ITALY
SUBSIDY PROGRAMS AIMED AT SPECIFIC INDUSTRIAL SECTORS
Last Changes Made November 2008
Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a Memo was published, you will find a link to the memo listed below.
In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.
The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the subsidy program title for a full explanation on the Department's analysis in each case where the subsidy program has been examined.
Please note that some of the programs listed below are funded and administered by the European Community.
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Final Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Final Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Final Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Final Memo Amended
Under Italian and EU customs procedures, companies may seek authorization for duty-free importation of certain agricultural input products, on the condition that processed agricultural products are exported. Under the Temporanea Importazione scheme, a processor of agricultural products can apply to import its input duty free and, after processing, to export the processed product. Under the Riesportazione Preventiva scheme, the order is reversed: after exporting the processed product, the agricultural input product can be imported duty free. The authorizations for duty-free importation, granted by the customs authorities, are transferable. We determined that the granting of duty-free import rights confers a countervailable subsidy within the meaning of section 771(5) of the Act. In authorizing duty-free importation of inputs, the GOI is forgoing revenue that it is otherwise due. These authorizations are specific within the meaning of section 771(5A) because they are contingent upon exportation.
Export Marketing Grants Under Law 304/90
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Final Memo
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission)
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final); Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Final Memo
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Final Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Final Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Final Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Final Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17375 (4/9/98-prelim); 63 FR 43907 (8/17/98-final)
Pasta (1994) 60 FR 53743 (10/17/95-prelim); 61 FR 30293 (6/14/96-final)
Law 304/l90 provides grants to encourage enterprises operating in the food and agricultural sectors to carry out pilot projects aimed at developing links between Italian producers and foreign distributors and improving the quality of services in those markets. Emphasis is placed on assisting small- and medium-sized producers. We determined that these export marketing grants confer a countervailable subsidy as they are a direct transfer of funds from the Government of Italy bestowing a benefit in the amount of the grant. We determined that these funds are also specific.
Export Restitution Payments
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Final Memo
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Final Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Final Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Final Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Final Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Final Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17377 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30295 (6/14/96-final)
This program is operated by the European Community (EC) to provide restitution payments to pasta exporters based on the durum wheat content of their exported pasta products. Generally, the restitution payment is available to any EC exporter of pasta products, regardless of whether the pasta was made with imported wheat or wheat grown within the EC. Additionally, under this program, the EC permits a pasta exporter to purchase a certificate that locks in a restitution payment rate if the pasta exporter promises to export a certain amount of pasta by a certain date. The promised export date can be as much as six months later, moreover, the exporter can sell the certificate to another pasta exporter for a negotiated price.
Debt Forgiveness: ILVA-to-AST
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Debt forgiveness involved working capital grants to ILVA, 1994 debt payment assistance by IRI and ILVA Restructuring and Liquidation Grant. We determine that AST (and consequently the subject merchandise) received a countervailable subsidy in 1993 when the bulk of ILVA's debt was placed in ILVA Residua, rather than being proportionately allocated to AST and ILP. The amount of debt that should have been attributable to AST but was instead placed with ILVA Residua was equivalent to debt forgiveness for AST at the time of its demerger. In accordance with our past practice, debt forgiveness is treated as a grant which constitutes a financial contribution under section 771(5)(D)(i) of the Act and provides a benefit in the amount of the debt forgiveness. Furthermore, we determined that this debt forgiveness was specific. For all of these reasons, we determined this debt forgiveness to be a countervailable subsidy.
Debt Forgiveness in Connection with the 1981 Restructuring Plan
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57744 (12/7/92-prelim); 58 FR 37329 (7/9/93-final)
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended
The 1981 restructuring plan for the iron and steel industry included the closure of plants, the assumption by certain debt and the subsequent forgiveness of these debts in 1985. The debt forgiveness was specifically limited to the steel industry is is therefore countervailable.
