[Federal Register Volume 71, Number 239 (Wednesday, December 13, 2006)]
[Notices]
[Pages 74897-74900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21197]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]


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

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

ACTION: Notice of Final Results of Antidumping Duty Administrative 
Review.

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SUMMARY: On August 8, 2006, the Department of Commerce (the Department) 
published the preliminary results of administrative review of the 
antidumping duty order covering stainless steel sheet and strip in 
coils from Germany. See Stainless Steel Sheet and Strip in Coils from 
Germany; Notice of Preliminary Results of Antidumping Duty 
Administrative Review, 71 FR 45024 (August 8, 2006) (Preliminary 
Results). The merchandise covered by this order is stainless steel 
sheet and strip in coils as described in the ``Scope of the Order'' 
section of this notice. The period of review (POR) is July 1, 2004, 
through June 30, 2005. In the Preliminary Results we invited parties to 
provide comments. Based on our analysis of the comments received, we 
have made changes 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 the Review.''

EFFECTIVE DATE: December 13, 2006.

FOR FURTHER INFORMATION CONTACT: Deborah Scott, Tyler Weinhold, or 
Robert James, AD/CVD Operations, Office 7, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-2657, (202) 482-1121, and (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 8, 2006, the Department published the preliminary results 
of administrative review of the antidumping order covering stainless 
steel sheet and strip in coils from Germany. See Preliminary Results. 
In the Preliminary Results we invited parties to provide comments. In 
response, the Department received a case brief from German producers 
ThyssenKrupp Nirosta GmbH (ThyssenKrupp Nirosta), ThysssenKrupp Nirosta 
Prazisionsband GmbH (TKNP), ThyssenKrupp VDM GmbH (TKVDM), along with 
their affiliated U.S. importers ThyssenKrupp Nirosta North America, 
Inc. (TKNNA) and ThyssenKrupp VDM USA, Inc. (TKVDMUSA) (collectively, 
TKN) on September 7, 2006. Allegheny Ludlum, North American Stainless, 
United Auto Workers Local 3303, United Steelworkers of America, AFL-
CIO/CLC, and Zanesville Armco Independent Organization (collectively, 
Petitioners) submitted a rebuttal brief on September 14, 2006. No party 
requested a hearing; accordingly, none was held.

Scope of the Order

    The products covered by this order are certain stainless steel 
sheet and strip

[[Page 74898]]

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 
this order is dispositive.
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    \1\ 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 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.''\2\
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    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Also excluded from this order is a permanent magnet iron-chromium-
cobalt stainless steel strip containing, by weight, 13 percent 
chromium, 6 percent cobalt, 71 percent iron, 6 percent nickel and 4 
percent molybdenum. The product is supplied in widths up to 1.27 cm 
(12.7 mm), inclusive, with a thickness between 45 and 75 microns, 
inclusive. This product exhibits magnetic remanence between 400 and 780 
nWb, and coercivity of between 60 and 100 oersteds. This product is 
currently supplied under the trade name ``SemiVac 90.''
    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

[[Page 74899]]

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

    All issues raised in TKN's case brief and in Petitioners' rebuttal 
brief are addressed in the Memorandum to David M. Spooner, Assistant 
Secretary for Import Administration (Decision Memorandum), dated 
December 6, 2006, 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. The Decision Memorandum is on file in room B-099 of the main 
Department of Commerce building. In addition, a complete version of the 
Decision Memorandum can be accessed directly on the Internet at http://www.ia.ita.doc.gov/frn/index.html. The paper copy and electronic 
version of the Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes to 
the margin calculation. The changes are listed below:
    1. For the preliminary results, we inadvertently treated indirect 
selling expenses incurred in Mexico on TKN's behalf as U.S. indirect 
selling expenses, and deducted them from CEP. For these final results, 
we have treated these expenses properly as foreign indirect selling 
expenses and have not deducted them from CEP. See Decision Memorandum 
at Comment 1.
    2. For the preliminary results we miscalculated the home market 
(HM) costs used in the CEP profit calculation by failing to convert HM 
quantity from metric tons to hundredweight. This had the effect of 
overstating the CEP profit rate and CEP profit, which is deducted from 
CEP. For these final results, we have recalculated these CM costs and 
CEP profit using the correct quantity amounts. See Decision Memorandum 
at Comment 2.

Final Results of the Review

    We determine the following percentage weighted-average margin 
exists for the period July 1, 2004, through June 30, 2005:

------------------------------------------------------------------------
                                                 Weighted Average Margin
            Manufacturer / Exporter                   (percentage)
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TKN...........................................                      2.45
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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), 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 0.5 percent), we will 
issue appraisement instructions directly to 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 each customer or 
importer and dividing this amount by the total entered value of these 
sales. Where the importer-specific ad valorem rate is greater than de 
minimis, and where the respondent has reported reliable entered values, 
we instruct CBP to apply the assessment rate to the entered value of 
the importer's entries during the POR. The Department intends to issue 
assessment instructions to CBP 15 days after the date of publication of 
the final results of review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
of Antidumping Duties). This clarification will apply to entries of 
subject merchandise during the period of review produced by the 
respondent for which it did not know its merchandise was destined for 
the United States. In such instances, we will instruct CBP to liquidate 
unreviewed entries at hte all-others rate if there is no rate for the 
intermediate company (or companies) involved in the transaction. For a 
full discussion of this clarification, see Assessment of Antidumping 
Duties.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of

[[Page 74900]]

administrative review for all shipments of stainless steel sheet and 
strip in coils from Germany 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 Tariff 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 13.48 
percent. This rate is the ``All Others'' rate from the amended final 
determination in the LTFV investigation of stainless steel sheet and 
strip in coils from Germany. See Stainless Steel Sheet and Strip in 
Coils From Germany: Amended Final Determination of Antidumping Duty 
Investigation, 67 FR 15178, 15179 (March 29, 2002).
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

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 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.

Notification Regarding Administrative Protective Orders

    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.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i) of the Tariff Act.

    Dated: December 6, 2006.
David M. Spooner,
Acting Assistant Secretaryfor Import Administration.

Appendix

Comments and Responses:
    1. Whether the Department properly deducted indirect selling 
expenses incurred in Mexico by an affiliate on behalf of respondent TKN 
from CEP.
    2. Whether the Department miscalculated the CEP profit rate and CEP 
profit.
    3. Whether the Department should grant a circumstance of sale 
adjustment to normal value for home market (HM) indirect selling 
expenses beyond the amount allowed under the CEP offset.
    4. Whether the Department should allow non-dumped sales to offset 
dumped sales in its margin calculation (zeroing)
[FR Doc. E6-21197 Filed 12-12-06; 8:45 am]
BILLING CODE 3510-DS-S