[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35476-35478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12589]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Stainless Steel Sheet and Strip in Coils from Mexico: Initiation 
and Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Review

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

ACTION: Notice of Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Administrative Review.

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SUMMARY: The Department of Commerce (the Department) has received 
information sufficient to warrant initiation of a changed circumstances 
administrative review of the antidumping duty order on stainless steel 
sheet and strip in coils from Mexico (64 FR 40560 (July 27, 1999)). On 
March 19, 2002, ThyssenKrupp Mexinox S.A. de C.V., formerly Mexinox 
S.A. de C.V., informed the Department of its corporate name change 
effective February 25, 2002, and requested that the Department initiate 
and conduct an expedited changed circumstances review. Based on 
information provided in its March 19, 2002 letter, we preliminarily 
determine that ThyssenKrupp Mexinox S.A. de C.V. is the successor firm 
to Mexinox S.A. de C.V.
    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: May 20, 2002.

FOR FURTHER INFORMATION CONTACT: Deborah Scott or Robert James, AD/CVD 
Enforcement, Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-
2657 or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Tariff Act) are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Tariff 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 CFR part 351 (2001).

Background

    On July 27, 1999, the Department published the antidumping duty 
order on stainless steel sheet and strip in coils from Mexico. 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 Mexico, 64 FR 40560 (July 27, 1999). In a March 19, 2002 letter to 
the Department, ThyssenKrupp Mexinox S.A. de C.V. requested that the 
Department initiate and conduct an expedited changed circumstances 
administrative review pursuant to section 751(b) of the Tariff Act to 
determine whether it is the successor-in-interest to Mexinox S.A. de 
C.V. for purposes of the antidumping duty order on stainless steel 
sheet and strip in coils from Mexico, and to issue preliminary results 
concurrently with the notice of initiation, pursuant to 19 CFR 
351.221(c)(3)(ii). In its request, ThyssenKrupp Mexinox S.A. de C.V., 
formerly Mexinox S.A. de C.V., notified the Department that effective 
February 25, 2002, its corporate name had changed to ThyssenKrupp 
Mexinox S.A. de C.V., and despite this change in corporate name, the 
management, production facilities, supplier relationships, and customer 
base are identical to those of the former Mexinox S.A. de C.V. Citing 
the Department's determination in Stainless Steel Sheet and Strip in 
Coils from the Republic of Korea: Notice of Preliminary Results of 
Changed Circumstances Antidumping Duty Administrative Review, 66 FR 
67513 (December 31, 2001) (S4 from Korea Changed Circumstances Review), 
ThyssenKrupp Mexinox S.A. de C.V. claimed the Department should 
determine that it is the successor-in-interest to Mexinox S.A. de C.V.

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 35477]]

    The merchandise subject to this order is classified in the 
Harmonized Tariff Schedule of the United States (HTS) at subheadings: 
7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 7219.13.00.81, 
7219.14.00.30, 7219.14.00.65, 7219.14.00.90, 7219.32.00.05, 
7219.32.00.20, 7219.32.00.25, 7219.32.00.35, 7219.32.00.36, 
7219.32.00.38, 7219.32.00.42, 7219.32.00.44, 7219.33.00.05, 
7219.33.00.20, 7219.33.00.25, 7219.33.00.35, 7219.33.00.36, 
7219.33.00.38, 7219.33.00.42, 7219.33.00.44, 7219.34.00.05, 
7219.34.00.20, 7219.34.00.25, 7219.34.00.30, 7219.34.00.35, 
7219.35.00.05, 7219.35.00.15, 7219.35.00.30, 7219.35.00.35, 
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60, 
7219.90.00.80, 7220.12.10.00, 7220.12.50.00, 7220.20.10.10, 
7220.20.10.15, 7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 
7220.20.60.10, 7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 
7220.20.70.05, 7220.20.70.10, 7220.20.70.15, 7220.20.70.60, 
7220.20.70.80, 7220.20.80.00, 7220.20.90.30, 7220.20.90.60, 
7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. 
Although the HTS subheadings are provided for convenience and Customs 
purposes, the Department's written description of the merchandise under 
review is dispositive.
    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 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 order. 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 for 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 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 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.''\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 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''.\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 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 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 are also 
excluded from the scope of this order. 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

[[Page 35478]]

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 
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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Initiation and Preliminary Resudlts of Changed Circumstances 
Antidumping Duty Administrative Review

