[Federal Register Volume 69, Number 68 (Thursday, April 8, 2004)]
[Notices]
[Pages 18536-18539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8012]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-845]


Stainless Steel Sheet and Strip in Coils From Japan: Rescission 
of Antidumping Duty Administrative Review

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

ACTION: Notice of rescission of antidumping duty administrative review.

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SUMMARY: On August 22, 2003, the Department of Commerce 
(``Department'') published in the Federal Register a notice announcing 
the initiation of an administrative review of the antidumping duty 
order on stainless steel sheet and strip in coils (``SSSS'') from 
Japan. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 
(``Initiation'') 68 FR 50750 (August 22, 2003). The period of review 
(``POR'') is July 1, 2002 to June 30, 2003. This review has now been 
rescinded because there were no entries for consumption of subject 
merchandise that are subject to review in the United States during the 
POR.

EFFECTIVE DATE: April 8, 2004.

FOR FURTHER INFORMATION CONTACT: Kit Rudd or James Doyle, Enforcement 
Group III, Office 9, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Room 7866, Washington, DC 20230; telephone 
(202) 482-1385 or (202) 482-0159 respectively.

Scope of Review

    Upon completion of four changed circumstances reviews pursuant to 
section 751(b) of the Act and section 351.216 of the Department's 
regulations, we have excluded certain products from the scope of the 
order. These four excluded products are identified in the scope, infra.
    For purposes of this 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: 7219130031, 7219130051, 7219130071, 7219130081 \1\, 
7219140030, 7219140065, 7219140090, 7219320005, 7219320020, 7219320025, 
7219320035, 7219320036, 7219320038, 7219320042, 7219320044, 7219330005, 
7219330020, 7219330025, 7219330035, 7219330036, 7219330038, 7219330042, 
7219330044, 7219340005, 7219340020, 7219340025, 7219340030, 7219340035, 
7219350005, 7219350015, 7219350030, 7219350035, 7219900010, 7219900020, 
7219900025, 7219900060, 7219900080, 7220121000, 7220125000, 7220201010, 
7220201015, 7220201060, 7220201080, 7220206005, 7220206010, 7220206015, 
7220206060, 7220206080, 7220207005, 7220207010, 7220207015, 7220207060, 
7220207080, 7220208000, 7220209030, 7220209060, 7220900010, 7220900015, 
7220900060, and 7220900080. 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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    \1\ Due to changes to the HTS numbers in 2001, 7219130030, 
7219130050, 7219130070, and 7219130080 are now 7219130031, 
7219130051, 7219130071, and 7219130081, respectively.
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    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 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

[[Page 18537]]

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.'' \2\
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    \2\ ``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.'' \3\
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    \3\ ``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.'' \4\
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    \4\ ``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).\5\ 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.'' \6\
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \6\ ``GIN4 Mo,'' ``GIN5'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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    Also excluded are stainless steel welding electrode strips that are 
manufactured in accordance with American Welding Society (``AWS'') 
specification ANSI/AWS A5.9-93. See Stainless Steel Sheet and Strip in 
Coils from Japan: Final Results of Changed Circumstance Antidumping 
Duty Review, and Determination to Revoke Order in Part, 65 FR 17856 
(April 5, 2000). The products are 0.5 mm in thickness, 60 mm in width, 
and in coils of approximately 60 pounds each. The products are limited 
to the following AWS grade classifications: ER308L, ER 309L, ER316L and 
ER347, and a modified ER 309L or 309LCb which meets the following 
chemical composition limits (by weight):
Carbon--0.03% maximum.
Chromium--20.0-22.0%.
Nickel--10.0-12.0%.
Molybdenum--0.75% maximum.
Manganese--1.0-2.5%.
Silicon--0.65% maximum.
Phosphorus--0.03% maximum.
Sulphur--0.03% maximum.
Copper--0.75% maximum.
Columbium--8 times the carbon level minimum--1.0% maximum.
    Also excluded is certain stainless steel used for razor blades, 
medical surgical blades, and industrial blades, and sold under 
proprietary names such as DSRIK7, DSRIK8, and DSRIK9. See Stainless 
Steel Sheet and Strip in Coils from Japan: Final Results of Changed 
Circumstance Antidumping Duty Review, and Determination to Revoke Order 
in Part, 65 FR 54841 (September 11, 2000). This stainless steel strip 
in coils is a specialty product with a thickness of 0.15 mm to 1.000 
mm, or 0.006 inches to 0.040 inches, and a width of 6 mm to 50 mm, or 
0.250 inches to 2.000 inches. The edge of the product is slit, and the 
finish is bright. The steel contains the following chemical composition 
by weight: Carbon 0.65% to 1.00%, Silicon 1.00% maximum, Manganese 
1.00% maximum, Phosphorus 0.35% maximum, Sulfur 0.25% maximum, Nickel 
0.35% maximum, Chromium 0.15% maximum, Molybdenum 0.30% maximum.

