MESSAGE NO: 9329114 DATE: 11 25 1998
CATEGORY: CVD TYPE: PRE
REFERENCE: REFERENCE DATE:
CASES: C - 427 - 815 - -
- - - -
- - - -

PERIOD COVERED: 11 17 1998 TO

LIQ SUSPENSION DATE:

TO: CMC DIRECTORS,
PORT DIRECTORS

FROM: DIRECTOR, IMPORT OPERATIONS

RE: NOTICE OF PRELIMINARY DETERMINATION IN THE COUNTERVAILING
DUTY INVESTIGATION OF STAINLESS STEEL SHEET & STRIP IN
COILS FROM FRANCE (C-427-815)

1. ON NOVEMBER 17, 1998, THE DEPARTMENT OF COMMERCE WILL
PUBLISH IN THE FEDERAL REGISTER ITS PRELIMINARY AFFIRMATIVE
DETERMINATION AND ALIGNMENT OF ITS FINAL COUNTERVAILING DUTY
DETERMINATION OF STAINLESS STEEL SHEET AND STRIP IN COILS
FROM FRANCE. THE DUE DATE FOR THE FINAL DETERMINATION IS
EXTENDED FROM JANUARY 21, 1999 UNTIL NO LATER THAN MARCH 2,
1999, THEREBY ALIGNING IT WITH THE DUE DATE FOR THE FINAL
DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGATION OF
STAINLESS STEEL SHEET AND STRIP FROM FRANCE (A-427-814).

2. THE PRODUCTS COVERED ARE CERTAIN STAINLESS STEEL SHEET AND
STRIP IN COILS. STAINLESS STEEL IS AN ALLOY STEEL
CONTAINING, BY WEIGHT, 1.2 PERCENT OR LESS OF CARBON AND
10.5 PERCENT OR MORE OF CHROMIUM, WITH OR WITHOUT OTHER
ELEMENTS. THE SUBJECT SHEET AND STRIP IS A FLAT-ROLLED
PRODUCT IN COILS THAT IS GREATER THAN 9.5 MM IN WIDTH AND
LESS THAN 4.75MM IN THICKNESS, AND THAT IS ANNEALED OR
OTHERWISE HEAT TREATED AND PICKLED OR OTHERWISE DESCALED.
THE SUBJECT SHEET AND STRIP MAY ALSO BE FURTHER PROCESSED
(E.G., COLD-ROLLED, POLISHED, ALUMINIZED, COATED, ETC.)
PROVIDED THAT IT MAINTAINS THE SPECIFIC DIMENSIONS OF SHEET
AND STRIP FOLLOWING SUCH PROCESSING.

THE MERCHANDISE SUBJECT TO THIS INVESTIGATION IS CLASSIFIED
IN THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES ("
HTSUS") 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 HTSUS
SUBHEADINGS ARE PROVIDED FOR CONVENIENCE AND CUSTOMS
PURPOSES, THE WRITTEN DESCRIPTION OF THE MERCHANDISE UNDER
INVESTIGATION IS DISPOSITIVE.

EXCLUDED FROM THE SCOPE OF THIS INVESTIGATION 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,
RECTANGULAR IN SHAPE, OF A WIDTH OF NOT MORE THAN 9.5 MM,
AND A THICKNESS OF NOT MORE THAN 6.35 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 23MM 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).

THE DEPARTMENT HAS DETERMINED THAT CERTAIN SPECIALTY
STAINLESS STEEL PRODUCTS ARE ALSO EXCLUDED FROM THE SCOPE OF
THIS INVESTIGATION. THESE EXCLUDED PRODUCTS ARE DESCRIBED
BELOW:
FLAPPER VALVE STEEL IS DEFINED AS STAINLESS STEEL STRIP IN
COILS WITH A CHEMICAL COMPOSITION SIMILAR TO THAT OF AISI
420F GRADE STEEL AND 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 185 KGF/MM2, PLUS OR MINUS
10, YIELD STRENGTH OF 150 KGF/MM2, PLUS OR MINUS 8, AND
HARDNESS (HV) OF 540, PLUS OR MINUS 30.
ALSO EXCLUDED IS SUSPENSION FOIL, A SPECIALTY STEEL PRODUCT
USED, E.G., 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, AND MUST EXHIBIT RESIDUAL
STRESSES OF 2 MM MAXIMUM DEFLECTION, AND FLATNESS OF 1.6 MM
OVER 685 MM LENGTH.
PERMANENT MAGNET IRON-CHROMIUM-COBALT ALLOY STAINLESS STRIP
IS ALSO EXCLUDED FROM THE SCOPE OF THIS INVESTIGATION. 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 OF 1.016 TO 228.6 MM, AND A
THICKNESS BETWEEN 0.0127 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, E.G., UNDER THE TRADE NAME "ARNOKROME III." ("
ARNOKROME III" IS A TRADEMARK OF THE ARNOLD ENGINEERING
COMPANY.)

