[Federal Register Volume 67, Number 240 (Friday, December 13, 2002)]
[Notices]
[Pages 76721-76724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31481]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-583-831


Stainless Steel Sheet and Strip in Coils 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 and partial rescission of antidumping 
duty administrative review of stainless steel sheet and strip in coils 
from Taiwan.

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SUMMARY: SUMMARY: On July 9, 2002, 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 in coils from Taiwan. See 
Stainless Steel Sheet and Strip in Coils From Taiwan: Preliminary 
Results and Partial Rescission of Antidumping Duty Administrative 
Review, 67 FR 45742 (July 9, 2002) (``Preliminary Results''). This 
review covers imports of subject merchandise from Tung Mung Development 
Co. Ltd. (``Tung Mung''), Ta Chen Stainless Pipe Co. Ltd. (``Ta 
Chen''), Chia Far Industrial Factory Co. Ltd. (``Chia Far''), and Yieh 
United Steel Company (``YUSCO''). The period of review (``POR'') is 
July 1, 2000 through June 30, 2001.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations for Chia Far. Therefore, the final 
results differ from the Preliminary Results. 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: December 13, 2002.

FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: 
Laurel LaCivita (Ta Chen) (YUSCO); Cheryl Werner (Chia Far); Marlene 
Hewitt (Tung Mung); or Bob Bolling, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
and Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202) 
482-4243, (202) 482-2667, (202) 482-1385 or (202) 482-3434, 
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 July 9, 20021, the Department published the Preliminary Results. 
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. We are now rescinding this review 
with respect to Ta Chen, since no information on the record indicates 
that Ta Chen made any shipments during the POR.
    We invited parties to comment on the Preliminary Results. We 
received written comments on September 4,

[[Page 76722]]

2002, from petitioners\1\ on YUSCO, Tung Mung, Ta Chen, and Chia Far. 
Also, on September 4, 2002, we received written comments from Chia Far. 
On September 16, 2002, we received rebuttal comments from YUSCO and 
Chia Far on petitioners' comments. Also on September 16, 2002, we 
received rebuttal comments from petitioners on Chia Far's comments. On 
September 18, 2002, we received a submission from petitioners 
concerning Chia Far, alleging new information. On September 25, 2002, 
the Department rejected petitioners' September 18, 2002, submission 
finding that the second portion of the letter included new factual 
information that was untimely filed for this review. See Department's 
Letter to Petitioners dated September 25, 2002. On September 27, 2002, 
petitioners resubmitted, pursuant to instructions received from the 
Department on September 25, 2002, the letter of September 18, 2002, 
with the requested modifications. On October 8, 2002, the Department 
rejected petitioners' request to remove from the record certain 
passages contained in Chia Far's rebuttal brief. The Department 
determined that Chia Far's rebuttal brief contained only information 
already on the written record of review, and was therefore, not 
rejecting any passages contained in Chia Far's rebuttal brief. The 
Department found that Chia Far submitted its rebuttal brief in 
accordance with 19 CFR 351.309(d).
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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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    On October 7, 2002, the Department informed petitioners that it was 
rejecting its case brief with respect to YUSCO, filed on September 18, 
2002, which contained new and untimely-filed information. On October 9, 
2002, petitioners submitted a revised case brief concerning YUSCO, 
which excluded certain new factual information.
    Under section 751(a)(3)(A) of the Act, the Department may extend 
the deadline for completion of an administrative review if it 
determines that it is not practicable to complete the review within the 
statutory time limit. On October 8, 2002, the Department extended the 
time limit for the final results to December 6, 2002. See Stainless 
Steel Sheet and Strip in Coils from Taiwan: Extension of Final Results 
of Review, 67 FR 62697 (October 8, 2002). We have now completed 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.
    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.

[[Page 76723]]

 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 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. See 
memorandum from Laurel LaCivita to the file dated October 9, 2002. 
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. Because we 
have received no information since the Preliminary Results that 
contradicts the decision made in the Preliminary Results, 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 12.12 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 December 6, 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/. The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Total Adverse Facts Available

    In our Preliminary Results, we explained that Tung Mung did not 
participate in this review and therefore, we applied an adverse facts 
available (``AFA'') rate of 21.10 percent to all sales and entries of 
Tung Mung's subject merchandise during the POR. Since the Preliminary 
Results, we have received no information on the record that contradicts 
our finding in the Preliminary Results. As a result, we will

[[Page 76724]]

make no changes to Tung Mung's margin of 21.10 percent for the final 
results.

Sales Below Cost

    We disregarded sales below cost for both YUSCO and Chia Far during 
the course of the review.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations for Chia Far. The changes to the margin 
calculations are listed below:
1. We included all of the depreciation expense incurred in the common 
service department at Pu-Shin and allocated it to the rolling 
department in the calculation of the cost of production.
2. We used Chia Far's 2001 financial statements to calculate the net 
interest expense ratio and G&A expense ratio. We also included 
miscellaneous losses in the G&A expense ratio.
3. We used Chia Far's reported inventory carrying costs incurred in 
Taiwan.

Final Results of Review

    We determine that the following percentage margin exists for the 
period July 1, 2000 through June 30, 2001:

          Stainless Steel Sheet and Strip in Coils from Taiwan
------------------------------------------------------------------------
                                                                Margin
               Manufacturer/exporter/reseller                 (percent)
------------------------------------------------------------------------
YUSCO......................................................          0.0
Chia Far...................................................         1.11
Tung Mung..................................................        21.10
------------------------------------------------------------------------

    The Department will determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. In accordance 
with 19 CFR 351.212(b)(1), we have calculated an exporter/importer (or 
customer)-specific assessment rate for merchandise subject to this 
review. The Department will issue appropriate assessment instructions 
directly to the Customs Service within 15 days of publication of these 
final results of review. We will direct the Customs Service to assess 
the resulting assessment rates against the entered customs values for 
the subject merchandise on each of the importer's/customer's entries 
during the review period. 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 in coils 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, Chia Far and Tung Mung 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 12.12 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

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.

    Dated: December 6, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

APPENDIX 1 -- ISSUES IN THE DECISION MEMORANDUM

Issues with Respect to Tung Mung and Ta Chen

Comment 1: Total Adverse Facts Available (``AFA'') for Tung Mung and Ta 
Chen
Comment 2: Whether Ta Chen Should Be Granted a Partial Recision of 
Review

Issues with Respect to YUSCO

Comment 3: Sales to Affiliated Parties in the United States
Comment 4: Affiliation With China Steel
Comment 5: Classification of Home Market Sales
Comment 6: The Use of AFA

Issues with Respect to Chia Far

Comment 7: Total AFA
Comment 8: Affiliated-Party Purchases
Comment 9: General and Administrative (``G&A'') Expenses
Comment 10: Appropriate Period for G&A and Interest Expense Ratios
Comment 11: Inventory Carrying Costs Incurred in Taiwan for U.S. Sales
Comment 12: Constructed Export Price (``CEP'') Transactions
[FR Doc. 02-31481 Filed 12-12-02; 8:45 am]
BILLING CODE 3510-DS-S