[Federal Register Volume 64, Number 17 (Wednesday, January 27, 1999)]
[Notices]
[Pages 4070-4072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1895]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-583-830]


Notice of Amended Preliminary Determination of Sales at Not Less 
Than Fair Value: Stainless Steel Sheet and Strip in Coils From Taiwan

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

ACTION: Amended preliminary determination of antidumping duty 
investigation.

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SUMMARY: On January 4, 1999, the Department of Commerce (``the 
Department'') published the preliminary determination of its 
antidumping duty investigation of stainless steel sheet and strip in 
coils (``SSSS'') from Taiwan. This investigation covers four 
respondents, Yieh United Steel Corporation (``YUSCO''), Tung Mung 
Development Co., Ltd. (``Tung Mung''), Chang Mien Industries, Co., Ltd. 
(``Chang Mien''), and Ta Chen Stainless Steel Pipe, Ltd. and Ta Chen 
International (collectively ``Ta Chen'').
    YUSCO submitted a ministerial error allegation on January 5, 1999 
with respect to the preliminary determination. Based on the correction 
of these ministerial errors made in the preliminary determination, we 
are amending our preliminary determination. See 19 CFR 351.224(e). As a 
result of the correction, the Department preliminarily determines that 
sales have not been made at less than fair value with respect to 
stainless steel sheet and strip in coils from Taiwan.

EFFECTIVE DATE: January 27, 1999.

FOR FURTHER INFORMATION CONTACT: Gideon Katz or Rick Johnson, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230; telephone: (202) 482-5255 and (202) 482-3818, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Act), are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act. In addition, unless otherwise 
indicated, all references to the Department's regulations are to the 
regulations set forth at 19 CFR part 351.

Significant Ministerial Errors

    We are amending the preliminary determination of sales at less than 
fair value for SSSS from Taiwan to reflect the correction of 
significant ministerial errors made in the margin calculations 
regarding YUSCO in that determination, pursuant to 19 CFR 224(g)(1) and 
(2). A significant ministerial error is defined as a correction which, 
singly or in combination with other errors, (1) would result in a 
change of at least 5 absolute percentage points in, but not less than 
25 percent of, the weighted average dumping margin calculated in the 
original (erroneous) preliminary determination; or (2) would result in 
a difference between a weighted-average dumping margin of zero or de 
minimis and a weighted-average dumping margin of greater than de 
minimis or vice versa. We are publishing this amendment to the 
preliminary determination pursuant to 19 CFR 351.224(e).

Scope of the Investigation

    For purposes of this investigation, 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 4.75 mm in thickness, and 
that is annealed or otherwise heat treated and pickled or otherwise 
descaled. The subject sheet and strip may also be further processed 
(e.g., cold-rolled, polished, aluminized, coated, etc.) provided that 
it maintains the specific dimensions of sheet and strip following such 
processing.
    The merchandise subject to 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,

[[Page 4071]]

