[Federal Register Volume 70, Number 237 (Monday, December 12, 2005)]
[Notices]
[Pages 73444-73447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23920]


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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 8, 2005, 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 See Stainless Steel Sheet and Strip in Coils from Mexico; 
Preliminary Results of Antidumping Duty Administrative Review, 70 FR 
45675 (August 8, 2005) (Preliminary Results). 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, 
2003 to June 30, 2004. 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: December 12, 2005.

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

SUPPLEMENTARY INFORMATION:

Background

    On August 8, 2005, 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, 2003 to June 30, 2004. See Preliminary Results. In 
response to the Department's invitation to comment on the preliminary 
results of this review, Mexinox and Allegheny Ludlum Corporation, North 
American Stainless, United Auto Workers Local 3303, Zanesville Armco 
Independent Organization, Inc. and the United Steelworkers of America, 
AFL-CIO/CLC (collectively, petitioners) filed their case briefs on 
September 7, 2005. Mexinox and petitioners submitted their rebuttal 
briefs on September 14, 2005.

Period of Review

    The period of review (POR) is July 1, 2003, to June 30, 2004.

Scope of the Order

    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 
(HTSUS) 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 HTSUS 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

[[Page 73445]]

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 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.'' \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 Stephen Claeys, Deputy 
Assistant Secretary for Import Administration, to Joseph A. Spetrini, 
Acting Assistant Secretary for Import Administration, dated December 6, 
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

[[Page 73446]]

directly via 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 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).
 In accordance with the major input test we made adjustments to 
the reported costs of direct material costs for certain grades. See 
Cost of Production and Constructed Value Calculation Adjustments for 
the Final Results--ThyssenKrupp Mexinox S.A. de C.V dated December 6, 
2005.
 We have used U.S. dollar invoice prices (GRSUPRUH) and 
applicable billing adjustments (BILLADJ1UH and BILLADJ2UH) for certain 
dollar-denominated sales reported in the home market.
 We have revised the U.S. indirect selling expense (INDIRSU) 
ratio to include selling expenses incurred and revenues received in the 
United States relating to Mexinox's affiliates, Mexinox USA and 
ThyssenKrupp Nirosta North America (TKNNA).
These changes are discussed in the relevant sections of the Decision 
Memorandum and the December 6, 2005, ``Analysis of Data Submitted by 
ThyssenKrupp 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, 2003 to June 30, 2004:

------------------------------------------------------------------------
                                                              Weighted
                                                               Average
                  Manufacturer / Exporter                      Margin
                                                            (percentage)
------------------------------------------------------------------------
ThyssenKrupp Mexinox S.A. de C.V..........................  2.96 percent
------------------------------------------------------------------------

Assessment

    Pursuant to 19 CFR 351.212(b), the Department calculates an 
assessment rate for each importer of the subject merchandise. Upon 
issuance of the final results of this review, if any importer-specific 
assessment rates calculated in the final results are above de minimis 
(i.e., at or above 0.50 percent), we will issue appraisement 
instructions directly to U.S. Customs and Border Protection (CBP) to 
assess antidumping duties on appropriate entries by applying the 
assessment rate to the entered value of the merchandise. To determine 
whether the duty-assessment rate covering the period is de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
have calculated an importer-specific assessment ad valorem rate by 
aggregating the dumping margins calculated for all U.S. sales to the 
sole importer of ThyssenKrupp Mexinox S.A. de C.V.'s subject 
merchandise and dividing this amount by the total entered value of the 
sales to that importer. Where the importer-specific ad valorem rate is 
greater than de minimis and because the respondent has reported 
reliable entered values, we will instruct CBP to apply the assessment 
rate to the entered value of the importer's entries during the period 
of review. Pursuant to 19 CFR 356.8, the Department will issue 
appropriate assessment instructions directly to CBP on or after the 
41st day after publication of the final results of review.

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, but was covered in a previous review or 
the original less than fair value (LTFV) investigation, 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 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 the ``all others'' rate of 30.86 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 notice is issued and published in accordance with sections 
751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: December 6, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Adjustments to Normal Value

    Comment 1: Peso-Based Interest Rate for Home Market Sales.
    Comment 2: Whether Home Market Database is Complete.

Adjustments to United States Price

    Comment 3: U.S. Indirect Selling Expenses.
    Comment 4: Mexico-incurred Indirect Selling Expenses.

Cost of Production

    Comment 5: General and Administrative Expenses.
    Comment 6: Adjustment to Major Input Analysis.
    Comment 7: Financial Expenses.

Margin Calculations

    Comment 8: Offsetting for Export Sales that Exceed Normal Value.
    Comment 9: Circumstance of Sale

[[Page 73447]]

Adjustment.
[FR Doc. 05-23920 Filed 12-9-05; 8:45 am]
BILLING CODE 3510-DS-S