[Federal Register Volume 76, Number 87 (Thursday, May 5, 2011)]
[Notices]
[Pages 25668-25670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11005]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822]


Stainless Steel Sheet and Strip in Coils From Mexico: Final 
Results of the Five-Year (``Sunset'') Review of the Antidumping Duty 
Order

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

SUMMARY: Pursuant to sections 751(c) and 752 of the Tariff Act of 1930, 
as amended (``the Act''), the Department of Commerce (``Department'') 
finds that revocation of the antidumping duty order on stainless steel 
sheet and strip (``SSSS'') in coils from Mexico would be likely to lead 
to continuation or recurrence of dumping.

DATES: Effective Date: May 5, 2011.

FOR FURTHER INFORMATION CONTACT: David Cordell or Angelica Mendoza, AD/
CVD Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0408, or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 27, 2010, the Department published in the Federal 
Register, a notice of the Preliminary Results of the second sunset 
review of the antidumping duty order on SSSS in coils from Mexico. See 
Stainless Steel Sheet and Strip in Coils From Mexico; Preliminary 
Results of the Five-Year (``Sunset'') Review of Antidumping Duty Order, 
75 FR 81221 (December 27, 2010) (``Preliminary Results''). In those 
Preliminary Results, we determined that revocation of the order would 
likely result in continuation or recurrence of dumping. The Department 
received a case brief from the respondent, ThyssenKrupp Mexinox S.A. de 
C.V., and its affiliated U.S. importer, Mexinox USA, Inc. (collectively 
``Mexinox'') on February 15, 2011. On February 18, 2011, the Department 
published the amended final results of the 2008-2009 administrative 
review, in which it calculated a weighted-average dumping margin of 
12.13 percent for Mexinox. See Stainless Steel Sheet and Strip in Coils 
From Mexico: Notice of Amended Final Results of Antidumping Duty 
Administrative Review, 76 FR 9542 (February 18, 2011). On February 22, 
2011, the Department received a rebuttal brief from the domestic 
interested parties.\1\ On February 22, 2011, the Department invited 
parties to submit comments addressing the issue of whether dumping is 
likely to continue or recur, if the antidumping duty order is revoked, 
in light of the amended final results of the 2008-2009 administrative 
review. On February 23, 2011, Mexinox withdrew its January 23, 2011 
request for a hearing. On February 28, 2011, both Mexinox and the 
domestic interested parties filed comments and both Mexinox and the 
domestic interested parties filed rebuttal comments on March 4, 2011.
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    \1\ The domestic SSSS in coils industry includes AK Steel 
Corporation; Allegheny Ludlum Corporation; North American Stainless; 
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, 
Allied Industrial Service Workers International Union; United Auto 
Workers (``UAW'') Local 3303; and UAW Local 4104 (collectively, 
``domestic interested parties'').
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Scope of the Order

    For purposes of the 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 the order is currently 
classified 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, 
7220.90.00.80.
    Although the HTS subheadings are provided for convenience and 
customs purposes, the Department's written description of the 
merchandise subject to the order is dispositive. Excluded from the 
scope of the order is the following: (1) Sheet and strip that is not

[[Page 25669]]

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 2.01microns, 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 the 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 the 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.'' \2\
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    \2\ ``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 the 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.'' \3\ Certain martensitic precipitation-hardenable 
stainless steel is also excluded from the scope of the 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.'' \4\
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    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
    \4\ ``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 the order. 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\ Also excluded from the order is a 
permanent magnet iron-chromium-cobalt stainless steel strip containing, 
by weight, 13 percent chromium, 6 percent cobalt, 71 percent iron, 6 
percent nickel and 4 percent molybdenum. The product is supplied in 
widths up to 1.27 cm (12.7 mm), inclusive, with a thickness between 45 
and 75 microns, inclusive. This product exhibits magnetic remanence 
between

[[Page 25670]]

400 and 780 nWb, and coercivity of between 60 and 100 oersteds. This 
product is currently supplied under the trade name ``SemiVac 90.''
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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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Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum (``Decision Memorandum'') from Christian Marsh, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Acting Deputy Assistant Secretary for 
Import Administration, dated concurrently with this notice, which is 
hereby adopted by this notice. Parties can find a complete discussion 
of all issues raised in this review and the corresponding 
recommendation in this public memorandum which is on file in the 
Central Records Unit, Room 7046 of the main Commerce building. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Internet at http://ia.ita.doc.gov/frn. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.

Final Results of Review

    We determine that revocation of the antidumping duty order on SSSS 
in coils from Mexico would be likely to lead to continuation or 
recurrence of dumping at the following weighted-average margins:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
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Mexinox....................................................        30.69
All Others.................................................        30.69
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    In accordance with section 752(c)(3) of the Act, we will notify the 
U.S. International Trade Commission of the final results of this sunset 
review.

Notification Regarding Administrative Protective Order

    This notice serves as a final reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary material disclosed under APO 
in accordance with 19 CFR 351.305. Timely 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.
    This sunset review and notice are being published in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: April 28, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-11005 Filed 5-4-11; 8:45 am]
BILLING CODE 3510-DS-P