ELECTRICAL RESISTANCE ALLOY STEEL IS ALSO NOT INCLUDED IN
THE SCOPE OF THIS INVESTIGATION. THIS PRODUCT IS DEFINED AS
A NON-MAGNETIC STAINLESS STEEL MANUFACTURES 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, E.G., UNDER THE TRADE NAME "
GILPHY 36." ("GILPHY 36" IS A TRADEMARK OF IMPHY, S.A.)

FINALLY, CERTAIN STAINLESS STEEL STRIP IN COILS USED IN THE
PRODUCTION OF TEXTILE CUTTING TOOLS (E.G., CARPET KNIVES) IS
ALSO EXCLUDED. THIS STEEL IS SIMILAR TO ASTM GRADE 440F,
BUT CONTAINING HIGHER LEVELS OF MOLYBDENUM. THIS STEEL
CONTAINS, BY WEIGHT, CARBON OF BETWEEN 1.0 AND 1.1 PERCENT,
SULPHUR OF 0.020 PERCENT OR LESS, AND INCLUDES BETWEEN 0.20
AND 0.30 PERCENT COPPER AND COBALT. THIS STEEL IS SOLD
UNDER, E.G., THE PROPRIETARY NAME GIN4Mo. ("GIN4MO" IS THE
PROPRIETARY GRADE OF HITACHI METALS AMERICA, LTD.)

ALL INTERESTED PARTIES ARE ADVISED THAT ADDITIONAL ISSUES
PERTAINING TO THE SCOPE OF THIS INVESTIGATION ARE STILL
PENDING. FURTHERMORE, THE EXCLUSIONS OUTLINED ABOVE ARE
SUBJECT TO FURTHER REVISION AND REFINEMENT. THE DEPARTMENT
OF COMMERCE PLANS ON NOTIFYING INTERESTED PARTIES OF ITS
DETERMINATIONS ON ALL SCOPE ISSUES IN SUFFICIENT TIME FOR
PARTIES TO COMMENT BEFORE THE FINAL DETERMINATION.

3. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED
INVESTIGATION NUMBER C-427-815.

4. FOR IMPORTS OF STAINLESS STEEL SHEET AND STRIP IN COILS FROM
FRANCE, THE CUSTOMS SERVICE SHALL SUSPEND LIQUIDATION OF
SUCH SHIPMENTS ENTERED OR WITHDRAWN FROM WAREHOUSE, FOR
CONSUMPTION ON OR AFTER NOVEMBER 17, 1998, THE DATE OF
PUBLICATION OF THE PRELIMINARY DETERMINATION. EFFECTIVE
NOVEMBER 17, 1998, FOR SUCH ENTRIES, CUSTOMS SHALL REQUIRE A
CASH DEPOSIT OR POSTING OF A BOND EQUAL TO THE MARGINS
BELOW.

SUBSIDY RATES:

MFR/PRODUCER CUSTOMS ID AD VALOREM
EXPORTER NUMBER SUBSIDY RATE

USINOR C-427-815-001 2.84 %
ALL OTHERS C-427-815-000 2.84 %


5. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, PLEASE CONTACT, VIA E-MAIL, THROUGH THE
APPROPRIATE SUPERVISORY CHANNELS, OTHER GOVERNMENT AGENCY
LIAISON, USING THE ATTRIBUTE "HQ OAB." THE IMPORTING PUBLIC
AND OTHER INTERESTED PARTIES SHOULD CONTACT MARIAN WELLS OR
ROSA JEONG, OFFICE OF AD/CVD ENFORCEMENT, IMPORT
ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S.
DEPARTMENT OF COMMERCE, AT (202) 482-6309 AND (202) 482-
3853, RESPECTIVELY.

6. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS
INFORMATION.



PAUL SCHWARTZ