[Federal Register Volume 69, Number 224 (Monday, November 22, 2004)]
[Notices]
[Pages 67892-67894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3278]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-834, A-583-831, A-412-818]


Stainless Steel Sheet and Strip in Coils from The Republic of 
Korea, Taiwan and the United Kingdom; Final Results of the Expedited 
Five Year (``Sunset'') Reviews of Antidumping Duty Orders

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

ACTION: Notice of Final Results of the Expedited Five Year (``Sunset'') 
Reviews of Antidumping Duty Orders on Stainless Steel Sheet and Strip 
in Coils from the Republic of Korea, Taiwan, and the United Kingdom.

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SUMMARY: On June 1, 2004, the Department of Commerce (``the 
Department'') initiated sunset reviews of the antidumping duty orders 
on stainless steel sheet and strip in coils (``SSSS'') from the 
Republic of Korea (``Korea''), Taiwan, and the United Kingdom 
(``UK'').\1\ On the basis of the notice of intent to participate, 
adequate substantive comments filed on behalf of the domestic 
interested parties, and inadequate response from respondent interested 
parties, the Department conducted expedited sunset reviews of the 
antidumping duty orders pursuant to section 751(c)(3)(B) of the Tariff 
Act of 1930, as amended, (``the Act'') and section 351.218(e)(1)(ii)(B) 
of the Department's regulations. As a result of these sunset reviews, 
the Department determined that revocation of the antidumping duty 
orders would likely lead to continuation or recurrence of dumping at 
the levels listed below in the section entitled ``Final 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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EFFECTIVE DATE: November 22, 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:

Scope of Orders

    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

[[Page 67893]]

certified at the time of entry to be used in the manufacture of razor 
blades.\2\
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    \2\ 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.''\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 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 (i.e., 
carpet knives).\6\ 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.''\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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Background

    On June 1, 2004, the Department initiated sunset reviews of the 
antidumping duty orders on SSSS from Korea, Taiwan, and the UK in 
accordance with section 751(c) of the Act. See Notice of Initiation, 69 
FR 30874 (June 1, 2004).
    The Department received notices of intent to participate within the 
applicable deadline specified in section 351.218(d)(1)(i) of the 
Department's regulations on behalf of Allegheny Ludlum Corporation 
(``Allegheny Ludlum''), North America Stainless (``NAS''), Nucor 
Corporation (``Nucor''), the United Steelworkers of America, AFL-CIO/
CLC (``USWA''); Local 3303 United Auto Workers (``Local 3303

[[Page 67894]]

UAW'')(formerly the Butler Armco Independent Union; and the Zanesville 
Armco Independent Organization, Inc. (``ZAIO'')(collectively ``domestic 
interested parties''). The domestic interested parties claimed 
interested-party status as U.S. producers of the subject merchandise, 
or certified unions whose workers are engaged in the production of the 
subject merchandise in the United States as defined by section 
771(9)(C) and (D) of the Act.
    The Department received complete substantive responses from the 
domestic interested parties within the 30-day deadline specified in the 
Department's regulations under section 351.218(d)(3)(i). However, the 
Department did not receive any responses from respondent interested 
parties to these proceedings. As a result, pursuant to section 
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), the 
Department conducted expedited sunset reviews of these antidumping duty 
orders.
    These antidumping duty orders remain in effect for manufacturers, 
producers, and exporters of SSSS from Korea, Taiwan, and the UK, except 
for Inchon Iron & Steel Co., a Korean company for which the order was 
revoked in the investigation, and Tung Mung and Chang Mein, Taiwanese 
companies.

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 James J. 
Jochum, Assistant Secretary for Import Administration, dated November 
15, 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 orders were revoked. Parties can find a 
complete discussion of all issues raised in these sunset reviews 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.

Final Results of Reviews

    The Department determines that revocation of the antidumping duty 
orders on SSSS from Korea, Taiwan, and the UK would likely lead to 
continuation or recurrence of dumping at the following weighted-average 
margins:

                                  KOREA
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                                                       Weighted-Average
          Manufacturers/Producers/Exporters            Margin (Percent)
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POSCO...............................................                2.49
Taihan Electric Wire Co., Ltd.......................               58.79
Daiyang Metal Co., Ltd..............................                5.44
All Others..........................................                2.49
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                                 TAIWAN
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                                                       Weighted-Average
         Manufactureres/Producers/Exporters            Margin (Percent)
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Tung Mung/Ta Chen...................................               15.40
Tung Mung...........................................            Excluded
YUSCO/Ta Chen.......................................               36.44
YUSCO...............................................               21.00
All Others..........................................               12.61
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                                   UK
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                                                       Weighted-Average
          Manufacturer/Producers/Exporters             Margin (Percent)
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Avesta Sheffield Ltd./Avesta Sheffield NAD, Inc.....               14.84
All Others..........................................               14.84
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    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is 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 the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: November 15, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-3278 Filed 11-19-04; 8:45 am]
BILLING CODE 3510-DS-S