    In accordance with section 751(b) of the Tariff Act, the Department 
is initiating a changed circumstances administrative review to 
determine whether ThyssenKrupp Mexinox S.A. de C.V. is the successor 
company to Mexinox S.A. de C.V. In making such a determination, the 
Department examines several factors including, but not limited to, 
changes in: (1) management, (2) production facilities, (3) supplier 
relationships, and (4) customer base. See, e.g., S4 from Korea Changed 
Circumstances Review, 66 FR 67513, 67515. While no one or several of 
these factors will necessarily provide a dispositive indication, the 
Department will generally consider the new company to be the successor 
to the previous company if its resulting operation is similar to that 
of the predecessor. See, e.g., Industrial Phosphoric Acid from Israel 
Final Results of Antidumping Duty Changed Circumstances Review, 59 FR 
6944 (February 14, 1994). Thus, if evidence demonstrates that, with 
respect to the production and sale of the subject merchandise, the new 
company operates as the same entity as the former company, the 
Department will treat the successor company the same as the predecessor 
for purposes of antidumping liability, e.g., assign the same cash 
deposit rate, revocation, etc.
    We have examined the information provided by ThyssenKrupp Mexinox 
S.A. de C.V. in its March 19, 2002 letter and determine that 
ThyssenKrupp Mexinox S.A. de C.V. has established a prima facie case 
that it is the successor-in-interest to Mexinox S.A. de C.V. As shown 
in Attachments 7, 8 and 9, respectively, the Board of Directors, 
management, and organizational structure of the former Mexinox S.A. de 
C.V. have remained intact. Attachments 3 and 6 confirm there has been 
no change in ownership. As determined in the original investigation of 
stainless steel sheet and strip in coils from Mexico, the former 
Mexinox S.A. de C.V. was a privately-held company; ThyssenKrupp Mexinox 
S.A. de C.V. is a also privately held company with an ownership 
structure identical to that found in the most recently-completed 
administrative review of stainless steel sheet and strip in coils from 
Mexico. Attachment 5 demonstrates there has not been a change in the 
location of the production facilities, and Attachments 11 and 12, 
respectively, show there have been no changes in the customer or 
supplier base. Finally, ThyssenKrupp Mexinox S.A. de C.V. has provided 
sufficient documentation of the name change. See, e.g., Attachment 4 
(notarized amendments to Articles of Incorporation changing corporate 
name) and Attachment 5 (registration of corporate name change with 
Mexican tax authorities). Therefore, we preliminarily determine that 
ThyssenKrupp Mexinox S.A. de C.V. has maintained the same management, 
production facilities, supplier relationships, and customer bases as 
did Mexinox S.A. de C.V. Based upon the foregoing, we preliminarily 
determine that ThyssenKrupp Mexinox S.A. de C.V. is the successor-in-
interest to Mexinox S.A. de C.V. and we find it appropriate to issue 
the preliminary results in combination with the notice of initiation in 
accordance with 19 CFR 351.221(c)(3)(ii). If there are no changes in 
the final results of the changed circumstances review, ThyssenKrupp 
Mexinox S.A. de C.V. shall retain the antidumping duty cash deposit 
rate assigned to Mexinox S.A. de C.V. in the most recent administrative 
review of the subject merchandise.

Public Comment

    Pursuant to 19 CFR 351.310, any interested party may request a 
hearing within 10 days of publication of this notice. Case briefs and/
or written comments from interested parties may be submitted no later 
than 21 days after the date of publication of this notice. Rebuttal 
briefs and rebuttals comments, limited to the issues raised in those 
case briefs or comments, may be filed no later than 28 days after the 
publication of this notice. All written comments must be submitted and 
served on all interested parties on the Department's service list in 
accordance with 19 CFR 351.303. Any hearing, if requested, will be held 
no later than 30 days after the date of publication of this notice, or 
the first working day thereafter. Persons interested in attending the 
hearing should contact the Department for the date and time of the 
hearing. The Department will publish in the Federal Register a notice 
of final results of this changed circumstances antidumping duty 
administrative review, including the results of its analysis of any 
issues raised in any written comments.
    During the course of this changed circumstances review, we will not 
change any cash deposit instructions on the merchandise subject to this 
changed circumstances review, unless a change is determined to be 
warranted pursuant to the final results of this review.
    We are issuing and publishing this finding and notice in accordance 
with sections 751(b) and 777(i)(1) of the Tariff Act and 19 CFR 
351.221(c)(3) and 19 CFR 351.216.

    Dated: May 13, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-12589 Filed 5-17-02; 8:45 am]
BILLING CODE 3510-DS-S