Suspension of Antidumping Duty Investigation of Certain Cold- Rolled Carbon Steel Flat Products From the Russian Federation

Federal RegisterOct 1, 2002

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-815]

Suspension of Antidumping Duty Investigation of Certain Cold-

Rolled Carbon Steel Flat Products From the Russian Federation

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

SUMMARY: The Department of Commerce (``the Department'') has suspended

the antidumping duty investigation involving certain cold-rolled carbon

steel flat products (``cold-rolled steel'') from the Russian Federation

(``Russia''). The basis for this action is an agreement between the

Department and the Russian cold-rolled steel producers accounting for

substantially all imports of cold-rolled steel from Russia, wherein

each signatory producer/exporter individually agrees to make any

necessary price revisions to eliminate completely any amount by which

the normal value (NV) of this merchandise exceeds the U.S. price of its

merchandise subject to the Agreement.

EFFECTIVE DATE: September 23, 2002.

FOR FURTHER INFORMATION CONTACT: Jean Kemp, Jonathan Herzog or Aishe

Allen at (202) 482-4037, (202) 482-4271, and (202) 482-0172

respectively, Antidumping and Countervailing Duty Enforcement Group

III, Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW.,

Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

On May 9, 2002, the Department published its preliminary

determination

[[Page 61580]]

in the above-captioned antidumping duty investigation. See Notice of

Preliminary Determination of Sales at Less Than Fair Value: Certain

Cold-Rolled Carbon Steel Flat Products From the Russian Federation, 67

FR 31241 (May 9, 2002) (``Preliminary Determination''). This

investigation was initiated on October 18, 2001.\1\ See Notice of

Initiation of Antidumping Duty Investigations: Certain Cold-Rolled

Carbon Steel Flat Products From Argentina, Australia, Belgium, Brazil,

France, Germany, India, Japan, Korea, the Netherlands, New Zealand, the

People's Republic of China, the Russian Federation, South Africa,

Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela, 66 FR 54198

(October 26, 2001).

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\1\ The petitioners in this investigation are Bethlehem Steel

Corporation, LTV Steel Company, Inc., Nucor Corporation, Steel

Dynamics, Inc., United States Steel Corporation, WCI Steel, Inc.,

and Weirton Steel Corporation (collectively, the petitioners).

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On May 13, 2002, the Russian Ministry of Economic Development and

Trade submitted to the Department a proposed draft of a suspension

agreement between them and the Department. On May 30, 2002, the Russian

government requested an extension of the final determination in order

to have time to negotiate an agreement to suspend this investigation.

On August 23, 2002, in Washington, DC, representatives from JSC

Severstal, Novolipetsk Iron and Steel Corporation, and JSC Magnitogorsk

Iron and Steel Works (collectively the `` Russian cold-rolled steel

producers'') initialed a proposed suspension agreement. We invited

comments on the proposed agreement. On September 16, 2002, we received

comments from petitioners, represented by Dewey Ballantine LLP,

Skadden, Arps, Slate, Meagher and Flom LLP, Wiley Rein and Fielding

LLP, Thompson Coburn, and the Russian cold-rolled steel producers

submitted by Sidley, Austin Brown and Wood LLP.

On September 23, 2002, the final suspension agreement was signed by

the Russian cold-rolled steel producers and the Department, the

effective date being September 23, 2002.

Scope of Investigation

For a complete description of the scope of the investigation, see

Agreement Suspending the Antidumping Investigation on Cold-Rolled

Carbon Steel Flat Products from the Russian Federation, Appendix B,

signed September 23, 2002, attached hereto.

Suspension of Investigation

The Department consulted with the parties to the proceeding and has

considered the comments submitted with respect to the proposed

suspension agreement. Based on our review of these comments, we have

made changes to the agreement. In accordance with section 734(b) of the

Act, we have determined that the agreement will eliminate completely

sales at less than fair value of imported subject merchandise.

Moreover, in accordance with section 734(d) of the Act, we have

determined that the agreement is in the public interest, and that the

agreement can be monitored effectively. We find, therefore, that the

criteria for suspension of an investigation pursuant to sections 734(b)

and (d) of the Act have been met. The terms and conditions of this

agreement, signed September 23, 2002, are set forth in appendix I to

this notice.

Pursuant to section 734(f)(2)(A) of the Act, the suspension of

liquidation of all entries of cold-rolled steel from Russia entered, or

withdrawn from warehouse, for consumption, as directed in our notice of

Preliminary Determination, is hereby terminated.

Any cash deposits on entries of cold-rolled steel from Russia

pursuant to that suspension of liquidation shall be refunded and any

bonds shall be released.

Notwithstanding the suspension agreements, the Department will

continue the investigation if it receives such a request in accordance

with section 734(g) of the Act within 20 days after the date of

publication of this notice.