Debt Forgiveness in Connection with the 1987-88 Restructuring Plan
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37330 (7/9/93-final)
The Finsider Group restructuring plan was developed at the end of 1987 and approved by the Government of Italy on June 19,1988, and the EC's Council of Ministers on December 23, 1988. The plan was aimed at restoring industrial, financial, and economic balance to the public iron and steelmaking sector in Italy. The restructuring plan included the voluntary liquidation by IRI, the state-owned steel holding company, of the Finsider Group, and IRI's assumption of the debts not covered by the assets of the companies being liquidated.
Debt Forgiveness in Connection with the 1988-90 Restructuring
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Final Memo
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18359 (4/18/94-final)
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
In restructuring the specialty steel division of an electrical steel producer, liabilities and losses due to asset write-downs were left behind in a shell company. Although there was only one specific act of debt forgiveness, which only covered a portion of the liabilities, we determined that a benefit was received when the electrical steel company was able to leave the debt and losses remaining behind in a shell company.
Debt Forgiveness in Connection with the 1993-1994 Restructuring Plan, ILVA-to-ILP
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision
Under this program, old debt of ILVA was placed into ILVA Residua, a new entity, rather than being proportionately allocated to AST and ILP, two other companies.
Debt Forgiveness to ILVA (1990)
Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37330 (7/9/93-final)
Prior to the creation of ILVA, Finsider assumed 48.2 billion lire of Italsider's losses. Later, when ILVA was created, ILVA paid 150 billion lire for Italsider's shares, which include the 48.2 billion lire debt assumption. We determined that this was debt forgiveness to cover losses.
Early Retirement Under Law 223/91
Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37334 (7/9/93-final)
There are a variety of laws the GOI provides for early retirement of workers. Laws 193/1984 and 181/1989 provided different requirements for steel workers, in particular, lowering the age workers can retire. Law 223/1991 extended early retirement to private steel companies, the aluminum industry and the shipbuilding industry. Because benefits provided pursuant to Laws 193/1984 and 181/1989 are limited to steel workers, and benefits provided pursuant to Law 223/1991 are limited to steel workers, public shipbuilding workers, and workers in refractory materials and graphite electrode industries, we have determined that the users of these programs comprise a specific enterprise or industry, or group of enterprises or industries. Therefore, these programs are countervailable.
ECSC Article 54 Loans
Carbon Steel Plate (SR) Expedited review - no prelim; 70 FR 45694 (8/8/05-final); Final Memo
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57747 (12/7/92-prelim); 58 FR 37335 (7/9/93-final)
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Final Memo
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18362 (4/18/94-final)
Oil Country Tubular Goods (1993) 59 FR 61874 (12/2/94-prelim); 60 FR 33581 (6/28/95-final)
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31997 (6/19/95-final)
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (SR) 69 FR 10205 (3/4/04-prelim); Prelim Memo; 69 FR 40354 (7/2/04-final); Final Memo
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
Under Article 54 of the 1951 European Coal and Steel Community (ECSC) Treaty, the European Commission provides loans directly to iron and steel companies for modernization and the purchase of new equipment. We determind this program to be specific and to confer a benefit that is countervailable.
ECSC Article 54 Loan Interest Rebates
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37332 (7/9/93-final)
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended
Article 54 loan interest rebates were granted to steel companies during the restructuring and modernization of the industry beginning in the 1980s. Companies applying for theses rebates had to meet certain criteria such as a reduction in steel production and improvements in processing that would yield energy savings and improve efficiency. The rebates were limited to a maximum of three percent of the eligible investment and were provided over a period of three years.
Equity Infusions
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Final Memo
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18360 (4/18/94)
The Government of Italy provided new equity capital to certain electrical steel companies in every year from 1978 through 1991, except in 1979, 1983, 1989, and 1990. These companies were unequityworthy in each year that they received new equity capital. Therefore, these provisions of equity were inconsistent with commercial considerations and were found to be countervailable.
Equity Infusions into Italsider/Nuova, Italsider/ILVA, and Extinguishment of Equity Infusions
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57742 (12/7/92-prelim); 58 FR 37330 (7/9/93-final)
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
The Government of Italy made equity investments into certain steel companies between 1978 and 1987. These equity investments were made by transferring funds to the IRI Group, which was state-owned. IRI made additional equity infusions into one of the steel companies between 1990 and 1991, and also extinguished equity into another steel company in 1988 to cover losses from 1981 through 1986. It has been determined that Italsider and ILVA were unequityworthy between 1977 and 1991, therefore, we determined that the equity infusions were made on terms inconsistent with commercial considerations.
