[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Notices]
[Pages 7472-7474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-598]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

A-475-824


Final Results of Antidumping Duty Administrative Review: 
Stainless Steel Sheet and Strip in Coils From Italy

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

SUMMARY: On August 9, 2004, the U.S. Department of Commerce (the 
Department) published the preliminary results of the administrative 
review of the antidumping order covering stainless steel sheet and 
strip in coils from Italy. See Preliminary Results of Antidumping Duty 
Administrative Review: Stainless Steel Sheet and Strip in Coils from 
Italy, 69 FR 48205 (August 9, 2004) (Preliminary Results). 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 a change to 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:  February 14, 2005.

FOR FURTHER INFORMATION CONTACT: Angelica Mendoza at (202) 482-3019, 
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:

Background

    This review covers ThyssenKrupp Acciai Speciali Terni S.p.A. and 
its U.S. affiliate, ThyssenKrupp AST USA, Inc. (TKAST USA) 
(collectively, TKAST or respondent).
    In response to our Preliminary Results, on September 8, 2004, we 
received case briefs from TKAST and Allegheny Ludlum, AK Steel 
Corporation, Butler Armco Independent Union, J&L Specialty Steel, Inc., 
North American Stainless, United Steelworkers of America, AFL-CIO/CLC, 
and Zanesville Armco Independent Organization (collectively, 
petitioners). Both parties submitted rebuttal briefs on September 15, 
2004. However, on September 22, 2004, the Department rejected and 
returned TKAST's September 15, 2004, rebuttal brief as it contained 
untimely new factual information. Pursuant to the Department's request, 
TKAST filed a revised version of its rebuttal brief on September 24, 
2004. Parties did not request a public hearing.
    On November 26, 2004, the Department extended fully the time limit, 
from December 7, 2004, until no later than February 7, 2005, for the 
final results of the instant administrative review. See Stainless Steel 
Sheet and Strip in Coils from Italy: Extension of Time Limit for Final 
Results of Antidumping Duty Administrative Review, 69 FR 70124 
(December 2, 2004).

Scope of the Order

    For purposes of this review, the products covered by the 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 (HTSUS) 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,

[[Page 7473]]

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 HTSUS subheadings are provided for 
convenience and customs purposes, the Department's written description 
of the merchandise is dispositive.
---------------------------------------------------------------------------

    \1\ Due to changes to the HTSUS 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.
---------------------------------------------------------------------------

    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. See Chapter 72 of the HTSUS, ``Additional 
U.S. Note'' 1(d).
    Flapper valve steel is also excluded from the scope of this 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 review. 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\
---------------------------------------------------------------------------

    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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.''\4\
---------------------------------------------------------------------------

    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------

    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 American Iron and Steel 
Institute (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.''\6\

[[Page 7474]]

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''\7\ 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\
---------------------------------------------------------------------------

    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \6\ ``GIN4 Mo'' is the proprietary grade of Hitachi Metals 
America, Ltd.
    \7\ ``GIN5'' is the proprietary grade of Hitachi Metals America, 
Ltd.
    \8\ ``GIN6'' is the proprietary grade of Hitachi Metals America, 
Ltd.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in case and rebuttal briefs submitted by parties 
to this administrative review are addressed in the ``Issues and 
Decision Memorandum'' (Decision Memo) from Barbara E. Tillman, Acting 
Deputy Assistant Secretary for Import Administration to Joseph A. 
Spetrini, Acting Assistant Secretary for Import Administration, dated 
February 7, 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 Memo, 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 
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 Memo are identical in 
content.

Change Since the Preliminary Results

    Based on our analysis of comments received, we have made a change 
to TKAST's margin calculation by deducting rather than adding billing 
adjustments to TKAST's home market price.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average dumping margin exists for the POR:

------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/Exporter                  Margin (percent)
------------------------------------------------------------------------
ThyssenKrupp Acciai Speciali Terni S.p.A............                3.72
------------------------------------------------------------------------

Assessment

    The Department shall determine, and U.S. Bureau of Customs and 
Border Protection (CBP) 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 CBP within 15 days of publication of these final results of 
review. We will direct CBP to assess the appropriate assessment rate 
against the entered CBP values for the subject merchandise on each of 
the importer's entries under the relevant order during the POR.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of SSSS in coils from Italy 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 11.23 percent. This rate is the ``All Others'' rate from 
the amended final determination in the LTFV investigations. See Amended 
Final Determination of Sales at Less Than Fair Value and Antidumping 
Duty Order; Stainless Steel Sheet and Strip in Coils From Italy, 64 FR 
40567 (July 27, 1999).
    These deposit requirements 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 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.
    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 7, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX

List of Issues

1. Treatment of Premiums Paid by ThyssenKrupp AG to Repurchase Shares 
Held by the Islamic Republic of Iran (Iran)
2. Application of Partial Adverse Facts Available for Certain 
Components of ThyssenKrupp Acciai Speciali Terni S.p.A.'s Reported 
Standard Costs
3. Deduction of Technical Service Expenses from U.S. Price
4. Treatment of Non-Dumped Sales
5. Ministerial Error Relating to the Addition of Billing Adjustments to 
Home Market Price
[FR Doc. E5-598 Filed 2-11-05; 8:45 am]
BILLING CODE 3510-DS-S