[Federal Register: December 26, 2002 (Volume 67, Number 248)]
[Notices]               
[Page 78773-78776]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26de02-41]                         


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DEPARTMENT OF COMMERCE


International Trade Administration


[A-427-814]


 
Notice of Final Results of Antidumping Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils From France


AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.


ACTION: Notice of final results of antidumping duty administrative 
review of stainless steel sheet and strip in coils from France.


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SUMMARY: On August 7, 2002, the Department of Commerce (``Department'') 
published the preliminary results of the administrative review of the 
antidumping duty order on stainless steel sheet and strip in coils from 
France. The merchandise covered by the order is stainless steel sheet 
and strip in coils (``SSSS'') as described in the ``Scope of the 
Review'' section of the Federal Register notice. This review covers 
imports of subject merchandise from Ugine, S.A (``Ugine'') and Imphy 
Ugine Precision (``IUP'')\1\. The period of review (``POR'') is July 1, 
2000, through June 30, 2001.
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    \1\ Ugine, in the instant review, refers to Ugine, S.A. and 
Imphy Ugine Precision (``IUP'') as a single entity as they were 
collapsed by Ugine prior to submitting its antidumping duty 
questionnaire response. We note that Ugine and IUP were also treated 
as a collective entity during the first administrative review. See 
Notice of Final Results of the Antidumping Duty Administrative 
Review: Stainless Steel Sheet and Strip in Coils from France and 
accompanying Issues and Decision Memorandum (``First Review Final'') 
67 FR 6493 (February 12, 2001) at Comment 1.
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    Based on our analysis of the comments received, we have made 
changes in the margin calculation. Therefore, the final results differ 
from the preliminary results of review. The final weighted-average 
dumping margin for Ugine is listed below in the section entitled 
``Final Results of the Review.''


EFFECTIVE DATE: December 26, 2002.


FOR FURTHER INFORMATION CONTACT: Alex Villanueva, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th and Constitution Avenue, NW., Washington, DC 20230; 
telephone: (202) 482-3208.


SUPPLEMENTARY INFORMATION:


Background


    On August 7, 2002, the Department published Notice of Preliminary 
Results and Partial Rescission of Antidumping Duty Administrative 
Review for Stainless Steel Sheet and Strip in Coils from France, 67 FR 
51210 (August 7, 2002) (``Prelim Results''). In accordance with 19 CFR 
351.309(c)(ii), we invited parties to comment on our Prelim Results. On 
September 20, 2002, Ugine and the Petitioners\2\ filed comments. On 
September 27, 2002, Ugine and the Petitioners filed rebuttal comments. 
Pursuant to 19 CFR 351.309(d)(2), the Petitioners were asked to re-
submit their rebuttal comments and omit certain arguments that were not 
raised by Ugine. See Letter from the Department to the Petitioners, 
dated October 4, 2002. Consequently, the Petitioners submitted their 
revised rebuttal comments on October 7, 2002. We have now completed the 
administrative review in accordance with section 751 of the Act. On 
December 12, 2002, we extended the deadline for issuing the final 
results. See Notice of Extension of Time Limit for the Final Results of 
the


[[Page 78774]]


Antidumping Duty Administrative Review: Stainless Steel Sheet and Strip 
in Coils from France, 67 FR 76382 (December 12, 2002).
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    \2\ The Petitioners in this case are Allegheny Ludlum 
Corporation, AK Steel, Inc., North American Stainless, United 
Steelworkers of America, AFL-CIO/CLC, Butler Armco Independent Union 
and Zanesville Armco Independent Organization.
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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\3\, 
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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    \3\ 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. 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.'' \4\
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    \4\ ``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.'' \5\
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    \5\ ``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


[[Page 78775]]


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.'' \6\
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    \6\ ``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).\7\ 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''.\8\
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    \7\ This list of uses is illustrative and provided for 
descriptive purposes only.
    \8\ ``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 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 18, 2002, 
which is hereby adopted by this notice. A list of the issues which 
parties 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 Memorandumare 
identical in content.


Changes Since the Preliminary Results


    Based on our analysis of comments received, we have made changes in 
the margin calculation. The changes to the margin calculations include 
the following: (1) We properly converted pounds to kilograms; (2) we 
corrected the U.S. inventory accounts deduction from the U.S. price and 
treated the inventory carrying costs the same for both the home-market 
and the U.S. market; (3) we added U.S. interest revenue to the net U.S. 
price; (4) we properly included August 31, 2000, as part of the 
contemporaneous month period; (5) we treated freight revenue as a 
positive CEP movement expense; and (6) we properly accounted for 
interest revenue earned on home-market sales.


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 France
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                                                        Weighted-Average
        Manufacturer/exporter/[chyph]reseller           Margin (percent)
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Ugine................................................               1.47
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    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. The Department will 
issue appraisement instructions directly to the Customs Service. For 
duty-assessment purposes, we calculated 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 
France 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 Ugine will be the rate 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 9.38 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.


Reimbursement of Duties


    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.


Notification of Interested Parties


    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


[[Page 78776]]


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) of the Act.


    Dated: December 18, 2002.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.


APPENDIX 1-- Issues In The Decision Memorandum


1. Negative Dumping Margins
2. Adverse Facts Available on Sales to Affiliated Reseller
3. Conversion of Pounds to Kilograms
4. U.S. Inventory Carrying Costs
5. U.S. Interest Revenue
6. Date of Sale
7. Freight Revenue and Freight Adjustments for Delivered Prices
8. Price Manipulation Between Affiliated Parties
9. Facts Available on Sales to Ugine France Service
10. U.S. Sales Commissions
11. Ugine's Financial Statement Information
12. Hague's Scrap Revenue Calculation
13. U.S. Interest Cost
14. Hague's Financial Statement Information
15. Home Market Interest Revenue
16. Home Market Rebates
17. Home Market Affiliated Common Carrier Prices
18. Home Market Credit Expenses
19. Completeness of the Record
[FR Doc. 02-32569 Filed 12-24-02; 8:45 am]