[Federal Register Volume 68, Number 239 (Friday, December 12, 2003)]
[Notices]
[Pages 69382-69384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E3-00549]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-824]


Stainless Steel Sheet and Strip in Coils from Italy: Final 
Results of Antidumping Administrative Review

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

ACTION:  Notice of Final Results in the Antidumping Duty Administrative 
Review of Stainless Steel Sheet and Strip in Coils from Italy.

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SUMMARY:  On August 7, 2003, the U.S. Department of Commerce 
(``Department'') published in the Federal Register the preliminary 
results of its administrative review of the antidumping duty order on 
stainless steel sheet and strip in coils from Italy. See Preliminary 
Results of Antidumping Duty Administrative Review: Stainless Steel 
Sheet and Strip in Coils from Italy, 68 FR 47032 (August 7, 2003) 
(``Preliminary Results''). This review covers imports of subject 
merchandise from ThyssenKrupp Acciai Speciali Terni S.p.A (``TKAST'') 
and ThyssenKrupp AST USA, Inc.(``TKAST USA''). 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 to our analysis from the preliminary results of review. 
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: December 12, 2003.

FOR FURTHER INFORMATION CONTACT:  Catherine Bertrand or Robert Bolling, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: 202-482-3207 or 202-482-3434, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 7, 2003, the Department published in the Federal Register 
the preliminary results of its administrative review of the antidumping 
duty order on stainless steel sheet and strip in coils from Italy. See 
Preliminary Results. We invited parties to comment on our preliminary 
results of review. We received written comments on September 29, 2003, 
from petitioners\1\ and respondents. On October 6, 2003, we received 
rebuttal comments from respondents and on October 7, 2003, we received 
rebuttal comments from petitioners.
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    \1\ Petitioners in this case are Allegheny Ludlum Corporation, 
AK Steel Corporation, J&L Specialty Steel, Inc., North American 
Stainless, United Steelworkers of America, AFL-CIO/CLC, Butler Armco 
Independent Union and Zanesville Armco Independent Organization, 
Inc.
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Scope of 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 currently classifiable in 
the Harmonized Tariff Schedule of the United States (HTUS'') 
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 HTUS 
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 HTUS 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

[[Page 69383]]

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 HTUS, ``Additional 
U.S. Note'' 1(d).
    Flapper valve steel is also excluded from the scope of this review. 
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 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 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 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 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 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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    Also excluded are three specialty stainless steels typically used 
in certain industrial blades and surgical and medical instruments. 
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.'' \7\ 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'' \8\ 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.'' \9\
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    \6\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \7\ ``GIN4 Mo'' is the proprietary grade of Hitachi Metals 
America, Ltd.
    \8\ ``GIN5'' is the proprietary grade of Hitachi Metals America, 
Ltd.
    \9\ ``GIN6'' is the proprietary grade 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, Import Administration, to James J.

[[Page 69384]]

Jochum, Assistant Secretary for Import Administration, dated December 
5, 2003, which is hereby adopted by this notice. A list of the issues 
which parties have raised and to which we have responded are 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 the Decision 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 TKAST during the course of this 
review.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations for TKAST. See Analysis for the Final Results 
of Review of Stainless Steel Sheet and Strip in Coils from Italy, 
(``Final Analysis Memorandum''), dated December 5, 2003. The changes to 
the margin calculation include the following: (1) we recalculated 
inventory carrying costs for the U.S. market, see Comment 3 of the 
Decision Memorandum; (2) we removed bad debt from indirect U.S. selling 
expenses and reallocated it to direct U.S. selling expenses, see 
Comment 4 of the Decision Memorandum.

Final Results of Review

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

------------------------------------------------------------------------
                                                             Weighted-
                                                          [chyph]average
          Producer/Manufacturer/[chyph]Exporter            [chyph]margin
                                                             (percent)
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ThyssenKrupp Acciai Speciali Terni S.p.A................            1.62
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Assessment Rates

    The Department will determine, and the U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. In accordance with 19 CFR 351.212(b)(1), we have 
calculated an importer-specific assessment rate for merchandise subject 
to this review. The Department will issue appropriate assessment 
instructions directly to the CBP within 15 days of publication of these 
final results of review. We will direct the CBP to assess the resulting 
assessment rates against the entered customs values for the subject 
merchandise on each of the importer's entries during the review period. 
For 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 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 
Italy 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 TKAST 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 11.23 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 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) (1) of the Act.

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

APPENDIX--ISSUES IN THE DECISION MEMORANDUM

1. Whether the Department should Allow TKAST's Constructed Export Price 
Offset Adjustment
2. Whether the Department Properly Calculated Home Market Credit 
Expenses
3. Whether the Department should Correct TKAST's Understatement of the 
Inventory Holding Period for U.S. Sales
4. Whether the Department should Account for TKAST's Loss on its Unpaid 
U.S. Sales
5. Whether the Department should Set Negative Margins to Zero in 
Calculating the Aggregate Margin
[FR Doc. E3-00549 Filed 12-11-03; 8:45 am]
BILLING CODE 3510-DS-S