This notice is published pursuant to section 734(f)(1)(A) of the

Act.

Dated: September 23, 2002.

Faryar Shirzad,

Assistant Secretary for Import Administration.

Appendix I--Agreement Suspending the Antidumping Investigation on Cold-

Rolled Carbon Steel Flat Products From the Russian Federation (A-821-

815)

Pursuant to section 734(b) of the Tariff Act of 1930, as amended

(19 U.S.C. 1673(c)(b)) (the ``Act''), and 19 CFR 351.208 (the

``Regulations''), the U.S. Department of Commerce (the

``Department'') and the signatory producers/exporters of Cold-Rolled

Carbon Steel Flat Products from the Russian Federation (the

``Signatories'') enter into this suspension agreement (the

``Agreement''). On the basis of this Agreement, the Department shall

suspend its antidumping investigation initiated on October 26, 2001

(66 FR 54198), with respect to cold-rolled carbon steel flat

products from the Russian Federation, subject to the terms and

provisions set forth below.

(A) Product Coverage

For purposes of this Agreement, the products covered are certain

cold-rolled (cold-reduced), flat-rolled carbon-quality steel

products, as described in appendix B.

(B) U.S. Import Coverage

The signatory producers/exporters collectively are the producers

and exporters in the Russian Federation that, during the antidumping

investigation on the merchandise subject to the Agreement, accounted

for substantially all (not less than 85 percent) of the subject

merchandise imported into the United States, as provided in the

Department's regulations. The Department may at anytime during the

period of the Agreement require additional producers/exporters in

the Russian Federation to sign the Agreement in order to ensure that

not less than substantially all imports into the United States are

covered by the Agreement.

In reviewing the operation of the Agreement for the purpose of

determining whether this Agreement has been violated or is no longer

in the public interest, the Department will consider imports into

the United States from all sources of the merchandise described in

Section A of the Agreement. For this purpose, the Department will

consider factors including, but not limited to, the following:

volume of trade, pattern of trade, whether or not the reseller is an

original equipment manufacturer, and the reseller's export price

(EP).

On and after the effective date of the Agreement, each signatory

producer/exporter individually agrees to make any necessary price

revisions to eliminate completely any amount by which the normal

value (NV) of this merchandise exceeds the U.S. price of its

merchandise subject to the Agreement. For this purpose, the

Department will determine the NV in accordance with section 773(e)

of the Act and U.S. price in accordance with section 772 of the Act.

(1) For the period from September 23, 2002, the date of signing

the agreement, through March 31, 2003 (the interim period), each

signatory producer/exporter agrees not to sell its merchandise

subject to the Agreement in the United States.

(2) For all sales occurring on and after April 1, 2003, each

producer/exporter agrees not to sell its merchandise subject to the

Agreement to any unaffiliated purchaser in the United States at

prices that are less than the NV of the merchandise, as determined

by the Department on the basis of information submitted to the

Department not later than the dates specified in section D of the

Agreement and provided to the parties not later than March 20 and

September 20 of each year.\1\ This NV shall apply to sales

[[Page 61581]]

occurring during the semiannual period beginning on the first day of

the month following the date the Department provides the NV, as

stated in this paragraph.

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\1\ For the first sales period only, April 1 through September

30, 2003, the issuance of the normal value may be delayed in order

to resolve issues raised in comments from interested parties or by

the Department and for the purpose of allowing sufficient time for

signatories to respond to the Department's request for cost data.

Some of the these issues may arise due to Russia's new status as a

market economy with respect to the Department's proceedings. In

accordance with section 773(f) of the Act, the Department will

examine prices and costs within Russia and, for any sales period,

may disregard particular prices or costs when the prices are not in

the ordinary course of trade, the costs are not in accordance with

the generally accepted accounting principles, the costs do not

reasonably reflect the costs associated with the production and sale

of the merchandise, or in other situations provided for the Act or

the Department's regulations. Examples of possible areas in which

adjustments may be necessary include, but are not limited to, costs

related to energy, depreciation, transactions among affiliates,

barters, as well as items that are not recognized by the Russian

Accounting System.

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(D) Monitoring

Each signatory producer/exporter will supply to the Department

all information that the Department decides is necessary to ensure

that the producer/exporter is in full compliance with the terms of

the Agreement. As explained below, the Department will provide each

signatory producer/exporter a detailed request for information and

prescribe a required format and method of data compilation, not

later than the beginning of each reporting period.

(1) Sales Information

The Department will require each producer/exporter to report, on

computer tape in the prescribed format and using the prescribed

method of data compilation, each sale of the merchandise subject to

the Agreement, either directly or indirectly to unaffiliated

purchasers in the United States, including each adjustment

applicable to each sale, as specified by the Department.

