[Federal Register Volume 74, Number 25 (Monday, February 9, 2009)]
[Notices]
[Pages 6365-6368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2667]


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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 6, 2008, 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, 73 FR 
45708 (August 6, 2008) (Preliminary Results). This review covers sales 
of subject merchandise made by ThyssenKrupp Mexinox S.A. de C.V. 
(Mexinox) for the period July 1, 2006, to June 30, 2007. 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 
Review.''

EFFECTIVE DATE: February 9, 2009.

FOR FURTHER INFORMATION CONTACT: Maryanne Burke 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-
5604 and (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2008, 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, 2006, to June 30, 2007. See Preliminary Results. In 
response to the Department's invitation to comment on the preliminary 
results of this review, Allegheny Ludlum Corporation, AK Steel 
Corporation, North American Stainless, United Auto Workers Local 3303, 
Zanesville Armco Independent Organization, Inc. and the United 
Steelworkers of America (collectively, petitioners) and Mexinox filed 
their case briefs on September 5, 2008. Mexinox and petitioners 
submitted rebuttal briefs on September 12, 2008.

[[Page 6366]]

    On October 14, 2008, we published in the Federal Register our 
notice extending the time limit for this review until February 2, 2009. 
See Stainless Steel Sheet and Strip in Coils From Mexico: Extension of 
Time Limit for Final Results of Antidumping Duty Administrative Review, 
73 FR 60679 (October 14, 2008).

Period of Review

    The period of review (POR) is July 1, 2006 to June 30, 2007.

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, 
7219.13.00.81, 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 scope 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 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.''\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 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.''\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 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,

[[Page 6367]]

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 the 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 interested 
parties in this administrative review are addressed in the Issues and 
Decision Memorandum (Decision Memorandum) from John M. Andersen, Acting 
Deputy Assistant Secretary for Import Administration, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Import Administration, dated 
February 2, 2009, 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 in room 1117 
of the main Department building. In addition, a complete version of the 
Decision Memorandum can be accessed directly via the Internet at 
www.ia.ita.doc.gov/fm/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 the comments received, we have made the 
following changes to the margin calculation:
    [bul] We revised the numerator of Mexinox's and Ken-Mac Metal 
Inc.'s financial expense ratio to include a certain short-term interest 
income offset. See ``Cost of Production and Constructed Value 
Calculation Adjustments for the Final Results - ThyssenKrupp Mexinox 
S.A. de C.V. '' (Final Results Cost Calculation Memorandum), dated 
February 2, 2009
    [bul] We have corrected clerical errors identified by parties in 
the Preliminary Results: (1) we modified SAS language in the All-Macros 
Program where we perform the sales below cost test on a quarterly basis 
to avoid overwriting certain transaction-specific data; (2) we revised 
our calculation of Mexinox's home market credit expenses; (3) we 
adjusted the denominators of Mexinox's general and administrative 
expense ratio and financial expense ratio to include a certain 
depreciation expense.
These changes are discussed in the relevant sections of the Decision 
Memorandum and Final Results Cost Calculation Memorandum. See also 
Memorandum to the File, ``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),'' dated February 2, 
2009.

Final Results of Review

    We determine the following weighted-average percentage margin 
exists for the period July 1, 2006 to June 30, 2007:

------------------------------------------------------------------------
                                                       Weighted Average
               Manufacturer / Exporter                      Margin
                                                         (percentage)
------------------------------------------------------------------------
ThyssenKrupp Mexinox S.A. de C.V....................        2.86 percent
------------------------------------------------------------------------

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries, pursuant to section 751(a)(1) of the Tariff Act of 1930, as 
amended (the Act) and 19 CFR 351.212(b). The Department calculated an 
assessment rate for each importer of the subject merchandise covered by 
the review. Upon issuance of the final results of this review, for any 
importer-specific assessment rates calculated in the final results that 
are above de minimis (i.e., at or above 0.50 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. Pursuant to 19 CFR 356.8(a), the Department 
intends to issue assessment instructions to CBP 41 days after the date 
of publication of these 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). This 
clarification will apply to entries of subject merchandise during the 
POR produced by Mexinox for which Mexinox did not know the merchandise 
was destined for the United States. In such instances, we will instruct 
CBP to liquidate unreviewed entries at the 30.85 percent all-others 
rate if there is no company-specific rate for an intermediary involved 
in the transaction. See id. for a full discussion of this 
clarification.

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, consistent with

[[Page 6368]]

section 751(a)(1) of the 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 30.85 percent, the all-others rate established in the 
LTFV investigation. See Notice of Amended Final Determination of Sales 
at Less Than Fair Value and Antidumping Duty Order; Stainless Steel 
Sheet and Strip in Coils From Mexico, 64 FR 40560 (July 27, 1999). 
These deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 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 Department's presumption that 
reimbursement of the antidumping duties occurred and the subsequent 
assessment of doubled 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 351.305, which 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 Act.

    Dated: February 2, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix [dash1] Issues in Decision Memorandum

General Issues
    Comment 1: Clerical Errors
    Comment 2: Offsetting for U.S. Sales that Exceed Normal Value
Adjustments to U.S. Price
    Comment 3: U.S. Indirect Selling Expenses
Adjustments to Normal Value
    Comment 4: Circumstances-of-Sale Adjustment
Cost of Production
    Comment 5: Whether to Apply an Alternative Cost Averaging 
Methodology
    Comment 6: Depreciation for the Bright-Annealing Line
    Comment 7: General and Administrative Expense Ratio
    Comment 8: Financial Expense Ratio
[FR Doc. E9-2667 Filed 2-6-09; 8:45 am]
BILLING CODE 3510-DS-S