Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order; Stainless Steel Sheet and Strip in Coils From Germany

DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-825]

Notice of Amended Final Determination of Sales at Less Than Fair

Value and Antidumping Duty Order; Stainless Steel Sheet and Strip in

Coils From Germany

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 29, 1999.

FOR FURTHER INFORMATION CONTACT: Charles Ranado, Stephanie Arthur, or

Robert James, 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) 482-3518, (202) 482-6312, or (202) 482-

5222, 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 Germany 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 Germany, 64 FR 30710

(June 8, 1999) (Final Determination). On May 28, 1999, respondent Krupp

Thyssen Nirosta, GmbH (KTN) timely 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 two ministerial errors on June 2, 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 8, 1999, petitioners filed comments in

rebuttal of two of KTN's alleged errors.

KTN's submission alleges the following errors:

In attempting to remove a third-country shipment from

KTN's U.S. sales listing, the Department inadvertently deleted the

wrong transaction;

The Department used the incorrect interest rates for

calculating home market credit expenses and in certain instances U.S.

credit expenses and inventory carrying costs;

For one of KTN's affiliated home market service centers,

the Department inadvertently relied upon an outdated database

superseded by a later submission;

The Department erred in adjusting KTN's cost of production

(COP) for certain products subjected to further processing by the

affiliated home market service center, thus overstating the COP;

The Department's attempt to revise KTN's variable cost of

manufacture (VCOM) to reflect corrected nickel prices did not work due

to a programming error;

For an affiliated U.S. reseller to which we applied

adverse facts available the weighted-average gross unit price set forth

in the Department's May 19, 1999 analysis memorandum differs from that

hand-entered into the margin program;

For this same reseller, the Department inadvertently

relied upon an outdated database superseded by a later submission;

Finally, in applying adverse facts available to the

affiliated U.S. reseller, the Department erred by failing to exclude

putatively cut-to-length material (which is not included in the scope

of this investigation).

See Letter, Hogan & Hartson, May 28, 1999 passim. In their

submission petitioners note that the Department stated that it intended

to apply adverse facts available for KTN's failure to report certain

home market downstream sales made by its affiliates. To do this,

petitioners aver, the Department intended to calculate the highest

gross unit price for each product (i.e., control number) for sales

between KTN and its affiliates and use this price as the basis for NV.

However, petitioners allege, the Department inadvertently omitted the

customer code for one of the home market affiliates to which we were

applying facts available. In addition, petitioners argue that the

Department's application of facts available for these unreported sales

had no effect in certain cases because the Department inadvertently

included the affiliated customers in its arm's-length test; when these

customers subsequently failed the arm's-length test the transactions

were excluded entirely from the margin calculation and not subjected to

facts available, as clearly intended by the Department.

Petitioners' rebuttal addressed two of KTN's allegations. With

respect to KTN's VCOM, petitioners argue that any correction to home

market VCOM applies equally to both U.S. VCOM and U.S. total cost of

manufacture. These latter two are both needed to calculate accurate

adjustments for differences in physical characteristics of the home

market and U.S. merchandise pursuant to section 773(a)(6)(C)(ii) of the

Tariff

[[Page 40558]]

Act. With respect to KTN'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, not ministerial. 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; in petitioners view,

it would be inappropriate for the Department now to accept the

reliability of selective portions of those data (i.e., the two specific

variables KTN 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 KTN's

allegations, we agree with KTN that each of the points raised by KTN

constitutes a ministerial error with the exception of the alleged

``failure'' to exclude cut-to-length merchandise. 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 ``other similar types of unintentional error.'' 19 CFR 351.224(e);

see also Memorandum For Richard Weible; ``Allegations of Ministerial

Errors; Final Determination in the Investigation of Stainless Steel

Sheet and Strip in Coils from Germany'' (Ministerial Errors

Memorandum), dated July 23, 1999, a public version of which is on file

in room B-099 of the main Commerce building, and the Final

Determination, 64 FR at 30739. We also agree with petitioners that the

intended correction to KTN's home market VCOM applies equally to KTN's

U.S. VCOM and U.S. TCOM, and have adjusted each accordingly for this

amended final determination.

Finally, we also agree that the two errors alleged by petitioners

represent ministerial errors and have corrected both for this final

determination. 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 Germany.

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 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

[[Page 40559]]

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 Orders

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 Germany. 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 Germany. These antidumping duties will be assessed

on all unliquidated entries of stainless steel sheet and strip in coils

from Germany 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

92). 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-

average

Exporter/manufacturer margin

(percent)

------------------------------------------------------------------------

Krupp Thyssen Nirosta GmbH................................. 25.37

All Others................................................. 25.37

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This notice constitutes the antidumping duty order with respect to

stainless steel sheet and strip in coils from Germany. 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. 99-19125 Filed 7-26-99; 8:45 am]

BILLING CODE 3510-DS-P