[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Notices]
[Pages 40562-40565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19127]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-427-814]
Notice of Amended Final Determination of Sales at Less Than Fair
Value and Antidumping Duty Order; Stainless Steel Sheet and Strip in
Coils From France
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: Robert Bolling or James Doyle,
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) 482-3434, or (202) 482-0159, respectively.
APPLICABLE STATUTE AND REGULATIONS: Unless otherwise indicated, all
citations to the Tariff Act of 1930, as amended (the Tariff 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 (stainless sheet in coil) from France 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 France, 64 FR 308204
(June 8, 1999) (Final Determination). On June 1, 1999, respondents,
Usinor and its home market and U.S. market affiliates (Ugine Division,
Ugine Serive, Bernier, Uginox, Hague and Edgcomb Metals), timely
alleged one ministerial error. Additionally, on June 4, 1999,
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) timely alleged three
ministerial errors. See 19 CFR 351.224(e).
Comment 1: Respondents allege that the Department's model match
program in its final determination failed to retain the product
characteristics with respect to Usinor's sales to Ugine Service.
Respondents noted that this error has the effect of ignoring these
sales for matching purposes for control numbers sold only to Ugine
Service. Respondents recommended that the Department add these
characteristics to the ``KEEP'' statement in line 542 of its model
match program.
Department's Position: After a review of respondents' allegation,
we agree with respondents and have corrected our model match program at
line 542 to account for the missing product characteristics (i.e., we
added the variable &HMPHVARS) in the model match program. For the
computer code we used to correct this ministerial error, please see the
Memorandum from Robert A. Bolling to Edward Yang dated July 13, 1999
(``Amended Final Calculation Memorandum''), a public version of which
is available in the Central Records Unit, Room B-099 of the Department
of Commerce building, 14th Street and Constitution Ave, N.W.,
Washington, D.C.
Comment 2: Petitioners allege that in the final determination the
Department tested sales from Usinor to Ugine Service and Bernier to
determine if those sales were made at arm's length prices. Petitioners
noted that while certain home market sales that did not pass the arm's
length test were excluded from the dumping analysis, the Department
failed to exclude sales from a second home market sales file that did
not pass the arm's length test. Respondents did not comment on this
issue.
Department's Position: After a review of petitioner's allegation,
we agree with petitioners, and have corrected our model match program
in order to exclude sales from the second home market sales file from
our dumping analysis that failed the arm's length test. At line 537 of
the model match program, we have included the dataset ``ARMFAIL.'' For
the computer code we used to correct this ministerial error, please see
the Amended Final Calculation Memorandum, a public version of which is
available in the Central Records Unit, Room B-099 of the Department of
Commerce building, 14th Street and Constitution Ave, N.W., Washington,
D.C.
Comment 3: Petitioners allege that the Department determined that
the reported affiliated freight forwarder rates for U.S. sales were not
at arm's
[[Page 40563]]
length prices, and thus the Department decided to apply facts available
to the reported affiliated freight forwarder rates for U.S. sales. As
facts available, the Department used a simple average of Usinor's
reported freight forwarder rates for all U.S. sales. Petitioners argue
that the Department's application of facts available in the SAS
programing had the result of lowering the affiliated freight forwarder
rates for certain U.S. sales. Petitioners contend that for any sale
where the reported freight forwarder rate exceeded the simple average
of the reported freight forwarder rates, the Department's use of facts
available provided a benefit to the respondent.
Respondents state that the Department's program correctly and
accurately applied the average of reported freight forwarder rates as
was determined in the final determination. Additionally, respondents
note that the application of facts available may have lowered certain
U.S. sales affiliated freight forwarder rates is irrelevant because the
impact of the Department's approach was to increase the dumping margin.
Further, respondents contend that the petitioners' allegation was not a
ministerial error as defined by the Department's regulations. Finally,
respondents argue that petitioners' allegation is an attempt to repeat
their argument of applying adverse facts available, which the
Department has previously rejected.