[[Page 18538]]

    Also excluded is certain stainless steel lithographic sheet. See 
Stainless Steel Sheet and Strip in Coils from Japan: Final Results of 
Changed Circumstance Antidumping Duty Review, and Determination To 
Revoke Order in Part, 65 FR 64423 (October 27, 2000). This sheet is 
made of 304-grade stainless steel and must satisfy each of the 
following fifteen specifications. The sheet must have: (1) An ultimate 
tensile strength of minimum 75 KSI; (2) a yield strength of minimum 30 
KSI; (3) a minimum elongation of 40 percent; (4) a coil weight of 4000-
6000 lbs.; (5) a width tolerance of -0/+0.0625 inch; and (6) a gauge 
tolerance of +/-0.001 inch. With regard to flatness, (7) the wave 
height and wave length dimensions must correspond to both edge wave and 
center buckle conditions; (8) the maximum wave height shall not exceed 
0.75 percent of the wave length or 3 mm (0.118 inch), whichever is 
less; and (9) the wave length shall not be less than 100 mm (3.937 
inch). With regard to the surface, (10) the surface roughness must be 
RMS (RA) 4-8; (11) the surface must be degreased and no oil will be 
applied during the slitting operation; (12) the surface finish shall be 
free from all visual cosmetic surface variations or stains in spot or 
streak form that affect the performance of the material; (13) no 
annealing border is acceptable; (14) the surface finish shall be free 
from all defects in raised or depression nature (e.g., scratches, 
gouges, pimples, dimples, etc.) exceeding 15 microns in size and with 
regard to dimensions; and (15) the thickness will be .0145 +/-.001 and 
the widths will be either 38'', 38.25'', or 43.5'' and the thickness 
for 39'' material will be .0118 +/-.001 inches. Also excluded is nickel 
clad stainless steel sheet and strip in coils from Japan. See Stainless 
Steel Sheet and Strip in Coils from Japan: Final Results of Changed 
Circumstance Antidumping Duty Review, and Determination to Revoke Order 
in Part, 65 FR 77578 (December 12, 2000). This nickel clad stainless 
steel sheet must satisfy each of the following specifications. The 
sheet must: (1) Have a maximum coil weight of 1000 pounds; (2) with a 
coil interior diameter of 458 mm to 540 mm; (3) with a thickness of .33 
mm and a width of 699.4 mm; (4) fabricated in three layers with a 
middle layer of grade 316L or UNS 531603 sheet and strip sandwiched 
between the two layers of nickel cladding, using a roll bonding process 
to apply the nickel coating to each side of the stainless steel, each 
nickel coating being not less than 99 percent nickel and a minimum .038 
mm in thickness. The resultant nickel clad stainless steel sheet and 
strip also must meet the following additional chemical composition 
requirement (by weight): The first layer weight is 14%, specification 
Ni201 or N02201, Carbon 0.009, Sulfur 0.001, Nickel 99.97, Molybdenum 
0.001, Iron 0.01, Copper 0.001 for a combined total of 99.992. The 
second layer weight is 72%, specification 316L or UNS 513603, Carbon 
0.02, Silicon 0.87, Manganese 1.07, Phosphorus 0.033, Sulfur 0.001, 
Nickel 12.08, Chromium 17.81, Molybdenum 2.26, Iron 65.856 for a 
combined total of 100. The third layer is 14%, specification Ni201 or 
N02201, Carbon 0.01, Sulfur 0.001, Nickel 99.97, Molybdenum 0.001, Iron 
0.01, Copper 0.001 for a combined total of 99.993. The weight average 
weight is 100%. The following is the weighted average: Carbon 0.01706, 
silicon 0.6264, Manganese 0.7704, Phosphorus 0.02376, Sulfur 0.001, 
Nickel 36.6892, Chromium 12.8232, Molybdenum 1.62748, Iron 47.41912, 
and Copper is 0.00028. The above-described material is sold as grade 
316L and manufactured in accordance with UNS specification 531603. This 
material is classified at subheading 7219.90.00.20 of the HTS.

