SPAIN

SUBSIDY PROGRAMS AIMED AT INDUSTRIAL SECTORS
Last Changes Made June 2006

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 decision 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.

National Steel Industry Program, 1974-1982

The National Steel Industry Program was established by Decree 669/1974. To achieve specific goals established by the program, the government authorized certain benefits for the integrated and non-integrated steel firms which included preferential loans and loan terms, accelerated amortization of non-liquid investments, substantial reduction of certain taxes and expropriation of land for new plant construction. These programs are listed in more detail below.

Integrated Iron and Steel Reconversion Plan (ISRP)
On May 8, 1981, the Government of Spain enacted Royal Decree 878/81 which set forth the "Integrated Iron and Steel Reconversion Plan." The basic objectives of this reconversion plan were: 1) the financial recovery of specific companies; 2) a reduction of the participation of salary costs in invoicing; and 3) the development of programs which reduce the unit operating costs and improve production by means of commercial policy. Several different programs are part of ISRP including BCI Exceptional Credits; Long-Term Loans from Institutio Nacional de Industria (INI); and Grants Provided to "Decrease Financial Charges" and "Compensate for Losses." These programs are detailed below.

COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" 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 those cases.

Bank of Industrial Credit (BCI) Exceptional Credits

Certain Steel Products (1991) 57 FR 57801 (12/07/92-prelim);   58 FR 37376 (7/09/93-final)

Pursuant to Royal Decree 878/81 (ISRP) to assist the steel industry, BCI provided loans at rates inconsistent with commercial considerations. Because there loans were provided on terms inconsistent with commercial considerations and were limited to a specific industry, we determined that loans under this program were countervailable.

ECSC Article 54 Loans and Loan Guarantees

Certain Steel Products (1991) 57 FR 57804 (12/7/92-prelim);   58 FR 37378 (7/9/93-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   71 FR 32523 (6/6/06-final);   Final Memo
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

Article 54 industrial investment loans are provided for the purpose of purchasing new equipment or financing modernization. Article 54 loans are direct loans from the Commission and the funds are loaned at a slightly higher rate than that at which the Commission obtained them in order to cover its costs. These loans are only available to the steel industry. Therefore, these loans are countervailable to the extent that they are provided on terms inconsistent with commercial considerations.

Fund for Employment Promotion and Early Retirement
(Financial Assistance in Reduction of Labor Force)

Certain Steel Products (1991) 57 FR 57803 (12/7/92-prelim);   58 FR 37378 (7/9/93-final)
Certain Steel Products (1981) 47 FR 38167 (8/30/82-prelim);   47 FR 51445 (11/15/82-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   71 FR 32523 (6/6/06-final);   Final Memo
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

Certain workers who retire as a result of the reconversion of the steel industry are eligible for assistance under the general Social Security System in Spain. Decree 878/1981 gives workers between the ages of 60 and 65 the option of working or retiring. Employees electing to retire receive until age 65 compensation equivalent to the salary they would have received from the company had they continued working. The company is responsible for one-half this amount. The second-half is paid by the government through the Investment Plan for Labor Protection. Only four industries are eligible for this benefit: 1) Naval construction; 2) appliance/White line; 3) integrated steel; and 4) specialty steel. Because only four industries are eligible for this program, we determined that it is specific to an enterprise or industry or group of enterprises or industries. Therefore, this program is countervailable.

Forgiven Reconstruction Loans

Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

No program description available.

Grants Provided to "Decrease Financial Charges" and "Compensate for Losses" [ISRP]

Certain Steel Products (1991) 57 FR 57802 (12/7/92-prelim);   58 FR 37376 (7/9/93-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   71 FR 32523 (6/6/06-final);   Final Memo

Pursuant to Royal Decree 878/81 (ISRP) to assist the steel industry, grants were provided to decrease financial charges and to compensate for losses. By law, this program was limited to the steel industry. Because it was limited to a specific industry, we determined this program to be countervailable.

Long-Term Construction Loans
(Long-term noncommercial construction loans to related suppliers)

Carbon Steel Wire Rod (1982) 49 FR 19553 (5/8/84-final)

Under the National Steel Industry Program (Decree 669/1974), long-term construction loans on terms inconsistent with commercial considerations were granted to one company. Under this program, one company bought a product from another, related company that that company had been able to produce due to its long-term loan under the Decree. We determined that this program was countervailable, as the government directed lending to specific sectors and industries, and that the loans were made on terms inconsistent with commercial consideration.

Long Term Loans (Concerted Action Program or CAP)

Carbon Steel Wire Rod [2/84-9/84] 51 FR 36580 (10/14/86-prelim);   51 FR 43760 (12/4/86-final)
Certain Steel Products (1991) 57 FR 57805 (12/7/92-prelim);   58 FR 37381 (7/9/93-final) not used
Stainless Steel Wire Rod (SR) (Expedited Review-no prelim);   65 FR 6166 (2/8/00-final)
Stainless Steel Wire Rod (1988) 54 FR 46442 (11/3/89-prelim);   55 FR 350 (1/4/90-final)
Stainless Steel Wire Rod (1987) 54 FR 16384 (4/24/89-prelim);   54 FR 26826 (6/26/89-final)
Stainless Steel Wire Rod (1986) 53 FR 9789 (3/25/88-prelim);   53 FR 28427 (7/28/88-final)
Welded Carbon Steel (1983) 49 FR 40630 (10/17/84-prelim);   Investigation Terminated 50 FR 5654 (2/11/85) not used

[Also called Medium- and Long-Term Preferential Loans]
Under this program, the government authorized certain benefits for integrated and non-integrated steel firms which included preferential loans and loan terms, accelerated amortization of non- liquid investments, substantial reduction of certain taxes, and expropriation of land for new plant construction. Because loans under the CAP are provided to a specific industry at rates and terms inconsistent with commercial consideration, the Department determined that this loan confers a countervailable domestic subsidy.

