[Federal Register Volume 71, Number 59 (Tuesday, March 28, 2006)]
[Notices]
[Pages 15382-15384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4485]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

C-475-825


Stainless Steel Sheet and Strip in Coils from Italy: Final 
Results of Countervailing Duty Changed Circumstances Review and 
Revocation of Countervailing Duty Order, in Whole

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce is revoking the countervailing duty 
order on stainless steel sheet and strip in coils from Italy because we 
have concluded that substantially all domestic producers lack interest 
in the relief provided by this order.

EFFECTIVE DATE: March 28, 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 (``CVD'') 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, two of the petitioners in the original 
investigation, that the Department initiate a changed circumstances 
review for purposes of revoking the CVD order. Specifically, Allegheny 
Ludlum Corporation and AK Steel Corporation requested that the CVD 
order be revoked ab initio and that the Department fully refund any 
countervailing duties deposited pursuant to the order on unliquidated 
entries. Allegheny Ludlum Corporation and AK Steel Corporation state 
that they are no longer interested in maintaining the CVD order or in 
the imposition of countervailing duties on the subject merchandise.
    On January 4, 2006, the Department published a notice of initiation 
of a changed circumstances review of the CVD order on SSSS from Italy. 
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 indicated 
interested parties could submit comments. No comments were received.
    On February 14, 2006, the Department preliminarily revoked the 
order effective November 17, 1998. See Stainless Steel Sheet and Strip 
in Coils from Italy: Preliminary Results of Countervailing Duty Changed 
Circumstances Review and Intent to Revoke Order, 71 FR 7737 (February 
14, 2006) (``Preliminary Results''). In the Preliminary Results, we 
again afforded interested parties an opportunity to submit comments. We 
did not receive any comments following the publication of the 
Preliminary Results.

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 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 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

[[Page 15383]]

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\
---------------------------------------------------------------------------

    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.

---------------------------------------------------------------------------

[[Page 15384]]

Final Results of Review and Revocation of the Countervailing Duty 
Order, in Whole

    Pursuant to section 751(d)(1) of the 1930 Tariff Act, as amended 
(the ``Act''), and 19 CFR 351.222(g), the Department may revoke an 
antidumping or CVD 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 that 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 administrative 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) 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 Preliminary Results, Allegheny Ludlum 
Corporation and AK Steel Corporation requested this changed 
circumstances review on the basis that they are no longer interested in 
maintaining the CVD order or in the imposition of CVD duties on the 
subject merchandise. Also, the parties to the litigation concerning 
these entries have agreed to withdraw their appeals.
    Because the Department did not receive any comments in response to 
the Initiation Notice or the Preliminary Results opposing this changed 
circumstances review or the preliminary decision to revoke, in whole, 
the CVD order effective November 17, 1998, we find 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 sections 751(b), 751(d), and 
782(h) of the Act and 19 CFR 351.216 and 351.222(g), the Department 
determines that there is a reasonable basis to find that changed 
circumstances exist sufficient to warrant revocation of the order. 
Therefore, the Department is revoking the CVD order on SSSS from Italy, 
in whole, with regard to the products described above under the ``Scope 
of the Order'' section.

Instructions to U.S. Customs and Border Protection

    In accordance with 19 CFR 351.222(g), upon dismissal by the court 
of all pending appeals involving the subject merchandise as described 
above under the ``Scope of the Order'' section, the Department will 
instruct U.S. Customs and Border Protection (``CBP'') to liquidate 
without regard to countervailing duties, all unliquidated entries of 
the subject merchandise 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. In accordance with section 778 of the Act, we will also 
instruct CBP to pay interest on and refunded CVD deposits with respect 
to the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after August 6, 1999, the date of publication in the 
Federal Register of the CVD order.

Notification Regarding APOs

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.306. Timely written notification of 
the return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. See 19 CFR 351.305. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation. See 19 USC 1677f and 19 CFR Part 354.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(b)(1) and 777(i)(1) of the Act and 19 CFR 
351.216, 351.221, and 351.222.

    Dated: March 21, 2006.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-4485 Filed 3-27-06; 8:45 am]
BILLING CODE 3510-DS-S