[Federal Register Volume 69, Number 27 (Tuesday, February 10, 2004)]
[Notices]
[Pages 6259-6262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2861]


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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, 2003, 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 (68 FR 47043). 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, 2001 to 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. The final 
weighted-average dumping margin for the reviewed firm is listed below 
in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: February 10, 2004.

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, 2003, 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, 2001 to June 30, 2002. See Stainless Steel Sheet and 
Strip in Coils from Mexico; Preliminary Results of Antidumping Duty 
Administrative Review, 68 FR 47043 (August 7, 2003). In response to the 
Department's invitation to comment on the preliminary results of this 
review, Mexinox (``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 8, 2003. Mexinox and petitioners submitted their 
rebuttal briefs on September 15, 2003. On October 14, 2003, we 
published in the Federal Register our notice of the extension of time 
limits for this review. See Stainless Steel Sheet and Strip in Coils 
from Mexico; Antidumping Duty Administrative Review; Extension of Time 
Limit, 68 FR 59162 (October 14, 2003). This extension established the 
deadline for this final as February 3, 2004.

Period of Review

    The period of review (``POR'') is July 1, 2001 to June 30, 2002.

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, 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.
    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

[[Page 6260]]

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.''\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 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.''\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 James J. 
Jochum, Assistant Secretary for Import Administration, dated February 
3, 2004, 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 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 
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 the comments received, we have made the 
following changes to the margin calculation:
 We have recalculated Mexinox's handling expenses 
(HANDLEH) using the actual warehousing and freight expenses incurred by 
Mexinox Trading.
 We revised the denominator of the U.S. indirect 
selling expense ratio (INDIRSU) by subtracting the value of Mexinox 
USA's raw material sales to

[[Page 6261]]

Mexinox, and revised the numerator of the U.S. indirect selling expense 
ratio by deducting an amount attributable to the expenses incurred in 
selling these raw materials. We also adjusted the numerator of the U.S. 
indirect selling expense ratio to account for Mexinox's historical bad 
debt experience. We then used the revised numerator and denominator to 
calculate a revised U.S. indirect selling expense ratio.
 We recalculated the first component of Mexinox's 
direct selling expense ratio (DIRSELU) in order to allocate the 
expenses incurred during the POR to the relevant POR sales.
 We included in the denominator of the assessment 
rate the entered value of subject merchandise that entered for 
consumption in the United States but was first sold to unaffiliated 
parties outside the United States.
 We removed the programming language which had 
adjusted the billing adjustment (BILLADJU) reported for a certain U.S. 
sale (U.S. surprise sale 2).
 We revised our calculation of the constructed export 
price profit rate to include the indirect selling expenses incurred by 
Mexinox USA's affiliated reseller, Ken-Mac Metals, Inc. (KINDSU), in 
total U.S. selling expenses.
 We amended our calculation of cost of production and 
constructed value to exclude the cost of products (CONNUMs) produced by 
non-Mexican manufacturers.
 We revised Mexinox's general and administrative 
(``G&A'') expense ratio by excluding ``stock strip devaluation,'' 
``finished product returns to WIP,'' and ``finished product inventory 
movements'' from the cost of goods sold denominator. We then applied 
the revised G&A ratio to the cost of manufacture (``COM'') prior to 
making the adjustments for major inputs.
 We applied the financial expense ratio used in the 
preliminary results to the COM prior to making the major input 
adjustments.
    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, 2001 to June 30, 2002:

------------------------------------------------------------------------
                                                       Weighted Average
               Manufacturer/Exporter                 Margin (percentage)
------------------------------------------------------------------------
Mexinox............................................                 7.43
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Assessment

    The Department shall determine and Customs and Border Protection 
(``Customs'') shall assess antidumping duties on all appropriate 
entries. In accordance with 19 C.F.R. Sec.351.212(b)(1), 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. The Department will issue appropriate assessment 
instructions directly to Customs within 15 days of publication of these 
final results of review. 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. See 19 C.F.R. Sec.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. See Notice of Final Determination of Sales at Less 
Than Fair Value: Stainless Steel Sheet and Strip in Coils from Mexico, 
64 FR 30790 (June 8, 1999). 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 C.F.R. Sec.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 C.F.R. Sec.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, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix Issues in Decision Memorandum

Adjustments to Normal Value and U.S. Price
Comment 1: Home Market and U.S. Post-Sale Price Adjustments
Adjustments to Normal Value
Comment 2: Level of Trade
Comment 3: Whether the Home Market Sales Database is Complete
Comment 4: Indirect Selling Expenses Incurred in the Home Market
Comment 5: Treating Certain Home Market Adjustments as Commissions
Adjustments to United States Price
Comment 6: U.S. Indirect Selling Expenses
Comment 7: U.S. Credit Expenses
Comment 8: U.S. Inventory Carrying Costs
Comment 9: Duty Drawback
Comment 10: U.S. Direct Selling Expenses
Comment 11: Billing Adjustment for U.S. Surprise Sale 2
Comment 12: CEP Profit Rate
Cost of Production
Comment 13: Weight-Averaging Costs of Subject and Non-Subject 
Merchandise
Comment 14: General and Administrative Expenses
Comment 15: Financial Expenses
Comment 16: Major Inputs
Comment 17: Verification Findings from Companion Reviews
Comment 18: Offset to Production Costs

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Assessment Rates
Comment 19: Assessment Rate Methodology
Margin Calculations
Comment 20: Treatment of Non-Dumped Sales
[FR Doc. 04-2861 Filed 2-9-04; 8:45 am]
BILLING CODE 3510-DS-S