[Federal Register Volume 69, Number 243 (Monday, December 20, 2004)]
[Notices]
[Pages 75930-75933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3745]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-428-825


Stainless Steel Sheet and Strip in Coils From Germany; Notice of 
Final Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 6, 2004, the Department of Commerce (the Department) 
published the preliminary results of administrative review of the 
antidumping order covering stainless steel sheet and strip in coils 
from Germany. See Stainless Steel Sheet and Strip in Coils from 
Germany; Notice of Preliminary Results of Antidumping Duty 
Administrative Review, 69 FR 47900 (August 6, 2004) (Preliminary 
Results). The merchandise covered by this order is stainless steel 
sheet and strip in coils as described in the ``Scope of the Review'' 
section of the Federal Register notice. The period of review (POR) is 
July 1, 2002, through June 30, 2003. We invited parties to comment on 
our Preliminary Results. Based on our analysis of the comments 
received, we have made changes in the margin calculations. 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 the Review.''

EFFECTIVE DATE: December 20, 2004.

[[Page 75931]]


FOR FURTHER INFORMATION CONTACT: Michael Heaney, or Robert James at 
(202) (202) 482-4475, or (202) 482-0649, respectively, AD/CVD 
Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Scope of the Review

    The products covered by this order 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,\1\ 
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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    \1\ 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 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.''\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,

[[Page 75932]]

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\ ``Gilphy 36'' 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).\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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Duty Absorption

    In these final results, we continue to find duty absorption because 
Thyssen Krupp Nirosta (TKN) provided no evidence on the record showing 
that its unaffiliated purchasers will pay the full duty ultimately 
assessed on the subject merchandise. (See Preliminary Results at pages 
5-6.)

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 Barbara E. Tillman, Acting 
Deputy Assistant Secretary for Import Administration to James J. 
Jochum, Assistant Secretary for Import Administration, dated December 
13, 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 room B-099 of the main Department of 
Commerce building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on 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 comments received, we have made changes in 
the margin calculations. The changes are listed below:
     We have applied TKN's average short-term lending rate for 
the POR, rather than for the extended POR (including the ``window 
months''); and
     We have corrected certain programming and clerical errors 
in our preliminary results, where applicable. Any alleged programming 
errors with which we do not agree are discussed in the relevant 
sections of the Decision Memorandum, accessible in B-099 of the main 
Department of Commerce building and on the web at www.ia.ita.doc.gov.

Final Results of the Review

    We determine the following percentage weighted-average margin 
exists for the period July 1, 2002 through June 30, 2003:

------------------------------------------------------------------------
                                                       Weighted average
               Manufacturer / exporter                      margin
                                                         (percentage)
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Thyseen Krupp Nirosta...............................        7.03 percent
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Liquidation

    The Department shall determine, and U.S. Bureau of Customs and 
Border Protection (Customs) shall assess, antidumping duties on all 
appropriate entries. In accordance with 19 CFR 351.212(b)(1), we have 
calculated exporter/importer-specific assessment rates. To calculate 
these rates, we divided the total dumping margins for the reviewed 
sales by the total entered value of those reviewed sales for each 
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 appropriate 
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.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of stainless steel sheet and strip in coils from 
Germany entered, or withdrawn from warehouse, for consumption on or 
after the date of publication, as provided by section 751(a)(1) of the 
Tariff Act of 1930 as amended (the Act): (1) The cash deposit rate for 
the reviewed company will be the rate shown above; (2) for previously 
reviewed or investigated companies not listed above, the cash deposit 
rate will continue to be the company-specific rate published for the 
most recent period; (3) 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 (4) the cash deposit rate for all other 
manufacturers or exporters will continue to be 13.48 percent. This rate 
is the ``All Others'' rate from the amended final determination in the 
LTFV investigations. See Stainless Steel Sheet and Strip in Coils From 
Germany: Amended Final Determination of Antidumping Duty Investigation, 
67 FR 15178, 15179 (March 29, 2002).
    These deposit requirements shall remain in effect until the 
publication of the final results of the next administrative review.

[[Page 75933]]

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping or countervailing 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 antidumping or countervailing duties 
occurred and the subsequent assessment of doubled antidumping duties.
    This notice also serves as a 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 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 terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i) of the Tariff Act.

    Dated: December 13, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

APPENDIX

Comments and Responses

1. Repurchase of ThyssenKrupp AG Shares
2. Interest Income Offset
3. Adjustment for Packing Cost
4. NSC Bundled Sales
5. Treatment of Non-dumped Sales
6. Whether to Split Gauge Group 16
7. Other Revisions
[FR Doc. E4-3745 Filed 12-17-04; 8:45 am]
Billing Code 3510-DS-P