The first report of sales data shall be submitted to the

Department, on computer tape in the prescribed format and using the

prescribed method of data compilation, not later than October 31,

2003, and shall contain the specified sales information covering the

period April 1, 2003 to September 30, 2003. Subsequent reports of

sales data shall be submitted to the Department not later than April

30 and October 31 of each year, and each report shall contain the

specified sales information for the semiannual period ending one

month prior to the due date, except that if the Department receives

information that a possible violation of the Agreement may have

occurred, the Department may request sales data on a monthly, rather

than semiannual basis.

(2) Cost Information

Producer/exporters must request NVs for all subject merchandise

that will be sold in the United States. For those products which the

producer/exporter is requesting NVs, the Department will require

each producer/exporter to report: Their actual cost of

manufacturing; selling, general and administrative (SG&A) expenses;

and profit data on a semiannual basis, in the prescribed format and

using the prescribed method of data compilation. As indicated in

Appendix A, profit will be reported by the producers/exporters on a

semiannual basis. Each such producer/exporter also must report

anticipated increases in production costs in the semiannual period

in which the information is submitted resulting from factors such as

anticipated changes in production yield, changes in production

process, changes in production quantities or changes in production

facilities.

The first report of cost data shall be submitted to the

Department not later than November 14, 2002, and shall contain the

specified cost data covering the period April 1, 2002 through

September 30, 2002. Each subsequent report shall be submitted to the

Department not later than May 15 and November 14 of each year, and

each report shall contain specified information for the semiannual

period ending 45 days prior to the due date.

(3) Special Adjustment of Normal Value

If the Department determines that the NV it determined for a

previous semiannual period was erroneous because the reported costs

for that period were inaccurate or incomplete, or for any other

reason, the Department may adjust NV in a subsequent period or

periods, unless the Department determines that Section F of the

Agreement applies.

(4) Verification

Each producer/exporter agrees to permit full verification of all

cost and sales information annually, or more frequently, as the

Department deems necessary.

(5) Bundling or Other Arrangements

Producers/exporters agree not to circumvent the Agreement. In

accordance with the dates set forth in section D(1) of this

Agreement, producers/exporters will submit a written statement to

the Department certifying that the sales reported herein were not,

or are not part of or related to, any bundling arrangement, on-site

processing arrangement, discounts/free goods/financing package, swap

or other exchange where such arrangement is designed to circumvent

the basis of the Agreement.

Where there is reason to believe that such an arrangement does

circumvent the basis of the Agreement, the Department will request

producers/exporters to provide within 15 days all particulars

regarding any such arrangement, including, but not limited to, sales

information pertaining to covered and non-covered merchandise that

is manufactured or sold by producers/exporters. The Department will

accept written comments, not to exceed 30 pages, from all parties no

later than 15 days after the date of receipt of such producer/

exporter information.

If the Department, after reviewing all submissions, determines

that such arrangement circumvents the basis of the Agreement, it

may, as it deems most appropriate, utilize one of two options: (1)

The amount of the effective price discount resulting from such

arrangement shall be reflected in the NV in accordance with section

D(3) of this Agreement, or (2) the Department shall determine that

the Agreement has been violated and take action according to the

provisions under section F of this Agreement.

(6) Rejection of Submissions

The Department may reject any information submitted after the

deadlines set forth in this section or any information which it is

unable to verify to its satisfaction. If information is not

submitted in a complete and timely fashion or is not fully

verifiable, the Department may calculate normal value (NV), and/or

U.S. price based on facts otherwise available, as it determines

appropriate, unless the Department determines that section F of this

Agreement applies.

(E) Disclosure and Comment

(1) The Department may make available to representatives of each

domestic party to the proceeding, under appropriately drawn

administrative protective orders, business proprietary information

submitted to the Department during the reporting period as well as

results of its analysis under section 777 of the Act.

(2) For the first sales period, beginning April 1, 2003, the

Department will disclose to each producer/exporter the preliminary

results and methodology of the Department's calculations of its NV

no later that February 20, 2003. At that time, the Department may

also make available such information to the domestic parties to the

proceeding in accordance with this section.

(3) Not later than February 20 and August 20 of each ensuing

sales period, the Department will disclose to each producer/exporter

the preliminary results and methodology of the Department's

calculations of its NV. At that time, the Department may also make

available such information to the domestic parties to the

proceeding, in accordance with this section.

(4) Not later than 7 days after the date of disclosure under

section E(2) and E(3) of this Agreement, the parties to the

proceeding may submit written comments to the Department, not to

exceed 15 pages. After reviewing these submissions, the Department

will provide to each producer/exporter its NV as provided in section

C(2) of this Agreement. In addition, the Department may provide such

information to domestic interested parties as specified in this

section.

