[Federal Register Volume 67, Number 29 (Tuesday, February 12, 2002)]
[Notices]
[Pages 6495-6498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3382]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-845]


Notice of Final Results of Antidumping Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils from Japan

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

ACTION: Notice of final results in the antidumping duty administrative 
review of stainless steel sheet and strip in coils from Japan.

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SUMMARY: On August 8, 2001, the Department of Commerce (``Department'') 
published the preliminary results of the administrative review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
Japan. This review covers one manufacturer/exporter. The period of 
review (``POR'') is January 4, 1999 through June 30, 2000.Based on our 
analysis of the comments received, we have made changes in the margin 
calculation. Therefore, the final results differ from the preliminary 
results. The final weighted-average dumping margin for the reviewed 
firm is listed below in the section entitled ``Final Results of the 
Review.''

EFFECTIVE DATE: February 12, 2002.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen or James C. Doyle, 
Enforcement Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, 
N.W., Washington, DC 20230; telephone: 202-482-0409, or 202-482-0159, 
respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``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 citations to the Department's regulations are to the 
regulations codified at 19 C.F.R. Part 351 (2001). See Antidumping 
Duties; Countervailing Duties; Final rule, 62 FR 27295 (May 19, 1997).

Background

    On August 8, 2001, the Department published the preliminary results 
of the administrative review of the antidumping duty order on stainless 
steel sheet and strip in coils from Japan. See Notice of Preliminary 
Results of Antidumping Duty Administrative Review: Stainless Steel 
Sheet and Strip in Coils from Japan, 66 FR 41543 (August 8, 2001). This 
review covers one manufacturer/exporter. The POR is January 4, 1999 
through June 30, 2000. We invited parties to comment on our preliminary 
results of review. On September 21, 2001, both respondent, Kawasaki 
Steel Corporation (``Kawasaki''), and petitioners timely filed their 
case briefs in this administrative review. On September 28, 2001, 
Kawasaki and petitioners timely filed their rebuttal briefs. On 
November 30, 2001, the Department fully extended the time limit for 
issuing the final results of this administrative review to February 4, 
2002. See Extension of Time Limit for the Final

[[Page 6496]]

Results of the Antidumping Duty Administrative Review: Stainless Steel 
Sheet and Strip in Coils from Japan, 66 FR 63364 (December 6, 2001). 
The Department has conducted this administrative review in accordance 
with section 751 of the Act.