Background

    On July 30, 2003, petitioners \7\ requested an administrative 
review of Kawasaki Steel Corporation \8\ (``KSC''), a Japanese producer 
and exporter of SSSS, with respect to the antidumping order published 
in the Federal Register. On August 22, 2003, the Department initiated 
the review for KSC. See Initiation at 50752. Additionally, on September 
22, 2003, petitioners requested that the Department conduct a duty 
absorption inquiry of KSC.
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    \7\ Allegheny Ludlum Corp., AK Steel Corporation, J&L Specialty 
Steel, Inc., North American Stainless, Butler-Armco Independent 
Union, Zanesville Armco Independent Organization and the United 
Steelworkers of America, AFL-CIO/CLC.
    \8\ The Department notes that this administrative review was 
initiated with respect to subject merchandise manufactured or 
exported by KSC during the POR. Counsel for KSC has referred to JFE 
Steel Corporation (``JFE'') throughout this segment of the 
proceeding as the successor to KSC. However, neither KSC nor 
petitioners have requested that the Department conduct a successor-
in-interest analysis in order to confirm whether for antidumping 
purposes JFE is the successor-in-interest to KSC with respect to the 
subject merchandise. Moreover, as there was no issue in this segment 
other than whether KSC had knowledge that certain merchandise it 
produced was destined for the United States, there was no 
opportunity for the Department to conduct a successor-in-interest 
analysis on its own initiative in this context. Therefore, the 
Department not only will continue to refer to the respondent as KSC 
but also will issue instructions to U.S. Customs and Border 
Protection (``CBP'') reminding it that only merchandise manufactured 
or exported by KSC is eligible to enter using its cash deposit rate.

SUPPLEMENTARY INFORMATION

Case History

    On September 8, 2003, the Department issued an antidumping duty 
questionnaire to KSC. On September 16, 2003, KSC informed the 
Department that it would not be responding to the antidumping duty 
questionnaire as they had ``no reportable sales'' of subject 
merchandise to the United States during the POR. On September 17, 2003 
the Department forwarded a no-shipment inquiry to CBP for circulation 
to all CBP ports requesting information regarding any entries of 
merchandise subject to this review. CBP indicated to the Department 
that there was no record of consumption entries during the POR of SSSS 
from Japan exported by KSC. However, on September 19, 2003, the 
Department conducted a query of CBP import data via CBP's Automated 
Broker Interface (``ABI'') system using the current review's scope as 
defined by HTS number and Japan as the country of export. This query 
provided the Department with data indicating the possibility of entries 
of merchandise subject to this review. On September 26, 2003, KSC 
claimed in writing that they ``had no reportable sales of merchandise 
subject to this review in or for export to the United States during the 
period of review (July 2002 through June 2003).'' On October 30, 2003 
the Department issued a letter to KSC inquiring about possible entries 
of subject merchandise by KSC during the POR. On November 14, 2003, KSC 
replied to the Department's October 30, 2003 submission and requested 
that all the data from CBP be released to the respondent's counsel to 
facilitate KSC's reply. On November 19, 2003, the Department sent a 
letter to KSC providing its counsel with CBP data, subject to an 
administrative protection order (``APO'') on the possible shipments and 
extending KSC's date to respond to the Department's October 30, 2003 
letter to December 8, 2003. On December 17, 2003, the respondent 
submitted a letter in response to the Department's November 19, 2003 
letter. On December 17, 2003, the Department submitted a letter to CBP 
requesting the complete entry packages for the possible KSC POR 
shipments. The Department received the complete entry documentation 
packages from CBP on February 6, 2004. On February 10, 2004 the 
Department released the entry packages under APO and solicited comments 
from petitioners and KSC. The Department received comments

