[Federal Register Volume 68, Number 27 (Monday, February 10, 2003)]
[Notices]
[Pages 6716-6719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3286]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]


Stainless Steel Sheet and Strip in Coils From Germany; Notice of 
Final Results of Antidumping Duty Administrative Review

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

ACTION: Notice of final results of antidumping duty administrative 
review.

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SUMMARY: On August 7, 2002, the Department of Commerce (the Department) 
published the preliminary results of administrative review of the 
antidumping order covering stainless steel sheet and strip in coils 
from Germany. See Stainless Steel Sheet and Strip in Coils from 
Germany; Notice of Preliminary Results of Antidumping Duty 
Administrative Review, 67 FR 51199 (August 7, 2002) (Preliminary 
Results). The merchandise covered by this order is stainless steel 
sheet and strip in coils as described in the ``Scope of the Review'' 
section of the Federal Register notice. The period of review (POR) is 
July 1, 2000, through June 30, 2001. We invited parties to comment on 
our Preliminary Results. The Department also notes that on

[[Page 6717]]

September 30, 2002 we published the final results of changed 
circumstances antidumping duty administrative review of stainless steel 
sheet and strip in coils from Germany. See Stainless Steel Sheet and 
Strip in Coils from Germany: Final Results of Changed Circumstances 
Antidumping Duty Administrative Review, 67 FR 61319 (September 30, 
2002) (Changed Circumstances). We determined that ThyssenKrupp Nirosta 
GmbH (TKN) is the successor-in-interest to Krupp Thyssen Nirosta 
GmbH.\1\
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    \1\ In addition to ThyssenKrupp Nirosta GmbH the following 
companies involved in the production, importation, and U.S. sale of 
subject merchandise have changed their corporate names: Krupp 
Thyssen Nirosta North America, Inc. to ThyssenKrupp Nirosta North 
America, Inc.; Krupp VDM GmbH to ThyssenKrupp VDM GmbH; and Krupp 
VDM Technologies Corporation to ThyssenKrupp VDM USA, Inc.
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    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final results differ 
from the preliminary results. The final weighted-average dumping margin 
for the reviewed firm is listed below in the section entitled ``Final 
Results of the Review.''

EFFECTIVE DATE: February 10, 2003.

FOR FURTHER INFORMATION CONTACT: Patricia Tran, Michael Heaney, or 
Robert James at (202) 482-1121, (202) 482-4475, or (202) 482-0649, 
respectively, Antidumping and Countervailing Duty Enforcement Group 
III, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Scope of the Review

    For purposes of this order, the products covered are certain 
stainless steel sheet and strip in coils. Stainless steel is an alloy 
steel containing, by weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements. The 
subject sheet and strip is a flat-rolled product in coils that is 
greater than 9.5 mm in width and less than 4.75 mm in thickness, and 
that is annealed or otherwise heat treated and pickled or otherwise 
descaled. The subject sheet and strip may also be further processed 
(e.g., cold-rolled, polished, aluminized, coated, etc.) provided that 
it maintains the specific dimensions of sheet and strip following such 
processing.
    The merchandise subject to this order is 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

[[Page 6718]]

