[Federal Register Volume 76, Number 155 (Thursday, August 11, 2011)]
[Notices]
[Pages 49726-49728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-20436]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-845, A-580-834, C-580-835, A-583-831]


Continuation of Antidumping and Countervailing Duty Orders: 
Stainless Steel Sheet and Strip in Coils From Japan, Korea, and Taiwan

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

SUMMARY: As a result of the determinations by the Department of 
Commerce (the ``Department'') that revocation of the antidumping duty 
(``AD'') orders on stainless steel sheet and strip in coils from Japan, 
Korea, and Taiwan would likely lead to continuation or recurrence of 
dumping, that revocation of the countervailing duty (``CVD'') order on 
stainless steel sheet and strip in coils from Korea would likely lead 
to continuation or

[[Page 49727]]

recurrence of a countervailable subsidy, and the determinations by the 
International Trade Commission (the ``ITC'') that revocation of these 
AD and CVD orders would likely lead to a continuation or recurrence of 
material injury to an industry in the United States, the Department is 
publishing this notice of the continuation of these AD orders and CVD 
order.

DATES: Effective Date: August 11, 2011.

FOR FURTHER INFORMATION CONTACT: Shawn Thompson (AD orders) or Eric 
Greynolds (CVD order), AD/CVD Operations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street & Constitution Avenue NW., Washington, DC 20230; telephone: 
(202) 482-1776 and (202) 482-6071, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 2, 2010, the Department initiated and the ITC instituted 
sunset reviews of the AD and CVD orders on stainless steel sheet and 
strip from Japan, Korea, and Taiwan pursuant to sections 751(c) and 752 
of the Tariff Act of 1930, as amended (the ``Act''), respectively. See 
Initiation of Five-Year (``Sunset'') Reviews, 75 FR 30777 (June 2, 
2010). As a result of its reviews, the Department found that revocation 
of the AD orders would likely lead to continuation or recurrence of 
dumping and that revocation of the CVD order would likely lead to 
continuation or recurrence of subsidization, and notified the ITC of 
the margins of dumping and the subsidy rates likely to prevail were the 
orders revoked. See Certain Stainless Steel Sheet and Strip in Coils 
From Germany, Japan, the Republic of Korea, and Taiwan: Final Results 
of the Expedited Second Sunset Reviews of the Antidumping Duty Orders, 
75 FR 62104 (October 7, 2010), and Stainless Steel Sheet and Strip in 
Coils From the Republic of Korea: Final Results of Expedited Second 
Sunset Review, 75 FR 62101 (October 7, 2010) (collectively, ``Final 
Results'').
    On August 2, 2011, the ITC determined that revocation of the AD and 
CVD orders on stainless steel sheet and strip in coils from Japan, 
Korea, and Taiwan would likely lead to continuation or recurrence of 
material injury within a reasonably foreseeable time. See Stainless 
Steel Sheet and Strip from Germany, Italy, Japan, Korea, Mexico, and 
Taiwan, 76 FR 46323 (August 2, 2011) (``ITC Determination'') and USITC 
Publication 4244 entitled Stainless Steel Sheet and Strip from Germany, 
Italy, Japan, Korea, Mexico, and Taiwan (Inv. No. 701-TA-382 and 731-
TA-798-803 (Second Review)), (July 2011).

Scope of the Orders

    The merchandise covered by these AD and CVD orders is 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 these orders is classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 
7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 7219.13.00.81, 
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. (Prior 
to 2001, U.S. imports under HTS statistical reporting numbers 
7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 7219.13.00.81 were entered 
under HTS statistical reporting numbers 7219.13.00.30, 7219.13.00.50, 
7219.13.00.70, 7219.13.00.80.) Although the HTSUS subheadings are 
provided for convenience and customs purposes, the Department's written 
description of the merchandise subject to 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, (6) flapper valve steel, 
(7) suspension foil, (8) certain stainless steel foil for automotive 
catalytic converters, (9) permanent magnet iron-chromium-cobalt alloy 
stainless strip, (10) certain electrical resistance ally steel, (11) 
certain martensitic precipitation-hardenable stainless steel, and (12) 
three specialty stainless steels typically used in certain industrial 
blades and surgical and medication instruments. Items 5 through 12 are 
further described below.
    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).
    Flapper valve steel is also excluded from the scope. This product 
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.
    Suspension foil excluded from the scope is 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

[[Page 49728]]

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. 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. 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. 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. 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.
---------------------------------------------------------------------------

    Three specialty stainless steels typically used in certain 
industrial blades and surgical and medical instruments are also 
excluded from the scope. 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.
---------------------------------------------------------------------------

    In addition, as a result of changed circumstances reviews, the 
Department has revoked, in part, the Japanese AD order with respect to 
imports of the following products:
     Stainless steel welding electrode strips that are 
manufactured in accordance with American Welding Society (AWS) 
specifications ANSI/AWS A5.9-93 (see 65 FR 17856, April 5, 2000);
     Certain stainless steel used for razor blades, medical 
surgical blades, and industrial blades that are sold under proprietary 
names such as DSRIK7, DSRIKA, and DSRIK9 (see 65 FR 54841, September 
11, 2000);
     Certain stainless steel lithographic sheet that is made of 
304-grade stainless steel (see 65 FR 64423, October 27, 2000); and
     Certain nickel clad stainless steel sheet (see 65 FR 
77578, December 12, 2000).

Determination

    As a result of the determinations by the Department and the ITC 
that revocation of these AD and CVD orders would likely lead to 
continuation or recurrence of dumping or a countervailable subsidy, and 
of material injury to an industry in the United States, pursuant to 
section 751(d)(2) of the Act, the Department hereby orders the 
continuation of the AD and CVD orders on stainless steel sheet and 
strip in coils from Japan, Korea, and Taiwan. U.S. Customs and Border 
Protection will continue to collect cash deposits at the rates in 
effect at the time of entry for all imports of subject merchandise. The 
effective date of the continuation of these orders is the date of 
publication in the Federal Register of this Notice of Continuation.
    Pursuant to sections 751(c)(2) and 751(c)(6) of the Act, the 
Department intends to initiate the next five-year review of these 
finding/orders not later than July 2016.
    These five-year (sunset) reviews and notice are in accordance with 
section 751(c) of the Act and published pursuant to section 777(i)(1) 
of the Act.

    Dated: August 3, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-20436 Filed 8-10-11; 8:45 am]
BILLING CODE 3510-DS-P