[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6631-6634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-2985]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-845]
Stainless Steel Sheet and Strip in Coils from Japan: Final
Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On August 7, 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 Japan. This review covers two producers/exporters of the
subject merchandise to the United States. The period of review (POR) is
July 1, 2007, through June 30, 2008.
Based on our analysis of the comments received, we have made
certain changes to the margin calculations for Hitachi Cable Ltd.
(Hitachi Cable) and Nippon Kinzoku Co., Ltd. (NKKN), producers/
exporters selected for individual review. Therefore, the final results
for Hitachi Cable and NKKN differ from the preliminary results. The
final weighted-average dumping margins for the reviewed firms are
listed below in the section entitled ``Final Results of Review.''
FOR FURTHER INFORMATION CONTACT: Kate Johnson or Rebecca Trainor, 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-
4929 or (202) 482-4007, respectively.
SUPPLEMENTARY INFORMATION:
Background
This review covers two producers/exporters: Hitachi Cable and NKKN.
On August 7, 2009, the Department published in the Federal Register
the preliminary results of the 2007-2008 administrative review of the
antidumping duty order on SSSSC from Japan. See Stainless Steel Sheet
and Strip in Coils from Japan: Preliminary Results of Antidumping Duty
Administrative Review, 74 FR 39615 (August 7, 2009) (Preliminary
Results). We invited parties to comment on those preliminary results.
Since the Preliminary Results, we conducted the cost verification
of Hitachi Cable from September 28 through October 2, 2009.
On October 28, 2009, we extended the deadline for the final results
until no later than February 3, 2010. See Stainless Steel Sheet and
Strip in Coils from Japan: Notice of Extension of Time Limit for the
Final Results of the 2007-2008 Administrative Review, 74 FR 55539
(October 28, 2009).
On November 18, 2009, we received case briefs from the domestic
producers of the subject merchandise (i.e., AK Steel Corporation and
Allegheny Technologies, Inc.) and NKKN. A rebuttal brief was received
from Hitachi on November 25, 2009.
The Department has conducted this administrative review in
accordance with section 751 of the Tariff Act of 1930, as amended (the
Act).
Scope of the Order
For purposes of this order, the products covered are certain SSSSC.
Stainless steel is an alloy steel containing, by weight, 1.2 percent or
less of carbon and 10.5 percent or more
[[Page 6632]]
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 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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[[Page 6633]]
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.
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Period of Review
The POR is July 1, 2007, through June 30, 2008.
Cost of Production
As discussed in the Preliminary Results, we conducted sales-below-
cost investigations to determine whether Hitachi and NKKN made home
market sales of the foreign like product during the POR at prices below
their costs of production (COP) within the meaning of section 773(b)(1)
of the Act. See Preliminary Results, 74 FR at 39620. For both
respondents, we performed the cost test for these final results
following the same methodology as in the Preliminary Results.
We found 20 percent or more of each respondent's sales of a given
product during the reporting period were at prices less than the
weighted-average COP for this period. Thus, we determined 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 find that
Hitachi and NKKN made below-cost sales which were not in the ordinary
course of trade. Consequently, we disregarded these sales for each
respondent 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 Issues and Decision
Memorandum (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, HCHB 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
certain changes in the margin calculations for Hitachi and NKKN. These
changes are discussed in the relevant sections of the Decision Memo.
Final Results of Review
We determine that weighted-average dumping margins exist for the
respondents for the period July 1, 2007, through June 30, 2008, as
follows:
------------------------------------------------------------------------
Manufacturer/Exporter Percent Margin
------------------------------------------------------------------------
Hitachi Cable Ltd................................... 0.00
Nippon Kinzoku Company, Ltd......................... 0.54
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Assessment
The Department shall determine, and U.S. Customs and Border
Protection (CBP) shall assess, antidumping duties on all appropriate
entries.
In those instances where Hitachi and NKKN reported the entered
value of their U.S. sales, we have calculated importer-specific ad
valorem duty assessment rates based on the ratio of the total amount of
antidumping duties calculated for the examined sales to the total
entered value of the examined sales for that importer. In those
instances where NKKN did not report the entered value of its U.S.
sales, we have calculated importer-specific per-unit duty assessment
rates by aggregating the total amount of antidumping duties calculated
for the examined sales and dividing this amount by the total quantity
of those sales. To determine whether the duty assessment rates are de
minimis, in accordance with the requirement set forth in 19 CFR
351.106(c)(2), we have calculated importer-specific ad valorem ratios
based on the estimated entered value.
We will instruct CBP to assess antidumping duties on all
appropriate entries covered by this review if any importer-specific
assessment rate calculated in the final results of this review is above
de minimis (i.e., at or above 0.50 percent). 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 intends to issue
assessment instructions to CBP 15 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) (Assessment
Policy Notice). This clarification will apply to entries of subject
merchandise during the POR produced by companies included in these
final results of review for which the reviewed companies did not know
that the merchandise they sold to the intermediary (e.g., a reseller,
trading company, or exporter) was destined for the United States. 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 intermediary involved in the
transaction. See Assessment Policy Notice for a full discussion of this
clarification.
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of
[[Page 6634]]
this administrative review, as provided by section 751(a)(2)(C) of the
Act: 1) the cash deposit rates for each specific company listed above
will be the rates shown above, except if the rate is less than 0.50
percent, and therefore, de minimis within the meaning of 19 CFR
351.106(c)(1), in which case the cash deposit rate will be zero; 2) for
previously reviewed or investigated companies not participating in this
review, 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 be 40.18 percent, the all-others rate
established in the LTFV investigation. These 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 final results of review in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: February 3, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Appendix Issues in Decision Memo
Hitachi
Comment 1: Bona Fides of Hitachi Cable's U.S. Sale
NKKN
Comment 2: Sample Sales in the U.S. Database
Comment 3: SAS Programming Errors
[FR Doc. 2010-2985 Filed 2-9-10; 8:45 am]
BILLING CODE 3510-DS-S