Government Loan Guarantees Through IRI
Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37330 (7/9/93-final)
Italsider and Nuova Italsider obtained guarantees from IRI on all of their loans. However, no information was provided to determine that a guarantee fee or other types of fees had been paid from the companies to IRI. Therefor, we determined that these government loan guarantees were countervailable.
Grants to ILVA
Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37329 (7/9/93-final)
Grants received by a government-owned steel company were investigated, but that steel company failed the verification of its response. Since the amounts were unable to be reconciled with the amounts in the annual reports, it was determined that the grants were countervailable.
Interest-Free Loans to ILVA
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18360 (4/18/94-final)
In 1992, ILVA received a 300 billion lire payment from a state-owned steel holding company. The payment was initially treated as "provisional" or an "anticipated" capital increase pending authorization from shareholders and the EC. Approval from the EC was not gained and thus the amount received would have to be returned to the state-owned steel holding company. ILVA's 1992 annual report shows a similar payment from the state-owned steel holding company in 1991. Because these payments were not converted to equity, they were treated as a countervailable interest-free loan.
Interest Grants for "Indirect Debts" under Law 750/81
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57745 (12/7/92-prelim); 58 FR 37372 (7/9/93-final)
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18363 (4/18/94)
Law 750/81 was implemented to achieve the Government of Italy's intervention plans for the public sector steel industry for 1981-83. This program provided grants to cover the debts of the public steel industry. Two steel companies received grants under this program in 1983 and 1984. Because this program was limited to the steel industry, we determined it to be countervailable.
Interest Subsidies Under Law 617/81
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37332 (7/9/93-final)
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18364 (4/18/94-final) not used
In 1981, the Government of Italy passed a law titled "Urgent Measures in Favor of the Steel Industry and in Matters of Antipollution Equipment." In February 1982, the Government of Italy guaranteed repayment of principal and interest of variable rate bonds issued by IRI, the state-owned steel holding company. IRI then relent the money to certain steel companies. The companies were required to repay IRI with interest, however, the Government of Italy paid an amount equal to 11 percent of the interest on the bonds to the steel companies to subsidize their interest costs. We determined that this program was specific to an industry or industries or group of industries, and was, therefore, countervailable.
Law 193/84
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Steel Wire Rod (SR) 69 FR 10205 (3/4/04-prelim); Prelim Memo; 69 FR 40354 (7/2/04-final); Final Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Final memo not used
Steel Wire Rod (1996) 63 FR 814 (1/7/98-prelim); 63 FR 40478 (7/29/98-final); Court decision Amended
Among the benefits provided by Law 193/1984 were payments to companies in the private steel sector which achieved capacity reductions consistent with an agreement by the European Coal and Steel Community. The program provides countervailable subsidies in the form on non-recurring grants to the private steel sector.
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Interest payments for capacity reduction are offered under Article 3 of Law 193/84.
Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37334 (7/9/93-final)
Law 193 allowed the steel companies to reduce their labor force by retiring employees who
would not otherwise be eligible for retirement benefits. Therefore, the companies were avoiding
the cost of keeping their employees on the payroll until they were eligible to retire, and were receiving a countervailable
benefit.
Law 451/94 Early Retirement Benefits
Carbon Steel Plate (SR) Expedited review - no prelim; 70 FR 45694 (8/8/05-final); Final Memo
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Sheet and Strip in Coils (SR) 69 FR 78091 (12/29/04-prelim); Prelim memo; 70 FR 23094 (5/4/05-final); Final Memo
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (SR) 69 FR 10205 (3/4/04-prelim); Prelim Memo; 69 FR 40354 (7/2/04-final); Final Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Final memo
Steel Wire Rod (1996) 63 FR 824 (1/7/98-prelim); 63 FR 40480 (7/29/98-final); Court decision Amended
Law 451/94 authorized early retirement packages for steel workers for the years 1994 through 1996. The law entitled men of 50 years of
age and women of 47 years of age with at least 15 years of pension contributions to retire early. We determined that Law 451/94 provides a government financial contribution
under section 771(5)(D)(i) of the Act and confers a benefit to the recipient in the amount of costs covered by the GOI that the company
would normally incur. Therefore, this program is countervailable.