(F) Violations of the Agreement

If the Department determines that the Agreement is being or has

been violated or no longer meets the requirements of section 734(b)

or (d) of the Act, the Department shall take action it determines

appropriate under section 734(i) of the Act and the regulations.

(G) Other Provisions

In entering into the Agreement, the signatory producers/

exporters do not admit that any sales of merchandise subject to the

Agreement have been made at less than fair value.

(H) Termination or Withdrawal

The Department will not consider requests for termination of

this suspended investigation prior to September 2007. Termination of

the suspended investigation will be considered in accordance with

the five-year review provisions of Sec. 351.222 of the Department's

regulations.

[[Page 61582]]

Any producer/exporter may withdraw from the Agreement at any

time upon notice to the Department. Withdrawal shall be effective 60

days after such notice is given to the Department. Upon withdrawal,

the Department shall follow the procedures outlined in section

734(i)(1) of the Act.

(I) Definitions

For purposes of the Agreement, the following definitions apply:

(1) U.S. price means the export price or constructed export

price at which merchandise is sold by the producer or exporter to

the first unaffiliated person in the United States, including the

amount of any discounts, rebates, price protection or ship and debit

adjustments, and other adjustments affecting the net amount paid or

to be paid by the unaffiliated purchaser, as determined by the

Department under section 772 of the Act.

(2) Normal Value means the constructed value (CV) of the

merchandise, as determined by the Department under section 773 of

the Act and the corresponding sections of the Department's

regulations, and as adjusted in accordance with Appendix A to this

Agreement.

(3) Producer/Exporter-means (1) the foreign manufacturer or

producer, (2) the foreign producer or reseller which also exports,

and (3) the affiliated person by whom or for whose account the

merchandise is imported into the United States, as defined in

section 771(28) of the Act.

(4) Date of sale means the date of the invoice as recorded in

the exporter or producer's records kept in the ordinary course of

business, unless the Department determines that a different date

better reflects the date on which the exporter or producer

establishes the material terms of sale, as determined by the

Department under its regulations.

The effective date of this Agreement is September 23, 2002.

For the Russian Federation Producers/Exporters

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Neil R. Ellis for JSC Severstal

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Date

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Stanimir A. Alexandrov for Novolipetsk Iron & Steel Corporation

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Date

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Vasily A. Varenov for Magnitogorsk Iron & Steel Works

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Date

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For U.S. Department of Commerce:

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Faryar Shirzad, Assistant Secretary for Import Administration

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Date

Appendix A--Principles of Cost

General Framework

The cost information reported to the Department that will form

the basis of the NV calculations for purposes of the Agreement must

be \2\:

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\2\ See footnote 1 in Section C(2) of the Agreement.

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[sbull] Comprehensive in nature and based on a reliable

accounting system (i.e., a system based on well-established

standards that can be tied to the audited financial statements);

[sbull] Representative of the company's costs incurred for the

general class of merchandise;

[sbull] Calculated on a semiannual weighted-average basis of the

plants or cost centers manufacturing the product;

[sbull] Based on fully-absorbed costs of production, including

any downtime;

[sbull] Valued in accordance with generally accepted accounting

principles;

[sbull] Reflective of appropriately allocated common costs so

that the costs necessary for the manufacturing of the product are

not absorbed by other products; and

[sbull] Reflective of the actual cost of producing the product.

Additionally, a single figure should be reported for each cost

component.

Cost of Manufacturing (COM)

Costs of manufacturing are reported by major cost category and

for major stages of production. Weighted-average costs are used for

a product that is produced at more than one facility, based on the

cost at each facility.

Direct materials is the cost of those materials which are input

into the production process and physically become part of the final

product.

Direct labor are the costs identified with a specific product.

These costs are not allocated among products except when two or more

products are produced at the same cost center. Direct labor costs

should include salary, bonus and overtime pay, training expenses,

and all fringe benefits. Any contracted-labor expense should reflect

the actual billed cost or the actual costs incurred by the

subcontractor when the corporation has influence over the

contractor.

Factory overhead is the overhead costs including indirect

materials, indirect labor, depreciation, and other fixed and

variable expenses attributable to a production line or factory.

Because overhead costs are typically incurred for an entire

production line. Acceptable cost allocation can be based on labor

hours or machine hours. Overhead costs should reflect any idle or

downtime and be fully absorbed by the products.

Cost of Production (COP)

COP is equal to the sum of materials, labor, and overhead (COM)

plus SG&A expense in the home market (HM).

SG&A expense are those expenses incurred for the operation of

the corporation as a whole and not directly related to the

manufacture of a particular product. They include corporate general

and administrative expenses, financing expenses, and general

research and development expenses. Additionally, direct and indirect

selling expenses incurred in the HM for sales of the product under

investigation are included. Such expenses are allocated over cost of

goods sold.

