[Federal Register Volume 71, Number 30 (Tuesday, February 14, 2006)]
[Notices]
[Pages 7737-7740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-2087]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-825]


Stainless Steel Sheet and Strip in Coils from Italy: Preliminary 
Results of Countervailing Duty Changed Circumstances Review and Intent 
to Revoke Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On January 4, 2006, in response to a request by domestic 
producers of the subject merchandise, the Department of Commerce (``the 
Department'') published a notice of initiation of a changed 
circumstances review of the countervailing duty order on stainless 
steel plate in coils, as described below. See Stainless Steel Sheet and 
Strip in Coils from Italy: Initiation of Countervailing Duty Changed 
Circumstances Review and Notice of Consideration of Revocation of 
Order, 71 FR 329 (January 4, 2006) (``Initiation Notice'').
    In the Initiation Notice, we invited interested parties to comment 
on the Department's initiation and the proposed revocation of the 
countervailing duty order on stainless steel sheet and strip in coils 
from Italy. We did not receive any comments. Absent any comments, we 
preliminarily conclude that producers accounting for substantially all 
of the production of the domestic like product to which this order 
pertains lack interest in the relief provided by the order. Therefore, 
we preliminarily revoke this order, in whole, with respect to products 
entered, or withdrawn from warehouse, for consumption on or after 
November 17, 1998, i.e., the publication date of the Department's 
preliminary determination in the underlying investigation, because 
domestic parties have expressed no interest in the continuation of the 
order. 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) (``Preliminary 
Determination''). Unless the Department receives opposition from 
domestic producers whose production totals more than 15 percent of the 
domestic like product, the Department will revoke the order on 
stainless steel sheet and strip in coils in the final results of this 
review.

EFFECTIVE DATE: February 14, 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

[[Page 7738]]

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.
    On January 4, 2006, the Department published a notice of initiation 
of a changed circumstances review of the countervailing duty order on 
SSSS from Italy. See Initiation Notice. In the Initiation Notice, we 
indicated interested parties could submit comments for consideration in 
the Department's preliminary results not later than 14 days after 
publication of the initiation of the review, and submit responses to 
those comments not later than 5 days following the submission of 
comments. No comments were received.

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 
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

[[Page 7739]]

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 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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Preliminary Results of Review and Intent to Revoke in Whole

    Pursuant to section 751(d)(1) of the Tariff Act of 1930, as amended 
(``the Act''), and 19 CFR 351.222(g), the Department may revoke an 
antidumping or countervailing duty order, in whole or in part, based on 
a review under section 751(b) of the Act (i.e., a changed circumstances 
review). Section 751(b)(1) of the Act requires a changed circumstances 
review to be conducted upon receipt of a request which shows changed 
circumstances sufficient to warrant a review. Section 782(h)(2) of the 
Act gives the Department the authority to revoke an order if producers 
accounting for substantially all of the production of the domestic like 
product have expressed a lack of interest in the continuation of the 
order. Section 351.222(g) of the Department's regulations provides that 
the Department will conduct a changed circumstances review under 19 CFR 
351.216, and may revoke an order (in whole or in part), if it concludes 
that (i) 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 relief provided by the order, in whole or in 
part, or (ii) if other changed circumstances sufficient to warrant 
revocation exist. The Department has interpreted ``substantially all'' 
production normally to mean at least 85 percent of domestic production 
of the like product. See Certain Tin Mill Products From Japan: Final 
Results of Changed Circumstances Review, 66 FR 52109 (October 12, 
2001).
    As noted above and in the Initiation Notice, the petitioners 
requested this changed circumstances review on the basis that they are 
no longer interested in maintaining the countervailing duty order or in 
the imposition of CVD duties on the subject merchandise. Because the 
Department did not receive any comments during the comment period 
opposing this changed circumstances review, we preliminarily conclude 
that producers accounting for substantially all of the production of 
the domestic like product, to which this order pertains, lack interest 
in the relief provided by the order. In accordance with 19 CFR 
351.222(g), the Department preliminarily determines that there is a 
reasonable basis to believe that changed circumstances exist and that 
it is sufficient to warrant revocation of the order. Therefore, the 
Department is preliminarily revoking the order on SSSS from Italy, in 
whole. Unless the Department receives opposition within the time limit 
set forth below from domestic producers whose production totals more 
than 15 percent of the domestic like product, the Department will 
revoke the order on SSSS in its final results of this review.
    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 in 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 in the underlying 
investigation. 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, 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 in whole.

Public Comment

    Interested parties may submit case briefs not later than 14 days 
after the date of publication of this notice. See 19 CFR 
351.309(c)(1)(ii). Rebuttal briefs, which must be limited to issues 
raised in such case briefs, may be filed not later than 19 days after 
the date of publication of this notice. See 19 CFR 351.309(d). Parties 
who submit arguments are requested to submit with

[[Page 7740]]

the argument (1) a statement of the issue, (2) a brief summary of the 
argument, and (3) a table of authorities. Any interested party may 
request a hearing within 14 days of publication of this notice. See 19 
CFR 351.310(c). Any hearing, if requested, may be held 22 days after 
the date of publication of this notice, or the first working day 
thereafter, as practicable.
    Consistent with section 351.216(e) of the Department's regulations, 
we will issue the final results of this changed circumstances review 
not later than 270 days after the date on which this review was 
initiated.
    This notice is published in accordance with section 751(b)(1) and 
771(i)(1) of the Act and sections 351.216 and 351.222 of the 
Department's regulations.

    Dated: February 8, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-2087 Filed 2-13-06; 8:45 am]
BILLING CODE 3510-DS-S