Long-Term Loans from Bank of Industrial Credit (BCI) Under Law 60/78 [ISRP]

Certain Steel Products (1991) 57 FR 57801 (12/7/92-prelim);   58 FR 37376 (7/9/93-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   71 FR 32523 (6/6/06-final);   Final Memo
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

Under this program, funds were loaned on terms which were inconsistent with commercial considerations. Law 60/78 was part of a group of emergency laws enacted to support the steel industry. Because this program was limited to a specific industry or industries or group of industries, and because the loans were made on terms which were inconsistent with commercial considerations, we determined that it was countervailable.

Medium- and Long-Term Preferential Loans

Carbon Steel Wire Rod (1982) 49 FR 6963 (2/24/84-prelim);   49 FR 19553 (5/8/84-final)
Certain Steel Products (1981) 47 FR 38162 (8/30/82-prelim);   47 FR 51440 (11/15/82-final)
Oil Country Tubular Goods (1983) 49 FR 35832 (9/12/84-prelim);   49 FR 47061 (11/30/84-final)
Potassium Chloride (1983) 49 FR 26786 (6/29/84-prelim);   49 FR 36426 (9/17/84-final) not used
Stainless Steel Products (1981) 47 FR 38377 (8/31/82-prelim);   47 FR 51454 (11/15/82-final)
Welded Carbon Steel (1983) 49 FR 40629 (10/17/84-prelim);   Investigation Terminated 50 FR 5654 (2/11/85)

[Also called Long-Term Loans (Concerted Action Program)]
This program is part of the National Steel Industry Program which is explained elsewhere. The Government of Spain lends or directs a bank to lend these funds to certain companies, sectors, or to companies in specific regions in Spain at rates or on terms inconsistent with commercial considerations.

Share "Issue Premium"

Certain Steel Products (1991) 57 FR 57802 (12/7/92-prelim);   58 FR 37377 (7/9/93-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   71 FR 32523 (6/6/06-final);   Final Memo

Under this program, one company paid a premium on another company's shares which were issued in conjunction with a 1986 government equity infusion. No shares were issued in return for this premium. We determined that this premium was essentially a grant and was, therefore, countervailable.

Structural Loans

Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

No program description available.

SUBSIDY PROGRAMS FOUND TO BE NOT CONTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" 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.

Amendment of Annual Finance Investment Plans

Carbon Steel Wire Rod (1982) 49 FR 6964 (2/24/84-prelim);   49 FR 19555 (5/8/84-final)
Certain Steel Products (1981) 47 FR 38162 (8/30/82-prelim);   47 FR 51444 (11/15/82-final)

The Government of Spain allowed one company to obtain additional loans by permitting amendments to the company's annual finance plan. We determined that this action, in itself, is not a subsidy.

Benefits to the Steel Industry

Concrete Steel Wire Strand (1981) 47 FR 15618 (4/12/82-prelim);   47 FR 28724 (7/1/82-final)

Manufacturers benefitted from indirect subsidies by purchasing wire rod or billets from subsidized Spanish steel makers. We verified that such purchases were made from a variety of unrelated domestic and international suppliers at prices which were reasonably comparable. Our verification indicated that these purchases were arm's length transactions and were therefore not countervailable.

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.

Minimum Export Price

Olives (1980/81) 48 FR 34998 (8/2/83-prelim);   48 FR 51502 (11/9/83-final)

On November 1, 1979, the Government of Spain imposed a minimum price support program on exports of olives, bottled or in bulk thereby creating a price floor on exports of olives. The program was terminated at the end of 1980.

SUBSIDY PROGRAMS THAT HAVE NOT BEEN 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 cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

ECSC Article 54 Interest Rebates

Certain Steel Products (1991) 57 FR 57805 (12/7/92-prelim);   58 FR 37381 (7/9/93-final)

No program description given.

ECSC Redeployment Aid

Certain Steel Products (1991) 57 FR 57805 (12/7/92-prelim);   58 FR 37381 (7/9/93-final)

No program description given.

Interest Rebates on ECSC Conversion Loans Under Article 56

Certain Steel Products (1991) 57 FR 57805 (12/7/92-prelim);   58 FR 37381 (7/9/93-final)

No program description given.

Payment for Capacity Closures

Certain Steel Products (1991) 57 FR 57805 (12/7/92-prelim);   58 FR 37381 (7/9/93-final)
Cut-to-Length Carbon Steel Plate (SR) (Expedited Review-no prelim);   65 FR 18307 (4/7/00-final);   Final Memo

No program description given.

Special Credits to Aceros de Llodio

Stainless Steel Products (1981) 47 FR 38377 (8/31/82-prelim);   47 FR 51457 (11/15/82-final)
Stainless Steel Wire Rod (SR) (Expedited Review - no prelim);   65 FR 6166 (2/8/00-final)

It was alleged that one company received special credits from the government of Spain.

Subsidized Steel Inputs

Oil Country Tubular Goods (1983) 49 FR 35834 (9/12/84-prelim);   49 FR 47064 (11/30/84-final)

It was alleged that companies received a competitive benefit with respect to upstream subsidization of hot-rolled coil, bloom, and billets ("Steel inputs").

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 cases listed under 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.

No programs listed