[Federal Register Volume 68, Number 27 (Monday, February 10, 2003)]
[Notices]
[Pages 6713-6716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3283]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-834]


Stainless Steel Sheet and Strip in Coils From the Republic of 
Korea; 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 the Republic of Korea.

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SUMMARY: On August 7, 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 the 
Republic of Korea (67 FR 51216). This review covers imports of subject 
merchandise from Pohang Iron & Steel Co., Ltd. (``POSCO''), Samwon 
Precision Metals Co., Ltd. (``Samwon'') and Daiyang Metal Co., Ltd. 
(``DMC''). 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 POSCO and DMC. 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 administrative review with respect to 
Samwon.

EFFECTIVE DATE:  February 10, 2003.

FOR FURTHER INFORMATION CONTACT:  Laurel LaCivita (``POSCO'') and 
(``Samwon'') or Lilit Astvatsatrian (``DMC''), Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone: (202) 482-4243 or (202) 482-6412, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 7, 2002, the Department published Notice of Preliminary 
Results and Partial Rescission of Antidumping Duty Administrative 
Review for Stainless Steel Sheet and Strip in Coils From the Republic 
of Korea, 67 FR 51216 (August 7, 2002) (``Preliminary Results''). As we 
stated in that notice, we preliminarily rescinded this review with 
respect to Samwon, pursuant to its claim of no shipments of the subject 
merchandise during the POR. We are now rescinding this administrative 
review with respect to Samwon, since there is no information on the 
record that indicates that Samwon made any shipments during the POR.
    We invited parties to comment on these preliminary results. We 
received written comments on September 6, 2002

[[Page 6714]]

from petitioners,\1\ POSCO and DMC. On September 16, 2002, we received 
rebuttal comments from petitioners, POSCO and DMC. We have now 
completed the administrative review in accordance with section 751 of 
the Tariff Act of 1930, as amended (``the Act'').
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    \1\ Allegheny Ludlum Corporation, 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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    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 December 9, 2002, the Department extended the 
time limit for the final results in this review to February 3, 2003. 
See Stainless Steel Sheet and Strip in Coils From the Republic of 
Korea: Extension of Final Results of Antidumping Duty Administrative 
Review, 67 FR 72917 (December 9, 2002).

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. 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

[[Page 6715]]

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 Samwon reported, and the 
Department confirmed through independent U.S. Customs Service data, 
that it had no shipments of subject merchandise during the POR. Since 
Samwon 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 Samwon. 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 administrative review with respect to Samwon. Since 
Samwon did not participate in the original investigation, its cash 
deposit rate will remain at 2.49 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 3, 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.

Sales Below Cost

    We disregarded sales below cost for both POSCO and DMC 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 POSCO and DMC. The changes to the margin 
calculations are listed below:

POSCO

[sbull] We revised the calculation of indirect selling expenses 
(``ISEs'') in the United States to include housing income. See Comment 
4.
[sbull] We reclassified POSCO's income and loss with respect to money 
market funds as financing expenses and used the short-term income 
earned on monetary instruments to offset interest expense for the final 
results of review. See Comment 6.
[sbull] We revised our calculation of general and administrative 
(``G&A'') expenses to associate POSCO's reversal of bad debt to both 
export and domestic sales. See Comment 7.
[sbull] We revised the computer program to merge COP and constructed 
value (``CV'') files in the initial phases of the cost calculation in 
order to prepare data for those models sold exclusively in the United 
States for the assignation of the revised variable cost of 
manufacturing (``VCOM'') or total cost of manufacturing (``TCOM''). See 
Comment 10.
[sbull] We revised the computer program to apply the L-grade adjustment 
to the variable cost of manufacturing (``VCOM'') and total cost of 
manufacturing (``TCOM'') used in determining the difference-in-
merchandise adjustment for sales to the United States. See Comment 11.

DMC

[sbull] We recalculated DMC's net interest expense in the home market 
using the actual amount of short-term interest income as an offset to 
interest expense. See Comment 12.
[sbull] We revised our calculation of ISE in the U.S. market to offset 
OMC's interest expense by the imputed credit reported in the sales 
database. See Comment 13.

[[Page 6716]]

[sbull] We revised the calculation of net price in the United States to 
eliminate the double counting of billing adjustments. See Comment 14.

Final Results of Review

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

           Stainless Steel Sheet and Strip in Coils from Korea
------------------------------------------------------------------------
                                                             Margin
         Manufacturer/exporter/[chyph]reseller          [chyph](percent)
------------------------------------------------------------------------
POSCO.................................................             0.98
DMC...................................................             5.44
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    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. In accordance with 19 
CFR 351.212(b)(1), we have calculated exporter/importer (or customer)-
specific assessment rate for merchandise subject to this review. The 
Department will issue appraisement 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 that importer's entries during the review period. For 
customer's 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 the 
Republic of Korea 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 POSCO and DMC 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 2.49 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: February 3, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix 1--Issues in the Decision Memorandum

A. Issues with Respect to POSCO

Comment 1: ISE ratio in the United States
Comment 2: Imputed Credit Offset to Pohang Steel America's (``POSAM'') 
Interest Expense Incurred in the United States
Comment 3: Major Inputs From Affiliated Parties
Comment 4: Housing Expenses in the United States
Comment 5: Loss on Valuation of Inventory
Comment 6: Short-term Financial Income Earned on Monetary Instruments
Comment 7: Reversal of an Allowance for Bad Debt
Comment 8: Unrealized Income Derived from Long-Term Trade Receivables
Comment 9: Constructed Export Price (``CEP'') Offset on CEP Sales
Comment 10: Ministerial Errors in the Merging of the Cost Files
Comment 11: Ministerial Error in the Calculation of L-Grade Adjustment

B. Issues with Respect to DMC

Comment 12: Adjustment for DMC's Net Financial Expenses Ratio in the 
Home Market
Comment 13: Ocean Metal Corporation's (``OMC'') Interest Expense Offset 
with Imputed Credit Expenses in the United States
Comment 14: Deduction of Billing Adjustments from OMC's Gross Unit 
Price
Comment 15: Inclusion of All Home Market Sales in the CEP Profit 
Calculation
[FR Doc. 03-3283 Filed 2-7-03; 8:45 am]
BILLING CODE 3510-DS-S