[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6682-6685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3540]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-831]


Stainless Steel Sheet and Strip From Taiwan; Final Results and 
Partial Rescission of Antidumping Duty Administrative Review

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

ACTION: Notice of final results of antidumping duty administrative 
review of stainless steel sheet and strip from Taiwan.

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SUMMARY: On August 8, 2001, the Department of Commerce (``the 
Department'') published in the Federal Register the preliminary results 
and partial rescission of its administrative review of the antidumping 
duty order on stainless steel sheet and strip from Taiwan (66 FR 
41509). This review covers imports of subject merchandise from Yieh 
United Steel Corporation (``YUSCO''), Tung Mung Development Corporation 
(``Tung Mung''), Chia Far Industrial Factory Co., Ltd. (``Chia Far'') 
and Ta Chen Stainless Pipe, Ltd. (``Ta Chen'). 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 calculations for YUSCO and Tung Mung. Therefore, 
the final results differ from the preliminary results of review. The 
final weighted-average dumping margins for the reviewed firms are 
listed below in the section entitled ``Final Results of the Review.'' 
In addition, we are rescinding the review with respect to Ta Chen.

EFFECTIVE DATE: February 13, 2002.

FOR FURTHER INFORMATION CONTACT: Steve Bailey (``YUSCO''), Mesbah 
Motamed (``Tung Mung''), Stephen Shin (``Chia Far''), Doreen Chen (``Ta 
Chen''),or Laurel LaCivita, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th and Constitution 
Avenue, N.W., Washington, D.C. 20230; telephone: (202) 482-1102, (202) 
482-1382, (202) 482-0413, (202) 482-0408 or (202) 482-4243, 
respectively.

SUPPLEMENTARY INFORMATION:

THE APPLICABLE STATUTE

    Unless otherwise indicated, all citations to the statute 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 at 19 CFR part 351 
(2001).

Background

    On August 8, 2001, the Department published Stainless Steel Sheet 
and Strip in Coils From Taiwan: Preliminary Results and Partial 
Rescission of Antidumping Duty Administrative Review, 66 FR 41509 
(August 8, 2001) (``Preliminary Results''). We invited parties to 
comment on these preliminary results. The review covers imports of 
subject merchandise from YUSCO, Tung Mung, Chia Far and Ta Chen. The 
POR is June 8, 1999, through June 30, 2000.
    We received written comments on September 21, 2001, from Chia Far 
and from petitioners\1\ concerning YUSCO, Tung Mung and Ta Chen and on 
September 26, 2001, concerning Chia Far. On September 28, 2001, we 
received rebuttal comments from YUSCO, Tung Mung, Chia Far and from 
petitioners concerning Chia Far.
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    \1\ Allegheny Ludlum, AK Steel Corporation (formerly Armco, 
Inc.), J&L Specialty Steel, Inc., North American Stainless, Butler-
Armco Independent Union, Zanesville Armco Independent Union, and the 
United Steelworkers of America, AFL-CIO/CLC.
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    As we stated in that notice, we preliminarily rescinded this review 
with respect to Ta Chen, pursuant to its claim of no shipments of the 
subject merchandise during the POR. On September 28, 2000, October 4, 
12, and 31, 2000, Ta Chen reported that it had no entries of subject 
merchandise during the period of review. Ta Chen further stated that 
its U.S. affiliate, Ta Chen International's (``TCI'') had resales of 
SSSS from Taiwan during the POR, but these sales were from inventory 
that was entered into the United States prior to the suspension of 
liquidation. Ta Chen also certified that all resales of Taiwanese 
merchandise made from TCI's U.S. warehouse inventory during the POR 
were entered into the United States prior to the POR. The Department's 
Customs inquiry indicates that such merchandise did not enter the 
United States after the suspension of liquidation.
    On September 21, 2001, petitioners submitted a case brief arguing 
that this review should not be rescinded with respect to Ta Chen. Since 
no information has been developed on the record demonstrating that Ta 
Chen made any shipments during the POR we are now rescinding this 
review with respect to Ta Chen. We are now completing the 
administrative review in accordance with section 751 of the Act.

Scope of the Review

    For purposes of this administrative 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.

[[Page 6683]]

    The merchandise subject to this review is classified in the 
Harmonized Tariff Schedule of the United States (HTS) at subheadings: 
7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.1300.81\2\, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.32.0005, 7219.32.0020, 
7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 
7219.32.0044, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 
7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.34.0005, 
7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.35.0005, 
7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.90.0010, 7219.90.0020, 
7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 
7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 
7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.20.8000, 
7220.20.9030, 7220.20.9060, 7220.90.0010, 7220.90.0015, 7220.90.0060, 
and 7220.90.0080. 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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    \2\ Due to changes to the HTS numbers in 2001, 7219.13.0030, 
7219.13.0050, 7219.13.0070, and 7219.13.0080 are now 7219.13.0031, 
7219.13.0051, 7219.13.0071, and 7219.13.0081, respectively.
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    Excluded from the scope of this review 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).
    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 review. These excluded products are 
described below.
    Flapper valve steel 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 review. 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 review. 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.''\3\
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    \3\ ``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 review. 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.''\4\
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    \4\ ``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 review. 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.'' \5\
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    \5\ ``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 are also 
excluded from the

