[Federal Register Volume 71, Number 2 (Wednesday, January 4, 2006)]
[Notices]
[Pages 329-331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-8275]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-825]


Stainless Steel Sheet and Strip in Coils from Italy: Initiation 
of Countervailing Duty Changed Circumstances Review and Notice of 
Consideration of Revocation of Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On December 2, 2005, Allegheny Ludlum Corporation and AK Steel 
Corporation filed a request for a countervailing duty changed 
circumstances review. Specifically, they requested that the Department 
of Commerce revoke the countervailing duty order on stainless steel 
sheet and strip in coils from Italy. In response, the Department of 
Commerce is initiating a changed circumstances review of the 
countervailing duty order on stainless steel sheet and strip in coils 
from Italy. Interested parties are invited to comment on this notice of 
initiation.

EFFECTIVE DATE: January 4, 2006.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Audrey R. Twyman, 
AD/CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
0182 and (202) 482-3534, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 1999, the Department of Commerce (the ``Department'') 
published a countervailing duty order on stainless steel sheet and 
strip in coils (``SSSS'') from Italy. See Amended Final Determination: 
Stainless Steel Sheet and Strip in Coils from the Republic of Korea; 
and Notice of Countervailing Duty Orders: Stainless Steel Sheet and 
Strip in Coils from France, Italy and the Republic of Korea, 64 FR 
42923 (August 6, 1999).
    On December 2, 2005, the Department received a request from 
Allegheny Ludlum Corporation and AK Steel Corporation, some of the 
petitioners in the original investigation (``petitioners''), that the 
Department initiate a changed circumstances review for purposes of 
revoking the countervailing duty (``CVD'') order. Also, it is the 
petitioners' understanding that, upon revocation of the CVD order, the 
Department will fully refund any countervailing duties deposited 
pursuant to the order on unliquidated entries. The petitioners state 
that they are no longer interested in maintaining the countervailing 
duty order or in the imposition of CVD duties on the subject 
merchandise.

Scope of the Order

    The products covered by this order are certain stainless steel 
sheet and strip in coils. Stainless steel is an alloy steel containing, 
by weight, 1.2 percent or less of carbon and 10.5 percent or more of 
chromium, with or without other elements. The subject sheet and strip 
is a flat-rolled product in coils that is greater than 9.5 mm in width 
and less than 4.75 mm in thickness, and that is annealed or otherwise 
heat treated and pickled or otherwise descaled. The subject sheet and 
strip may also be further processed (e.g., cold-rolled, polished, 
aluminized, coated, etc.) provided that it maintains the specific

[[Page 330]]

