[Federal Register Volume 75, Number 194 (Thursday, October 7, 2010)]
[Notices]
[Pages 62101-62103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25304]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-835]


Stainless Steel Sheet and Strip in Coils From the Republic of 
Korea: Final Results of Expedited Second Sunset Review

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

SUMMARY: On June 2, 2010, the Department of Commerce (``the 
Department'') initiated the second sunset review of the countervailing 
duty order (``CVD'') on stainless steel sheet and strip in coils from 
the Republic of Korea (``Korea'') pursuant to section 751(c) of the 
Tariff Act of 1930, as amended (``the Act''). On the basis of a notice 
of intent to participate and an adequate substantive response filed on 
behalf of the domestic interested parties and an inadequate response 
from respondent interested parties (in this case, no response), the 
Department conducted an expedited sunset review of the CVD order 
pursuant to section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(B). As a result of this sunset review, the Department 
finds that revocation of the CVD order would be likely to lead to 
continuation or recurrence of a countervailable subsidy at the level 
indicated in the ``Final Results of Review'' section of this notice.

DATES: Effective Date: October 7, 2010.

FOR FURTHER INFORMATION CONTACT: Eric Greynolds or David Goldberger, 
AD/CVD Enforcement, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
6071 or (202) 482-4136, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 2, 2010, the Department initiated the second sunset review 
of the CVD order on stainless steel sheet and strip in coils from Korea 
pursuant to section 751(c) of the Act. See Initiation of Five-Year 
(``Sunset'') Reviews, 75 FR 30777 (June 2, 2010). The Department 
received a notice of intent to participate from the following domestic 
interested parties: AK Steel Corporation; Allegheny Ludlum Corporation; 
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, 
Allied Industrial and Service Workers International Union; United Auto 
Workers, Local 3303; and United Auto Workers, Local 4104 (collectively, 
``domestic interested parties''), within the deadline specified in 19 
CFR 351.218(d)(1)(i). The domestic interested parties claimed 
interested party status under sections 771(9)(C) and (D) of the Act, as 
domestic producers of stainless steel sheet and strip in coils in the 
United States and certified unions representing workers in the domestic 
industry producing stainless steel and strip in coils in the United 
States.
    The Department received an adequate substantive response 
collectively from the domestic interested parties within the 30-day 
deadline specified in 19 CFR 351.218(d)(3)(i). However, the Department 
did not receive a substantive response from any government or 
respondent interested party to this proceeding. As a result, pursuant 
to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), 
the Department conducted an expedited review of the CVD order.

Scope of the Order

    The merchandise subject to the CVD order consists of stainless 
steel sheet and strip in coils from Korea. 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 the order is classified in the 
Harmonized Tariff

[[Page 62102]]

Schedule of the United States (``HTS'') at 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 HTS 
subheadings are provided for convenience and customs purposes, the 
Department's written description of the merchandise subject to the 
order is dispositive.
    Excluded from the scope of the 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 HTS, ``Additional 
U.S. Note'' 1(d).
    In response to comments by interested parties, the Department 
determined that certain specialty stainless steel products are also 
excluded from the scope of the 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 the 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 the 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 the 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 the 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 the 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

[[Page 62103]]

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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Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum (``Decision Memorandum'') from Susan H. Kuhbach, 
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, dated September 30, 2010, which is hereby 
adopted by this notice. 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, 
located in room 7046 of the main Commerce building. The issues include 
the likelihood of continuation or recurrence of a countervailable 
subsidy, the net countervailable subsidy likely to prevail, and the 
nature of the subsidy. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Final Results of Review

    The Department determines that revocation of the CVD order would be 
likely to lead to continuation or recurrence of a countervailable 
subsidy at the following weighted-average percentage rates:

------------------------------------------------------------------------
                                                       Weighted-average
          Manufacturers/exporters/producers              subsidy rate
                                                           (percent)
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Hyundai Steel Company--(formerly known as INI/BNG                   0.54
 and as Inchon).....................................
Dai Yang Metal Company..............................                0.67
Taihan..............................................                4.64
All Others..........................................                0.63
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Notification Regarding Administrative Protective Order

    This notice 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. Timely 
notification of return/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.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: September 30, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-25304 Filed 10-6-10; 8:45 am]
BILLING CODE 3510-DS-P