). 
On December 29, 2004, the Department published the preliminary results 
of the full sunset review of the CVD on SSSS from Italy. See Notice of 
Preliminary Results of Full Sunset Review: Stainless Steel Sheet and 
Strip in Coils from Italy (``preliminary sunset review results''), 69 
FR 78091 (December 29, 2004) and the accompanying Issues and Decision 
Memorandum for the Full Sunset Review of the Countervailing Duty Order 
on Stainless Steel Sheet and Strip in Coils from Italy: Preliminary 
Results (``preliminary results decision memorandum'') dated December 
29, 2004.\1\ In our preliminary sunset review results, we found that 
benefits from the following programs would likely continue or recur 
were the order revoked:
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    \1\ For a full discussion of the history of this order prior to 
the preliminary results of this sunset review, see the December 29, 
2004 preliminary results decision memorandum.
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    (1) Law 675/77;
    (2) Law 451/94 Early Retirement Benefits; and
    (3) European Social Fund.
    On February 8, 2005, the Department received a joint case brief 
from the Government of Italy (GOI) and the European Commission (EC). 
See Case Brief from the EC and the GOI re: Sunset Review of the 
Countervailing Duty Order on Stainless Steel Sheet and Strip in Coils 
from Italy (February 8, 2005) including separate GOI and EC 
Attachments. The Department also received a case brief from 
ThyssenKrupp Acciai Speciali Terni, S.p.A. (``TKAST'') (formerly Acciai 
Speciali Terni, S.p.A.) in a timely manner. See Case Brief from TKAST 
re: Stainless Steel Sheet and Strip in Coils from Italy (Sunset) 
(February 8, 2005). The Department did not receive a case brief from 
the domestic interested parties but did receive a rebuttal brief to the 
case briefs submitted by the GOI, EC and TKAST. See Rebuttal Brief from 
Petitioners re: Sunset Review of the Countervailing Duty Order on 
Stainless Steel Sheet and Strip in Coils from Italy (February 14, 
2005).

Scope of the Order

    The product covered by this order is certain stainless steel sheet 
and strip in

[[Page 23095]]

coils. Stainless steel is an alloy steel containing, by weight, 1.2 
percent or less of carbon and 10.5 percent or more of chromium, with or 
without other elements. The subject sheet and strip is a flat-rolled 
product in coils that is greater than 9.5 mm in width and less than 
4.75 mm in thickness, and that is annealed or otherwise heat treated 
and pickled or otherwise descaled. The subject sheet and strip may also 
be further processed (e.g., cold-rolled, polished, aluminized, coated, 
etc.) provided that it maintains the specific dimensions of sheet and 
strip following such processing.
    The merchandise subject to these orders is classified 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 description 
of the merchandise covered by these orders is dispositive.
    Excluded from the scope of these orders 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).
    In response to comments by interested parties the Department has 
determined that certain specialty stainless steel products are also 
excluded from the scope of these orders. These excluded products are 
described below:
    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.
    Also excluded is a product referred to as suspension foil, a 
specialty steel product used in the manufacture of suspension 
assemblies for computer disk drives. Suspension foil is described as 
302/304 grade or 202 grade stainless steel of a thickness between 14 
and 127 microns, with a thickness tolerance of plus-or-minus 2.01 
micros, and surface glossiness of 200 to 700 percent Gs. Suspension 
foil must be supplied in coil widths of not more than 407 mm and with a 
mass of 225 kg or less. Roll marks may only be visible on one side, 
with no scratches of measurable depth. The material must exhibit 
residual stresses of 2 mm maximum deflection and flatness of 1.6 mm 
over 685 mm length.
    Certain stainless steel foil for automotive catalytic converters is 
also excluded from the scope of these orders. The stainless 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 is also 
excluded from the scope of these orders. 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.'' \2\
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    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of these orders. 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. This product is currently available under 
proprietary trade names, such as ``Gilphy 36.'' \3\
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    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel is 
also excluded from the scope of these orders. 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 of less in 50 mm. It is 
generally provided in thicknesses between 0.635 and 0.787 mm, and in 
widths of 25.4

[[Page 23096]]

mm. This product is most commonly used in the manufacture of television 
tubes is currently available under proprietary trade names, such as 
``Durphynox 17.'' \4\
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    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    Finally, three specialty stainless steels typically used in certain 
industrial blades and surgical and medical instruments are also 
excluded from the scope of these orders. These include stainless steal 
strip in coils used in the production of textile cutting tools (e.g., 
carpet knives).\5\ This steel is similar to AISI grade 420 but 
containing, by weight, 0.5 to 0.7 percent of molybdenum. The steel also 
contains, by weight, carbon of between 1.0 and 1.1 percent, sulfur of 
0.020 percent or less, and includes between 0.20 and 0.30 percent 
copper and between 0.20 and 0.50 percent cobalt. This steel is sold 
under proprietary names, such as ``GIN4 Mo.'' The second excluded 
stainless steel strip in coils is similar to AISI 420-J2 and contains, 
by weight, carbon of between 0.62 and 0.70 percent, silicon of between 
0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent, 
phosphorus of no more than 0.025 percent, and sulfur of no more than 
0.020 percent. This steel has a carbide density on average of 100 
carbide particles per 100 square microns. An example of this product is 
``GIN5'' steel. The third specialty steel has a chemical composition 
similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent, 
molybdenum of between 1.15 and 1.35 percent, but lower manganese of 
between 0.20 and 0.80 percent, phosphorus of no more than 0.025 
percent, silicon of between 0.20 and 0.50 percent, and sulfur of no 
more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6''. ``GIN4 Mo,'' `` GIN5'' and ``GIN6'' are the 
proprietary grades of Hitachi Metals America, Ltd.
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
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Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum (``Decision Memorandum'') from Ronald K. Lorentzen, 
Acting director, Office of Policy, Import Administration, to Joseph A. 
Spetrini, Acting Assistant Secretary for Import Administration, dated 
April 27, 2005, which is hereby adopted by this notice. The issues 
discussed in the accompanying Decision Memorandum include the 
likelihood of continuation or recurrence of countervailable subsidies 
and the net countervailable subsidy likely to prevail were the order 
revoked. 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 Commerce building. In addition, a complete version of the 
Decision Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn, under the heading ``May 2005.'' The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Final Results of Review

    We determine that revocation of the countervailing duty order on 
SSSS from Italy would be likely to lead to continuation or recurrence 
of countervailable subsidies at the rate listed below:

------------------------------------------------------------------------
                                          Net countervailable subsidy
         Producer/exporters                        (percent)
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TKAST...............................  0.73
Arinox..............................  de minimis.
All Others..........................  0.73
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Notification Regarding Administrative Protective Order

    This notice also serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305 of the 
Department's regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is violation which is subject to sanction.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: April 27, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-8910 Filed 5-3-05; 8:45 am]
BILLING CODE 3510-DS-M