Law 549/95: Tax Exemptions on Reinvested Profits for Steel Producers in Objective 1,2, and 5(B) Areas
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Law 549/95 provided tax relief on fifty percent of reinvested profits to all companies, except banks and insurance companies, located in areas specified in EEC
Regulation No. 2052/88 for the tax year 1996. Qualified investments included investments in new plants, the extension and modernization of
existing establishments, and the purchase of new capital goods, including capital goods acquired through leasing contracts. We determined that the exemptions provided by
this program constitute financial contributions within the meaning of section 771(5)(D)(ii) of the Act. We also determined that this program
was limited to companies in specific areas. For this two reasons, we determined this program to be countervailable.
Preferential Loan for Research and Development
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
No program description available.
Pre-Privatization Assistance and Debt Forgiveness
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Steel Wire Rod (1996) 63 FR 815 (1/7/98-prelim); 63 FR 40478 (7/29/98-final); Court decision Amended
Under this program. pre-privatization assistance and debt forgiveness was provided by the Government. We determined that the Government provided a financial contribution which was specific and conferred a benefit on the company. Therefore, this program is countervailable.
Province of Bolzano Assistance: Purchase and Leaseback of Bolzano Industrial Site
Steel Wire Rod (1996) 63 FR 815 (1/7/98-prelim); 63 FR 40478 (7/29/98-final); Court decision Amended
See programs listed below for specific cites.
Transfer of Lovere and Trieste to Terni 1982
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18360 (4/18/94-final)
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Lovere and Trieste were transferred from Italsider to Terni as part of a 1982 restructuring. The transaction was incorrectly characterized as an internal corporate restructuring. While no new equity capital was provided to Terni through the transfer of these assets, we found that subsidies received by Italsider flowed to Terni when it received Lovere and Trieste.
Valle d'Aosta Regional Assistance Associated with the Sale of CAS
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
When CAS was privatized, the land and buildings were sold to the Autonomous Region of Valle d'Aosta which then leases back the facility to the new owners of CAS. The framework for this transaction ensures that the Region, through its financing corporation, Finaosta S.p.A., agreed to (1) purchase the land; (2) construct a waste plant; (3) cover costs of environmental reclamation; and (4) to supply electricity. See details of the programs below.
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
Through this lease, the Autonomous Region of Valle d'Aosta made a financial contribution to CAS within the meaning of section 771(5)(D)(iii) of the Act, equal to the difference between what would have been paid annually in a lease established in accordance with market conditions and what CAS actually paid. The lease is specific within the meaning of section 771(5)(D) of the Act, because the lease is limited to CAS. Therefore, we determine that the CAS industrial lease provides a countervailable subsidy within the meaning of section 771(5) of the Act.
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
The provision of up to 25 billion lire in reduced interest rate financing to CAS was authorized under Regional Law 37 of August 30, 1995. The provision of these loans was evaluated by the EU under its state aid rules. CAS and the Region agreed in the protocols of agreement that CAS would vacate 50 percent of the land. The protocols of agreement predate the Cogne S.p.A.-CAS lease. As such, we found that the loans provide countervailable subsidies to CAS within the meaning of section 771(5) of the Act.
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
We found that this program does not exist because the Region is not permitted to supply electricity directly to CAS through the planned electricity consortium and because CAS purchases electricity from ENEL, the state monopoly, in accordance with standard provisions applied to other commercial electricity users in Italy.
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
We found that the Region based its price upon a detailed,independent appraisal of the value of the site, but further discounted the price from the appraisal based on the fact that the land was occupied and that it had some environmental problems. We determined that the Region did not purchase the Cogne industrial site for more than adequate remuneration. Therefore, we find that the Region of Valle d'Aosta's purchase of the Cogne industrial site does not constitute a subsidy within the meaning of section 771(5) of the Act.