Department's Position: We disagree with petitioners. Petitioners'
allegation does not meet the criteria for treatment as a ministerial
error. A ministerial error is defined in 19 CFR section 351.224(f) as
``an error in addition, subtraction, or other arithmetic function,
clerical error resulting from inaccurate copying, duplication, or the
like, and any other type of unintentional error which the Secretary
considers ministerial.'' We performed our calculation of averaging all
of the freight forwarder expenses as we intended. See comment 6 of our
final determination and our analysis memo. Thus, the Department's
action was an intentional policy choice, and not a ministerial error.
As we stated in our final determination, because Usinor was unable to
provide the requested information, it would be inappropriate to use the
rate proposed by petitioners, because use of such a rate would require
an adverse assumption: ``Because we find that Usinor has acted to the
best of its ability with respect to this adjustment, as non-adverse
facts available, we have used the average of Usinor's reported freight-
forwarder rates.'' See Notice of Final Determination of Sales at Less
than Fair Value in the Investigation of Stainless Steel Sheet and Strip
in Coils (SSSS) from France, 64 FR 30820, 30830 (June 8, 1999). In
selecting non-adverse facts available, the Department attempts to use
neutral information which will not necessarily raise or lower the
respondent's overall margin. In this case, in the absence of usable
freight forwarder rates, the Department used an average freight rate
which was not designed to have any pre-ordained effect on the margin.
Thus, the Department's treatment of the affiliated freight forwarders
expense was a policy decision and not an unintentional error of the
kind covered by the ministerial error provision.
Comment 4: Petitioners allege that the Department restricted the
universe of home market models when it performed the model matching.
Petitioners contend that the Department restricted the model matching
in that the Department used only one home market control number
(CONNUM) at a certain level of trade (LOT) (i.e., when there are two
levels of trade in the home market) which excluded the same CONNUM at
the other level of trade. In order words, in instances where certain
CONNUMS were sold at both levels of trade, the Department only
performed matching for that CONNUM at one level of trade. Therefore,
petitioners argue that matching U.S. sales to normal values is not
correct because the data necessary to match across levels of trade were
excluded. Petitioners state that the Department should have instead
performed the matching process on the entire universe of home market
models.
Respondents state that petitioners' allegation with regards to this
issue is incoherent and fails to assert a ministerial error. First,
respondents state that the Department's program did not disregard home
market sales at levels of trades 2 and 3. Further, respondents contend
that the Department's programming is correctly constructed to match
sales where practicable at the nearest level of trade. Finally,
respondents argue that petitioners' suggested programming language is
incorrect because it results in a vast distortion and overstatement of
the dumping margin.
Department's Position: After a review of petitioner's allegation,
we agree with petitioners. In performing our model matching, the
Department should have allowed matching of home market and U.S. models
at the same level of trade when home market models were sold at both
levels of trade. Thus, we have corrected our model match and margin
calculation programs to allow for matching at different levels of
trade. For the computer code we used to correct this ministerial error,
please see the Amended Final Calculation Memorandum, a public version
of which is available in the Central Records Unit, Room B-099 of the
Department of Commerce building, 14th Street and Constitution Ave,
N.W., Washington, D.C.
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 France. 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
[[Page 40564]]
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 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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[[Page 40565]]
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 Tariff Act that an industry in the
United States is materially injured by reason of less-than-fair-value
imports of subject merchandise from France. 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 France. These antidumping duties will be assessed
on all unliquidated entries of stainless steel sheet and strip in coils
from France 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
109). 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:
------------------------------------------------------------------------
Weighted-
Exporter/manufacturer average
margin(percent)
------------------------------------------------------------------------
Usinor................................................. 9.38
All Others............................................. 9.38
------------------------------------------------------------------------
This notice constitutes the antidumping duty order with respect to
stainless steel sheet and strip in coils from France. 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 Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-19127 Filed 7-26-99; 8:45 am]
BILLING CODE 3510-DS-P