[[Page 6684]]

scope of this review. These include stainless steel strip in coils used 
in the production of textile cutting tools (e.g., carpet knives).\6\ 
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''.\7\
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    \6\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \7\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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Rescission of Review

    In the Preliminary Results, we stated that Ta Chen reported, and 
the Department confirmed through independent U.S. Customs Service data, 
that it had no shipments of subject merchandise during the POR. Since 
Ta Chen did not report any shipments during the POR, we had no basis 
for determining a margin. Consequently, in accordance with 19 CFR 
351.213(d)(3) and consistent with the Department's practice, we 
preliminarily rescinded our review with respect to Ta Chen. Since we 
have received no information since the Preliminary Results that 
contradicts the decision made in the preliminary results of review, we 
are rescinding the review with respect to Ta Chen. Since Ta Chen did 
not participate in the original investigation, its cash deposit rate 
will remain at 12.61 percent, which is the all others rate established 
in the less than fair value (``LTFV'') investigation.

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 Memorandum'') from Joseph A. Spetrini, Deputy 
Assistant Secretary, Import Administration, 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 Memorandum, 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 in the Central Records Unit, Room B-099 of the main 
Department building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn/frnhome.htm. The paper copy and electronic version 
of the Decision Memorandum are identical in content.

Sales Below Cost

    We disregarded sales below cost for both Tung Mung and YUSCO during 
the course of the review.

Changes Since the Preliminary Results of Review

    Based on our analysis of comments received, we have made changes in 
the margin calculations for YUSCO, Tung Mung and Chia Far. The changes 
are listed below:

YUSCO

We removed the tolled sales from the home market database 
before calculating the dumping margin.
We revised the calculation of home market credit in arm's 
length program to reflect the calculation of credit in the model match 
program.

Tung Mung

We revised our calculation of material costs to eliminate the 
amount of the estimated outstanding material purchase discount included 
in the cost of manufacturing.
We revised the calculation of cost of goods sold (``COGS'') 
used in the denominator of the CPA adjustment, general and 
administrative expenses, and interest expense factors to eliminate the 
total factory-wide cost of packing during the POR.

Chia Far

We revised the AFA rate applicable to Chia Far to eliminate the 
impact of middleman dumping from the margins calculated for YUSCO 
during the original investigation.

Final Results of Review

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

          Stainless Steel Sheet and Strip in Coils from Taiwan
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           Manufacturer/exporter/ reseller              Margin (percent)
------------------------------------------------------------------------
YUSCO................................................               0.00
Tung Mung............................................               0.00
Chia Far.............................................              21.10
------------------------------------------------------------------------

    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. The Department will 
issue appraisement instructions directly to the Customs Service. For 
duty-assessment purposes, we will calculate importer-specific 
assessment rates by dividing the dumping margins calculated for each 
importer by the total entered value of sales for each importer during 
the period of review.

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 from Taiwan 
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 rates for YUSCO, Tung Mung and Chia Far will be the 
rates 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) 
if neither the exporter nor the manufacturer is a firm covered in these 
or any previous reviews conducted by the Department, the cash deposit 
rate will be the ``all others'' rate, which is 12.61 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

[[Page 6685]]

Notification of Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties or countervailing 
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 the antidumping duties or 
countervailing duties occurred and the subsequent assessment of double 
antidumping duties or countervailing duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (``APOs'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305, which continues 
to govern business proprietary information in this segment of the 
proceeding. 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 this determination and notice in 
accordance with sections 751(a)(1) and 771(i) of the Act.

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

APPENDIX 1-- ISSUES IN DECISION MEMORANDUM

A. Issues with Respect to YUSCO

Comment 1: Knowledge of Destination of Sales
Comment 2: Customer Category and Channel of Distribution
Comment 3: Tolled Sales
Comment 4: Home Market Credit Expenses
Comment 5: Date of Payment
Comment 6: U.S. Credit Expenses
Comment 7: Inland Transportation
Comment 8: Home Market Rebates
Comment 9: Home Market Warranty Expenses
Comment 10: Packing Expenses
Comment 11: U.S. Brokerage and Handling Expenses
Comment 12: Different Width Basis for Reporting Sales and Cost
Comment 13: Interest Expense
Comment 14: Lack of Sales During the POR
Comment 16: Collapsing of YUSCO and its Affiliates in the Home Market
Comment 17: Basis for Revocation

B. Issues with Respect to Tung Mung

Comment 18: Use of Surrogate Control Numbers (``CONNUMs'')
Comment 19: Estimated Outstanding Material Purchase Discounts
Comment 20: Auditor's Adjustment, General and Administrative Expenses 
(``G&A''), and Interest Expense
Comment 21: G&A Expense
Comment 22: Basis for Revocation

C. Issues with Respect to Chia Far

Comment 23: Affiliation via a Principal/Agent Relationship
Comment 24: Use of adverse facts available (``AFA'')
Comment 25: Fairness of the Proceedings
Comment 26: Untimely Submission of Factual Information
Comment 27: Partial AFA
Comment 28: Reimbursement
Comment 29: Applicability of the AFA Rate
Comment 30: Release of Business Proprietary Information

D. Issues with Respect to Ta Chen Stainless Pipe Co., Ltd. (``Ta 
Chen'')

Comment 31: The Rescission of Ta Chen
[FR Doc. 02-3540 Filed 2-12-02; 8:45 am]
BILLING CODE 3510-DS-S