dimensions of sheet and strip following such processing.
    The merchandise subject to this order is classified in the 
Harmonized Tariff Schedule of the United States (``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 this order is dispositive.
    Excluded from the scope of this order are the following: (1) sheet 
and strip that is not annealed or otherwise heat treated and pickled or 
otherwise descaled; (2) sheet and strip that is cut to length; (3) 
plate (i.e., flat-rolled stainless steel products of a thickness of 
4.75 mm or more); (4) flat wire (i.e., cold-rolled sections, with a 
prepared edge, rectangular in shape, of a width of not more than 9.5 
mm); and (5) razor blade steel. Razor blade steel is a flat-rolled 
product of stainless steel, not further worked than cold-rolled (cold-
reduced), in coils, of a width of not more than 23 mm and a thickness 
of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent 
chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the 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 this order. 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 
microns, and surface glossiness of 200 to 700 percent Gs. Suspension 
foil must be supplied in coil widths of not more than 407 mm and with a 
mass of 225 kg or less. Roll marks may only be visible on one side, 
with no scratches of measurable depth. The material must exhibit 
residual stresses of 2 mm maximum deflection and flatness of 1.6 mm 
over 685 mm length.
    Certain stainless steel foil for automotive catalytic converters is 
also excluded from the scope of this order. This stainless steel strip 
in coils is a specialty foil with a thickness of between 20 and 110 
microns used to produce a metallic substrate with a honeycomb structure 
for use in automotive catalytic converters. The steel contains, by 
weight, carbon of no more than 0.030 percent, silicon of no more than 
1.0 percent, manganese of no more than 1.0 percent, chromium of between 
19 and 22 percent, aluminum of no less than 5.0 percent, phosphorus of 
no more than 0.045 percent, sulfur of no more than 0.03 percent, 
lanthanum of less than 0.002 or greater than 0.05 percent, and total 
rare earth elements of more than 0.06 percent, with the balance iron.
    Permanent magnet iron-chromium-cobalt alloy stainless strip is also 
excluded from the scope of this order. This ductile stainless steel 
strip contains, by weight, 26 to 30 percent chromium and 7 to 10 
percent cobalt, with the remainder of iron, in widths 228.6 mm or less, 
and a thickness between 0.127 and 1.270 mm. It exhibits magnetic 
remanence between 9,000 and 12,000 gauss, and a coercivity of between 
50 and 300 oersteds. This product is most commonly used in electronic 
sensors and is currently available under proprietary trade names such 
as ``Arnokrome III.''\1\
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    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of this order. This product is defined as a non-magnetic 
stainless steel manufactured to American Society of Testing and 
Materials (ASTM) specification B344 and containing, by weight, 36 
percent nickel, 18 percent chromium, and 46 percent iron, and is most 
notable for its resistance to high-temperature corrosion. It has a 
melting point of 1390 degrees Celsius and displays a creep rupture 
limit of 4 kilograms per square millimeter at 1000 degrees Celsius. 
This steel is most commonly used in the production of heating ribbons 
for circuit breakers and industrial furnaces, and in rheostats for 
railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.''\2\
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    \2\ ``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 this order. This high-strength, ductile 
stainless steel product is designated under the Unified Numbering 
System (UNS) as S45500-grade steel, and contains, by weight, 11 to 13 
percent chromium and 7 to 10 percent nickel. Carbon, manganese, silicon 
and molybdenum each comprise, by weight, 0.05 percent or less, with 
phosphorus and sulfur each comprising, by weight, 0.03 percent or less. 
This steel has copper, niobium, and titanium added to achieve aging and 
will exhibit yield strengths as high as 1700 Mpa and ultimate tensile 
strengths as high as 1750 Mpa after aging, with elongation percentages 
of 3 percent or less in 50 mm. It is generally provided in thicknesses 
between 0.635 and 0.787 mm, and in widths of 25.4 mm. This product is 
most commonly used in the manufacture of television tubes and is 
currently available under proprietary trade names such as ``Durphynox 
17.''\3\
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    \3\ ``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 this order. These include

[[Page 331]]

stainless steel strip in coils used in the production of textile 
cutting tools (e.g., carpet knives).\4\ This steel is similar to AISI 
grade 420 but containing, by weight, 0.5 to 0.7 percent of molybdenum. 
The steel also contains, by weight, carbon of between 1.0 and 1.1 
percent, sulfur of 0.020 percent or less, and includes between 0.20 and 
0.30 percent copper and between 0.20 and 0.50 percent cobalt. This 
steel is sold under proprietary names such as ``GIN4 Mo.'' The second 
excluded stainless steel strip in coils is similar to AISI 420-J2 and 
contains, by weight, carbon of between 0.62 and 0.70 percent, silicon 
of between 0.20 and 0.50 percent, manganese of between 0.45 and 0.80 
percent, phosphorus of no more than 0.025 percent, and sulfur of no 
more than 0.020 percent. This steel has a carbide density on average of 
100 carbide particles per 100 square microns. An example of this 
product is ``GIN5'' steel. The third specialty steel has a chemical 
composition similar to AISI 420 F, with carbon of between 0.37 and 0.43 
percent, molybdenum of between 1.15 and 1.35 percent, but lower 
manganese of between 0.20 and 0.80 percent, phosphorus of no more than 
0.025 percent, silicon of between 0.20 and 0.50 percent, and sulfur of 
no more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6.''\5\
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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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Initiation of Changed Circumstances Review