available under proprietary trade names such as ``Arnokrome III.'' \2\
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    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of this order. This product is defined as a non-magnetic 
stainless steel manufactured to American Society of Testing and 
Materials (ASTM) specification B344 and containing, by weight, 36 
percent nickel, 18 percent chromium, and 46 percent iron, and is most 
notable for its resistance to high temperature corrosion. It has a 
melting point of 1390 degrees Celsius and displays a creep rupture 
limit of 4 kilograms per square millimeter at 1000 degrees Celsius. 
This steel is most commonly used in the production of heating ribbons 
for circuit breakers and industrial furnaces, and in rheostats for 
railway locomotives. The product is currently available under 
proprietary trade names such as ``Gilphy 36.'' \3\
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    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel is 
also excluded from the scope of this order. This high-strength, ductile 
stainless steel product is designated under the Unified Numbering 
System (UNS) as S45500-grade steel, and contains, by weight, 11 to 13 
percent chromium, and 7 to 10 percent nickel. Carbon, manganese, 
silicon and molybdenum each comprise, by weight, 0.05 percent or less, 
with phosphorus and sulfur each comprising, by weight, 0.03 percent or 
less. This steel has copper, niobium, and titanium added to achieve 
aging, and will exhibit yield strengths as high as 1700 Mpa and 
ultimate tensile strengths as high as 1750 Mpa after aging, with 
elongation percentages of 3 percent or less in 50 mm. It is generally 
provided in thicknesses between 0.635 and 0.787 mm, and in widths of 
25.4 mm. This product is most commonly used in the manufacture of 
television tubes and is currently available under proprietary trade 
names such as ``Durphynox 17.'' \4\
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    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    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).\5\ This steel is similar to ASTM grade 440F, 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 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.''\6\
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \6\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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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 for Import Administration to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated February 3, 2003, 
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 room B-099 of the main Department of Commerce 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the internet at www.ia.ita.doc.gov. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations. The changes are listed below:
    [sbull] We have calculated average values for finish, gauge, width, 
hot/cold rolled, and temper for any sales missing these physical 
characteristics.
    [sbull] We modified our calculation of interest expenses.
    [sbull] We have deducted indirect selling expenses incurred in the 
country of manufacture from U.S. price and in our calculation of CEP 
profit to account for all U.S. selling expenses for TKN's affiliated 
U.S. reseller KHSP.
    [sbull] We have also corrected certain programming and clerical 
errors in our preliminary results, where applicable. Any alleged 
programming errors with which we do not agree are discussed in the 
relevant sections of the Decision Memorandum, accessible in B-099 of 
the main Department of Commerce building and on the web at 
www.ia.ita.doc.gov.

Final Results of the Review

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

------------------------------------------------------------------------
                                                             Weighted
                  Manufacturer/Exporter                   average margin
                                                            (percentage)
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TKN.....................................................            4.77
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Liquidation

    The Department shall determine, and U.S. Customs Service (Customs) 
shall assess, antidumping duties on all appropriate entries. In 
accordance with 19 CFR 351.212(b)(1), we have calculated exporter/
importer-specific assessment rates. The Department will issue 
appropriate assessment instructions directly to Customs within 15 days 
of publication of these final results of review. With respect to 
constructed export price sales, we divided the total dumping margins 
for the reviewed sales by the total entered value of those reviewed 
sales for each importer. We will direct Customs to assess the resulting 
assessment rate against the entered Customs values for the subject 
merchandise on each of the importer's entries under the relevant order 
during the POR.

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 
Germany entered, or withdrawn from warehouse, for consumption on or 
after the date of publication, as provided by section 751(a)(1) of the 
Tariff Act: (1) The cash deposit rate for the reviewed

[[Page 6719]]

company will be the rate shown above; (2) for previously reviewed or 
investigated companies not listed above, the cash deposit rate will 
continue to be the company-specific rate published for the most recent 
period; (3) if the exporter is not a firm covered in this review, a 
prior review, or the original less-than-fair-value (LTFV) 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (4) the cash deposit rate for all other 
manufacturers or exporters will continue to be 13.48 percent. This rate 
is the ``All Others'' rate from the amended final determination in the 
LTFV investigations. See Stainless Steel Sheet and Strip in Coils From 
Germany: Amended Final Determination of Antidumping Duty Investigation, 
67 FR 15178, 15179 (March 29, 2002).
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping 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 antidumping or countervailing duties 
occurred and the subsequent assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return or 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 777(i) of the Tariff Act.

    Dated: February 3, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

Comments and Responses

1. Whether TKN and TKVDM are Entitled to Separate Cash Deposit Rates
2. Indirect Selling Expenses Incurred in the Home Market for U.S. 
sales
3. Product Characteristics
4. Non-Dumped Sales
5. Financial Expenses
6. Clerical Errors

[FR Doc. 03-3286 Filed 2-7-03; 8:45 am]
BILLING CODE 3510-DS-P