[Federal Register Volume 69, Number 224 (Monday, November 22, 2004)]
[Notices]
[Pages 67896-67898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3281]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]


Stainless Steel Sheet and Strip in Coils From Germany; Final 
Results of the Expedited Sunset Review of the Antidumping Duty Order

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

ACTION: Notice of final results of expedited sunset review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
Germany.

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SUMMARY: On June 1, 2004, the Department of Commerce (``the 
Department'') initiated a sunset review of the antidumping duty order 
on stainless steel sheet and strip in coils (``SSSSC'') from Germany 
pursuant to section 751(c) of the Tariff Act of 1930, as amended (``the 
Act''). On the basis of a notice of intent to participate and an 
adequate substantive response filed on behalf of domestic interested 
parties and inadequate responses from respondent interested parties, 
the Department conducted an expedited (120-day) sunset review. As a 
result of this sunset review, the Department finds that revocation of 
the antidumping duty order would be likely to lead to continuation or 
recurrence of dumping. The dumping margins are identified in the Final 
Results of Review section of this notice.

EFFECTIVE DATE: November 22, 2004.

FOR FURTHER INFORMATION CONTACT: Hilary E. Sadler, Esq., Office of 
Policy for Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-4340.

SUPPLEMENTARY INFORMATION: 

Background

    On June 1, 2004, the Department published the notice of initiation 
of the

[[Page 67897]]

sunset review of the antidumping duty order on SSSSC from Germany.\1\ 
On June 16, 2004, the Department received a Notice of Intent to 
Participate from Nucor Corporation; Allegheny Ludlum Corporation; North 
American Stainless; the United Steelworkers of America, AFL-CIO; the 
local 3303 United Auto Workers; and Zanesville Armco Independent 
Organization, Inc. (collectively ``domestic interested parties'') 
within the deadline specified in section 315.218(d)(1)(i) of the 
Department's regulations. The domestic interested parties claimed 
interested party status under section 771(9)(C) and (D) of the Act, as 
domestic manufacturers of SSSSC or certified unions whose workers are 
engaged in the production of SSSSC in the United States. On July 1, 
2004, the Department received a complete substantive response from the 
domestic interested parties within the deadline specified in section 
351.218(d)(3)(i) of the Department's regulations. We did not receive 
responses from any respondent interested parties to this proceeding. As 
a result, pursuant to section 751(c)(3)(B) of the Act and section 
351.218(e)(1)(ii)(C)(2) of the Department's regulations, the Department 
determined to conduct an expedited review of this order.
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    \1\ See Initiation of Five-Year (``Sunset'') Reviews, 69 FR 
30874 (June 1, 2004)(``Initiation Notice'').
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Scope of the Order

    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: 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 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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    \2\ Due to changes to the HTS 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 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 
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.'' \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

[[Page 67898]]

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 (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.'' 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''. \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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Analysis of Comments Received

    All issues raised in these reviews 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 margins likely to 
prevail if the order were to be revoked. 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 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

    We determine that revocation of the antidumping duty order on SSSSC 
from Germany would be likely to lead to continuation or recurrence of 
dumping at the following percentage weighted-average percentage 
margins:

------------------------------------------------------------------------
                                                             Weighted
            Manufacturers/exporters/producers             average margin
                                                             (percent)
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TKN.....................................................           13.48
All Others..............................................           13.48
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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 of the 
Department's regulations. Timely 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 terms 
of an APO is a violation which is subject to sanction.
    We are issuing and publishing these final 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. E4-3281 Filed 11-19-04; 8:45 am]
BILLING CODE 3510-DS-P