Scope of Review

    Upon completion of four changed circumstances reviews pursuant to 
section 751(b) of the Act and section 351.216 of the Department's 
regulations, we have excluded certain products from the scope of the 
order. These four excluded products are identified in the scope, infra.
    For purposes of this review, 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 order is currently classifiable in 
the Harmonized Tariff Schedule of the United States (``HTS'') at 
subheadings: 7219130031, 7219130051, 7219130071, 7219130081\1\, 
7219140030, 7219140065, 7219140090, 7219320005, 7219320020, 7219320025, 
7219320035, 7219320036, 7219320038, 7219320042, 7219320044, 7219330005, 
7219330020, 7219330025, 7219330035, 7219330036, 7219330038, 7219330042, 
7219330044, 7219340005, 7219340020, 7219340025, 7219340030, 7219340035, 
7219350005, 7219350015, 7219350030, 7219350035, 7219900010, 7219900020, 
7219900025, 7219900060, 7219900080, 7220121000, 7220125000, 7220201010, 
7220201015, 7220201060, 7220201080, 7220206005, 7220206010, 7220206015, 
7220206060, 7220206080, 7220207005, 7220207010, 7220207015, 7220207060, 
7220207080, 7220208000, 7220209030, 7220209060, 7220900010, 7220900015, 
7220900060, and 7220900080. Although the HTS subheadings are provided 
for convenience and Customs purposes, the Department's written 
description of the merchandise under review is dispositive.
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    \1\ Due to changes to the HTS numbers in 2001, 7219130030, 
7219130050, 7219130070, and 7219130080 are now 7219130031, 
7219130051, 7219130071, and 7219130081, respectively.
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    Excluded from the scope of this order are the following: (1) sheet 
and strip that is not annealed or otherwise heat treated and pickled or 
otherwise descaled, (2) sheet and strip that is cut to length, (3) 
plate (i.e., flat-rolled stainless steel products of a thickness of 
4.75 mm or more), (4) flat wire (i.e., cold-rolled sections, with a 
prepared edge, rectangular in shape, of a width of not more than 9.5 
mm), and (5) razor blade steel. Razor blade steel is a flat-rolled 
product of stainless steel, not further worked than cold-rolled (cold-
reduced), in coils, of a width of not more than 23 mm and a thickness 
of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent 
chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the HTS, ``Additional 
U.S. Note'' 1(d).
    Flapper valve steel is also excluded from the scope of the order. 
This product is defined as stainless steel strip in coils containing, 
by weight, between 0.37 and 0.43 percent carbon, between 1.15 and 1.35 
percent molybdenum, and between 0.20 and 0.80 percent manganese. This 
steel also contains, by weight, phosphorus of 0.025 percent or less, 
silicon of between 0.20 and 0.50 percent, and sulfur of 0.020 percent 
or less. The product is manufactured by means of vacuum arc remelting, 
with inclusion controls for sulphide of no more than 0.04 percent and 
for oxide of no more than 0.05 percent. Flapper valve steel has a 
tensile strength of between 210 and 300 ksi, yield strength of between 
170 and 270 ksi, plus or minus 8 ksi, and a hardness (Hv) of between 
460 and 590. Flapper valve steel is most commonly used to produce 
specialty flapper valves in compressors.
    Also excluded is a product referred to as suspension foil, a 
specialty steel product used in the manufacture of suspension 
assemblies for computer disk drives. Suspension foil is described as 
302/304 grade or 202 grade stainless steel of a thickness between 14 
and 127 microns, with a thickness tolerance of plus-or-minus 2.01 
microns, and surface glossiness of 200 to 700 percent Gs. Suspension 
foil must be supplied in coil widths of not more than 407 mm, and with 
a mass of 225 kg or less. Roll marks may only be visible on one side, 
with no scratches of measurable depth. The material must exhibit 
residual stresses of 2 mm maximum deflection, and flatness of 1.6 mm 
over 685 mm length.
    Certain stainless steel foil for automotive catalytic converters is 
also excluded from the scope of this order. This stainless steel strip 
in coils is a specialty foil with a thickness of between 20 and 110 
microns used to produce a metallic substrate with a honeycomb structure 
for use in automotive catalytic converters. The steel contains, by 
weight, carbon of no more than 0.030 percent, silicon of no more than 
1.0 percent, manganese of no more than 1.0 percent, chromium of between 
19 and 22 percent, aluminum of no less than 5.0 percent, phosphorus of 
no more than 0.045 percent, sulfur of no more than 0.03 percent, 
lanthanum of less than 0.002 or greater than 0.05 percent, and total 
rare earth elements of more than 0.06 percent, with the balance iron.
    Permanent magnet iron-chromium-cobalt alloy stainless strip is also 
excluded from the scope of this order. This ductile stainless steel 
strip contains, by weight, 26 to 30 percent chromium, and 7 to 10 
percent cobalt, with the remainder of iron, in widths 228.6 mm or less, 
and a thickness between 0.127 and 1.270 mm. It exhibits magnetic 
remanence between 9,000 and 12,000 gauss, and a coercivity of between 
50 and 300 oersteds. This product is most commonly used in electronic 
sensors and is currently available under proprietary trade names such 
as ``Arnokrome III.''\2\
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    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of this order. This product is defined as a non-magnetic 
stainless steel manufactured to American Society of Testing and 
Materials (``ASTM'') specification B344 and containing, by weight, 36 
percent nickel, 18 percent chromium, and 46 percent iron, and is most 
notable for its resistance to high temperature corrosion. It has a 
melting point of 1390 degrees Celsius and displays a creep rupture 
limit of 4 kilograms per square millimeter at 1000 degrees Celsius. 
This steel is most commonly used in the production of heating ribbons 
for circuit breakers and industrial furnaces, and in rheostats for 
railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.''\3\
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    \3\ ``Gilphy 36''' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel is 
also excluded from the scope of this order. This high-strength, ductile 
stainless steel product is designated under the Unified Numbering 
System (``UNS'') as S45500-grade steel, and contains, by weight, 11 to 
13 percent chromium, and 7 to 10 percent nickel. Carbon, manganese, 
silicon and molybdenum each comprise, by weight, 0.05 percent

