[Federal Register Volume 70, Number 16 (Wednesday, January 26, 2005)]
[Notices]
[Pages 3677-3679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1391]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Stainless Steel Sheet and Strip in Coils From Mexico; 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 the administrative review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
Mexico (69 FR 47905). This review covers one manufacturer/exporter, 
ThyssenKrupp Mexinox S.A. de C.V. (Mexinox), of the subject merchandise 
to the United States during the period July 1, 2002 to June 30, 2003. 
Based on our analysis of the comments received, we have made changes in 
the margin calculation; 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 Review.''

EFFECTIVE DATE: January 26, 2005.

FOR FURTHER INFORMATION CONTACT: Angela Strom at (202) 482-2704, 
Maryanne Burke at (202) 482-5604 or Robert James at (202) 482-0649, AD/
CVD Operations, Office VII, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2004, the Department published in the Federal Register 
the preliminary results of the administrative review of the antidumping 
duty order on stainless steel sheet and strip in coils from Mexico for 
the period July 1, 2002 to June 30, 2003. See Stainless Steel Sheet and 
Strip in Coils from Mexico; Preliminary Results of Antidumping Duty 
Administrative Review, 69 FR 47905 (August 6, 2004). In response to the 
Department's invitation to comment on the preliminary results of this 
review, Mexinox and Allegheny Ludlum, AK Steel Corporation (formerly 
Armco, Inc.), J&L Specialty Steel, Inc., North American Stainless, 
Butler-Armco Independent Union, Zanesville Armco Independent 
Organization, Inc. and the United Steelworkers of America, AFL-CIO/CLC 
(collectively, petitioners) filed their case briefs on September 7, 
2004. Mexinox and petitioners submitted their rebuttal briefs on 
September 14, 2004. On November 26, 2004, we published in the Federal 
Register our notice of extension of time limit for this review. See 
Stainless Steel Sheet and Strip in Coils from Mexico; Antidumping Duty 
Administrative Review; Extension of Time Limit, 69 FR 68882 (November 
26, 2004). This extension notice established the new deadline of 
January 14, 2005 for the final results of this review.

Period of Review

    The period of review (POR) is July 1, 2002 to June 30, 2003.

Scope of the Review

    For purposes of this administrative 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, 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.
    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

[[Page 3678]]

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.'' \1\
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    \1\ ``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.'' \2\
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    \2\ ``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.'' \3\
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    \3\ ``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).\4\ 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.'' \5\
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    \4\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \5\ ``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 the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Barbara Tillman, Acting Deputy 
Assistant Secretary for Import Administration, to Joseph A. Spetrini, 
Acting Assistant Secretary for Import Administration, dated January 14, 
2005, 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 the Central Records Unit, room B-099, 
of the main Department building. In addition, a complete version of the 
Decision Memorandum can be accessed directly via the Internet at http://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 the comments received, we have made the 
following changes to the margin calculation:
     We have recalculated Mexinox's general and administrative 
expenses (G&A) ratio and have applied it to Mexinox's reported cost of 
manufacture (COM).
     We have recalculated the interest expense (INTEX) ratio 
and have applied

[[Page 3679]]

it to Mexinox's reported cost of manufacture (COM).
     We have revised the cost of production (COP) by adjusting 
the interest expense (INTEX) rate of Mexinox's corporate parent, 
ThyssenKrupp AG, and incorporating it into the major input analysis. 
This impacts direct material inputs (DIRMAT) used for purposes of 
calculating the total cost of manufacture (TOTCOM).
     We have accepted the respondent-reported annealing and 
pickling adjustment used to recalculate TOTCOM.
    These changes are discussed in the relevant sections of the 
Decision Memorandum and the January 14, 2005 ``Analysis of data 
Submitted by Thyssen Krupp Mexinox S.A. de C.V (Mexinox) for the Final 
Results of Stainless Steel Sheet and Strip in Coils from Mexico (A-201-
822)'' (``Analysis Memorandum'').

Final Results of Review

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

------------------------------------------------------------------------
                                                             Weighted
                 Manufacturer/exporter                    average margin
                                                           (percentage)
------------------------------------------------------------------------
ThyssenKrupp Mexinox S.A. de C.V.......................            5.42
------------------------------------------------------------------------

Assessment

    The Department shall determine and Customs and Border Protection 
(Customs) shall assess antidumping duties on all appropriate entries. 
In accordance with 19 CFR section 351.212(b)(1), we have calculated 
importer-specific ad valorem duty assessment rates. Where the importer-
specific assessment rate is above de minimis, we will instruct Customs 
to assess duties on all entries of subject merchandise by that 
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 resulting 
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. See 19 CFR section 351.212(a).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of these final results for all shipments of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the publication date of these final results of administrative 
review, as provided by section 751(a)(1) of the Tariff Act of 1930 as 
amended (the Tariff Act): (1) The cash deposit rate for the reviewed 
company will be the rate listed above; (2) 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 (3) the cash deposit rate 
for all other manufacturers or exporters will continue to be the ``all 
others'' rate of 30.85 percent, which is the ``All Others'' rate 
established in the LTFV investigation. See Notice of Final 
Determination of Sales at Less Than Fair Value: Stainless Steel Sheet 
and Strip in Coils from Mexico, 64 FR 30790 (June 8, 1999). These 
deposit requirements, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.

Notification to Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR section 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping 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 the antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR section 351.305, that continues to govern 
business proprietary information in this segment of the proceeding. 
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 the terms of an 
APO is a sanctionable violation.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: January 14, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Adjustments to Normal Value
    Comment 1: Home Market Post-Sale Price Adjustments
    Comment 2: Level of Trade
    Comment 3: Handling Expenses
    Comment 4: Peso-Based Interest Rate for Home Market Sales
Adjustments to United States Price
    Comment 5: CEP Profit
    Comment 6: Bankruptcy-Related Bad Debt
    Comment 7: Certain Service Expenses Recorded by Mexinox USA
Cost of Production
    Comment 8: Monthly-Averaging Costs of Raw Material Inputs
    Comment 9: Annealing and Pickling Cost Adjustment
    Comment 10: General and Administrative Expenses
    Comment 11: Financial Expenses
    Comment 12: Below-Cost Test
    Comment 13: Pricing in Major Input Analysis
    Comment 14: Cost Build-Up in Major Input Analysis
Margin Calculations
    Comment 15: Repurchase of ThyssenKrupp AG Shares
    Comment 16: Treatment of Non-Dumped Sales
    Comment 17: Circumstances of Sale Adjustment

[FR Doc. 05-1391 Filed 1-25-05; 8:45 am]
BILLING CODE 3510-DS-P