[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Notices]
[Pages 40567-40570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19129]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-824]
Notice of Amended Final Determination of Sales at Less Than Fair
Value and Antidumping Duty Order; Stainless Steel Sheet and Strip in
Coils From Italy
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Amended Final Determination of Sales at Less Than
Fair Value and Antidumping Duty Order.
-----------------------------------------------------------------------
EFFECTIVE DATE: July 27, 1999.
FOR FURTHER INFORMATION CONTACT: Lesley Stagliano or Rick Johnson,
Antidumping and Countervailing Duty Enforcement Group III, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230, at (202) 482-6134, or (202) 482-3818, respectively.
APPLICABLE STATUTE AND REGULATIONS: Unless otherwise indicated, all
citations to the Tariff Act of 1930, as amended (``the Act''), are to
the provisions effective January 1, 1995, the effective date of the
amendments made to the Tariff Act by the Uruguay Round Agreements Act
(``URAA''). In addition, unless otherwise indicated, all citations to
the Department of Commerce's (``the Department's'') regulations are to
the regulations codified at 19 CFR Part 351 (April 1, 1998).
Amendment to the Final Determination
On May 19, 1999, the Department determined that stainless steel
sheet and strip in coils (SSSS) from Italy are being, or are likely to
be, sold in the United States at less than fair value (LTFV), as
provided in section 735(a) of the Tariff Act. See Notice of Final
Determination of Sales at Less Than Fair Value: Stainless Steel Sheet
and Strip in Coils From Italy, 64 FR 30750 (June 8, 1999) (Final
Determination). On June 4, 1999, respondent Acciai Speciali Terni,
SpA., (AST) filed an allegation that the Department had made several
ministerial errors in its final determination. Petitioners (Allegheney
Ludlum Corp., Armco, Inc. J&L Specialty Steel, Inc., Washington Steel
Division of Bethlehem Steel Corp., United Steelworkers of America, AFL-
CIO/CLC, Butler Armco Independent Union, and Zanesville Armco
Independent Organization) also timely alleged ministerial errors on
June 4, 1999. Both interested parties requested that we correct the
errors and publish a notice of amended final determination in the
Federal Register. See 19 CFR 351.224(e). In addition, on June 11, 1999,
petitioners filed comments in rebuttal of three of AST's alleged
errors.
AST's submission alleged the following errors:
the Department overstated the value of AST's eighty-
four rejected U.S. sales in its facts available margin calculation
for these sales;
the Department inadvertently used a previously reported
insurance revenue amount based on a pending claim rather than revise
AST's insurance revenue field to reflect AST's final settlement
amount as it had intended to do;
the Department inadvertently applied the mill edge
discount to all products, rather than to products only sold with a
mill edge;
the Department failed to convert U.S. inventory
carrying costs from a per-kilogram amount to a per-pound amount;
finally, in applying adverse facts available to the
affiliated U.S. reseller, the Department erred by failing to exclude
sales identifiable as non-subject cut-to-length material (which is
not included in the scope of this investigation).
See Letter, Hogan & Hartson, June 4, 1999 passim.
Petitioners' submission alleged the following errors:
the Department inadvertently included AST's packing
costs in the calculation of COP and CV in the margin program, and
therefore, understated AST's overall profit and AST's CEP profit
ratio;
the Department inadvertently failed to convert U.S.
values stated in lire per pound
[[Page 40568]]
to values stated in lire per kilogram before adding them to home
market values stated in lire per kilogram in order to calculate the
CEP profit ratio;
finally, the Department inadvertently excluded the
value of AST's unreported U.S. sales and the value of the sales
through AST's affiliated U.S. reseller from the denominator that the
Department used to calculate the ratio for AST's U.S. insurance
revenue.
See Letter, Collier, Shannon, Rill & Scott, June 4, 1999 passim.
Petitioners' rebuttal addressed three of AST's allegations. First,
petitioners disagree with AST's allegation, that the Department
overstated the value of the rejected eighty-four U.S. sales when it
calculated the facts available margin for these sales. Due to the
proprietary nature of this issue, please refer to the Memorandum For Ed
Yang from Lesley Stagliano; Allegations of Ministerial Errors; Final
Determination in the Investigation of Stainless Steel Sheet and Strip
in Coils from Italy (Ministerial Errors Memorandum), dated July 21,
1999, for further information. With respect to AST's claim that the
Department failed to use AST's revised insurance revenue in its
calculations, petitioners argue that the INSUREVU field correctly
refers to the transaction-specific insurance revenue that AST claimed
it received for sales during the period of investigation, and
therefore, should not be revised. Finally, with respect to AST's U.S.
reseller, petitioners contend that the Department's decision not to
attempt segregating cut-to-length stainless sheet and strip from the
subject stainless sheet in coils is methodological, and not ministerial
as AST claims. Furthermore, petitioners continue, the Department
determined that the U.S. reseller's sales data were so replete with
errors as to be unreliable in toto; and that therefore, it would be
inappropriate for the Department now to accept the reliability of
selective portions of those data (i.e., the two specific variables AST
suggests using for this purpose). Because the Department rejected the
entire database, petitioners aver, it would not make sense for the
Department to then assume that these two fields were reported
accurately and to use these as the basis for segregating cut-to-length
products from products in coil form.