[[Page 6497]]

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.''\4\
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    \4\ ``Durphynox 17''' is a trademark of Imphy, S.A.
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    Also excluded are three specialty stainless steels typically used 
in certain industrial blades and surgical and medical instruments. 
These include stainless steel strip in coils used in the production of 
textile cutting tools (e.g., carpet knives).\5\ This steel is similar 
to AISI grade 420 but containing, by weight, 0.5 to 0.7 percent of 
molybdenum. The steel also contains, by weight, carbon of between 1.0 
and 1.1 percent, sulfur of 0.020 percent or less, and includes between 
0.20 and 0.30 percent copper and between 0.20 and 0.50 percent cobalt. 
This steel is sold under proprietary names such as ``GIN4 Mo.'' The 
second excluded stainless steel strip in coils is similar to AISI 420-
J2 and contains, by weight, carbon of between 0.62 and 0.70 percent, 
silicon of between 0.20 and 0.50 percent, manganese of between 0.45 and 
0.80 percent, phosphorus of no more than 0.025 percent and sulfur of no 
more than 0.020 percent. This steel has a carbide density on average of 
100 carbide particles per 100 square microns. An example of this 
product is ``GIN5'' steel. The third specialty steel has a chemical 
composition similar to AISI 420 F, with carbon of between 0.37 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.''\6\
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \6\ ``GIN4 Mo,'' ``GIN5''' and ``GIN6''' are the proprietary 
grades of Hitachi Metals America, Ltd.
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    Also excluded are stainless steel welding electrode strips that are 
manufactured in accordance with American Welding Society (``AWS'') 
specification ANSI/AWS A5.9-93. See Stainless Steel Sheet and Strip in 
Coils from Japan: Final Results of Changed Circumstance Antidumping 
Duty Review, and Determination to Revoke Order in Part, 65 FR 17856 
(April 5, 2000). The products are 0.5 mm in thickness, 60 mm in width, 
and in coils of approximately 60 pounds each. The products are limited 
to the following AWS grade classifications: ER308L, ER 309L, ER 316L 
and ER347, and a modified ER 309L or 309LCb which meets the following 
chemical composition limits (by weight):

