[Federal Register Volume 70, Number 30 (Tuesday, February 15, 2005)]
[Notices]
[Pages 7715-7718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-631]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-583-831


Stainless Steel Sheet and Strip in Coils From Taiwan; Final 
Results and Partial Rescission of Antidumping Duty Administrative 
Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 9, 2004, the Department of Commerce (the Department) 
published in the Federal Register the preliminary results and partial 
rescission of the administrative review of the antidumping duty order 
on stainless steel sheet and strip in coils from Taiwan. This review 
covers 13 manufacturers/exporters. The period of review (POR) is July 
1, 2002, through June 30, 2003.
    We provided interested parties with an opportunity to comment on 
the preliminary results of review. After analyzing the comments 
received, we made changes to the margin calculations for two 
respondents, Chia Far Industry Factory Co., Ltd. (Chia Far) and Yieh 
United Steel Corporation (YUSCO). Therefore, the final results of 
review differ from the preliminary results of review. The final 
weighted-average dumping margins for the reviewed firms are listed 
below in the section entitled ``Final Results of the Review.''

EFFECTIVE DATE: February 15, 2005.

FOR FURTHER INFORMATION CONTACT: Melissa Blackledge; or Karine Gziryan, 
AD/CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th and Constitution 
Avenue, NW, Washington, DC 20230; telephone: (202) 482-3518 or (202) 
482-4081, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The following events occurred after the Department published the 
preliminary results of the instant administrative review in the Federal 
Register. See Stainless Steel Sheet and Strip in Coils from Taiwan: 
Preliminary Results and Partial Rescission of Antidumping Duty 
Administrative Review, 69 FR 48212 (August 9, 2004) (Preliminary 
Results). On November 8, 2004, the Department extended the time limit 
for completing the final results of review until February 5, 2004. See 
Stainless Steel Sheet and Strip in Coils From Taiwan: Extension of Time 
Limit for Final Results of Antidumping Duty Administrative Review, 69 
FR 67312 (November 17, 2004). During September and December 2004, the 
Department received timely responses to several supplemental 
questionnaires (see Chia Far's September 2004 supplemental 
questionnaire response and Ta Chen Stainless Pipe Co., Ltd.'s (Ta Chen) 
September and December 2004 supplemental questionnaire response). 
During the period August 2004 through November 2004, the petitioners 
\1\ and Ta Chen submitted comments to the Department regarding Ta 
Chen's claim that it did not export subject merchandise to the United 
States during the POR. On October 27, 2004, the Department placed on 
the record documents obtained from U.S. Customs and Border Protection 
(CBP) regarding certain U.S. entries of merchandise sold by Yieh Mau 
Corporation (Yieh Mau) during the POR. During October and November 
2004, we conducted verifications of the sales and cost information 
provided by Chia Far and YUSCO. In response to the Department's 
invitation to comment on the Preliminary Results, the petitioners and 
Chia Far filed case briefs on December 16, 2004. The petitioners, Chia 
Far, YUSCO, and Ta Chen filed rebuttal briefs on December 21, 2004.
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    \1\ Allegheny Ludlum, AK Steel Corporation (formerly Armco, 
Inc.), J&L Specialty Steel, Inc., North American Stainless, Butler-
Armco Independent Union, Zanesville Armco Independent Union, and the 
United Steelworkers of America, AFL-CIO/CLC.
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Period of Review

    The POR is July 1, 2002, through June 30, 2003.

Scope of the 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 the order is classified 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 the order 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 scope of 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).

[[Page 7716]]

    In response to comments by interested parties, the Department has 
determined that certain specialty stainless steel products are also 
excluded from the scope of the 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 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 the 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 the 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 the 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 the 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 the 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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Verification

    As provided in section 782(I) of the Tariff Act of 1930, as amended 
(the Act), the Department conducted a verification of the sales and 
cost information provided by Chia Far and YUSCO. The Department 
conducted this verification using standard verification procedures 
including: on-site inspection of the manufacturers' facilities, 
examination of relevant sales, cost, production and financial records, 
and selection of relevant source documentation as exhibits. The 
Department's verification findings are identified in the sales and cost 
verification memoranda dated December 8, 2004, the public versions of 
which are on file in the Central Records Unit (CRU), room B099 of the 
main Commerce building.

[[Page 7717]]

Partial Rescission of Review

    We preliminarily rescinded the instant review with respect to Ta 
Chen, Chain Chon, Tung Mung, and China Steel because they reported that 
they made no shipments of subject merchandise during the POR. The 
Department reviewed CBP data, which supports the claims that these 
companies did not export subject merchandise during the POR. Moreover, 
documentation submitted by Ta Chen also demonstrates that it did not 
export subject merchandise during the POR (see Comment 1 of the 
accompanying Issues and Decision Memorandum for the Final Results of 
the Fourth Antidumping Administrative Review of Stainless Steel Sheet 
and Strip in Coils from Taiwan (Issues and Decision Memorandum) dated 
concurrently with this notice).
    In the Preliminary Results, the Department assigned total adverse 
facts available to Yieh Mau because CBP data called into question the 
``no shipment'' claim of Yieh Mau and the company failed to demonstrate 
that it did not sell subject merchandise to the United States during 
the POR. However, on August 2, 2004, after issuing the Preliminary 
Results, the Department received and examined entry packages from CBP, 
for the entries at issue. The entry documents support Yieh Mau's claim 
that it did not export subject merchandise to the United States during 
the POR. See Memorandum To The File, ``Import Documentation Obtained 
from U.S. Customs and Border Patrol for Entries of Merchandise Sold by 
Yieh Mau Corporation during the Period of Review,'' October 27, 2004, 
on file in room B-099 of the main Commerce building.
    Therefore, in accordance with 19 CFR Sec.  351.213(d)(3) and 
consistent with the Department's practice, we are rescinding this 
administrative review with respect to Yieh Mau, Ta Chen, Chain Chon, 
Tung Mung, and China Steel.