Constructed Value

Is equal to the sum of materials, labor and overhead (COM) and

SG&A expenses plus profit in the comparison market and the cost of

packing for exportation to the United States.

Calculation of Suspension Agreement NVs

NVs (for purposes of the Agreement) are calculated by adjusting

the CV and are provided for both EP and CEP transactions. In effect,

any expenses uniquely associated with the covered products sold in

the HM are subtracted from the CV, and any such expenses which are

uniquely associated with the covered products sold in the United

States are added to the CV to calculate the NV.

Export Price--Generally, a U.S. sale is classified as an export

price sale when the first sale to an unaffiliated person occurs

before the goods are imported into the United States. In cases where

the foreign manufacturer knows or has reason to believe that the

merchandise is ultimately destined for the United States, the

manufacturer's sales is the sale subject to review. If, on the other

hand, the manufacturer sold the merchandise to a foreign trader

without knowledge of the trader's intention to export the

merchandise to the United States, then the trader's first sale to an

unaffiliated person is the sale subject to review. For EP NVs, the

CV is adjusted for movement costs and differences in direct selling

expenses such as commissions, credit, warranties, technical expenses

such as commissions, credit, warranties, technical services,

advertising, and sales promotion.

Constructed Export Price--Generally, a U.S. sales is classified

as a constructed export price sale when the first sale to an

unaffiliated person occurs after importation. However, if the first

sales to an unaffiliated person is made by a person in the United

States affiliated with the foreign exporter, constructed export

price applies even if the sale occurs prior to importation, unless

the U.S. affiliate performs only clerical functions in connection

with the sale. For CEP NVs, the CV is adjusted similar to EP sales,

with differences for adjustment to U.S. and HM indirect-selling

expenses.

Home market direct-selling expenses are expenses that are

incurred as a direct result of a sale. These include such expenses

as commissions, advertising, discounts and rebates, credit, warranty

expenses, freight costs, etc. Certain direct-selling expenses are

treated individually. They include:

Commission expenses are payments to unaffiliated parties for

sales in the HM.

Credit expenses are expenses incurred for the extension of

credit to HM customers.

Movement expenses are freight, brokerage and handling, and

insurance expenses.

U.S. direct-selling expenses are the same as HM direct-selling

expenses except that they are incurred for sales in the United

States.

Movement expenses are additional expenses incidental to

importation into the United States. These typically include U.S.

[[Page 61583]]

inland freight, insurance, brokerage and handling expenses, U.S.

Customs duties, and international freight.

U.S. indirect-selling expenses include general fixed expenses

incurred by the U.S. sales subsidiary or affiliated exporter for

sales to the United States. They may also include a portion of

indirect expenses incurred in the HM for export sales.

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For EP transactions

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+ Direct Materials

+ Direct Labor

+ Factory Overhead

= Cost of Manufacturing (COM)

+ Home Market SG&A

= Cost of Production (COP)

+ U.S. Packing

+ Profit

= Constructed Value

+ U.S. Direct-Selling Expense

+ U.S. Commission Expense

+ U.S. Movement Expense

+ U.S. Credit Expense

- HM Direct-Selling Expense

- HM Commission Expense \1\

- HM Credit Expense

= NV for EP Sales

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\1\ If the company does not have HM commissions, HM indirect expenses

are subtracted only up to the amount of the U.S. Commissions.

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For CEP transactions

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+ Direct Materials

+ Direct Labor

+ Factory Overhead

= Cost of Manufacturing (COM)

+ Home Market SG&A

= Cost of Production (COP)

+ U.S. Packing

+ Profit

= Constructed Value

+ U.S. Direct-selling Expense

+ U.S. Indirect-selling Expense

+ U.S. Commission Expense

+ U.S. Movement Expense

+ U.S. Credit Expense

+ U.S. Further Manufacturing Expenses (if any)

+ CEP Profit

- HM Direct-selling Expense

- HM Commission Expense \1\

- HM Credit Expense

= NV for CEP Sales

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\1\ If the company does not have HM commissions, HM indirect expenses

are subtracted only up to the amount of the U.S. Commissions.

Appendix B

For purposes of this Agreement, the products covered are certain

cold-rolled (cold-reduced) flat-rolled carbon-quality steel

products, neither clad, plated, nor coated with metal, but whether

or not annealed, painted, varnished, or coated with plastics or

other non-metallic substances, both in coils, 0.5 inch wide or

wider, (whether or not in successively superimposed layers and/or

otherwise coiled, such as spirally oscillated coils), and also in

straight lengths, which, if less than 4.75 mm in thickness having a

width that is 0.5 inch or greater and that measures at least 10

times the thickness; or, if of a thickness of 4.75 mm or more,

having a width exceeding 150 mm and measuring at least twice the

thickness. The products described above may be rectangular, square,

circular or other shape and include products of either rectangular

or non-rectangular cross-section.

