Notice2022-26244
Stainless Steel Sheet and Strip in Coils From the Republic of Korea: Final Results of Expedited Sunset Review of the Countervailing Duty Order
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 2, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on stainless steel sheet and strip in coils (sheet and strip) from the Republic of Korea (Korea) would likely lead to the continuation or recurrence of a countervailable subsidy at the levels indicated in the "Final Results of the Sunset Review" section of this notice.
Full Text
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<title>Federal Register, Volume 87 Issue 231 (Friday, December 2, 2022)</title>
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[Federal Register Volume 87, Number 231 (Friday, December 2, 2022)]
[Notices]
[Pages 74130-74132]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26244]
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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 Sunset Review of the Countervailing
Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) finds that
revocation of the countervailing duty (CVD) order on stainless steel
sheet and strip in coils (sheet and strip) from the Republic of Korea
(Korea) would likely lead to the continuation or recurrence of a
countervailable subsidy at the levels indicated in the ``Final Results
of the Sunset Review'' section of this notice.
DATES: Applicable December 2, 2022.
FOR FURTHER INFORMATION CONTACT: John Hoffner, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-3315.
SUPPLEMENTARY INFORMATION:
Background
On September 1, 2022, Commerce initiated this fourth sunset review
of the CVD order \1\ on sheet and strip from Korea, pursuant to section
751(c) of the Tariff Act of 1930, as amended (the Act).\2\ This sunset
review covers the five-year period from 2017 to 2021. Commerce received
a notice of intent to participate from Cleveland-Cliffs Inc., North
American Stainless, and Outokumpu Stainless USA LLC (collectively, the
domestic interested parties), within the deadline specified in 19 CFR
351.218(d)(1)(i). The domestic interested parties claimed interested
party status under section 771(9)(C) of the Act as domestic producers
of sheet and strip in the United States.
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\1\ 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) (Order).
\2\ See Initiation of Five-Year (Sunset) Reviews, 87 FR 53727
(September 1, 2022).
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Commerce received an adequate substantive response from the
domestic interested parties within the 30-day deadline specified in 19
CFR 351.218(d)(3)(i). However, Commerce did not receive a substantive
response from any government or respondent interested party to this
proceeding.
On October 25, 2022, Commerce notified the U.S. International Trade
Commission that it did not receive an adequate substantive response
from respondent interested parties.\3\ As a result, pursuant to section
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), Commerce
conducted an expedited (120-day) sunset review of the Order.
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\3\ See Commerce's Letter, ``Sunset Reviews Initiated on
September 1, 2022,'' dated October 25, 2022.
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Scope of the Order
The merchandise subject to the Order consists of stainless steel
sheet and strip in coils from Korea. Stainless steel is 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 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,
[[Page 74131]]
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, Commerce'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, Commerce 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.'' \4\
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\4\ ``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.'' \5\
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\5\ ``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.'' \6\
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\6\ ``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).\7\ 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
[[Page 74132]]
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.'' \8\
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\7\ This list of uses is illustrative and provided for
descriptive purposes only.
\8\ ``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 sunset review are addressed in the Issues
and Decision Memorandum, which is dated concurrently with and adopted
by this notice.\9\ A list of topics discussed in the Issues and
Decision Memorandum is included as an appendix to this notice. Parties
can find a complete discussion of all issues raised in this expedited
sunset review and the corresponding recommendations in this public
memorandum, which is on file electronically via the Enforcement and
Compliance Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
<a href="https://access.trade.gov">https://access.trade.gov</a>. A complete version of the Issues and Decision
Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNotices/ListLayout.aspx">https://access.trade.gov/public/FRNotices/ListLayout.aspx</a>.
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\9\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of Expedited Sunset Review of the Countervailing Duty
Order on Stainless Steel Sheet and Strip in Coils from the Republic
of Korea,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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Final Results of the Sunset Review
Pursuant to sections 752(b)(1) and (3) of the Act, we determine
that revocation of the Order on sheet and strip from Korea would be
likely to lead to continuation or recurrence of a net countervailable
subsidy at the rates listed below: \10\
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\10\ Id.
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Subsidy rate
Producer/exporter (percent ad
valorem)
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INI/BNG (formerly Inchon and now known as Hyundai)...... 0.54
DMC..................................................... 0.67
Taihan.................................................. 4.64
All Others.............................................. 0.63
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Administrative Protective Order
This notice serves as the only reminder to parties subject to an
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 the return or 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 violation
which is subject to sanction.
Notification to Interested Parties
Commerce is issuing and publishing these final results and this
notice in accordance with sections 751(c), 752(b), and 777(i)(1) of the
Act and 19 CFR 351.218(e)(ii)(c)(2).
Dated: November 25, 2022.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. History of the Order
V. Legal Framework
VI. Discussion of the Issues
1. Likelihood of Continuation or Recurrence of a Countervailable
Subsidy
2. Net Countervailable Subsidy Rates Likely to Prevail
3. Nature of the Subsidies
VII. Final Results of Sunset Review
VIII. Recommendation
[FR Doc. 2022-26244 Filed 12-1-22; 8:45 am]
BILLING CODE 3510-DS-P
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