02-24925. Suspension of Antidumping Duty Investigation of Certain Cold- Rolled Carbon Steel Flat Products From the Russian Federation  

  • [Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
    [Notices]
    [Pages 61579-61591]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 02-24925]
    
    
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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).
    
    (C) Basis of the Agreement
    
        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.
    
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        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.
    
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    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.........................................  < 0.002%="" ------------------------------------------------------------------------="" [sbull]="" certain="" flapper="" valve="" steel,="" which="" is="" hardened="" and="" tempered,="" surface="" polished,="" and="" which="" meets="" the="" following="" characteristics:="" thickness:=""><=1.0 mm="" width:=""><=152.4 mm="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element.........................="" c="" si="" mn="" p="" s="" weight%.........................="" 0.90-1.05="" 0.15-0.35="" 0.30-0.50=""><=0.03><=0.006 --------------------------------------------------------------------------------------------------------------------------------------------------------="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" tensile="" strength...............................="">= 162 Kgf/mm\2\
    
    [[Page 61584]]
    
     
    Hardness.......................................  = 475 Vickers number hardness
    ----------------------------------------------------------------------------------------------------------------
    
    
                                                   Physical Properties
    ----------------------------------------------------------------------------------------------------------------
     
    ----------------------------------------------------------------------------------------------------------------
    Flatness.......................................  <0.2% of="" nominal="" strip="" width="" ----------------------------------------------------------------------------------------------------------------="" microstructure:="" completely="" free="" from="" decarburization.="" carbides="" are="" spheroidal="" and="" fine="" within="" 1%="" to="" 4%="" (area="" percentage)="" and="" are="" undissolved="" in="" the="" uniform="" tempered="" martensite.="" non-metallic="" inclusion="" ------------------------------------------------------------------------="" area="" percentage="" ------------------------------------------------------------------------="" sulfide="" inclusion..........................=""><= 0.04%="" oxide="" inclusion............................=""><= 0.05%="" ------------------------------------------------------------------------="" compressive="" stress:="" 10="" to="" 40="">2
    Surface Roughness:
    
