[Federal Register Volume 75, Number 24 (Friday, February 5, 2010)]
[Notices]
[Pages 5947-5950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-2592]


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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 Rescission in Part of Antidumping Duty Administrative 
Review

AGENCY:  Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 5, 2009, 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 
(SSSSC) from Taiwan. This review covers one producer/exporter of the 
subject merchandise to the United States. The period of review (POR) is 
July 1, 2007, through June 30, 2008. We are rescinding the review with 
respect to two companies because these companies had no shipments of 
subject merchandise during the POR.
    Based on our analysis of the comments received, we have made no 
changes in the margin calculation. Therefore, the final results do not 
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 5, 2010.

FOR FURTHER INFORMATION CONTACT: Henry Almond, 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) 482-0049.

SUPPLEMENTARY INFORMATION:

Background

    This review covers three producers/exporters: Chia Far Industrial 
Factory Co., Ltd. (Chia Far), Yieh United Steel Corporation (YUSCO), 
and Ta Chen Stainless Pipe Co., Ltd. (Ta Chen). Chia Far is the only 
company participating in this review, and we are rescinding the review 
with respect to YUSCO and Ta Chen.
    On August 5, 2009, the Department published in the Federal Register 
the preliminary results of administrative review of the antidumping 
duty order on SSSSC from Taiwan. See Stainless Steel Sheet and Strip in 
Coils from Taiwan: Preliminary Results and Preliminary Rescission in 
Part of Antidumping Duty Administrative Review, 74 FR 39055 (Aug. 5, 
2009) (Preliminary Results).
    We invited parties to comment on our preliminary results of review. 
In September 2008, we received a case brief from the petitioners\1\ and 
a rebuttal brief from Ta Chen. At the request of the petitioners, we 
held a hearing on September 29, 2009. On November 23, 2009, we 
postponed the deadline for the final results under section 751(a)(3)(A) 
the Tariff Act of 1930, as amended (the Act). See Stainless Steel Sheet 
and Strip in Coils From Taiwan: Notice of Extension of Time Limit for 
the Final Results of the 2007-2008 Administrative Review, 74 FR 61107 
(Nov. 23, 2009).
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    \1\ The petitioners are Allegheny Ludlum Corporation, AK Steel 
Corporation, United Auto Workers Local 3303, United Steelworkers of 
America, AFL-CIO/CLC, and Zanesville Armco Independent Organization.
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    The Department has conducted this administrative review in 
accordance with section 751 of the Act.

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 (HTSUS) 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 HTSUS subheadings are provided for convenience and customs 
purposes, the Department's written description of the merchandise under 
the order is dispositive.
    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)

[[Page 5948]]

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).
    Also excluded from the scope of the order are certain specialty 
stainless steel products 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 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.\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 the order. This product is defined as a non-magnetic stainless 
steel manufactured to American Society of Testing and Materials 
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 the order. This high-strength, ductile 
stainless steel product is designated under the Unified Numbering 
System 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 the 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 illustrated 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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Period of Review

    The POR is July 1, 2007, through June 30, 2008.

Partial Rescission of Review

    As noted in the ``Background'' section above, we are rescinding the 
review with respect to two respondents, Ta Chen and YUSCO. As noted in 
the Preliminary Results, both Ta Chen and

[[Page 5949]]

YUSCO certified to the Department that they had no shipments/entries of 
subject merchandise into the United States during the POR. The 
Department subsequently confirmed with U.S. Customs and Border 
Protection (CBP) the no-shipment claim made by YUSCO. See the November 
13, 2008, Memorandum to the File from Henry Almond, Analyst, entitled, 
``2007-2008 Administrative Review of Stainless Steel Sheet and Strips 
in Coils from Taiwan: Entry Information from U.S. Customs and Border 
Protection (CBP).'' See also Preliminary Results, 74 FR at 39057.
    Since the preliminary results, no party to this proceeding has 
commented on our preliminary rescission for YUSCO. As a result, we are 
rescinding the review with respect to this company, in accordance with 
19 CFR 351.213(d)(3) and the Department's practice. See, e.g., Chia Far 
Indus. Factory Co., Ltd. v. United States, 343 F. Supp. 2d 1344, 1374 
(2004); Certain Steel Concrete Reinforcing Bars From Turkey; Final 
Results, Rescission of Antidumping Duty Administrative Review in Part, 
and Determination To Revoke in Part, 70 FR 67665, 67666 (Nov. 8, 2005); 
and Notice of Final Results and Partial Rescission of Antidumping Duty 
Administrative Review: Certain Welded Carbon Steel Pipe and Tube from 
Turkey, 63 FR 35190, 35191 (June 29, 1998).
    Regarding Ta Chen, this company also indicated that it had no 
shipments; however its U.S. affiliate imported SSSSC from Taiwan 
manufactured and exported by Tung Mung Development Co. (Tung Mung), 
whose SSSSC is excluded from the antidumping duty order. Subsequently, 
the petitioners alleged that such shipments should be subject to a 
middleman dumping inquiry. As discussed in the Preliminary Results, we 
preliminarily found that Ta Chen did not act as a middleman with 
respect to re-sales of imports by its U.S. affiliate, Ta Chen 
International (TCI), and we also preliminarily rescinded the review 
with respect to Ta Chen. See Preliminary Results, 74 FR at 39057-58. 
Since the time of the preliminary results, we received a case brief 
from the petitioners and a rebuttal brief from Ta Chen addressing this 
issue. After fully considering the interested parties' comments, we 
continue to find that these direct sales of SSSSC from Tung Mung to TCI 
are not subject to a middleman dumping inquiry. Therefore, we are 
rescinding the review with respect to Ta Chen. For further discussion, 
see the Issues and Decision Memorandum (Decision Memo), accompanying 
this notice.