    Section 751(d)(1) of the Tariff Act of 1930, as amended (the 
``Act''), and 19 CFR 351.222(g), provide that the Department may revoke 
an antidumping or countervailing duty order, in whole or in part, after 
conducting a changed circumstances review pursuant to section 751(b) of 
the Act and concluding from the available information that changed 
circumstances exist sufficient to warrant revocation or termination. 
The Department may conclude that changed circumstances sufficient to 
warrant revocation (in whole or in part) exist when producers 
accounting for substantially all of the production of the domestic like 
product to which the order pertains have expressed a lack of interest 
in the order, in whole or in part. See section 782(h)(2) of the Act and 
section 351.222(g)(1) of the Department's regulations.
    The petitioners state that they are producers of SSSS but do not 
identify the percentage of production of the domestic like product they 
represent. At present, the Department has no information on the record 
that the other known domestic producers of SSSS have no interest in 
maintaining the countervailing duty order with respect to the subject 
merchandise imported from Italy. Therefore, the Department does not 
have information on the record of this changed circumstances review 
that the petitioners account for substantially all, or at least 85 
percent, of the production of the domestic like product. See Certain 
Tin Mill Products From Japan: Final Results of Changed Circumstances 
Review, 66 FR 52109 (October 12, 2001); see also 19 CFR 351.208(c). 
Accordingly, we are not combining this initiation with a preliminary 
determination, pursuant to 19 CFR 351.221(c)(3)(ii). This notice of 
initiation will accord all interested parties an opportunity to address 
this proposed revocation.
    Pursuant to section 751(b)(1) of the Act, the Department will 
conduct a changed circumstances review upon receipt of information 
concerning, or a request from an interested party of, a countervailing 
duty order which shows changed circumstances sufficient to warrant a 
review of the order. Therefore, in accordance with section 751(b)(1) of 
the Act, we are initiating a changed circumstances review based upon 
the request made by the petitioners.
    If, as a result of this review, we revoke the order, we intend to 
instruct U.S. Customs and Border Protection (``CBP'') to liquidate 
without regard to applicable countervailing duties, and refund any 
estimated countervailing duties collected on all unliquidated entries 
of the merchandise subject to the order, as described above under the 
``Scope of the Order'' section, entered, or withdrawn from warehouse, 
for consumption on or after November 17, 1998, i.e., the publication 
date of the Department's preliminary determination. See Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination: Stainless Steel Sheet and Strip in Coils from Italy, 63 
FR 63900 (November 17, 1998). We will also instruct CBP to pay interest 
on such refunds with respect to the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after August 6, 1999, 
the date of publication of the countervailing duty order, in accordance 
with section 778 of the Act. The current requirement for a cash deposit 
of estimated countervailing duties on the subject merchandise will 
continue unless, and until, we publish a final determination to revoke 
the countervailing duty order on SSSS from Italy.

Public Comment

    Interested parties are invited to comment on the initiation of this 
changed circumstances review. Parties who submit argument in this 
proceeding are requested to submit with the argument (1) a statement of 
the issue, and (2) a brief summary of the argument. All written 
comments may be submitted by interested parties not later than 14 days 
after the date of publication of this notice in accordance with 19 CFR 
351.303, and shall be served on all interested parties on the 
Department's service list.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances review, in accordance with 
19 CFR 351.221(c)(3), which will set forth the factual and legal 
conclusions upon which our preliminary results are based, and a 
description of any action proposed based on those results. This notice 
is published in accordance with section 751(b)(1) of the Act and 
sections 351.216 and 351.222 of the Department's regulations.

    Dated: December 23, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-8275 Filed 1-3-06; 8:45 am]
BILLING CODE 3510-DS-S