    ------------------------------------------------------------------------
                   Thickness (mm)                     Roughness ([mu]m)
    ------------------------------------------------------------------------
    t <= 0.209.................................="" rz=""><= 0.5="" 0.209="">< t=""><= 0.310.........................="" rz=""><= 0.6="" 0.310="">< t=""><= 0.440.........................="" rz=""><= 0.7="" 0.440="">< t=""><= 0.560.........................="" rz=""><= 0.8="" 0.560="">< t..................................="" rz=""><= 1.0="" ------------------------------------------------------------------------="" [sbull]="" certain="" ultra="" thin="" gauge="" steel="" strip,="" which="" meets="" the="" following="" characteristics:="" thickness:=""><= 0.100="" mm="" +/-="" 7%="" width:="" 100="" to="" 600="" mm="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element......................="" c="" mn="" p="" s="" al="" fe="" weight="" %.....................=""><=0.07 0.2-0.5=""><=0.05><=0.05><=0.07 balance="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" mechanical="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" hardness.....................="" full="" hard="" (hv="" 180="" minimum)="" total="" elongation.............=""><3% tensile="" strengh..............="" 600="" to="" 850="" n/mm="" ------------------------------------------------------------------------="" physical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" surface="" finish...............................=""><=0.3 micron="" camber="" (in="" 2.0="" m)............................=""><3.0 mm="" flatness="" (in="" 2.0="" m)..........................=""><=0.5 mm="" edge="" burr....................................=""><0.01 mm="" greater="" than="" thickness="" coil="" set="" (in="" 1.0="" m)..........................=""><75.0 mm="" ----------------------------------------------------------------------------------------------------------------="" [sbull]="" certain="" silicon="" steel,="" which="" meets="" the="" following="" characteristics:="" thickness:="" 0.024="" inch="" +/-="" 0.0015="" inch="" width:="" 33="" to="" 45.5="" inches="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element...........................................="" c="" mn="" p="" s="" si="" al="" min.="" weight="" %.....................................="" ...............="" ...............="" ...............="" ...............="" 0.65="" ...............="" max.="" weight="" %.....................................="" 0.004="" 0.4="" 0.09="" 0.009="" ...............="" 0.4="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" [[page="" 61585]]="" mechanical="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" hardness..................................="" b="" 60-75="" (aim="" 65)="" ------------------------------------------------------------------------="" physical="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" finish....................................="" smooth="" (30-60="" microinches)="" gamma="" crown="" (in="" 5="" inches).................="" 0.0005="" inch,="" start="" measuring="" one-quarter="" inch="" from="" slit="" edge="" flatness..................................="" 20="" i-unit="" max.="" coating...................................="" c3a-.08a="" max.="" (a2="" coating="" acceptable)="" camber="" (in="" any="" 10="" feet)...................="" \1/16\="" inch="" coil="" size="" i.d.............................="" 20="" inches="" ------------------------------------------------------------------------="" magnetic="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" core="" loss="" (1.5t/60="" hz)="" naas..="" 3.8="" watts/pound="" max.="" permeability="" (1.5t/60="" hz)="" 1700="" gauss/oersted="" typical="" naas.="" 1500="" minimum="" ------------------------------------------------------------------------="" [sbull]="" certain="" aperture="" mask="" steel,="" which="" has="" an="" ultra-flat="" surface="" flatness="" and="" which="" meets="" the="" following="" characteristics:="" thickness:="" 0.025="" to="" 0.245="" mm="" width:="" 381-1000="" mm="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element........................="" c="" dn="" al="" weight="" %.......................=""><0.01 0.004="" to="" 0.007="">< 0.007="" ----------------------------------------------------------------------------------------------------------------="" [sbull]="" certain="" annealed="" and="" temper-rolled="" cold-rolled="" continuously="" cast="" steel,="" which="" meets="" the="" following="" characteristics:="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element........................="" c="" mn="" p="" s="" si="" al="" as="" cu="" b="" n="" min.="" weight="" %..................="" 0.02="" 0.20="" ........="" ...............="" ........="" 0.03="" ........="" ........="" ........="" 0.003="" max="" weight="" %...................="" 0.06="" 0.40="" 0.02="" 0.023="" (aiming="" 0.03="" 0.08="" (aiming="" 0.02="" 0.08="" ........="" 0.008="" (aiming="" 0.018="" max.)="" 0.05)="" 0.005)="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" non-metallic="" inclusions:="" examination="" with="" the="" s.e.m.="" shall="" not="" reveal="" individual="" oxides=""> 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
    ----------------------------------------------------------------------------------------------------------------
                                                                        Roughness, RA Microinches (Micrometers)
                                                                  --------------------------------------------------
                                                                         Aim              Min.             Max.
    ----------------------------------------------------------------------------------------------------------------