Cost of Production

    As discussed in the Preliminary Results, we conducted an 
investigation to determine whether Chia Far made home market sales of 
the foreign like product during the POR at prices below its cost of 
production (COP) within the meaning of section 773(b) of the Act. See 
Preliminary Results, 73 FR at 45398-99. For these final results, we 
made no changes to the cost test performed in the Preliminary Results.
    We found that more than 20 percent of Chia Far's sales of a given 
product during the reporting period were at prices less than the 
weighted-average COP for this period. Thus, we continue to determine 
that these below-cost sales were made in ``substantial quantities'' 
within an extended period of time and at prices which did not permit 
the recovery of all costs within a reasonable period of time in the 
normal course of trade. See sections 773(b)(2)(B) - (D) of the Act.
    Therefore, for purposes of these final results, we continue to find 
that Chia Far made below-cost sales not in the ordinary course of 
trade. Consequently, we disregarded the below-cost sales and used the 
remaining sales as the basis for determining normal value pursuant to 
section 773(b)(1) of the Act.

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
administrative review, and to which we have responded, are listed in 
the Appendix to this notice and addressed in the Decision Memo, which 
is adopted by this notice. 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, room 1117, of the main Department building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn/. The paper 
copy and electronic version of the Decision Memo are identical in 
content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have made no 
changes in the margin calculations for Chia Far.

Final Results of Review

    We determine that the following weighted-average margin percentage 
exists for the period July 1, 2007, through June 30, 2008:

------------------------------------------------------------------------
                                                                Margin
               Manufacturer/Producer/Exporter                 Percentage
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Chia Far Industrial Factory Co., Ltd........................        4.30
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Assessment

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. The Department intends to issue 
assessment instructions to CBP 15 days after the date of publication of 
these final results of review.
    Pursuant to 19 CFR 351.212(b)(1), we calculated importer-specific 
ad valorem duty assessment rates for Chia Far based on the ratio of the 
total amount of antidumping duties calculated for the examined sales to 
the total entered value of those sales. Pursuant to 19 CFR 
351.106(c)(2), we will instruct CBP to liquidate without regard to 
antidumping duties any entries for which the assessment rate is de 
minimis (i.e., less than 0.50 percent).
    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 Chia Far for which Chia Far did not know its merchandise 
was destined for the United States. This clarification will also apply 
to POR entries of subject merchandise produced by companies for which 
we are rescinding the review based on certifications of no shipments, 
because these companies certified that they made no POR shipments of 
subject merchandise for which they had knowledge of U.S. destination. 
In such instances, we will instruct CBP to liquidate unreviewed entries 
at the all-others rate established in the less-than-fair-value (LTFV) 
investigation if there is no rate for the intermediate company(ies) 
involved in the transaction.

Cash Deposit Requirements

    Further, the following deposit requirements will be effective for 
all shipments of SSSSC from Taiwan entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided for by section 
751(a)(2)(C) of the Act: 1) the cash deposit rate for the reviewed 
company will be the rate shown above, except if the rate is less than 
0.50 percent, de minimis within the meaning of 19 CFR 351.106(c)(1), 
the cash

[[Page 5950]]

deposit will be zero; 2) for previously 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, or the 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 12.61 percent, the ``All Others'' rate made effective by 
the LTFV investigation. See Notice of Antidumping Duty Order; Stainless 
Steel Sheet and Strip in Coils From United Kingdom, Taiwan, and South 
Korea, 64 FR 40555, 40557 (July 27, 1999). These deposit requirements, 
when imposed, shall remain in effect until further notice.

Notification to Importers

    This notice 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 Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/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 of review in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 1, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Policy and Negotiations.

Appendix-Issues in the Decision Memorandum

1. Middleman Dumping

[FR Doc. 2010-2592 Filed 2-4-10; 8:45 am]
BILLING CODE 3510-DS-S