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended
On October 11, 1999, the Regional Government enacted Decision 3502, "Payment to Cogne Acciai Speciali of the Higher Costs Incurred For Disposal In Waste Treatment Plants Of Its Steelworks Waste Until Such Time That The Pontey Waste Disposal Plant Becomes Available," as part of Regional Law 4 dealing with the Cogne industrial site. Under this Decision and beginning in September 1999, the Regional Government has been making payments to CAS to offset costs incurred in removing CAS" waste to facilities located outside the region. We determine that the payments to CAS are a financial contribution within the meaning of 771(5)(D)(i) of the Act. We also find these payments to be specific within the meaning of section 771(5A)(D) of the Act. Based on the foregoing, we find these benefits to constitute a countervailable subsidy.
SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE
The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed under the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.
Please note that some of the programs listed below are funded and administered by the European Community.
Assistance to Coal Supplier
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
No program description available.
Certain ILVA/Falck Debt Outstanding During the Review Year
Certain Steel Products (1991) 57 FR 57744 (12/7/92-prelim); 58 FR 37332 (7/9/93-final)
The majority of ILVA's debt that was included in the investigation is discussed in the analysis of other programs (see explanations under Law 675/77 and Law 64/86). However, certain loans reported to the Department regarding the company's debt, were not included under the aforementioned programs, and thus are categorized as "Certain ILVA Debt Outstanding During the Review Year."
Certain Steel Products (1991) 57 FR 57744 (12/7/92-prelim); 58 FR 37332 (7/9/93-final)
All of Falck's outstanding debt was investigated under specific programs with the exception of certain bank loans. We determined that all of Falck's outstanding debt was included in the Department's analysis of Law 675 Loans and ECSC Article 54 loans.
ECSC Housing Aid
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
No program description available.
European Community Research and Development Aid
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
No program description available.
Equity Infusions 1988-1989
Oil Country Tubular Goods (1993) 59 FR 61874 (12/2/94-prelim); 60 FR 33580 (6/28/95-final)
Seamless Pipe (1993) 59 FR 60778 (11/28/9-prelim); 60 FR 31997 (6/19/95-final)
In November 1989, Dalamine completed an equity rights offering which allowed existing share holders to purchase new shares for every 10 shares they already owned. The new shares were offered at a price of Italian Lire 300 per share. We determined that an adequate volume of shares was purchased by private investors to establish a valid benchmark. Using this benchmark as a basis, we found that the equity purchase by ILVA did not constitute a countervailable equity infusion.
Finsider Loan Guarantees
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18361 (4/18/94-final)
Finsider guaranteed certain loans taken out by Terni. Terni paid Finsider guarantee fees in the form of a one-time payment of 0.2 percent of the loan amount. We determined that these fees were equal to the cost of commercially provided guarantees. Therefore, we determined that the Finsider loan guarantees were not provided on terms inconsistent with commercial considerations and, thus, not countervailable.
Pricing on Forging Quality Steel Purchased
Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52113 (11/16/83-final)
No program description available.
Provisional Payment in Connection with 1989 Equity Infusion
Oil Country Tubular Goods (1993) 59 FR 61874 (12/2/94-prelim); 60 FR 33581 (6/28/95-final)
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31997 (6/19/95-final)
In March 1989, ILVA made a payment to Dalamine in anticipation of purchasing new shares in Dalamine. The payment was provisional in nature because EC authorization of the capital increase was necessary and, if authorization was not granted, the money would have been repaid to ILVA. This form of interest-free loan would be allocable entirely to 1989, and no benefit was attributable to the period of investigation. Therefore, this program was found to be not countervailable in this case.
Unpaid Portion of Payment Price for ILP
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
No program description available.
PROGRAMS DETERMINED NOT TO BE USED
When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced.
Please note that some of the programs listed below are funded and administered by the European Community.
