[Federal Register Volume 71, Number 29 (Monday, February 13, 2006)]
[Notices]
[Pages 7522-7524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1986]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-845]


Stainless Steel Sheet and Strip in Coils from Japan: Preliminary 
Rescission of Antidumping Duty Administrative Review

AGENCY: AGENCY: Import Administration, International Trade 
Administration, Department of Commerce.
SUMMARY: On August 29, 2005, the Department of Commerce (the 
Department) published in the Federal Register a notice announcing the 
initiation of an administrative review of the antidumping duty order on 
stainless steel sheet and strip in coils (SSSSC) from Japan. See 
Initiation of Antidumping and Countervailing Duty Administrative 
Reviews and Requests for Revocation in Part, 70 FR 51009 (Initiation 
Notice). The period of review (POR) is July 1, 2004 to June 30, 2005. 
We are preliminarily rescinding this review because there were no 
entries of SSSSC for consumption in the United States during the POR 
that are subject to review.

EFFECTIVE DATE: February 13, 2006.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Kate Johnson, 
Office of AD/CVD Operations, Office 2, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230, telephone: 
(202) 482-4007 or (202) 482-4929, respectively.

SCOPE OF THE ORDER:

    For purposes of this order, 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: 7219.13.00.31, 7219.13.00.51, 7219.13.00.71, 
7219.13.00.81, 7219.14.00.30, 7219.14.00.65, 7219.14.00.90, 
7219.32.00.05, 7219.32.00.20, 7219.32.00.25, 7219.32.00.35, 
7219.32.00.36, 7219.32.00.38, 7219.32.00.42, 7219.32.00.44, 
7219.33.00.05, 7219.33.00.20, 7219.33.00.25, 7219.33.00.35, 
7219.33.00.36, 7219.33.00.38, 7219.33.00.42, 7219.33.00.44, 
7219.34.00.05, 7219.34.00.20, 7219.34.00.25, 7219.34.00.30, 
7219.34.00.35, 7219.35.00.05, 7219.35.00.15, 7219.35.00.30, 
7219.35.00.35, 7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 
7219.90.00.60, 7219.90.00.80, 7220.12.10.00, 7220.12.50.00, 
7220.20.10.10, 7220.20.10.15, 7220.20.10.60, 7220.20.10.80, 
7220.20.60.05, 7220.20.60.10, 7220.20.60.15, 7220.20.60.60, 
7220.20.60.80, 7220.20.70.05, 7220.20.70.10, 7220.20.70.15, 
7220.20.70.60, 7220.20.70.80, 7220.20.80.00, 7220.20.90.30, 
7220.20.90.60, 7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and 
7220.90.00.80. Although the HTS subheadings are provided for 
convenience and customs purposes, the Department's written

[[Page 7523]]

description of the merchandise under review is dispositive.
    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 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 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.

SUPPLEMENTARY INFORMATION:

[[Page 7524]]

Background

    On July 1, 2005, the Department published in the Federal Register a 
notice of opportunity to request an administrative review of the 
antidumping duty order on SSSSC from Japan for the period July 1, 2004 
to June 30, 2005. See Antidumping or Countervailing Duty Order, 
Finding, or Suspended Investigation; Opportunity to Request 
Administrative Review, 70 FR 38099. In accordance with 19 CFR 
351.213(b)(1), on July 29, 2005, the petitioners (i.e., Allegheny 
Ludlum Corporation, United Auto Workers Local 3303, Zanesville Armco 
Independent Organization, Inc. and the United Steelworkers) requested a 
review of this order with respect to Kawasaki Steel Corporation 
(Kawasaki) and its alleged successor-in-interest, JFE Steel Corporation 
(JFE).\6\ The Department initiated an administrative review and issued 
a questionnaire to Kawasaki and JFE on August 29, 2005. See Initiation 
Notice. On October 5, 2005, JFE notified the Department that it had not 
made sales or exported subject merchandise during the POR and requested 
that the Department rescind the review. However, information obtained 
from the U.S. Customs and Border Protection (CBP) import database 
indicated the possibility of an entry of merchandise subject to this 
review. On November 17, 2005, we issued a letter to JFE inquiring about 
this particular entry.\7\ Also on this date, we released, subject to an 
administrative protective order (APO), the entry documentation obtained 
from CBP to counsel for JFE and counsel for the petitioners. JFE 
responded to our request for information on December 5, 2005. In this 
submission, JFE claimed that the record contained no evidence that JFE 
either knew or should have known of the U.S. destination of the SSSSC 
at issue at the time of the sale to the first unaffiliated customer.
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    \6\ While the Department initiated this administrative review 
with respect to merchandise manufactured and/or exported by Kawasaki 
as well as its alleged successor-in-interest, JFE, due to Kawasaki/
JFE's no-shipment claim, the Department did not have the opportunity 
to conduct a successor-in-interest analysis in order to confirm 
whether, for antidumping purposes, JFE is the successor-in-interest 
to Kawasaki with respect to the subject merchandise. However, both 
the petitioners and respondent have consistently referred to JFE as 
the successor-in-interest to Kawasaki in their submissions to the 
Department with respect to this and the previous review. See 
Stainless Steel Sheet and Strip in Coils from Japan: Preliminary 
Results of Antidumping Duty Administrative Review, 70 FR 18369 
(April 11, 2005).
    \7\ The results of the data query showed no entries of subject 
merchandise by Kawasaki.
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Analysis

