[Federal Register: December 13, 2002 (Volume 67, Number 240)]
[Notices]
[Page 76721-76724]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13de02-31]
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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: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results and partial rescission of antidumping
duty administrative review of stainless steel sheet and strip in coils
from Taiwan.
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SUMMARY: SUMMARY: On July 9, 2002, the Department of Commerce (``the
Department'') published in the Federal Register the preliminary results
and partial rescission of its administrative review of the antidumping
duty order on stainless steel sheet and strip in coils from Taiwan. See
Stainless Steel Sheet and Strip in Coils From Taiwan: Preliminary
Results and Partial Rescission of Antidumping Duty Administrative
Review, 67 FR 45742 (July 9, 2002) (``Preliminary Results''). This
review covers imports of subject merchandise from Tung Mung Development
Co. Ltd. (``Tung Mung''), Ta Chen Stainless Pipe Co. Ltd. (``Ta
Chen''), Chia Far Industrial Factory Co. Ltd. (``Chia Far''), and Yieh
United Steel Company (``YUSCO''). The period of review (``POR'') is
July 1, 2000 through June 30, 2001.
Based on our analysis of the comments received, we have made
changes in the margin calculations for Chia Far. Therefore, the final
results 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 the Review.'' In addition, we are
rescinding the review with respect to Ta Chen.
EFFECTIVE DATE: December 13, 2002.
FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT:
Laurel LaCivita (Ta Chen) (YUSCO); Cheryl Werner (Chia Far); Marlene
Hewitt (Tung Mung); or Bob Bolling, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
and Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-4243, (202) 482-2667, (202) 482-1385 or (202) 482-3434,
respectively.
SUPPLEMENTARY INFORMATION:
The Applicable Statute
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Act by the Uruguay Round Agreements
Act. In addition, unless otherwise indicated, all citations to the
Department's regulations are to the regulations at 19 CFR part 351
(2001).
Background
On July 9, 20021, the Department published the Preliminary Results.
As we stated in that notice, we preliminarily rescinded this review
with respect to Ta Chen, pursuant to its claim of no shipments of the
subject merchandise during the POR. We are now rescinding this review
with respect to Ta Chen, since no information on the record indicates
that Ta Chen made any shipments during the POR.
We invited parties to comment on the Preliminary Results. We
received written comments on September 4,
[[Page 76722]]
2002, from petitioners\1\ on YUSCO, Tung Mung, Ta Chen, and Chia Far.
Also, on September 4, 2002, we received written comments from Chia Far.
On September 16, 2002, we received rebuttal comments from YUSCO and
Chia Far on petitioners' comments. Also on September 16, 2002, we
received rebuttal comments from petitioners on Chia Far's comments. On
September 18, 2002, we received a submission from petitioners
concerning Chia Far, alleging new information. On September 25, 2002,
the Department rejected petitioners' September 18, 2002, submission
finding that the second portion of the letter included new factual
information that was untimely filed for this review. See Department's
Letter to Petitioners dated September 25, 2002. On September 27, 2002,
petitioners resubmitted, pursuant to instructions received from the
Department on September 25, 2002, the letter of September 18, 2002,
with the requested modifications. On October 8, 2002, the Department
rejected petitioners' request to remove from the record certain
passages contained in Chia Far's rebuttal brief. The Department
determined that Chia Far's rebuttal brief contained only information
already on the written record of review, and was therefore, not
rejecting any passages contained in Chia Far's rebuttal brief. The
Department found that Chia Far submitted its rebuttal brief in
accordance with 19 CFR 351.309(d).
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\1\ Allegheny Ludlum, AK Steel Corporation (formerly Armco,
Inc.), J&L Specialty Steel, Inc., North American Stainless, Butler-
Armco Independent Union, Zanesville Armco Independent Union, and the
United Steelworkers of America, AFL-CIO/CLC.
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On October 7, 2002, the Department informed petitioners that it was
rejecting its case brief with respect to YUSCO, filed on September 18,
2002, which contained new and untimely-filed information. On October 9,
2002, petitioners submitted a revised case brief concerning YUSCO,
which excluded certain new factual information.
Under section 751(a)(3)(A) of the Act, the Department may extend
the deadline for completion of an administrative review if it
determines that it is not practicable to complete the review within the
statutory time limit. On October 8, 2002, the Department extended the
time limit for the final results to December 6, 2002. See Stainless
Steel Sheet and Strip in Coils from Taiwan: Extension of Final Results
of Review, 67 FR 62697 (October 8, 2002). We have now completed the
administrative review in accordance with section 751 of the Act.
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\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 review 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 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 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.
[[Page 76723]]
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.''\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 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.''\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 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.''\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 this review. 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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Rescission of Review
In the Preliminary Results, we stated that Ta Chen reported, and
the Department confirmed through independent U.S. Customs Service data,
that it had no shipments of subject merchandise during the POR. See
memorandum from Laurel LaCivita to the file dated October 9, 2002.