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 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 that parties have raised and to which we have responded, all of 
which are in the Issues and 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 that is on file in the Central Records Unit, 
Room B-099 of the main Department building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the Web at http://ia.ita.doc.gov/. The paper copy and electronic 
version of the Issues and Decision Memorandum are identical in content.

Sales Below Cost

    We disregarded sales below cost for both YUSCO and Chia Far during 
the course of this administrative review.

Duty Absorption

    In the Preliminary Results, the Department found that Chia Far 
absorbed antidumping duties on all U.S. sales made through its 
affiliated importer. Chia Far has failed to provide evidence that the 
unaffiliated customers in the United States will pay the full duty 
ultimately assessed on the subject merchandise. See Comment 8 of the 
Issues and Decision Memorandum. Thus, for the final results of this 
review, we continue to find that Chia Far absorbed antidumping duties.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we made changes to the 
margin calculations for Chia Far and YUSCO. The changes to the margin 
calculations are listed below:

 We used the borrowing cost of Chia Far's U.S. affiliated 
reseller to calculate U.S. credit expenses for all constructed export 
price sales (see Issues and Decision Memorandum, dated February 7, 
2005, at Comment 6, and the Analysis Memorandum for Chia Far Industrial 
Factory Co., Ltd. for the Final Results of the Administrative Review of 
the Antidumping Duty Order on Stainless Steel Sheet and Strip in Coils 
from Taiwan covering the period July 1, 2002 through June 30, 2003 
(Chia Far's Final Analysis Memorandum), dated February 7, 2005).
 We revised the gauge code that was reported by Chia Far for 
one U.S. sale.
 We corrected the mis-allocated U.S. insurance, banking 
charges, and U.S. brokerage and handling fees that were reported by 
Chia Far for one U.S. sale. For additional changes and corrections, see 
Chia Far's Final Analysis Memorandum and the Analysis Memorandum for 
Yieh United Steel Company Ltd. for the Final Results of the 
Administrative Review of the Antidumping Duty Order on Stainless Steel 
Sheet and Strip in Coils from Taiwan covering the period July 1, 2002 
through June 30, 2003, dated February 7, 2005.

Final Results of Review

    We determine that the following weighted-average percentage margins 
exist for the period July 1, 2002, through June 30, 2003:

------------------------------------------------------------------------
                                                      Weighted-Average
          Manufacturer/Exporter/Reseller             Margin (percentage)
------------------------------------------------------------------------
Yieh United Steel Corporation (YUSCO).............                  1.92
Chia Far Industrial Factory Co., Ltd. (Chia Far)..                  1.10
------------------------------------------------------------------------

Assessment

    The Department will determine, and CBP shall assess, antidumping 
duties on all appropriate entries. In accordance with section 
351.212(b)(1) of the Department's regulations, we have calculated an 
exporter/importer (or customer)-specific assessment rate for 
merchandise subject to this review. 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 resulting assessment rates against the reported entered 
customs' values for the subject merchandise on each of the importer's/
customer's entries during the review period. For duty-assessment 
purposes, we have calculated importer/customer-specific assessment 
rates by dividing the dumping margins calculated for each importer/
customer by the total entered value (or quantity if we do not have 
entered value) of sales for each importer/customer 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 stainless steel sheet and strip in coils from 
Taiwan entered, or withdrawn from warehouse, for consumption on or 
after the date of publication, as provided by section 751(a)(1) of the 
Act: (1) The cash deposit rates for Chia Far and YUSCO will be the 
rates 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 less-than-fair-value investigation, but the manufacturer is, the 
cash deposit rate

[[Page 7718]]

will be the rate established for the most recent period for the 
manufacturer of the merchandise; and (4) if neither the exporter nor 
the manufacturer is a firm covered in these or any previous reviews 
conducted by the Department, the cash deposit rate will be the ``all 
others'' rate, which is 12.61 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under section 351.402(f)(2) of the Department's 
regulations to file a certificate regarding the reimbursement of 
antidumping duties 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 the antidumping duties or countervailing duties 
occurred and the subsequent assessment of double antidumping duties or 
countervailing duties.

Administrative Protective Orders

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with section 351.305 of the 
Department's regulations, which continues to govern business 
proprietary information in this segment of the proceeding. Timely 
written notification of the return/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 that is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 771(I) of the Act.

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

APPENDIX I -- ISSUES IN THE ISSUES AND DECISION MEMORANDUM

A. Issue with Respect to Ta Chen

Comment 1: Whether Ta Chen Exported Subject Merchandise During the POR

B. Issues with Respect to Chia Far

Comment 2: Whether the Gauge for a U.S. Sale was Coded Correctly

Comment 3: Whether the Department Should Grant a CEP Offset

Comment 4: Whether Export Sales were Improperly Classified as Home 
Market Sales

Comment 5: Whether Order Confirmation Date is the Most Appropriate Date 
of Sale

Comment 6: Whether the Department Should Continue to Apply the Interest 
Rate Used for the Preliminary Results in Calculating Credit Expense on 
CEP sales

Comment 7: Whether the Department Should Make Changes to Certain U.S. 
Selling Expenses

Comment 8: Whether Chia Far Absorbed Antidumping Duties on All U.S. 
Sales Through Lucky Medsup

C. Issue with Respect to YUSCO

Comment 9: Whether the Department Should Reject YUSCO's Sales Data and 
Resort to Total Adverse Facts Available

[FR Doc. E5-631 Filed 2-14-05; 8:45 am]
Billing Code: 3510-DS-S