Specifically included in this scope are vacuum degassed, fully

stabilized (commonly referred to as interstitial-free (IF)) steels,

high strength low alloy (HSLA) steels, and motor lamination steels.

IF steels are recognized as low carbon steels with micro-alloying

levels of elements such as titanium and/or niobium added to

stabilize carbon and nitrogen elements. HSLA steels are recognized

as steels with micro-alloying levels of elements such as chromium,

copper, niobium, titanium, vanadium, and molybdenum. Motor

lamination steels contain micro-alloying levels of elements such as

silicon and aluminum.

Steel products included in the scope of this Agreement,

regardless of definitions in the HTSUS, are products in which: (1)

Iron predominates, by weight, over each of the other contained

elements; (2) The carbon content is 2% or less, by weight, and; (3)

none of the elements listed below exceeds the quantity, by weight,

respectively indicated: 1.80% of manganese, or 2.25% of silicon, or

1.00% of copper, or 0.50% of aluminum, or 1.25% of chromium, or

0.30% of cobalt, or 0.40% of lead, or 1.25% of nickel, or 0.30% of

tungsten, or 0.10% of molybdenum, or 0.10% of niobium (also called

columbium), or 0.15% of vanadium, or 0.15% of zirconium.

All products that meet the written physical description, and in

which the chemistry quantities do not exceed any one of the noted

element levels listed above, are within the scope of this Agreement

unless specifically excluded.

The following products, by way of example, are outside and/or

specifically excluded from the scope of this Agreement:

[sbull] SAE grades (formerly also called AISI grades) above

2300;

[sbull] Ball bearing steels, as defined in the HTSUS;

[sbull] Tool steels, as defined in the HTSUS;

[sbull] Silico-manganese steel, as defined in the HTSUS;

[sbull] Silicon-electrical steels, as defined in the HTSUS, that

are grain-oriented;

[sbull] Silicon-electrical steels, as defined in the HTSUS, that

are not grain-oriented and that have a silicon level exceeding

2.25%;

[sbull] All products (proprietary or otherwise) based on an

alloy ASTM specification (sample specifications: ASTM A506, A507);

[sbull] Non-rectangular shapes, not in coils, which are the

result of having been processed by cutting or stamping and which

have assumed the character of articles or products classified

outside chapter 72 of the HTSUS;

[sbull] Silicon-electrical steels, as defined in the HTSUS, that

are not grain-oriented and that have a silicon level less than

2.25%, and (a) fully-processed, with a core loss of less than 0.14

watts/pound per mil (0.001 inch), or (b) semi-processed, with core

loss of less than 0.085 watts/pound per mil (0.001 inch);

[sbull] Certain shadow mask steel, which is aluminum killed

cold-rolled steel coil that is open coil annealed, has an ultra-

flat, isotropic surface, and which meets the following

characteristics:

Thickness: 0.001 to 0.010 inch

Width: 15 to 32 inches

Chemical Composition

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

Element........................................ C

Weight......................................... = 162 Kgf/mm\2\

[[Page 61584]]

Hardness....................................... = 475 Vickers number hardness

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Physical Properties

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Flatness....................................... 2

Surface Roughness:

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Thickness (mm) Roughness ([mu]m)

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t 1 micron (0.000039 inch) and

inclusion groups or clusters shall not exceed 5 microns (0.000197

inch) in length.

Surface Treatment as follows: The surface finish shall be free of

defects (digs, scratches, pits, gouges, slivers, etc.) and suitable

for nickel plating.

Surface Finish

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Roughness, RA Microinches (Micrometers)

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Aim Min. Max.

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Extra Bright................................................. 5(0.1) 0(0) 7(0.2)

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

[sbull] Certain annealed and temper-rolled cold-rolled

continuously cast steel, in coils, with a certificate of analysis

per Cable System International (``CSI'') Specification 96012, with

the following characteristics:

Chemical Composition

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

Element..................................... C Mn P S

Max. Weight %............................... 0.13 0.60 0.02 0.05

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

Physical and Mechanical Properties

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

Base Weight............................... 55 pounds

Theoretical Thickness..................... 0.0061 inch (+/-10% of

theoretical thickness)

[[Page 61586]]

Width..................................... 787 mm to 813 mm

Tensile Strength.......................... 45,000-55,000 psi

Elongation................................ minimum of 15% in 2 inches

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

[sbull] Concast cold-rolled drawing quality sheet steel, ASTM a-

620-97, Type B, or single reduced black plate, ASTM A-625-92, Type

D, T-1, ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/

luster 7a both sides, RMS 12 max. Thickness range of 0.0088 to 0.038

inches, width of 23.0 inches to 36.875 inches.