 
------------------------------------------------------------------------
Carbon...............................................      0.03% maximum
Chromium.............................................         20.0-22.0%
Nickel...............................................         10.0-12.0%
Molybdenum...........................................      0.75% maximum
Manganese............................................           1.0-2.5%
Silicon..............................................      0.65% maximum
Phosphorus...........................................      0.03% maximum
Sulphur..............................................      0.03% maximum
Copper...............................................      0.75% maximum
Columbium............................................        8 times the
                                                            carbon level
                                                          minimum - 1.0%
                                                                 maximum
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    Also excluded is certain stainless steel used for razor blades, 
medical surgical blades, and industrial blades, and sold under 
proprietary names such as DSRIK7, DSRIK8, and DSRIK9. See Stainless 
Steel Sheet and Strip in Coils from Japan: Final Results of Changed 
Circumstance Antidumping Duty Review, and Determination to Revoke Order 
in Part, 65 FR 54841 (September 11, 2000). This stainless steel strip 
in coils is a specialty product with a thickness of 0.15 mm to 1.000 
mm, or 0.006 inches to 0.040 inches, and a width of 6 mm to 50 mm, or 
0.250 inches to 2.000 inches. The edge of the product is slit, and the 
finish is bright. The steel contains the following chemical composition 
by weight: Carbon 0.65% to 1.00%, Silicon 1.00% maximum, Manganese 
1.00% maximum, Phosphorus 0.35% maximum, Sulfur 0.25% maximum, Nickel 
0.35% maximum, Chromium 0.15% maximum, Molybdenum 0.30% maximum.
    Also excluded is certain stainless steel lithographic sheet. See 
Stainless Steel Sheet and Strip in Coils from Japan: Final Results of 
Changed Circumstance Antidumping Duty Review, and Determination to 
Revoke Order in Part, 65 FR 64423 (October 27, 2000). This sheet is 
made of 304-grade stainless steel and must satisfy each of the 
following fifteen specifications. The sheet must have: (1) an ultimate 
tensile strength of minimum 75 KSI; (2) a yield strength of minimum 30 
KSI; (3) a minimum elongation of 40 percent; (4) a coil weight of 4000-
6000 lbs.; (5) a width tolerance of -0/+0.0625 inch; and (6) a gauge 
tolerance of +/-0.001 inch. With regard to flatness, (7) the wave 
height and wave length dimensions must correspond to both edge wave and 
center buckle conditions; (8) the maximum wave height shall not exceed 
0.75 percent of the wave length or 3 mm (0.118 inch), whichever is 
less; and (9) the wave length shall not be less than 100 mm (3.937 
inch). With regard to the surface, (10) the surface roughness must be 
RMS (RA) 4-8; (11) the surface must be degreased and no oil will be 
applied during the slitting operation; (12) the surface finish shall be 
free from all visual cosmetic surface variations or stains in spot or 
streak form that affect the performance of the material; (13) no 
annealing border is acceptable; (14) the surface finish shall be free 
from all defects in raised or depression nature (e.g., scratches, 
gouges, pimples, dimples, etc.) exceeding 15 microns in size and with 
regard to dimensions; and (15) the thickness will be .0145+/-.001 and 
the widths will be either 38'', 38.25'', or 43.5'' and the thickness 
for 39'' material will be .0118 +/-.001 inches.
    Also excluded is nickel clad stainless steel sheet and strip in 
coils from Japan. See Stainless Steel Sheet and Strip in Coils from 
Japan: Final Results of Changed Circumstance Antidumping Duty Review, 
and Determination to Revoke Order in Part, 65 FR 77578 (December 12, 
2000). This nickel clad stainless steel sheet must satisfy each of the 
following specifications. The sheet must: (1) have a maximum coil 
weight of 1000 pounds; (2) with a coil interior diameter of 458 mm to 
540 mm; (3) with a thickness of .33 mm and a width of 699.4 mm; (4) 
fabricated in three layers with a middle layer of grade 316L or UNS 
531603 sheet and strip sandwiched between the two layers of nickel 
cladding, using a roll bonding process to apply the nickel coating to 
each side of the stainless steel, each nickel coating being not less 
than 99 percent nickel and a minimum .038 mm in thickness. The 
resultant nickel clad stainless steel sheet and strip also must meet 
the following additional chemical composition requirement (by weight): 
The first layer weight is 14%, specification Ni201 or N02201, Carbon 
0.009, Sulfur 0.001, Nickel 99.97, Molybdenum 0.001, Iron 0.01, Copper 
0.001 for a combined total of 99.992. The second layer weight is 72%, 
specification 316L or UNS 513603, Carbon 0.02, Silicon 0.87, Manganese 
1.07, Phosphorus 0.033, Sulfur 0.001, Nickel 12.08, Chromium 17.81,

[[Page 6498]]

