Antidumping: Stainless steel sheet and strip in coils from Italy,
[Federal Register: July 27, 1999 (Volume 64, Number 143)]
[Notices]
[Page 40567-40570]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy99-42]
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) filedan 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 filedcomments in rebuttal of three of AST's alleged errors.
AST's submission alleged the following errors:
‹bullet› the Department overstated the value of AST's eighty- four rejected U.S. sales in its facts available margin calculation for these sales;
‹bullet› 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;
‹bullet› the Department inadvertently applied the mill edge discount to all products, rather than to products only sold with a mill edge;
‹bullet› the Department failed to convert U.S. inventory carrying costs from a per-kilogram amount to a per-pound amount;
‹bullet› 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:
‹bullet› 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;
‹bullet› 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;
‹bullet› 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.'' ‹SUP›1‹/SUP›
\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.'' ‹SUP›2‹/SUP›
\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.'' ‹SUP›3‹/SUP›
\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).‹SUP›4‹/SUP› 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''.‹SUP›5‹/SUP›
\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
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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. 99-19129Filed7-26-99; 8:45 am]
BILLING CODE 3510-DS-P