[sbull] Certain single reduced black plate, meeting ASTM A-625-

98 specifications, 53 pound base weight (0.0058 inch thick) with a

Temper classification of T-2 (49-57 hardness using the Rockwell 30 T

scale).

[sbull] Certain single reduced black plate, meeting ASTM A-625-

76 specifications, 55 pound base weight, MR type matte finish, TH

basic tolerance as per A263 trimmed.

[sbull] Certain single reduced black plate, meeting ASTM A-625-

98 specifications, 65 pound base weight (0.0072 inch thick) with a

Temper classification of T-3 (53-61 hardness using the Rockwell 30 T

scale).

[sbull] Certain cold-rolled black plate bare steel strip,

meeting ASTM A-625 specifications, which meet the following

characteristics:

Chemical Composition

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

Element..................................... C Mn P S

Max. Weight %............................... 0.13 0.60 0.02 0.05

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

Physical and Mechanical Properties

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

Thickness..................... 0.0058 inch +/- 0.0003 inch

Hardness...................... T2/HR 30T 50-60 aiming

Elongation.................... =15%

Tensile Strength.............. 51,000.0 psi +/- 4.0 aiming

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

[sbull] Certain cold-rolled black plate bare steel strip, in

coils, meeting ASTM A-623, Table II, Type MR specifications, which

meet the following characteristics:

Chemical Composition

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

Element..................................... C Mn P S

Max Weight%................................. 0.13 0.60 0.04 0.05

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

Physical and Mechanical Properties

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

Thickness................... 0.0060 inch (+/- 0.005 inch)

Width....................... 10 inches (+\1/4\ to \3/8\ inch/-0)

Tonsile Strength............ 55,000 psi max.

Elongation.................. Minimum of 15% in 2 inches

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

[sbull] Certain ``blued steel'' coil (also known as ``steamed

blue steel'' or ``blue oxide''), with a thickness of 0.30 mm to 0.42

mm and width of 609 mm to 1219 mm, in coil form;

[sbull] Certain cold-rolled steel sheet, coated with porcelain

enameling prior to importation, which meets the following

characteristics:

Thickness (nominal): 66 inches

Chemical Composition

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

Element..................................... C Mn P Si

Max. Weight %............................... 0.07 0.67 0.14 0.03

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

Physical and Mechanical Properties

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

Thickness Range (mm)......................... 0.800-2.000

[[Page 61587]]

Min. Yield Point (MPa)....................... 265

Max. Yield Point (MPa)....................... 365

Min. Tensile Strength (MPa).................. 440

Min. Elongation %............................ 26

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

[sbull] Certain band saw steel, which meets the following

characteristics:

Thickness: 80% of carbides,

which are = 35

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

[sbull] Porcelain enameling sheet, drawing quality, in coils,

0.014 inch in thickness, +0.002,-0.000, meeting ASTM A-424-96 Type 1

specifications, and suitable for two coats.

[sbull] Porcelain-enameling sheet whether or not coated prior to

importation with the following additional characteristics:

Cold-rolled steel for porcelain enameling, the foregoing being

continuous annealed cold-reduced steel with a nominal thickness of

not more than 0.48 mm and widths from 762 mm to 1,524 mm, having a

chemical composition, by weight, of not more than 0.004 percent

carbon, nor more than 0.010

[[Page 61589]]

percent aluminum, 0.006 percent or more of nitrogen, 0.012 percent

or more of boron, and more than 0.005 percent silicon, and 0.010

percent or more of oxygen; having no intentional addition of and

less than 0.002 percent by weight of titanium, no intentional

addition of and less than 0.002 percent by weight of vanadium, no

intentional addition of and less than 0.002 percent by weight of

niobium, and no intentional addition of and less than 0.002 percent

of antimony; having a yield strength of from 179.3 MPa to 344.7 MPa,

a tensile strength of from 303.7 MPa to 413.7 MPa, a percent of

elongation of from 28 percent to 46 percent on a standard ASTM

sample with a 5.08 mm gauge length; for Fishscale resistance;

hydrogen traps provided; with a product shape of flat after

annealing, with flat defined as less than or equal to 1 I unit with

no coil set.