    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): <=0.019 inch="" width:="" 35="" to="" 60="" inches="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element......................................................="" c="" o="" b="" max.="" weight="" %................................................="" 0.004="" ...............="" ...............="" min.="" weight%.................................................="" ...............="" 0.010="" 0.012="" ----------------------------------------------------------------------------------------------------------------="" [sbull]="" certain="" cold-rolled="" steel,="" which="" meets="" the="" following="" characteristics:="" width:="">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: <=1.31 mm="" width:=""><=80 mm="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element.....................="" c="" si="" mn="" p="" s="" cr="" ni="" weight="" %....................="" 1.2="" to="" 1.3="" 0.15="" to="" 0.35="" 0.20="" to="" 0.35=""><=0.03><=0.007 0.3="" to="" 0.5=""><=0.25 --------------------------------------------------------------------------------------------------------------------------------------------------------="" other="" properties:="" carbide:="" fully="" spheroidized="" having=""> 80% of carbides, 
    which are <= 0.003="" mm="" and="" uniformly="" dispersed="" surface="" finish:="" bright="" finish="" free="" from="" pits,="" scratches,="" rust,="" cracks,="" or="" seams="" smooth="" edges="" edge="" camber="" (in="" each="" 300="" mm="" of="" length):=""><=7 mm="" arc="" height="" cross="" bow="" (per="" inch="" of="" width):="" 0.015="" mm="" max.="" [sbull]="" certain="" transformation-induced="" plasticity="" (trip)="" steel,="" which="" meets="" the="" following="" characteristics:="" variety="" 1="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element......................................................="" c="" si="" mn="" min.="" weight="" %................................................="" 0.09="" 1.0="" 0.90="" max.="" weight="" %................................................="" 0.13="" 2.1="" 1.7="" ----------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" thickness="" range="" (mm).....................="" 1.000-2.300="" (inclusive)="" min.="" yield="" point="" (mpa)...................="" 320="" max.="" yield="" point="" (mpa)...................="" 480="" min.="" tensile="" strength="" (mpa)..............="" 590="" min.="" elongation="" %........................="" 24="" (if="" 1.000-1.199="" thickness="" range)="" 25="" (if="" 1.200-1.599="" thickness="" range)="" 26="" (if="" 1.600-1.999="" thickness="" range)="" 27="" (if="" 2.000-2.300="" thickness="" range)="" ----------------------------------------------------------------------------------------------------------------="" variety="" 2="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" -------------------------------------------------------------------------------------------------="" element.......................................="" c="" si="" mn="" min.="" weight="" %.................................="" 0.12="" 1.5="" 1.1="" max.="" weight="" %.................................="" 0.16="" 2.1="" 1.9="" ----------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" thickness="" range="" (mm).....................="" 1.000-2.300="" (inclusive)="" min.="" yield="" point="" (mpa)...................="" 340="" max.="" yield="" point="" (mpa)...................="" 520="" min.="" tensile="" strength="" (mpa)..............="" 690="" min.="" elongation="" %........................="" 21="" (if="" 1.000-1.199="" thickness="" range)="" 22="" (if="" 1.200-1.599="" thickness="" range)="" 23="" (if="" 1.600-1.999="" thickness="" range)="" 24="" (if="" 2.000-2.300="" thickness="" range)="" ----------------------------------------------------------------------------------------------------------------="" variety="" 3="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element......................................................="" c="" si="" mn="" min.="" weight="" %................................................="" 0.13="" 1.3="" 1.5="" [[page="" 61588]]="" max.="" weight="" %................................................="" 0.21="" 2.0="" 2.0="" ----------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" thickness="" range="" (mm).....................="" 1.200-2.300="" (inclusive)="" min.="" yield="" point="" (mpa)...................="" 370="" max.="" yield="" point="" (mpa)...................="" 570="" min.="" tensile="" strength="" (mpa)..............="" 780="" min.="" elongation="" %........................="" 18="" (if="" 1.200-1.599="" thickness="" range)="" 19="" (if="" 1.600-1.999="" thickness="" range)="" 20="" (if="" 2.000-2.300="" thickness="" range)="" ----------------------------------------------------------------------------------------------------------------="" [sbull]="" certain="" cold-rolled="" steel,="" which="" meets="" the="" following="" characteristics:="" variety="" 1="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element.....................................="" c="" mn="" p="" cu="" min.="" weight="" %...............................="" ...............="" ...............="" ...............="" 0.15="" max.="" weight="" %...............................="" 0.10="" 0.40="" 0.10="" 0.35="" ----------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" thickness="" range="" (mm)................="" 0.600-0.800="" min.="" yield="" point="" (mpa)..............="" 185="" max.="" yield="" point="" (mpa)..............="" 285="" min.="" tensile="" strength="" (mpa).........="" 340="" min.="" elongation.....................="" 31="" (astm="" standard="" 31%="JIS" standard="" 35%)="" ----------------------------------------------------------------------------------------------------------------="" variety="" 2="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" element.....................................="" c="" mn="" p="" cu="" min.="" weight="" %...............................="" ...............="" ...............="" ...............="" 0.15="" max.="" weight="" %...............................="" 0.05="" 0.40="" 0.08="" 0.35="" ----------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" thickness="" range="" (mm)................="" 0.800-1.000="" min.="" yield="" point="" (mpa)..............="" 145="" max.="" yield="" point="" (mpa)..............="" 245="" min.="" tensile="" strength="" (mpa).........="" 295="" min.="" elongation="" %...................="" 31="" (astm="" standard="" 31%="JIS" standard="" 35%)="" ----------------------------------------------------------------------------------------------------------------="" variety="" 3="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element.....................................="" c="" si="" mn="" p="" s="" cu="" ni="" al="" nb,v,="" ti,="" b="" mo="" max.="" weight="" %...............................="" 0.01="" 0.05="" 0.40="" 0.10="" 0.023="" 0.15-.35="" 0.35="" 0.10="" 0.10="" 0.30="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" physical="" and="" mechanical="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" thickness="" (mm)..................................