[Federal Register Volume 68, Number 54 (Thursday, March 20, 2003)]
[Notices]
[Pages 13686-13688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6734]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Notice of Amended Final Results of Antidumping Duty 
Administrative Review: Stainless Steel Sheet and Strip in Coils From 
Mexico

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

ACTION: Notice of amended final results of antidumping duty 
administrative review of stainless steel sheet and strip from Mexico.

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EFFECTIVE DATE: March 20, 2003.
SUMMARY: On February 11, 2003, the Department of Commerce (the 
Department) published in the Federal Register its notice of final 
results of the antidumping duty administrative review of stainless 
steel sheet and strip in coils from Mexico for the period July 1, 2000 
through June 30, 2001. See Stainless Steel Sheet and Strip in Coils 
from Mexico; Final Results of Antidumping Duty Administrative Review, 
68 FR 6889 (February 11, 2003). We are amending our final determination 
to correct ministerial errors alleged by respondent and petitioners.

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:

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 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

[[Page 13687]]

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\
    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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    \1\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
    \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 420F, 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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Amendment to Final Results

Ministerial Error Allegation by Respondent

    On February 10, 2003, respondent ThyssenKrupp Mexinox, S.A. de C.V. 
(Mexinox) timely filed, pursuant to 19 CFR 351.224(c)(2), an allegation 
that the Department made one ministerial error in its final results. 
Mexinox states the Department recalculated U.S. indirect selling 
expenses (INDIRSU) for the final results by multiplying the revised 
indirect selling expense ratio by the net price, which was calculated 
as gross unit price plus billing adjustments minus rebates. Mexinox 
alleges the Department erred in its recalculation of INDIRSU by failing 
to deduct early payment discounts from gross unit price. Therefore, 
Mexinox requests that the Department correct this error. Petitioners 
submitted no rebuttal comments to this clerical error allegation.

Department's Position

    We agree with Mexinox. Mexinox calculated its indirect selling 
expense ratio using a sales denominator net of discounts and other 
adjustments. See, e.g., Mexinox's May 8, 2002 supplemental 
questionnaire response at Attachment C-36; see also the Mexinox USA 
sales reconciliation in Mexinox's July 17, 2002 supplemental 
questionnaire response at Attachment A-39-A. Although we revised the 
indirect selling denominator for the final results by deducting raw 
material sales, the denominator remains net of discounts and other 
adjustments. Since the sales denominator of the indirect selling 
expense ratio is net of discounts and other adjustments, it is proper 
to deduct early payment discounts from the gross unit price before 
applying the indirect selling expense ratio. Therefore, we have amended 
our final results by subtracting early payment discounts from the gross 
unit price in our recalculation of U.S. indirect selling expenses. See 
line 2338 of the margin calculation program.

Ministerial Error Allegation by Petitioners

    On February 11, 2003, 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) timely filed a

[[Page 13688]]

ministerial error allegation. Petitioners allege that for sales made by 
Mexinox's U.S. affiliated reseller, Ken-Mac Metals, Inc. (Ken-Mac), the 
Department inadvertently set to zero further manufacturing expenses 
incurred by Mexinox USA. Thus, petitioners request that the Department 
correct this error by removing two lines of code from the final margin 
calculation program. Mexinox did not comment on this ministerial error 
allegation.

Department's Position

    We agree with petitioners. In our margin calculation program, we 
calculated U.S. price based on sales made by Mexinox USA and Ken-Mac. 
Mexinox reported sales made by these entities in two separate 
databases. To append the two databases without error, if a particular 
variable appeared in one database but not the other, we assigned a 
value of zero to that variable in the latter database. In doing so, we 
erroneously set the variables FURMAN1U and FURMAN2U to zero when 
introducing the database containing Ken-Mac's sales. Because these two 
variables are not unique to the Mexinox USA sales listing but rather 
appear in the Ken-Mac sales listing as well, they should not have been 
set to zero. Thus, we have amended this error by removing the language 
found at lines 2372 and 2373 of the final margin calculation program.

Amended Final Results of Review

    In accordance with 19 CFR 351.224(e), we have amended the final 
results of the 2000-2001 antidumping duty administrative review of 
stainless steel sheet and strip in coils from Mexico, as noted above. 
However, the weighted-average percentage margin for Mexinox remains 
unchanged at 6.15 percent.
    This administrative review and notice is issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: March 14, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-6734 Filed 3-19-03; 8:45 am]
BILLING CODE 3510-DS-P