[Federal Register Volume 68, Number 28 (Tuesday, February 11, 2003)]
[Notices]
[Pages 6889-6891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3406]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Stainless Steel Sheet and Strip in Coils from Mexico; 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 of stainless steel sheet and strip from Mexico.

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SUMMARY: On August 7, 2002, the Department of Commerce (the Department) 
published the preliminary results of the administrative review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
Mexico (67 FR 41523). This review covers one manufacturer/exporter, 
ThyssenKrupp Mexinox S.A. de C.V. (Mexinox) of the subject merchandise 
to the United States during the period July 1, 2000 to June 30, 2001. 
Based on our analysis of the comments received, we have made changes in 
the margin calculation. 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 Review.''

EFFECTIVE DATE: February 11, 2003.

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, N.W., Washington, D.C. 20230, telephone : (202) 
482-2657 or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 7, 2002, the Department published in the Federal Register 
the preliminary results of the administrative review of the antidumping 
duty order on stainless steel sheet and strip in coils from Mexico for 
the period July 1, 2000 to June 30, 2001. See Stainless Steel Sheet and 
Strip in Coils from Mexico; Preliminary Results of Antidumping Duty 
Administrative Review (67 FR 51204). In response to the Department's 
invitation to comment on the preliminary results of this review, 
Mexinox (the respondent) and Allegheny Ludlum, AK Steel Corporation, 
J&L Specialty Steel, Inc., Butler-Armco Independent Union, Zanesville 
Armco Independent Union, and the United Steelworkers of America, AFL-
CIO/CLC (collectively, petitioners) filed their case briefs on 
September 12, 2002. Petitioners submitted their rebuttal brief on 
September 20, 2002 and Mexinox filed its rebuttal brief on September 
23, 2002. On November 7, 2002, we published in the Federal Register our 
notice of the extension of time limits for this review (67 FR 67832). 
This extension established the deadline for this final as February 3, 
2003.

Period of Review

    The period of review (POR) is July 1, 2000 to June 30, 2001.

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

[[Page 6890]]

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 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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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, Group III, Import Administration, to Faryar 
Shirzad, Assistant Secretary for Import Administration, dated February 
3, 2003, which is hereby adopted by this

[[Page 6891]]

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 via the Internet at http://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 the comments received, we have made four 
changes to the margin calculation:
[sbull] First, we revised the U.S. indirect selling expense (ISE) ratio 
by removing raw material sales from the denominator and by deducting an 
amount attributable to expenses incurred in selling the raw materials 
from the numerator. We used this revised ratio to recalculate U.S. 
ISEs.
[sbull] Second, we recalculated Mexinox's interest expense ratio by: 
(1) disallowing its reported offset to short-term interest income and 
instead estimating short-term interest income based on the consolidated 
financial statements of ThyssenKrupp AG, its parent at the highest 
level of consolidation; (2) including an amount representing foreign 
exchange gains and losses incurred by ThyssenKrupp AG on financing 
activities; and (3) deducting an amount representing packing expenses 
from the denominator.
[sbull] Third, we recalculated Mexinox's general and administrative 
(G&A) expense ratio by including employees' statutory profit sharing in 
the numerator and by deducting packing expenses from the denominator.
[sbull] Fourth, we included in the denominator of the assessment rate 
the entered value of subject merchandise that entered during the 
previous period of review or during the instant review for consumption 
in the United States but was sold to unaffiliated parties outside the 
United States during the instant review.
    These changes are discussed in the relevant sections of the 
Decision Memorandum.

Final Results of Review

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

------------------------------------------------------------------------
                                                     Weighted Average
          Manufacturer/[chyph]Exporter                [chyph]Margin
                                                       (percentage)
------------------------------------------------------------------------
Mexinox........................................                     6.15
------------------------------------------------------------------------

Assessment

    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. In accordance 
with 19 CFR 351.212(b), we have calculated importer-specific ad valorem 
duty assessment rates. Where the importer-specific assessment rate is 
above de minimis, we will instruct Customs to assess duties on all 
entries of subject merchandise by that importer. We will direct the 
Customs Service to assess the resulting percentage margins against the 
entered Customs values for the subject merchandise on each of that 
importer's entries under the relevant order during the review period 
(see 19 CFR 351.212(a)).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of these final results for all shipments of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the publication date of these final results of administrative 
review, as provided by section 751(a)(1) of the Tariff Act: (1) the 
cash deposit rate for the reviewed company will be the rate listed 
above; (2) 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 (3) the cash deposit rate for all other 
manufacturers or exporters will continue to be the ``all others'' rate 
of 30.85 percent, which is the all others rate established in the LTFV 
investigation. These deposit requirements, when imposed, shall remain 
in effect until publication of the final results of the next 
administrative review.

Notification to 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 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 occurred and the subsequent 
assessment of double antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305, that continues to govern 
business proprietary
    information in this segment of the proceeding. 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 the terms of an APO is a sanctionable 
violation.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.

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

Appendix Issues in Decision Memorandum

Adjustments to Normal Value
Comment 1. Additional Circumstance of Sale Adjustment to Normal Value
Comment 2: Home Market Indirect Selling Expenses
Comment 3: Level-of-Trade Adjustment
Adjustments to United States Price
Comment 4: CEP Profit
Comment 5: Duty Drawback
Comment 6: U.S. Indirect Selling Expenses
Comment 7: Additional Mexinox USA Expenses
Comment 8: Calculation of the U.S. Interest Rate
Comment 9: Inventory Carrying Costs
Cost of Production
Comment 10: Interest Expenses
Comment 11: General & Administrative Expenses
Comment 12: Whether to Include Services Supplied by Mexinox USA in 
Material Costs
Comment 13: Scrap Recovery Values
Further Manufacturing
Comment 14: Value-Added Costs by Ken-Mac
Assessment Rates
Comment 15: Assessment Rate Methodology
Margin Calculations
Comment 16: Treatment of Non-Dumped Sales
[FR Doc. 03-3406 Filed 2-10-03; 8:45 am]
BILLING CODE 3510-DS-S