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 HTS subheadings are provided for 
convenience and Customs purposes, the Department's 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, with a prepared edge, rectangular in shape, of a width of not 
more than 9.5 mm); and (5) razor blade steel. Razor blade steel is a 
flat rolled product of stainless steel, not further worked than cold-
rolled (cold-reduced), in coils, of a width of not more than 23 mm and 
a thickness of 0.266 mm or less, containing, by weight, 12.5 to 14.5 
percent chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the HTSUS, ``Additional 
U.S. Note'' 1(d).
    In response to comments by interested parties 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 excluded. It is defined as stainless steel 
strip in coils containing, by weight, between 0.37 and 0.43 percent 
carbon, between 1.15 and 1.35 percent molybdenum, and between 0.20 and 
0.80 percent manganese. This steel also contains, by weight, phosphorus 
of 0.025 percent or less, silicon of between 0.20 and 0.50 percent, and 
sulfur of 0.020 percent or less. The product is manufactured by means 
of vacuum arc remelting, with inclusion controls for sulphide of no 
more than 0.04 percent and for oxide of no more than 0.05 percent. 
Flapper valve steel has a tensile strength of between 210 and 300 ksi, 
yield strength of between 170 and 270 ksi, plus or minus 8 ksi, and a 
hardness (Hv) of between 460 and 590. Flapper valve steel is most 
commonly used to produce specialty flapper valves in compressors.
    Also excluded is a product referred to as suspension foil, a 
specialty steel product used in the manufacture of suspension 
assemblies for computer disk drives. Suspension foil is described as 
302/304 grade or 202 grade stainless steel of a thickness between 14 
and 127 microns, with a thickness tolerance of plus-or-minus 2.01 
microns, and surface glossiness of 200 to 700 percent Gs. Suspension 
foil must be supplied in coil widths of not more than 407 mm, and with 
a mass of 225 kg or less. Roll marks may only be visible on one side, 
with no scratches of measurable depth. The material must exhibit 
residual stresses of 2 mm maximum deflection, and flatness of 1.6 mm 
over 685 mm length.
    Certain stainless steel foil for automotive catalytic converters 
also is excluded from the scope of this investigation. This stainless 
steel strip in coils is a specialty foil with a thickness of between 20 
and 110 microns used to produce a metallic substrate with a honeycomb 
structure for use in automotive catalytic converters. The steel 
contains, by weight, carbon of no more than 0.030 percent, silicon of 
no more than 1.0 percent, manganese of no more than 1.0 percent, 
chromium of between 19 and 22 percent, aluminum of no less than 5.0 
percent, phosphorus of no more than 0.045 percent, sulfur of no more 
than 0.03 percent, lanthanum of between 0.002 and 0.05 percent, and 
total rare earth elements of more than 0.06 percent, with the balance 
iron.
    Permanent magnet iron-chromium-cobalt alloy stainless strip also is 
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 228.6 mm or less, 
and a thickness between 0.127 and 1.270 mm. It exhibits magnetic 
remanence between 9,000 and 12,000 gauss, and a coercivity of between 
50 and 300 oersteds. This product is most commonly used in electronic 
sensors and is currently available under proprietary trade names such 
as ``Arnokrome III.'' 1
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    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel also is excluded from the 
scope of this investigation. This product is defined as a non-magnetic 
stainless steel manufactured to American Society of Testing and 
Materials (ASTM) specification B344 and containing, by weight, 36 
percent nickel, 18 percent chromium, and 46 percent iron, and is most 
notable for its resistance to high temperature corrosion. It has a 
melting point of 1390 degrees Celsius and displays a creep rupture 
limit of 4 kilograms per square millimeter at 1000 degrees Celsius. 
This steel is most commonly used in the production of heating ribbons 
for circuit breakers and industrial furnaces, and in rheostats for 
railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.'' 2
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    \2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel also 
is excluded from the scope of this investigation. This high-strength, 
ductile stainless steel product is designated under the Unified 
Numbering System (UNS) as S45500-grade steel, and contains, by weight, 
11 to 13 percent chromium, and 7 to 10 percent nickel. Carbon, 
manganese, silicon and molybdenum each comprise, by weight, 0.05 
percent or less, with phosphorus and sulfur each comprising, by weight, 
0.03 percent or less. This steel has copper, niobium, and titanium 
added to achieve aging, and will exhibit yield strengths as high as 
1700 Mpa and ultimate tensile strengths as high as 1750 Mpa after 
aging, with elongation percentages of 3 percent or less in 50 mm. It is 
generally provided in thicknesses between 0.635 and 0.787 mm, and in 
widths of 25.4 mm. This product is most commonly used in the 
manufacture of television tubes and is currently available under 
proprietary trade names such as ``Durphynox 17.'' 3
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    \3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    Finally, three specialty stainless steels typically used in certain 
industrial blades and surgical and medical instruments also are 
excluded from the scope of this investigation. These include stainless 
steel strip in coils used in the production of textile cutting tools 
(e.g., carpet knives).4 This steel is similar to ASTM grade 
440F, but containing, by weight, 0.5 to 0.7 percent of molybdenum. The 
steel also contains, by weight, carbon of between 1.0 and 1.1 percent, 
sulfur of 0.020 percent or less, and includes between 0.20 and 0.30 
percent copper and between 0.20 and 0.50 percent cobalt. This steel is