Benefits Associated with Finsider-to-ILVA Restructuring
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Steel Wire Rod (1996) 63 FR 814 (1/7/98-prelim); 63 FR 40478 (7/29/98-final) not used; Court decision Amended
Finsider was liquidated, and its assets were transferred to the new steel holding/operating company ILVA S.p.A. This liquidation and asset transfer was found to provide countervailable benefits to the production of the merchandise.
Capital Grants Under Law 218/78
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
This law provided capital grants to certain companies.
Closure Payments Under Laws 46 and 193/84
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37332 (7/9/93-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
(See also Aid Under the National Research Plan and Law 46 and 706)
Measure 193/84 implements an agreement approved by the European Commission, calling for a
massive reduction in hot-rolled steel capacity. Law 46 (1982) provided capital account
grants for privately-owned steel companies that reduced their production capacity of raw,
semi-finished, or rolled steel by closing down plants which were technologically obsolete
or had marginal economic viability.
Commission Decision 88/588
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
No program description available.
ECSC Article 56
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40488 (7/29/98-final) not used; Court decision Amended
[For specific case cites, see below.]
Article 56(2)(b) of the Treaty of Paris, which created the European Coal and Steel Community (ECSC) authorizes the ECSC aid to "activities capable of reabsorbing redundant ECSC workers into productive employment."
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Oil Country Tubular Goods (1993) 59 FR 61875 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Seamless Pipe (1993) 59 FR 60779 (11/28/94-prelim); 60 FR 31998 (6/19/95-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended
ECSC decision published in the Official Journal of the European Communities, No. C 178 of July 27, 1977, authorized conversion loans for projects that involve, or are likely to involve, reemployment of redundant ECSC workers. An applicant must be a small- or medium-sized enterprise, defined as an enterprise that: (1) employees less than 500 people; (2) has net fixed assets of less that 75 million European Currency Units ("ECUs"); (3) has no parent enterprise that owns more than one-third of its share capital. A qualifying project must create new positions that are capable of being filled by coal and steel industry.
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used
Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27197 (7/19/88-final) not used
Oil Country Tubular Goods (1993) 59 FR 61875 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Seamless Pipe (1993) 59 FR 60779 (11/28/94-prelim); 60 FR 31998 (6/19/95-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
For firms located in "priority " regions that have suffered high unemployment in the coal and steel industries, the interest rebate is granted whether or not a qualifying firm actually employs redundant ECSC workers. A five percent interest rebate is granted for the portion of loan principal equal to (a) the number of new positions created, multiplied by (b) two-thirds, multiplied by (c) 20,000 ECU's per worker. In contrast, firms located outside "priority" regions must hire redundant ECSC workers. Their five percent interest rebate applies only to a portion of the loan equal to the proportion of newly-created positions actually filled by redundant ECSC workers multiplied by 20,000 ECU's.
Certain Steel Products (1991) 57 FR 57747 (12/7/92-prelim); 58 FR 37332 (7/9/93-final) not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18364 (4/18/94-final) not used
Oil Country Tubular Goods (1993) 59 FR 61874 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Seamless Pipe (1993) 59 FR 60777 (11/28/94-prelim); 60 FR 31998 (6/19/95-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Under Article 56(2)(b) of the European Coal and Steel Community (ECSC) Treaty, persons employed in the coal and steel industry who lose their jobs as a result of restructuring measures, workers withdrawing from the market in early retirement, or workers forced into early retirement, may receive assistance for social adjustment.
Finsider Loan
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo not used
No program description available.
Forgiveness of Utility Payments
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used
No program description available.
Illic Loan Outstanding
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Flack asserts that the Illic loan listed in its annual report is not a loan, but rather a payment channel for ILVA's purchase of Flack's seamless tube division pursuant to the agreement between ILVA and Flack, whereby ILVA purchased Flack's seamless tube division, ILVA used its financial subsidiary, Illic, as the payment channel to purchase Flack's seamless tube division, at the same time, ILVA deposited its payment for the tube division in an account with Illic. ILVA has likened this account to an escrow account. This transaction was determined to be non-subject merchandise because Illic's transactions were merely a payment for purchase of Flack's seamless tube assets.