    After analyzing the data contained in the CBP-provided customs 
entry documentation and JFE's comments, we find that there is no 
evidence on the record that the entry in question was shipped to the 
United States with JFE's knowledge at the time of sale. Although APO 
restrictions on the CBP entry documents prevented JFE's counsel from 
sharing the information with his client, the arguments and supporting 
documentation JFE placed on the record support the contention that JFE 
had no knowledge that the entry in question was destined for the United 
States. Specifically, a production document contained in the CBP entry 
documentation indicates the name of the customer to whom JFE sold the 
SSSSC in question, and JFE's name does not appear on any of the other 
entry documents. Furthermore, the record includes documentation 
submitted for prior segments of the proceeding that support counsel's 
contention that the distribution channel for the sale appears to be 
contrary to JFE's normal selling practices. For further discussion, see 
Memorandum to Irene Darzenta Tzafolias, Acting Director, Office 2, from 
Kate Johnson and Rebecca Trainor, Case Analysts, regarding Stainless 
Steel Sheet and Strip in Coils from Japan: Rescission Analysis 
Memorandum. We find that there is no evidence on the record that JFE 
had knowledge of the U.S. destination of the SSSSC shipment in 
question, and therefore, had no sales/shipments to the United States 
during this POR. See, e.g., Final Results of Antidumping Duty 
Administrative Review: Certain In-Shell Raw Pistachios from Iran, 70 FR 
7470 (February 14, 2005), and accompanying Issues and Decision 
Memorandum, at Comment 1.

Preliminary Rescission of Review

    Because neither Kawasaki nor JFE made shipments to the United 
States of subject merchandise during the POR, in accordance with 19 CFR 
351.213(d)(3) and consistent with our practice, we are preliminarily 
rescinding this review of the antidumping duty order on SSSSC from 
Japan for the period of July 1, 2004, through June 30, 2005. If the 
recission is confirmed in our final results, we will instruct CBP to 
liquidate the entry in question at the All-Others rate, 40.18 percent, 
as it was made by an intermediary company (e.g., a reseller) not 
covered in this review, a prior review, or the less-than-fair-value 
investigation. See, Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). The cash 
deposit rate for Kawasaki and JFE will continue to be the rate 
established in the most recently completed segment of this proceeding.
    Interested parties may submit comments for consideration in the 
Department's final results not later than 30 days after publication of 
this notice. Responses to those comments may be submitted not later 
than 10 days following submission of the comments. All written comments 
must be submitted in accordance with 19 CFR 351.303, and must be served 
on interested parties on the Department's service list in accordance 
with 19 CFR 351.303(f). The Department will issue the final results of 
this administrative review, which will include the results of its 
analysis of issues raised in any such comments, within 120 days of 
publication of the preliminary results, and will publish these results 
in the Federal Register. This notice is published in accordance with 
section 751 of the Tariff Act of 1930, as amended, and 19 CFR 
351.213(d)(4).

    Dated: February 7, 2006.
Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E6-1986 Filed 2-10-06; 8:45 am]
BILLING CODE 3510-DS-S