[Federal Register Volume 71, Number 241 (Friday, December 15, 2006)]
[Notices]
[Pages 75504-75507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21440]


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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: AGENCY: Import Administration, International Trade 
Administration, Department of Commerce.
SUMMARY: On August 9, 2006, 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 15 manufacturers/exporters. The period of review (POR) is July 
1, 2004, through June 30, 2005.
    We provided interested parties with an opportunity to comment on 
the preliminary results of review. After analyzing the comments 
received, we corrected one programming error in the margin calculation 
for one respondent, Chia Far Industrial Factory Co., Ltd. (Chia Far). 
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 Review.''

EFFECTIVE DATE:  December 15, 2006.

FOR FURTHER INFORMATION CONTACT: Melissa Blackledge or Howard Smith, 
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) 
482-5193, 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 Rescission in Part of Antidumping Duty 
Administrative Review, 71 FR 45521 (August 9, 2006) (Preliminary 
Results). In response to the Department's invitation to comment on the 
Preliminary Results, the petitioners\1\ and Chia Far filed case briefs 
on September 8, 2006. Chia Far and petitioners filed rebuttal briefs on 
September 15, 2006.
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    \1\ The petitioners are Allegheny Ludlum Corporation, United 
Auto Workers Local 3303 (formerly Butler Armco Independent Union), 
North American Stainless (except as to Ta Chen and its affiliates), 
United Steelworkers of America, AFL-CIO/CLC, and Zanesville Armco 
Independent Organization (collectively, ``petitioners'').
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Period of Review

    The POR is July 1, 2004, through June 30, 2005.

Scope of the Order

    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).
    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

[[Page 75505]]

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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Partial Rescission of Review

    In the Preliminary Results notice, we stated that we were 
preliminarily rescinding the instant review with respect to Ta Chen 
Stainless Pipe Co., Ltd. (Ta Chen), Yieh United Steel Corp. (YUSCO), 
Yieh Mau Corp. (Yieh Mau), Chain Chon Industrial Co., Ltd. (Chain 
Chon), Yieh Loong Enterprise Company, Ltd. (Yieh Loong), and China 
Steel Corporation (China Steel), because record evidence supported 
their claims that they made no shipments of subject merchandise during 
the POR. The record evidence relied upon by the Department included 
U.S. Customs and Border Protection (CBP) data and customs entry 
documents which the Department placed on the record of this review. 
Parties did not comment on this record evidence. Because the record 
evidence does not call into question the parties' no shipments claims, 
we are rescinding this administrative review with respect to Ta Chen, 
YUSCO, Yieh Mau, Chain Chon, Yieh Loong, and China Steel pursuant to 19 
CFR 351.213(d)(3). In addition, for the reasons explained in the 
Preliminary Results notice, we are rescinding this review with respect 
to Emerdex Stainless Flat-Rolled Products, Inc., Emerdex Stainless 
Steel, Inc., and the

[[Page 75506]]

Emerdex Group. See Preliminary Results, 71 FR 45521.

Analysis of Comments Received

    All issues raised in the parties' case and rebuttal briefs 
commenting on this administrative review are addressed in the Issues 
and Decision Memorandum from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, dated December 7, 2006, 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 the public Issues and 
Decision 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/frn/index. The paper copy and electronic 
version of the Issues and Decision Memorandum are identical in content.

Use of Facts Available

    In the preliminary results of review, we assigned a dumping margin 
based on total adverse facts available (AFA) to the following 
companies, pursuant to section 776 of the Act, because they failed to 
respond to the Department's questionnaire: PFP Taiwan Co., Ltd., Yieh 
Trading Corporation, Goang Jau Shing Enterprise Co., Ltd., Chien Shing 
Stainless Steel Company Ltd., and Tang Eng Iron Works Company, Ltd. 
That margin, 21.10 percent, is the highest appropriate dumping margin 
from this or any prior segment of the instant proceeding. No parties 
commented on the Department's decision to apply total AFA to these 
companies. For the reasons noted in the Preliminary Results notice, we 
have continued to assign the above-mentioned companies an AFA rate of 
21.10 percent.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have corrected 
one programming error in calculating the dumping margin for one 
respondent, Chia Far. For additional information, see 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, 2004, through June 30, 2005, dated December 7, 2006.

Final Results of Review

    We determine that the following weighted-average percentage margins 
exist for the period July 1, 2004, through June 30, 2005:

------------------------------------------------------------------------
    Manufacturer/Exporter/
           Reseller               Weighted-Average Margin (percentage)
------------------------------------------------------------------------
Chia Far Industrial Factory                                         0.79
 Co., Ltd. (Chia Far)........
Goang Jau Shing Enterprise                                         21.10
 Co., Ltd....................
PFP Taiwan Co., Ltd..........                                      21.10
Yieh Trading Corporation.....                                      21.10
Chien Shing Stainless Steel                                        21.10
 Company Ltd.................
Tang Eng Iron Works Company,                                       21.10
 Ltd.........................
------------------------------------------------------------------------

Assessment

    The Department has determined, and CBP shall assess, antidumping 
duties on all appropriate entries. In accordance with 19 C.F.R. Sec.  
351.212(b)(1), where possible, the Department calculated importer-
specific assessment rates for merchandise subject to this review. Where 
the importer-specific assessment rate is above de minimis, we will 
instruct CBP to assess the importer-specific rate uniformly on the 
entered customs value of all entries of subject merchandise made by the 
importer during the POR. To determine whether the per-unit duty 
assessment rates were de minimis (i.e., less than 0.50 percent ad 
valorem), in accordance with the requirement set forth in 19 C.F.R. 
Sec.  351.106(c)(2), we calculated importer-specific ad valorem ratios 
based on the export prices. For the respondents receiving dumping 
margins based upon AFA, the Department will instruct CBP to liquidate 
entries according to the AFA ad valorem rate. The Department intends to 
issue assessment instructions to CBP 15 days after the date of 
publication of this final results of review.
    The Department clarified its ``automatic assessment'' regulation in 
Antidumping and Countervailing Duty Proceedings: Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003). This clarification 
applies to POR entries of subject merchandise produced by companies 
included in these final results where the companies did not know that 
their merchandise was destined for the United States. In such 
instances, we will instruct CBP to liquidate unreviewed entries at the 
all-others rate if there is no rate for the intermediate company(ies) 
involved in the transaction. For a full discussion of this 
clarification, see Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003).

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 rate for each of the reviewed companies will 
be the rate listed for the company in the ``Final Results of Review'' 
section above (except if the rate for a particular company is de 
minimis, i.e., less than 0.5 percent, no cash deposit will be required 
for that company); (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 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

[[Page 75507]]

regulations 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.

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 these results and this notice in 
accordance with sections 751(a)(1) and 771(i) of the Act.

    Dated: December 7, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I -- Issues In The Issues And Decision Memorandum

List Of Issues Discussed

A. Issues with Respect to Chia Far
Comment 1: Home Market Early Payment Discounts
Comment 2: U.S. Indirect Selling Expenses
Comment 3: Work-In-Process Inventory
Comment 4: Minor Input from Affiliates
Comment 5: Improperly Excluded U.S. Sales
[FR Doc. E6-21440 Filed 12-14-06; 8:45 am]
BILLING CODE 3510-DS-S