[[Page 18539]]

from KSC on February 18, 2004. On February 17, 2004 the petitioners 
submitted comments and on February 23, 2004, the petitioners submitted 
a request for an extension of time to comment on KSC's February 18, 
2004 submission. The Department received rebuttal comments from KSC on 
February 25, 2004 and March 17, 2004 and from petitioners on March 10, 
2004. In its February 18, 2004 comments, KSC provided data from the 
official record of the original SSSS investigation and the first 
administrative review concerning KSC's local and export merchandise 
identification methodologies which it claimed supports its contention 
that the company had no knowledge that the entries in question were 
eventually exported to the United States by an unrelated third party. 
Based on their contention that they had no knowledge that the entries 
in question were eventually exported to the United States, KSC 
concluded that the administrative review should be rescinded. In its 
March 10, 2004 submission, petitioners agreed that the entries were not 
KSC sales and that the review should be rescinded.

Analysis

    After analyzing the data contained in the CBP-provided customs 
entry packages, petitioners' and KSC's comments and rebuttal comments, 
the Department notes that both parties agree these entries are not KSC 
shipments and the review should be rescinded. The Department further 
notes that KSC accounting records, which show that the entries at issue 
were coded by KSC as a domestic Japanese sale, supports KSC's 
contention that it had no knowledge these home market sales of subject 
merchandise were destined for the United States. Moreover, the data 
contained in the CBP entry packages shows that these entries were more 
likely shipped by a Japanese reseller to the United States. Further, 
based on the identities of the Japanese reseller and the Japanese 
importer, as reported in the CBP entry documentation, these two 
entities are part of the same corporate group one of whose companies 
was assigned a rate in the original investigation. Please see the 
accompanying analysis memorandum for identification of each of these 
entities. See Memorandum to the File from Kit L. Rudd, Case Analyst 
through Edward C. Yang, Director, Office IX regarding Stainless Steel 
Sheet and Strip in Coils from Japan--Rescission Analysis Memorandum 
dated April 1, 2004. We corroborated this understanding by examining 
the group's website which shows all these entities as part of the same 
group. See Id. As a result of this analysis, we conclude that the 
exporter's cash deposit rate should have been posted, rather than the 
manufacturer's (KSC's) rate, and we will instruct CBP to liquidate 
those entries at that rate. Please refer to CBP for further information 
as to the circumstances relating to the incorrect rate claimed. For an 
explanation of the Department's automatic-liquidation regulation 
concerning circumstances where a reseller has been involved in the 
chain of commerce, please refer to the Department's May 6, 2003 
explanation as published in the Federal Register. See Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 
FR 23954 (May 6, 2003).
    Accordingly, we are rescinding this review. The cash deposit rate 
will continue to be the rate established in the most recently completed 
segment of this proceeding.
    This notice is issued and published in accordance with sections 
777(i) of the Act and 19 CFR 351.213(d)(4).

    Dated: April 1, 2004.
Jeffrey May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 04-8012 Filed 4-7-04; 8:45 am]
BILLING CODE 3510-DS-P