[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Notices]
[Pages 40560-40562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19126]
[[Page 40560]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-822]
Notice of Amended Final Determination of Sales at Less Than Fair
Value and Antidumping Duty Order; Stainless Steel Sheet and Strip in
Coils From Mexico
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.
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EFFECTIVE DATE: July 27, 1999.
FOR FURTHER INFORMATION CONTACT: Fred Baker or Michael Heaney, Office
of AD/CVD Enforcement, Group III, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230, at (202) 482-2924 or
(202) 482-4475, 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 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 (stainless sheet in coil) from Mexico 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 Act. See Notice of
Final Determination of Sales at Less Than Fair Value: Stainless Steel
Sheet and Strip in Coils From Mexico, 64 FR 30790 (June 8, 1999) (Final
Determination). On June 1, 1999, respondent Mexinox S.A. de C.V.
(Mexinox) filed a timely allegation that the Department had made
several ministerial errors in its Final Determination. We received no
ministerial error allegations nor rebuttal comments from the
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). Mexinox requested that
we correct the ministerial errors pursuant to the Department's
authority under 19 CFR 351.224.
Mexinox alleges the following ministerial errors:
The Department erred by failing to calculate a separate
weight-averaged net U.S. price for export price (EP) and constructed
export price (CEP) sales, but instead collapsing EP and CEP
calculations into a single weight-averaged figure which was then used
to calculate the margin.
The Department erred by including foreign exchange losses
in the calculation of variable cost of manufacturing (VCOM), rather
than including them in either general and administrative (G&A) expenses
or as part of the net interest expenses.
In calculating CEP profit, the Department erred by failing
to include the U.S. indirect selling expenses of Mexinox's U.S. Krupp
affiliate in the computation of the total U.S. selling expenses.
Section 735(e) of the Act and 19 CFR 351.224(f) define a
ministerial error 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 Department considers ministerial.'' We agree with
Mexinox that the failure to calculate a separate weight-averaged U.S.
price for EP and CEP transactions constituted a clerical error. We did
not intend to collapse the calculation of net U.S. price into a single
value for EP and CEP sales. We intended rather to calculate a separate
net U.S. price for EP and CEP sales. We also agree that the failure to
include the indirect selling expenses of the U.S. Krupp affiliate in
the pool of total selling expenses constituted a clerical error. We did
not intend to omit any incurred selling expenses from the computation
of total selling expenses. We have corrected these errors in this
amended final determination. However, we do not agree that the
inclusion of foreign exchange losses in the calculation of VCOM
constituted a clerical error. These foreign exchange losses relate to
gains and losses incurred exclusively on purchases of raw materials and
hence are a cost of materials. Therefore, the direct material foreign
exchange losses are appropriately included in the calculation of VCOM.
Thus, the inclusion of direct material foreign exchange losses in VCOM
does not constitute a ministerial error.
Because we agree that our Final Determination contained two
clerical errors, we are amending the Final Determination of the
antidumping duty investigation of stainless steel sheet and strip in
coils from Mexico in accordance with 19 CFR 351.224(e). 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)
[[Page 40561]]
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 2.01
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
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\1\ ``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 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
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\2\ ``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 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
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\3\ ``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 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
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\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.
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Antidumping Duty Order
On July 19, 1999, the International Trade Commission (the
Commission) notified the Department of its final determination pursuant
to section 735(b)(1)(A)(i) of the Act that an industry in the United
States is materially injured by reason of less-than-fair-value imports
of subject
[[Page 40562]]
merchandise from Mexico. Therefore, in accordance with section
736(a)(1) of the Act, the Department will direct U.S. Customs Service
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 Mexico. These antidumping duties will be assessed on all
unliquidated entries of stainless steel sheet and strip in coils from
Mexico 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
124). 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 normally deposit estimated duties, 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:
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Weighted-
average
Exporter/manufacturer margin
percent
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Mexinox S.A. de C.V........................................ 30.85
All Others................................................. 30.85
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This notice constitutes the antidumping duty order with respect to
stainless steel sheet and strip in coils from Mexico. 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
Act and 19 CFR Sec. 351.224(e).
Dated: July 21, 1999.
Bernard Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-19126 Filed 7-26-99; 8:45 am]
BILLING CODE 3510-DS-P