[[Page 4072]]

sold under proprietary names such as ``GIN4 Mo.'' The second excluded 
stainless steel strip in coils is similar to AISI 420-J2 and contains, 
by weight, carbon of between 0.62 and 0.70 percent, silicon of between 
0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent, 
phosphorus of no more than 0.025 percent and sulfur of no more than 
0.020 percent. This steel has a carbide density on average of 100 
carbide particles per square micron. An example of this product is 
``GIN5'' steel. The third specialty steel has a chemical composition 
similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent, 
molybdenum of between 1.15 and 1.35 percent, but lower manganese of 
between 0.20 and 0.80 percent, phosphorus of no more than 0.025 
percent, silicon of between 0.20 and 0.50 percent, and sulfur of no 
more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6''.5
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    \4\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \5\ ``GIN4 Mo'', ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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Period of Investigation

    The period of investigation (``POI'') is April 1, 1997 through 
March 31, 1998.

Background

    On January 4, 1999, the Department published in the Federal 
Register its notice of preliminary determination of the antidumping 
duty investigation of SSSS from Taiwan (Notice of Preliminary 
Determination of Sales at Less Than Fair Value: Stainless Steel Sheet 
and Strip in Coils from Taiwan (64 FR 101 (January 4, 1999)). We 
preliminarily calculated a dumping margin of 2.93 percent based on 
YUSCO's sales.

YUSCO

    On January 5, 1999, YUSCO submitted a timely written allegation 
that the Department made two ministerial errors which resulted in a de 
minimis weighted average dumping margin. YUSCO alleged that the 
Department erred by failing to convert U.S. billing adjustments and 
warranty expenses reported in New Taiwan Dollars (NTD) into U.S. 
dollars.
    We agree with YUSCO that we inadvertently failed to convert these 
expenses into U.S. dollars. See Clerical Error Memorandum, January 16, 
1999. Because these ministerial errors are significant, as defined in 
19 CFR 351.224(g), we are amending our preliminary determination. 
YUSCO's amended weighted-average margin is de minimis. We will instruct 
the U.S. Customs Service accordingly. See ``Suspension of Liquidation'' 
section, below.

Amended Preliminary Determination

    As a result of our corrections of ministerial errors, we have 
determined that the following amended weighted-average dumping margins 
apply.

------------------------------------------------------------------------
                                                                Margin
                    Manufacturer/exporter                     percentage
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Chang Mien..................................................        .57
Tung Mung...................................................        .07
YUSCO.......................................................       1.00
All Others..................................................       1.00
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Suspension of Liquidation

    Because the margins are de minimis (see 351.106), we are not 
directing the U.S. Customs Service to suspend liquidation of entries of 
stainless steel sheet and strip in coils from Taiwan.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our amended determination. If our final determinations are 
affirmative, the ITC will determine whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry 
before the later of 120 days after the date of the preliminary 
determination or 45 days after our final determination.

Public Comment

    As stated in the Department's preliminary determination in this 
investigation (64 FR 101, 108), case briefs or other written comments 
may be submitted to the Assistant Secretary for Import Administration 
no later than February 23, 1999, and rebuttal briefs, limited to issues 
raised in case briefs, no later than March 1, 1999. A list of 
authorities used and an executive summary of issues should accompany 
any briefs submitted to the Department. This summary should be limited 
to five pages total, including footnotes. In accordance with section 
774 of the Tariff Act, we will hold a public hearing, if requested, to 
afford interested parties an opportunity to comment on arguments raised 
in case or rebuttal briefs. Tentatively, any hearing will be held March 
3, 1999 at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230, at a time and 
location to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing 48 hours before the scheduled 
time. Interested parties who wish to request a hearing, or to 
participate if one is requested, must submit a written request to the 
Assistant Secretary for Import Administration, U.S. Department of 
Commerce, Room 1870, no later than February 3, 1999. Requests should 
contain: (1) The party's name, address, and telephone number; (2) the 
number of participants; and (3) a list of the issues to be discussed. 
At the hearing, each party may make an affirmative presentation only on 
issues raised in that party's case brief, and may make rebuttal 
presentations only on arguments included in that party's rebuttal 
brief. See 19 CFR 351.310(c). We intend to issue our final 
determination in this investigation no later than May 19, 1999.
    This amended preliminary determination is issued and published in 
accordance with section 703(d)(2) of the Act (19 CFR 351.224).

    Dated: January 19, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-1895 Filed 1-26-99; 8:45 am]
BILLING CODE 3510-DS-P