[sbull] Cold-rolled steel strip to specification SAE 4130, with

the following characteristics:

HTSUS item number 7226.92.80.50

Width up to 24 inches

Gauge of ``0.050-0.014 inches,'' and gauge tolerance of +/-0.0018

inches

[sbull] Texture-rolled steel strip (SORBITEX), with the

following characteristics:

Thickness: 0.0039 to 0.0600 inches

Width: 0.118 to 1.1 mm, 2 for thickness 2 for thickness 2 mm

Width tolerance: B1 = +/- 0.35 mm

Thickness tolerance: T1 (+/- 0.039 mm)

Flatness: P4 (max. deviation 0.1% of width of strip)

Straightness: (+/-0.25 mm/1000 mm)

Dimensions:

Widths: 6.3-412.8 mm

Thickness: 0.40 to 3.05 mm

[sbull] 2% nickel T5 tolerances and ra less than 8 my, with the

following characteristics:

Thickness: 0.5-3.5 mm

Width: 50-650 mm

Chemical Composition

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

Element......................... C Si Mn P S Al Cr Ni

% in Weight..................... 0.70-0.80 0.15-0.35 0.30-0.50 max. 0.020 max. 0.010 max. 0.020 0.05-0.30 1.90-2.20

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

High precision T5 tolerance

Roughness: Ra (RMS) max. 8 inches

The product is classified under HTSUS item number 7226.92.50.00

[sbull] Ski-edge profile steel, with the following

characteristics:

For both Grade SAE 1070 and German Grade SAE X35CrMo17:

HTSUS item numbers 7228.60.80 and 7216.69.00

Hardened and tempered, HRC 44-52

Surface: Bright finished, sandblasted or primer coated

Stamped condition

Dimensions

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

Width mm Width mm Thickness mm Thickness mm

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

Ski 39.......................................... 6 1.90 2 0.50

Ski 40.......................................... 6 1.70 2 0.50

Ski 129......................................... 7.70 2.00 2.20 0.60

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

Chemical Composition for Grade SAE 1070

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

Element........................... C Si Mn P S

% in Weight....................... 0.65-0.75 max. 0.40 max. 0.60-0.90 max. 0.04 max. 0.05

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

Chemical Composition for German Grade SAE X35CrMo17

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

Element......................... C Si Mn P S CR Mo Ni

% in Weight..................... 0.33-0.45 max. 1.0 max. 1.50 max. 0.04 max. 0.025 15.5-17.5 0.8-1.3 max. 1.0

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

Note that this is an angle shape or section steel that is not

covered by this scope.

[sbull] Flat wire, with the following characteristics:

SAE 1074 alloyed, annealed, skin passed

Hardened and tempered

Formed edges

Widths of less than 12.7 mm

Thickness from 0.50-2.40 mm

[sbull] Shadow/aperture mask steel, which is Aluminum killed cold-

rolled steel coil that is open coil annealed, has an ultra-flat,

isotropic surface, and meets the following characteristics:

Thickness: 0.001 to 0.010 inch

Width: 15 to 35 inches

Increased tensile strength of 800 to 1,200 N/mm2

Chemical Composition

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

Element.......................... C N Mn

Weight %......................... 2, (Standard 1280 +/-80 N/mm2)

Surface Finish: Gray hardened condition. Ra/CLA--max. 0.25 m. Cut

off 0.25 mm Rmax--max. 2.5 m

Edge Condition: Slit edges free from cracks and damages

Dimensions:

Thickness: 0.4-1.40 mm2, Tolerance: T1

Width: 250-1200 mm, Tolerance: B1

Flatness: Unflatness Across Strip: max. 0.4% of the nominal strip

width

Coil Size: Inside Diameter: 600 mm

Coil Weight: max. 6.5 kg/mm strip width

[sbull] Certain valve steel (type 2), with the following

specifications: Hardened tempered high-carbon strip, characterized

by high fatigues strength and wear resistance, hardness combined

with ductility, surface and end-finishes, and good blanking and

forming properties.

HTSUS item number: 7211.90.00.00

Typical size ranges:

Thickness: 0.15-1.0 mm

Width: 10.0-140 mm

Chemical Composition

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

Element.......................... C Si Mn P S Ni Cr

Weight %......................... 0.7-0.8 0.2-0.35 0.3-0.45 Max. 0.020 Max. 0.016 1.9-2.1

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

The merchandise subject to this Agreement is typically

classified in the HTSUS at item numbers: 7209.15.0000, 7209.16.0030,

7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060,

7209.17.0090, 7209.18.1530, 7209.18.1560, 7209.18.2550,

7209.18.6000. 7209.25.0000, 7209.26.0000, 7209.27.0000,

7209.28.0000, 7209.90.0000, 7210.70.3000, 7210.90.9000,

7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500,

7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030,

7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080,

7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000,

7225.19.0000, 7225.50.6000, 7225.50.7000, 7225.50.8010,

7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000,

7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.

Although the HTSUS item numbers are provided for convenience and

Customs purposes, the written description of the merchandise under

Agreement is dispositive.

[FR Doc. 02-24925 Filed 9-30-02; 8:45 am]

BILLING CODE 3510-DS-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.