After reviewing both parties' allegations and petitioners' rebuttal
we have determined, in accordance with 19 CFR 351.224, that the Final
Determination includes several ministerial errors. As to AST's
allegations, we agree with AST that each of the points raised by AST
constitutes a ministerial error with the exception of two: the alleged
overstatement of the value of AST's eighty-four sales in the
Department's facts available margin calculation for these sales; and
the alleged ``failure'' to exclude cut-to-length merchandise. Our
calculation of the facts available rate on eighty-four U.S. sales, and
our treatment of the U.S. Reseller's reported sales represented a
methodological choice, and not ``an error in addition, subtraction, or
other arithmetic function'' or ``error resulting from inaccurate
copying, duplication, or the like, and any other type of unintentional
error which the administering authority considers ministerial.''
Section 735(e) of the Act and 19 CFR 351.224(e) of the Department's
regulations; see also Ministerial Errors Memorandum, and the Final
Determination, 64 FR at 30757-58.
Finally, we also agree that the first two errors alleged by
petitioners represent ministerial errors and have corrected both for
this final determination. However, we disagree with petitioners that
excluding the value of AST's unreported U.S. sales and the value of the
sales through AST's affiliated U.S. reseller from the denominator the
Department used to calculate the ratio for AST's U.S. insurance revenue
was a clerical error as defined by the 735(e) of the Tariff Act of
1930, as amended (``the Act''), and Section 351.224 of the Department's
regulations, as defined above. Therefore, we have made no adjustments
to the final determination for this allegation. For a detailed
description of each of these allegations and, where applicable, our
resultant corrections, see the Ministerial Errors Memorandum.
Therefore, in accordance with 19 CFR 351.224(e), we are amending the
final determination of the antidumping duty investigation of stainless
steel sheet and strip in coils from Italy. The revised weighted-average
dumping margins are in the ``Antidumping Duty Order'' section, below.
Scope of the Order
For purposes of this order, 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 order is classified in the
Harmonized Tariff Schedule of the United States (HTS) at subheadings:
7219.13.00.30, 7219.13.00.50, 7219.13.00.70, 7219.13.00.80,
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
investigation 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
[[Page 40569]]
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
---------------------------------------------------------------------------
\1\ ``Arnokrome III'' is a trademark of the Arnold Engineering
Company.
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
\2\ ``Gilphy 36'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
\3\ ``Durphynox 17'' is a trademark of Imphy, S.A.
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Antidumping Duty Orders
On July 23, 1999, the International Trade Commission (the
Commission) notified the Department of its final determination pursuant
to section 735(b)(1)(A)(i) of the Tariff Act that an industry in the
United States is materially injured by reason of less-than-fair-value
imports of subject merchandise from Italy. Therefore, in accordance
with section 736(a)(1) of the Tariff Act, the Department will direct
Customs officers to assess, upon further advice by the Department,
antidumping duties equal to the amount by which the normal value of the
merchandise exceeds the export price (or constructed export price) of
the merchandise for all relevant entries of stainless steel sheet and
strip in coils from Italy. These antidumping duties will be assessed on
all unliquidated entries of stainless steel sheet and strip in coils
from Italy entered, or withdrawn from warehouse, for consumption on or
after January 4, 1999, the date on which the Department published its
notice of preliminary determination in the Federal Register (64 FR
116). On or after the date of publication of this notice in the Federal
Register, Customs officers must require, at the same time as importers
would
[[Page 40570]]
normally deposit estimated, cash deposits for the subject merchandise
equal to the estimated weighted-average antidumping duty margins as
noted below. The ``All Others'' rate applies to all exporters of
subject stainless steel sheet and strip in coils not specifically
listed. The revised weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
average
Exporter/manufacturer margin
(percent)
------------------------------------------------------------------------
Acciai Speciali Terni, SpA................................. 11.23
All Others................................................. 11.23
------------------------------------------------------------------------
This notice constitutes the antidumping duty order with respect to
stainless steel sheet and strip in coils from Italy. Interested parties
may contact the Department's Central Records Unit, room B-099 of the
main Commerce building, for copies of an updated list of antidumping
duty orders currently in effect.
This order is published in accordance with section 736(a) of the
Tariff Act of 1930, as amended.
Dated: July 21, 1999.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration
[FR Doc. 99-19129 Filed 7-26-99; 8:45 am]
BILLING CODE 3510-DS-P