Since Ta Chen did not report any shipments during the POR, we had no
basis for determining a margin. Consequently, in accordance with 19 CFR
351.213(d)(3) and consistent with the Department's practice, we
preliminarily rescinded our review with respect to Ta Chen. Because we
have received no information since the Preliminary Results that
contradicts the decision made in the Preliminary Results, we are
rescinding the review with respect to Ta Chen. Since Ta Chen did not
participate in the original investigation, its cash deposit rate will
remain at 12.12 percent, which is the all others rate established in
the less than fair value (``LTFV'') investigation.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this administrative review are addressed in the ``Issues and Decision
Memorandum'' (``Decision Memorandum'') from Joseph A. Spetrini, Deputy
Assistant Secretary, Import Administration, to Faryar Shirzad,
Assistant Secretary for Import Administration, dated December 6, 2002,
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, Room B-099 of the main
Department building. In addition, a complete version of the Decision
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/.
The paper copy and electronic version of the Decision
Memorandum are identical in content.
Total Adverse Facts Available
In our Preliminary Results, we explained that Tung Mung did not
participate in this review and therefore, we applied an adverse facts
available (``AFA'') rate of 21.10 percent to all sales and entries of
Tung Mung's subject merchandise during the POR. Since the Preliminary
Results, we have received no information on the record that contradicts
our finding in the Preliminary Results. As a result, we will
[[Page 76724]]
make no changes to Tung Mung's margin of 21.10 percent for the final
results.
Sales Below Cost
We disregarded sales below cost for both YUSCO and Chia Far during
the course of the review.
Changes Since the Preliminary Results
Based on our analysis of comments received, we have made changes in
the margin calculations for Chia Far. The changes to the margin
calculations are listed below:
1. We included all of the depreciation expense incurred in the common
service department at Pu-Shin and allocated it to the rolling
department in the calculation of the cost of production.
2. We used Chia Far's 2001 financial statements to calculate the net
interest expense ratio and G&A expense ratio. We also included
miscellaneous losses in the G&A expense ratio.
3. We used Chia Far's reported inventory carrying costs incurred in
Taiwan.
Final Results of Review
We determine that the following percentage margin exists for the
period July 1, 2000 through June 30, 2001:
Stainless Steel Sheet and Strip in Coils from Taiwan
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Margin
Manufacturer/exporter/reseller (percent)
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YUSCO...................................................... 0.0
Chia Far................................................... 1.11
Tung Mung.................................................. 21.10
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The Department will determine, and the Customs Service shall
assess, antidumping duties on all appropriate entries. In accordance
with 19 CFR 351.212(b)(1), we have calculated an exporter/importer (or
customer)-specific assessment rate for merchandise subject to this
review. The Department will issue appropriate assessment instructions
directly to the Customs Service within 15 days of publication of these
final results of review. We will direct the Customs Service to assess
the resulting assessment rates against the entered customs values for
the subject merchandise on each of the importer's/customer's entries
during the review period. For duty-assessment purposes, we will
calculate importer-specific assessment rates by dividing the dumping
margins calculated for each importer by the total entered value of
sales for each importer during the period of review.
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 rates for YUSCO, Chia Far and Tung Mung will
be the rates shown above; (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 original less-than-fair-value (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)
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 12.12 percent.
These deposit requirements shall remain in effect until publication
of the final results of the next administrative review.
Notification of 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 or countervailing
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 or
countervailing duties occurred and the subsequent assessment of double
antidumping duties or countervailing duties.
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 19 CFR 351.305, 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 which is subject to sanction.
We are issuing and publishing this determination and notice in
accordance with sections 751(a)(1) and 771(i) of the Act.
Dated: December 6, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
APPENDIX 1 -- ISSUES IN THE DECISION MEMORANDUM
Issues with Respect to Tung Mung and Ta Chen
Comment 1: Total Adverse Facts Available (``AFA'') for Tung Mung and Ta
Chen
Comment 2: Whether Ta Chen Should Be Granted a Partial Recision of
Review
Issues with Respect to YUSCO
Comment 3: Sales to Affiliated Parties in the United States
Comment 4: Affiliation With China Steel
Comment 5: Classification of Home Market Sales
Comment 6: The Use of AFA
Issues with Respect to Chia Far
Comment 7: Total AFA
Comment 8: Affiliated-Party Purchases
Comment 9: General and Administrative (``G&A'') Expenses
Comment 10: Appropriate Period for G&A and Interest Expense Ratios
Comment 11: Inventory Carrying Costs Incurred in Taiwan for U.S. Sales
Comment 12: Constructed Export Price (``CEP'') Transactions
[FR Doc. 02-31481 Filed 12-12-02; 8:45 am]