[Federal Register Volume 71, Number 25 (Tuesday, February 7, 2006)]
[Notices]
[Pages 6269-6272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1606]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-814]


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

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


[[Page 6270]]


SUMMARY: On August 8, 2005, the Department of Commerce (the Department) 
published its Preliminary Results of Antidumping Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils From France, 70 FR 
45668 (August 8, 2005) (Preliminary Results). This review covers two 
French producers of the subject merchandise, Ugine & ALZ, France, S.A. 
and Imphy Ugine Precision (IUP), which have been collapsed into a 
single entity (collectively, U&A France) for purposes of calculating a 
dumping margin. See Memorandum to Maria MacKay, Acting Office Director, 
through Sean Carey, Program Manager, from Sebastian Wright, Analyst, 
Stainless Steel Sheet and Strip in Coils From France: Collapsing of 
Ugine & ALZ, France, S.A. and Imphy Ugine Precision, (August 1, 2005), 
on file in the Central Records Unit (CRU), Room B-099 of the main 
Commerce Building. The period of review (POR) is July 1, 2003, through 
June 30, 2004. Based on our analysis of the comments received, we have 
made changes to the preliminary results. For the final dumping margin, 
see the ``Final Results of Review'' section below.

DATES: Effective Date: February 7, 2006.

FOR FURTHER INFORMATION CONTACT: Elfi Blum or Sean Carey, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street & Constitution 
Avenue, NW., Washington, DC 20230; telephone: (202) 482-0197 or (202) 
482-3964, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Since the publication of the preliminary results, the following 
events have occurred: we invited parties to comment on the Preliminary 
Results. On August 30, 2005, we received U&A France's response to the 
Department's supplemental questionnaire, issued July 29, 2005. On 
September 15, 2005, we received case briefs from U&A France, (the 
``respondent''), and from Allegheny Ludlum Corporation, AK Steel, Inc., 
North American Stainless, United Steelworkers of America, AFL-CIO/CLC, 
Butler Armco Independent Union, and Zanesville Armco Independent 
Organization (collectively, the ``petitioners''). U&A France and the 
petitioners submitted their rebuttal briefs on September 19, 2005 and 
September 20, 2005, respectively. No hearing was requested.

Scope of the Order

    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 (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, 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 the order is dispositive.
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    \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.
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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 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

[[Page 6271]]

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, 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\ ``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).\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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Analysis of Comments Received

    The issues raised in all case and rebuttal briefs by parties to 
this administrative review are addressed in the Issues and Decision 
Memorandum to David M. Spooner, Assistant Secretary for Import 
Administration, from Stephen J. Claeys, Deputy Assistant Secretary for 
Import Administration (Decision Memorandum), which is hereby adopted by 
this notice. A list of the issues addressed in the Decision Memorandum 
is appended to this notice. The Decision Memorandum is on file in the 
CRU, and can be accessed directly on the Web at http://ia.ita.doc.gov/.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have corrected 
certain ministerial errors and made minor adjustments in the 
methodology that was used in the Preliminary Results concerning U.S. 
warranties, in order to calculate the final dumping margin. The 
adjustments are discussed in detail in the Decision Memorandum.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average margin exists for the period July 1, 2003, through 
June 30, 2004:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Manufacturer/exporter                        margin
                                                              (percent)
------------------------------------------------------------------------
U&A France.................................................        12.31
------------------------------------------------------------------------

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries, pursuant to 19 CFR 351.212(b). The Department has calculated a 
per-unit assessment rate by aggregating the dumping duties for all U.S. 
sales to each importer and dividing this amount by the total quantity 
sold to that importer (see Comment 4, the Decision Memorandum). Where 
the importer specific rate is above de minimis, we will instruct CBP to 
assess duties on all entries of subject merchandise by that importer. 
In addition, as explained in the Preliminary Results at 45674-45675, we 
have continued to include in the denominator used to calculate the 
assessment rate, the merchandise entered for consumption into the 
United States, but subsequently first sold outside of the United States 
in order to ``facilitate the CBP's collection of antidumping duties on 
subject merchandise.'' See, e.g., Stainless Steel Sheet & Strip in 
Coils from Mexico: Final Results of Antidumping Administrative Review, 
67 FR 6490 (February 12, 2002), at Comment 15.

Reimbursement

    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 duties

[[Page 6272]]

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 duties occurred, and in 
the subsequent assessment of double antidumping duties.

Revocation of the Order

    On July 12, 2005, the United States International Trade Commission 
(ITC) informed the Department that the revocation of the antidumping 
duty orders on stainless steel sheet and strip from France would not 
likely lead to continuation of recurrence of material injury to an 
industry in the United States within a reasonably foreseeable time. 
Accordingly, the Department revoked this antidumping duty order 
effective July 27, 2004. Therefore, cash deposits of estimated 
antidumping duties are no longer required. We have instructed CBP to 
terminate suspension of liquidation and to liquidate all entries of 
subject merchandise that were suspended on or after July 27, 2004, 
without regard to antidumping duties. See Certain Stainless Steel Sheet 
and Strip in Coils from France and the United Kingdom; Final Results of 
Sunset Reviews and Revocation of Antidumping Duty Order, 70 FR 44894 
(August 4, 2005).

Notification Regarding Administrative Protective Orders

    This notice is the only reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under the 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 the terms of an APO is a sanctionable 
violation.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: January 30, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I--Issues in Decision Memorandum

Comment 1: Actual Selling Expenses in Lieu of Commissions for 
Affiliated Reseller
Comment 2: Cost Averaging Periods for U&A France
Comment 3: Price Adjustment for U.S. Warranty Expenses
Comment 4: Calculation of Duty Assessment
Comment 5: Ministerial Errors

[FR Doc. E6-1606 Filed 2-6-06; 8:45 am]
BILLING CODE 3510-DS-P