Law 46 and 706: Grants for Capacity Reduction
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Final memo not used
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40488 (7/29/98-final) not used; Court decision Amended
(See also Aid Under the National Research Plan and Laws 46 and 193/84)
Article 20 of Law 46/1982 provided capital account grants for private steel companies that reduced their production capacity of raw, semi-finished,
or rolled steel by closing down plants which were technologically obsolete or had marginal economic viability. The grants provided up to
a 100,000 lire for every ton of raw steel capacity which was reduced and up to 150,000 lire for every ton of semi-finished or rolled capacity which was reduced.
Law 120/89: Recovery Plan for the Steel Industry
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Final memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended
No program description available.
Law 305/89
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
This law provided grants to certain companies.
Law 345/92: Benefits for Early Retirement
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
No program description available.
Loan to KAI for Purchase of AST
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
No program description available.
Resider II Program
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40488 (7/29/98-final) not used; Court decision Amended
The Resider Program was established by the European Community to fund projects for the reclamation of steel areas. The Resider II Program funds projects for the period 1993 to 1999.
Tax Incentives under Cassa per il Mezzogiorno Regional Development Program
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used
Under the Cassa per il Mezzogiorno regional development program, the Italian steel industry receives exemptions from national and local income taxes. To be eligible for any decreased national income taxes under this program, a company must be headquartered in the south of Italy.
SUBSIDY PROGRAMS DETERMINED NOT TO EXIST
The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.
Please note that some of the programs listed below are funded and administered by the European Community.
Additional Debt Forgiveness in the Course of Privatization
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
No program description available.
Energy Subsidies to Electrical Steel Operations Plant
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
We determined that no such program existed.
Grants to ILVA
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
No program description available.
Grants to ILVA to Cover Closure and Liquidation Expenses as Part of the 1993-1994 Privatization Plan
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
No program description available.
Grants to RIVA/ILP
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
No program description available.
1993 European Commission Funds
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
See Pre-Privatization Assistance Program
No program description available.
Subsidies for Operating Expenses and "Easy Term" Funds
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended
See European Social Fund and Law 308/82 and Retraining Aid
No program description available.
Working Capital Grants to ILVA in 1993
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
No program description available.
SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED
The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.
Law 796/76 Exchange Risk Guarantee Program (Exchange Rate Guarantee Program)
Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57747 (12/7/92-prelim); 58 FR 37330 (7/9/93-final)
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Final Memo
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18363 (4/18/94-final)
Oil Country Tubular Goods (SR) (Expedited review - no prelim); 71 FR 77383 (12/26/06-final); Final Memo
Oil Country Tubular Goods (SR) 65 FR 64668 (10/30/00-prelim); Prelim Memo; 66 FR 13910 (3/8/01-final); Final Memo
Oil Country Tubular Goods (1993) 59 FR 61873 (12/2/94-prelim); 60 FR 33580 (6/19/95-final)
Seamless Pipe (SR) 65 FR 64426 (10/27/00-prelim); Prelim Memo; 66 FR 13909 (3/8/01-final; Final Memo
Seamless Pipe (1993) 59 FR 60777 (11/28/94-prelim); 60 FR 31996 (6/28/95-final)
Sheet and Strip in Coils (SR) 69 FR 78091 (12/29/04-prelim); Prelim memo; 70 FR 23094 (5/4/05-final); Final Memo
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Final Memo not used
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Final Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (SR) 69 FR 10205 (3/4/04-prelim); Prelim Memo; 69 FR 40354 (7/2/04-final); Final Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Final memo not used
Steel Wire Rod (1996) 63 FR 816 (1/7/98-prelim); 63 FR 40479 (7/29/98-final); Court decision Amended
(Terminated July 10, 1992) Law 796/76 provides state guarantees against exchange risk on foreign currency loans received from the ECSC under Article 54. ECSC Article 54 loans have been determined to be limited to steel producers. Under the Exchange Risk Guarantee Program, repayment amounts are calculated by reference to the exchange rate in effect at the time the loan is agreed upon. The Ministry of Treasury pays the differential between the exchange rate at the signature of the contract and the exchange rate at the moment of repayment, minus two percent.