Molybdenum 2.26, Iron 65.856 for a combined total of 100. The third 
layer is 14%, specification Ni201 or N02201, Carbon 0.01, Sulfur 0.001, 
Nickel 99.97, Molybdenum 0.001, Iron 0.01, Copper 0.001 for a combined 
total of 99.993. The weight average weight is 100%. The following is 
the weighted average: Carbon 0.01706, silicon 0.6264, Manganese 0.7704, 
Phosphorus 0.02376, Sulfur 0.001, Nickel 36.6892, Chromium 12.8232, 
Molybdenum 1.62748, Iron 47.41912, and Copper is 0.00028. The above-
described material is sold as grade 316L and manufactured in accordance 
with UNS specification 531603. This material is classified at 
subheading 7219.90.00.20 of the HTS.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memo'') from Joseph A. Spetrini, Deputy 
Assistant Secretary, to Faryar Shirzad, Assistant Secretary for Import 
Administration, dated February 4, 2002, which is hereby adopted by this 
notice. A list of the issues which parties have raised and to which we 
have responded, all of which are in the Decision Memo, is attached to 
this notice as an Appendix. Parties can find a complete discussion of 
all issues raised in this review and the corresponding recommendations 
in this public memorandum which is on file at the U.S. Department of 
Commerce, in the Central Records Unit, in room B-099. In addition, a 
complete version of the Decision Memo can be accessed directly on the 
Web at http://ia.ita.doc.gov. The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Sales Below Cost in the Home Market

    The Department disregarded home market below-cost sales that failed 
the cost test for Kawasaki in the final results of this review.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in programming. Discussion of these changes in programming are 
discussed in the relevant sections of the Decision Memo, accessible in 
B-099 and available on the Web at http://ia.ita.doc.gov.

Final Results of Review

    We determine that the following percentage weighted-average margin 
exists for the period January 4, 1999 through June 30, 2000:

                Stainless Steel Sheet and Strip in Coils
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                                                        Weighted-Average
           Producer/Manufacturer/ Exporter                   Margin
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Kawasaki Steel Corporation...........................              1.92%
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    The Department shall determine, and the U.S. Customs Service 
(``Customs'') shall assess, antidumping duties on all appropriate 
entries. In accordance with 19 C.F.R. 351.212(b), we have calculated 
exporter/importer-specific assessment rates. With respect to the export 
price sales, we divided the total dumping margins for the reviewed 
sales by the total entered value of those reviewed sales for the 
importer. We will direct Customs to assess the resulting percentage 
margins against the entered Customs values for the subject merchandise 
on each of that importer's entries under the relevant order during the 
review period.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of stainless steel sheet and strip in coils from 
Japan entered, or withdrawn from warehouse, for consumption on or after 
the date of publication, as provided by section 751(a)(1) of the Act: 
(1) the cash deposit rate for the reviewed company will be the rate 
shown above; (2) for previously reviewed or investigated companies not 
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recent period; (3) if the exporter 
is not a firm covered in this review, a prior review, or the original 
less than fair value (``LTFV'') investigation, but the manufacturer is, 
the cash deposit rate will be the rate established for the most recent 
period for the manufacturer of the merchandise; and (4) the cash 
deposit rate for all other manufacturers or exporters will continue to 
be 40.18 percent. See Notice of Amended Final Determination of Sales at 
Less Than Fair Value and Antidumping Duty Order; Stainless Steel Sheet 
and Strip in Coils from Japan, 64 FR 40565 (July 27, 1999).
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 C.F.R. 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 C.F.R. 351.305. Timely 
written notification of the return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i) of the Act.

    February 4, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.

APPENDIX

General Issues:
Comment 1: Negative Dumping Margins
Comment 2: Currency Conversion of Advertising Expenses
Comment 3: Choice of Home Market CONNUM
Comment 4: Home Market Sales Reporting Period
Comment 5: Grade Codes
Comment 6: Downstream Sales
Comment 7: Coil Reporting Errors
Comment 8: Post-Shipment Revisions
Comment 9: U.S. Market Database
[FR Doc. 02-3382 Filed 2-11-02; 8:45 am]
BILLING CODE 3510-DS-S