[Federal Register: March 13, 2003 (Volume 68, Number 49)]
[Notices]
[Page 12039-12041]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13mr03-48]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-834]
Stainless Steel Sheet and Strip in Coils From The Republic of
Korea: Notice of Amended Final Results of Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Amended final results of antidumping duty administrative review
of stainless steel sheet and strip in coils from the Republic of Korea.
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EFFECTIVE DATE: March 13, 2003.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Robert Bolling,
Enforcement Group III, Import Administration, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue,
NW., Washington, DC 20230; telephone: (202)482-4243, or (202)482-3434,
respectively.
Amendment of Final Results
On February 10, 2003, the U.S. Department of Commerce
(``Department'') published in the Federal Register the results of its
administrative review of the antidumping duty order on stainless steel
sheet and strip in coils (``SSSS'') from the Republic of Korea covering
the period July 1, 2000, through June 30, 2001. See Stainless Steel
Sheet and Strip in Coils From the Republic of Korea; Final Results and
Partial Rescission of Antidumping Duty Administrative Review, 68 FR
6713 (February 10, 2003) (``Final Results'').
On February 10, 2003, respondent Pohang Iron & Steel Co., Ltd.
(``POSCO'') filed a ministerial error allegation pursuant to section
351.224(c)(2) of the Department's regulations. Petitioners did not
comment on any ministerial errors concerning the final results of this
review. As a result of our analysis of POSCO's allegations, we are
amending the Final Results in the antidumping review of SSSS from the
Republic of Korea.
Scope of the Review
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 review 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,\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 HTS subheadings are provided for
convenience and Customs purposes, the Department's written description
of the merchandise under review is dispositive.
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\1\ Due to changes to the HTS numbers in 2001, 7219.13.0030,
7219.13.050, 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 this review 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
[[Page 12040]]
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 this review. 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 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 review. 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 review. 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\ ``Arnikrome 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 review. 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 Imply, S.A
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Certain martensitic precipitation-hardenable stainless steel is
also excluded from the scope of this review. 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.'' \4\
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\4\ ``Durphnox 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 review. 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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Ministerial Error
A ministerial error is defined in section 351.224(f) of our
regulations as ``an error in addition, subtraction, or other arithmetic
function, clerical error resulting from inaccurate copying,
duplication, or the like, and any other similar type of unintentional
error which the Secretary considers ministerial.'' Section 351.224(e)
of our regulations provides that we ``will
[[Page 12041]]
analyze any comments received and, if appropriate * * * correct any
ministerial error by amending * * * the final results of review. * *
*'' After reviewing POSCO's allegations, we have determined in
accordance with section 351.224 of the Department's regulations, that
the final results of review include the ministerial error discussed
below.
Comment 1: L-Grade Adjustment for Models Sold Exclusively in the United
States
POSCO contends that the Department made an error in merging the
cost of production (``COP'') and constructive value (``CV'') files that
failed to implement its stated decision in the final results of review
to apply the minor corrections to the L-grade adjustment reported at
verification to those models sold exclusively in the United States. As
a result, POSCO claims that certain models sold exclusively in the U.S.
market did not have variable or total cost of manufacturing (``VCOM''
or ``TCOM'') applied to them during the model match sequence of the
computer program. Consequently, these models did not find an
appropriate match in the home market and were compared to CV in error
for the final results of review.
To correct this error, POSCO proposed a number of programming
changes: (1) Insert language creating a duplicate cost file for the
U.S. sales; (2) create the VCOM and TCOM information for the U.S. sales
before merging the cost files with the home market sales files; and,
(3) delete the calculation of VCOM and TCOM after the merge of the COP
and home market sales databases. See POSCO's February 10, 2003
ministerial error allegation letter.
Department's Position
We agree with POSCO that the program used in the final results of
review failed to correctly apply the L-grade adjustment to the models
sold exclusively in the United States, and therefore, to determine the
appropriate model matches for the final results of review. However, our
analysis reveals that POSCO erroneously equated the total cost of
production in the United States (``TCOMU'') with the total cost of
manufacturing rather than the total cost of production, thereby
omitting selling, general and administrative expenses (SG&A) from the
calculation of TCOMU. Therefore, we have revised our calculations to
appropriately merge the COP and CV files, and to correctly calculate
TCOMU. See Analysis memorandum for the amended final results of review
for stainless steel sheet and strip in coils from Korea--Pohang Iron
and Steel Company (``POSCO'') dated March 6, 2003.
Amended Final Results
We are amending the final results of the administrative review on
SSSS from the Republic of Korea covering the period July 1, 2000,
through June 30, 2001, pursuant to section 751(h) of the Act. As a
result of this redetermination, the recalculated final weighted-average
margin for POSCO is as follows:
------------------------------------------------------------------------
Weighted average Revised weighted
Exporter/manufacturer margin in the average margin
final (percent) (percent)
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POSCO........................... .98 .92
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The cash deposit rate for POSCO of 0.92 percent ad valorem is
effective on all shipments of the subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice, and will remain in effect until publication
of the final results of the next administrative review.
Accordingly, the Department will determine, and the Customs Service
will assess, antidumping duties on all entries of subject merchandise
from POSCO during the period July 1, 2000, through June 30, 2001, in
accordance with this amended final results.
This amended final results and notice are in accordance with
sections 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and section
351.221 of the Department's regulations.
Dated: March 4, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 03-6090 Filed 3-12-03; 8:45 am]