[Federal Register Volume 69, Number 221 (Wednesday, November 17, 2004)]
[Notices]
[Pages 67309-67311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3174]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Certain Stainless Steel Sheet and Strip in Coils From Mexico; 
Preliminary Results of the Sunset Review of Antidumping Duty Order

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

ACTION: Notice of antidumping duty order of sunset review on certain 
stainless steel sheet and strip in coils from Mexico; preliminary 
results.

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SUMMARY: On June 1, 2004, the Department of Commerce (``the 
Department'') initiated a sunset review of the antidumping duty order 
of certain stainless steel sheet and strip in coils from Mexico.\1\ On 
the basis of the notice of intent to participate, adequate substantive 
responses and rebuttal comments filed on behalf of the domestic and 
respondent interested parties, the Department is conducting a full 
sunset review of the antidumping duty order pursuant to section 
751(e)(3)(B) of the Tariff Act of 1930, as amended (``the Act'') and 
section 351.218(e)(2)(i) of the Department's regulations. As a result 
of this sunset review, the Department preliminarily finds that 
revocation of the antidumping duty order would likely lead to 
continuation or recurrence of dumping at the levels listed below in the 
section entitled ``Preliminary Results of Review''.
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    \1\ See Initiation of Five-Year (``Sunset'') Reviews, 69 FR 
30874 (June 1, 2004) (``Notice of Initiation'').

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DATES: Effective Date: November 17, 2004.

FOR FURTHER INFORMATION CONTACT: Martha V. Douthit, Office of Policy, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street & Constitution Avenue, NW., 
Washington, DC, 20230; telephone: (202) 482-5050.

SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2004, the Department published its notice of initiation 
of the first sunset review of the antidumping duty order on stainless 
steel sheet and strip in coils from Mexico, in accordance with section 
751(c) of the Act. See Initiation of Five-Year (``Sunset'') Reviews, 69 
FR 30874 (June 1, 2004).
    The Department received Notices of Intent to Participate on behalf 
of Allegheny Ludlum Corporation, North America Stainless, Nucor 
Corporation, Local 3303 United Auto Workers (formerly Butler Armco 
Independent Union), the United Steelworkers of America, AFL-CIO/CLC, 
and the Zanesville Armco Independent Organization, Inc, (collectively, 
``domestic interested parties''), within the applicable deadline 
specified in section 351.218(d)(1)(i) of the Department's regulations. 
Domestic interested parties claimed interested party status pursuant to 
sections 771(9)(C) and (D) of the Act. The Department received a 
complete substantive response to the notice of initiation from the 
domestic interested parties within the 30-day deadline specified in the 
Department's regulations under section 351.218(d)(3)(i). The Department 
received a complete substantive response from respondent interested 
parties, ThyssenKrupp Mexinox S.A. de C.V. (``Mexinox'') and Mexinox 
USA, Inc. (``Mexinox USA''), (collectively, ``respondent''), within the 
applicable deadline specified in section 351.218(d)(3)(i).
    On July 2, 2004, the Department received a request from domestic 
interested parties for an extension of the deadline for filing rebuttal 
comments to the substantive response. Pursuant to Section 351.302(b) of 
the Department's regulations, domestic and respondent parties were 
granted an extension to file rebuttal comments to the substantive 
responses until July 9, 2004. On July 9, 2004, the Department received 
rebuttal comments to the substantive response from the domestic 
interested parties and the respondent.
    On September 27, 2004, the Department published a notice of 
extension of time limits for its preliminary results of review until

[[Page 67310]]

November 4, 2004.\2\ Final results in the full sunset review of this 
antidumping duty order is scheduled for April 27, 2005.
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    \2\ See Stainless Steel Sheet & Strip in Coils from Mexico; 
Extension of Time Limits for Preliminary and Final Results of Full 
(``Sunset'') Review of Antidumping Duty Order, 69 FR 57673 
(September 27, 2004).
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    Section 351.218(e)(1)(ii)(A) of the Department's regulations 
provides that the Secretary normally will conclude that respondent 
interested parties have provided adequate response to a notice of 
initiation where it receives complete substantive responses from 
respondent interested parties accounting on average for more than 50 
percent, by volume, or value basis, if appropriate, of the total 
exports of the subject merchandise to the United States over the five 
calender years preceding the year of publication of the notice of 
initiation. On July 21, 2004, the Department determined that Mexinox's 
response constituted an adequate response to the notice of initiation. 
In accordance with section 351.218(e)(2)(i) of the Department's 
regulations, the Department determined to conduct a full sunset review 
of this antidumping duty order.

Scope of the Order

    For purposes of this sunset 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 
(i.e., 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: 7219.13.00.31, 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.\3\
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    \3\ See Chapter 72 of the HTSUS, ``Additional U.S. Note'' 1(d).
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    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 sulfide 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 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. his 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.'' \4\
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    \4\ ``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

[[Page 67311]]

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.'' \5\
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    \5\ ``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.'' \6\
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    \6\ ``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 (i.e., 
carpet knives).\7\ 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. 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 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.'' \8\
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    \7\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \8\ ``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 this sunset review are addressed in the 
``Issues and Decision Memorandum (``Decision Memo'') from Ronald K. 
Lorentzen, Acting Director, Office of Policy, Import Administration, to 
Jeffrey A. May, Acting Assistant Secretary for Import Administration, 
dated November 4, 2004, which is hereby adopted by this notice. The 
issues discussed in the Decision Memo include the likelihood of 
continuation or recurrence of dumping and the magnitude of the margin 
likely to prevail if the antidumping duty order were revoked. Parties 
can find a complete discussion of all issues raised in this sunset 
review and the corresponding recommendations in this public memo, which 
is on file in room B-099 of the main Commerce Building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn, under the 
heading ``November 2004''. The paper copy and electronic version of the 
Decision Memo are identical in content.

Preliminary Results of Review

    The Department preliminarily determines that revocation of the 
antidumping duty order on certain stainless steel sheet and strip in 
coils from Mexico is likely to lead to continuation or recurrence of 
dumping at the following weighted-average margins:

------------------------------------------------------------------------
                                                       Weighted-average
         Manufacturers/producers/exporter's            margin (percent)
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Mexinox.............................................               30.85
All Others..........................................               30.85
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    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). Any 
hearing, if requested, will be held on January 10, 2005, in accordance 
with 19 CFR 351.310(d). Interested parties may submit case briefs no 
later than January 3, 2005, in accordance with 19 CFR 351.309(c)(1)(i). 
Rebuttal briefs, which must be limited to issues raised in the case 
briefs, may be filed not later than January 7, 2005. The Department 
will issue a notice of final results of this sunset review, which will 
include the results of its analysis of issues raised in any such 
briefs, no later than January 27, 2005.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: November 4, 2004.
Jeffrey A. May,
Assistant Secretary for Import Administration.
[FR Doc. E4-3174 Filed 11-16-04; 8:45 am]
BILLING CODE 3510-DS-P