="" 0.7="" elongation="" %....................................="">= 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 < 0.5="" inches="" (3="" to="">< 12.7="" mm)="" chemical="" composition="" ----------------------------------------------------------------------------------------------------------------="" c="" si="" mn="" p="" s="" al="" cr="" ni="" cu="" ----------------------------------------------------------------------------------------------------------------="" 0.76-0.96%="" 0.10-0.35%="" 0.30-0.60%="">< .025%="">< .020%="">< .060%="">< .30%="">< .20%="">< .20%="" ----------------------------------------------------------------------------------------------------------------="" tensile="" strength="" ranges:="" 245,000="" to="" 365,000="" psi.="" htsus="" 7211.29.20.30="" and="" htsus="" 7211.29.45.00="" [sbull]="" reed="" steel,="" with="" the="" following="" characteristics:="" grades="" eberle="" 18,="" 18c="" (sae="" 1095="" modified="" alloyed="" steel)="" htsus="" 7211.90.00="" physical="" characteristics="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" thickness..............................="" 0.0008="" to="" 0.04="" inches="" (0.0203="" to="" 1.015="" mm)="" width..................................="" 0.276="" to="" 0.472="" inches="" (7="" mm="" to="" 12.0="" mm),="" with="" width="" tolerances="" of="" +/-0.04="" to="" 0.06="" mm="" tensile="" strength.......................="" 1599="" mpa="" to="" 2199="" mpa.="" ------------------------------------------------------------------------="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" c="" si="" mn="" p="" s="" cr="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" 0.95-1.05%="" 0.15-0.30%="" 0.25-0.50%="" less="" than="" 0.015%="" less="" than="" 0.012%="" less="" than="" 0.40%="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" surface:="" rmax="" 1.5="" to="" 3.0="" micrometers="" straightness:="" max.="" deviation="" of="" 0.56="" mm/m="" flatness:="" deviation="" of="" 0.1="" to="" 0.3%="" of="" the="" width="" [sbull]="" feeler="" gauge="" steel,="" with="" the="" following="" characteristics:="" polished="" surface="" and="" deburred="" or="" rounded="" edges="" grades="" eberle="" 18,="" 18c="" (sae="" 1095="" modified="" alloyed="" steel)="" htsus="" 7211.90.00="" physical="" and="" mechanical="" properties="" ----------------------------------------------------------------------------------------------------------------="" ----------------------------------------------------------------------------------------------------------------="" max.="" width.....................................="" 0.4975="" inches="" thickness="" range................................="" 0.001-0.045="" inches="" thickness="" tolerances...........................="" t2-t4="" international="" standard="" tensile="" strength="" uts...........................="" 246-304="" ksi="" ----------------------------------------------------------------------------------------------------------------="" [sbull]="" wood="" band="" saw="" steel="" with="" nickel="" content="" exceeding="" 1.25%="" by="" weight,="" with="" the="" following="" characteristics:="" both="" variety="" 1="" and="" variety="" 2="" are="" classified="" under="" htsus="" item="" number="" 7226.99.00.00.="" variety="" 1="" nickel-alloyed="" band="" saw="" steel,="" which="" meets="" the="" following="" characteristics:="" thickness:="">1.1 mm, <=3.00 mm="" width:=""><400 mm="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element.........................="" c="" si="" mn="" p="" s="" cr="" ni="" cu="" al="" weight="" %........................="" 0.70-0.80="" 0.20-0.35="" 0.30-0.45="" max.="" 0.020="" max.="" 0.006="" 0.05-0.20="" 1.90-2.10="" max.="" 0.15="" 0.02-0.04="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" microstructure:="" tempered="" martensite="" with="" bainite,="" no="" surface="" decarburization="" mechanical="" properties:="" hardness:="" 446="" +12/-23="" hv="" respectively="" 45="" +1/-2="" hrc="" surface="" finish="" :="" bright,="" polished="" edges:="" treated="" edges="" cross="" bow:="" max.="" 0.1="" mm="" per="" mm="" width="" variety="" 2="" uhb15n20="" band="" saw="" steel="" according="" to="" the="" alloy="" composition:="" chemical="" composition="" ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------="" ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------="" element..........................="" c="" si="" mn="" p="" s="" cr="" ni="" [[page="" 61590]]="" weight="" %.........................="" 0.70-0.80="" 0.20-0.35="" 0.30-0.45="" max.="" 0.020="" max.="" 0.016="" ....................="" 1.90-2.10="" ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------="" typical="" material="" properties:hardened="" and="" tempered:="" tensile="" strength:="" 1450="">2 for thickness <2 mm="" and="" 1370="">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 %.........................  <0.01% 0.01-0.017%="" 0.06-0.85%="" ----------------------------------------------------------------------------------------------------------------="" htsus="" item="" numbers="" 7209.18.25.10="" or="" 7211.23.60.75,="" depending="" on="" the="" width="" of="" the="" material.="" [sbull]="" grade="" 13c="" cement="" kiln="" steel,="" with="" the="" following="" specifications:="" chemical="" composition="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" element........................="" c="" si="" mn="" p="" s="" weight="" %.......................="" 0.65="" 0.25="" 0.65="" max.="" 0.020="" max.="" 0.010="" --------------------------------------------------------------------------------------------------------------------------------------------------------="" microstructure:="" fine="" grained="" and="" homogenous.="" matrix="" of="" tempered="" martensite="" with="" a="" small="" amount="" of="" undissolved="" carbides="" decarburization:="" no="" free="" ferrit="" is="" allowed.="" total="" decarburization="" should="" not="" exceed="" [[page="" 61591]]="" 4%="" per="" plane="" mechanical="" properties:="" tensile="" strength:="" 1200-1700="" n/mm="">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
    
    
    

Document Information

Effective Date:
9/23/2002
Published:
10/01/2002
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
02-24925
Dates:
September 23, 2002.
Pages:
61579-61591 (13 pages)
Docket Numbers:
A-821-815
PDF File:
02-24925.pdf