[Federal Register Volume 68, Number 239 (Friday, December 12, 2003)]
[Notices]
[Pages 69379-69382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E3-00547]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-814]


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

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 in Coils from France.

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SUMMARY: On August 7, 2003, the Department of Commerce (``Department'') 
published the preliminary results of the administrative review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
France. The merchandise covered by the order is stainless steel sheet 
and strip in coils (``SSSS'') as described in the ``Scope of the 
Review'' section of the Federal Register notice. This review covers 
imports of subject merchandise from Ugine, S.A (``Ugine''). The period 
of review (``POR'') is July 1, 2001, through June 30, 2002.
    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 of review. The final weighted-average 
dumping margin for Ugine is listed below in the section entitled 
``Final Results of the Review.''

EFFECTIVE DATE:  December 12, 2003.

FOR FURTHER INFORMATION CONTACT: Cheryl Werner, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 
482-2667.

SUPPLEMENTARY INFORMATION:

Background

    On August 7, 2003, the Department published the Preliminary Results 
of Antidumping Duty Administrative Review: Stainless Steel Sheet and 
Strip in Coils from France, 68 FR 47049 (August 7, 2003) (``Preliminary 
Results''). In accordance with 19 CFR 351.309(c)(ii), we invited 
parties to comment on our Preliminary Results. On September 8, 2003, 
Ugine and the Petitioners filed comments. On September 15, 2003, Ugine 
and the Petitioners\1\ filed rebuttal comments. We

[[Page 69380]]

have now completed the administrative review in accordance with section 
751 of the Act.
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    \1\ The Petitioners in this case are Allegheny Ludlum, AK Steel 
Corporation, North American Stainless, Butler-Armco Independent 
Union, Zanesville Armco Independent Organization Inc., and the 
United Steelworkers of America, AFL-CIO/CLC.
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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 currently classifiable 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 review 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 HTS, ``Additional 
U.S. Note'' 1(d).
    Flapper valve steel is also excluded from the scope of the order. 
This product 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 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 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 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.'' \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 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.'' \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 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

[[Page 69381]]

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 order. 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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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, Group III, to James J. 
Jochum, Assistant Secretary for Import Administration, dated December 
5, 2003, which is hereby adopted by this notice. A list of the issues 
which parties 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.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculation. The changes to the margin calculations include 
the following: (1) we corrected the double-counting of warranty 
expenses in the total cost of production calculation; (2) we removed 
imputed interest expenses from the total cost of production 
calculation; (3) we deducted commission expenses from the net price 
used in the arm's-length test; (4) we revised the offset for sales 
where the commission amount on the matched U.S. sale was zero.

Successorship

    We determine Ugine & ALZ France to be the successor to Ugine for 
purposes of determining antidumping duty liability. For a complete 
discussion of the basis for this decision see the Preliminary Results 
(68 FR 47051, 47052). No parties have commented on our finding in the 
Preliminary Results. Therefore, Ugine & ALZ France shall be assigned 
the antidumping duty deposit rate in these Final Results.

Final Results of Review

    We determine that the following percentage margin exists for the 
period July 1, 2001, through June 30, 2002:

          Stainless Steel Sheet and Strip in Coils from France
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                                                              Weighted-
                                                               Average
               Manufacturer/exporter/reseller                   Margin
                                                              (percent)
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Ugine & ALZ France.........................................         2.93
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    The Department shall determine, and U.S. Customs and Border 
Protection shall assess, antidumping duties on all appropriate entries. 
The Department will issue appraisement instructions directly to U.S. 
Customs and Border Protection. For duty-assessment purposes, we 
calculated 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 
France 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 rate for Ugine & ALZ France 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) 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 9.38 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

Reimbursement of Duties

    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

[[Page 69382]]

reimbursement of the antidumping duties or countervailing duties 
occurred and the subsequent assessment of double antidumping duties or 
countervailing duties.

Notification of Interested Parties

    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) of the Act.

    Dated: December 5, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.

APPENDIX 1--ISSUES IN THE DECISION MEMORANDUM

1. Date of Sale
2. U.S. Sales Database
3. Affiliated Freight-Forwarder Expenses
4. U.S. Inventory Carrying Costs
5. Home Market Credit Expenses
6. Home Market Inland Freight Expenses
7. Home Market Rebate
8. Affiliated Inland Freight Carrier Expenses
9. Ugine France Service Commissions
10. Indirect Selling Expenses
11. Gross-to-Net Adjustment
12. Constructed Export Price Offset
13. Negative Dumping Margins
14. Home Market Warranty Expenses
15. Interest Expenses
16. Commission Expenses in Arm's-Length Test
17. Home Market Commissions
[FR Doc. E3-00547 Filed 12-11-03; 8:45 am]
BILLING CODE 3510-DS-S