65 FR 17486, April 3, 2000
[C-489-502]
Welded Carbon Steel Pipes and Tubes From Turkey; Final Results of
Full Sunset Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final results of full sunset review: welded carbon
steel pipes and tubes from Turkey.
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SUMMARY: On November 30, 1999, the Department of Commerce (``the
Department'') published a notice of preliminary results of the full
sunset review of the countervailing duty order on welded carbon steel
pipes and tubes from Turkey (64 FR 66895) pursuant to section 751(c) of
the Tariff Act of 1930, as amended (``the Act''). We provided
interested parties an opportunity to comment on our preliminary
results. We did not receive comments from either domestic or respondent
interested parties. As a result of this review, the Department finds
that revocation of this order would be likely to lead to continuation
or recurrence of a countervailable subsidy at the levels indicated in
the Final Results of Review section of this notice.
FOR FURTHER INFORMATION CONTACT: Kathryn B. McCormick or Melissa G.
Skinner, Office of Policy for Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, D.C. 20230; telephone: (202) 482-
1930 or (202) 482-1560, respectively.
EFFECTIVE DATE: April 3, 2000.
Statute and Regulations
Unless otherwise indicated, all citations to the Act are references
to the provisions effective January 1, 1995, the effective date of the
amendments made to the Act by the Uruguay Round Agreements Act
(``URAA''). In addition, unless otherwise indicated, all citations to
the Department regulations are to 19 CFR Part 351 (1999). Guidance on
methodological or analytical issues relevant to the Department's
conduct of sunset reviews is set forth in the Department's Policy
Bulletin 98.3--Policies Regarding the Conduct of Five-year (``Sunset'')
Reviews of Antidumping and Countervailing Duty Orders; Policy Bulletin,
63 FR 18871 (April 16, 1998) (``Sunset Policy Bulletin'').
[[Page 17487]]
Background
On November 30, 1999, the Department of Commerce (``the
Department'') published in the Federal Register a notice of preliminary
results of the full sunset review of the countervailing duty order on
welded carbon steel pipes and tubes from Turkey, pursuant to section
751(c) of the Act. In our preliminary results, we found that revocation
of the order would be likely to lead to continuation or recurrence of
countervailable subsidies, and we preliminarily determined the
following net countervailable subsidies likely to prevail if the order
were revoked:
------------------------------------------------------------------------
Margin
Producer/exporter (percent)
------------------------------------------------------------------------
Bant Boru.................................................. 0.00
Borusan Group.............................................. 0.68
Yucel Boru Group........................................... 0.84
Erbosan.................................................... 2.89
All Others................................................. 2.90
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In addition, our preliminary results contained information on the
nature of the subsidy. We did not receive a case brief on behalf of
either domestic or respondent interested parties within the deadline
specified in 19 CFR 351.309(c)(1)(i).
Scope of Review
This order covers shipments of Turkish welded carbon steel pipes
and tubes, having an outside diameter of 0.375 inch or more, but not
more than 16 inches, of any wall thickness. These products, commonly
referred to in the industry as standard pipe and tube or structural
tubing, are produced in accordance with various American Society
Testing and Materials (ASTM) specifications, most notably A-53, A-120,
A-500, or A-501. The subject merchandise was originally classifiable
under item number 416.30 of the Tariff Schedules of the United States
Annotated (``TSUSA''); currently, they are classifiable under item
numbers 7306.30.10 and 7306.30.50 of the Harmonized Tariff Schedule of
the United States (``HTSUS''). Although the TSUSA and HTSUS item
numbers are provided for convenience and customs purposes, the written
description remains dispositive.
Analysis of Comments Received
The Department did not receive case briefs from either domestic or
respondent interested parties. Therefore, we have not made any changes
to our preliminary results of November 30, 1999 (64 FR 66895).
Final Results of Preview
As a result of this review, the Department finds that revocation of
the countervailing duty order would be likely to lead to continuation
or recurrence of a countervailable subsidy at the levels listed below:
------------------------------------------------------------------------
Margin
Producer/Exporter (percent)
------------------------------------------------------------------------
Bant Boru.................................................. 0.00
Borusan Group.............................................. 0.68
Yucel Boru Group........................................... 0.84
Erbosan.................................................... 2.89
All Others................................................. 2.90
------------------------------------------------------------------------
In addition, we are providing information on the nature of the
countervailable subsidy programs with respect to Article 3.1 (a) or
Article 6 of the Subsidies Agreement as contained in our preliminary
results.
The Deduction from Taxable Income for Export Revenues and Pre-
Shipment Export Credit programs fall within the definition of an export
subsidy under Article 3.1(a) of the Subsidies Agreement because the
receipt of benefit is contingent on export performance.
The remaining programs, although not falling within the definition
of an export subsidy under Article 3.1(a) of the Subsidies Agreement,
could be found to be inconsistent with Article 6 if the net
countervailable subsidy exceeds five percent, as measured in accordance
with Annex IV of the Subsidies Agreement. However, the Department has
no information with which to make such a calculation, nor do we believe
it appropriate to attempt such a calculation in the course of a sunset
review. Rather, we are providing the Commission with the following
program descriptions.
Foreign Exchange Loan Assistance. The Government of the Republic of
Turkey (``GRT'') Resolution Number: 94/5782, Article 4, effective June
13, 1994, concerns the encouragement of exportation, allowing
commercial banks to exempt certain fees provided that the loans are
used in the financing of exportation and other foreign exchange earning
activities. The exempted fees include a Resource Utilization
Stabilization Fund fee of six percent of the loan principle, a Banking
Insurance Tax equal to five percent of the interested and a stamp tax
equal to 0.6 percent of the principal.\1\
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\1\ See Certain Welded Carbon Steel Pipes and Tubes and Welded
Carbon Steel Line Pipe from Turkey; Preliminary Results and Partial
Rescission of Countervailing Duty Administrative Reviews, 62 FR
64808 (December 9, 1997).
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Incentive Premium on Domestically Obtained Goods. Companies holding
investment incentive certificates under the General Incentives Program
(``GIP'') are eligible for a rebate of 15 percent VAT paid on locally-
sourced machinery and equipment. Imported machinery and equipment are
subject to the VAT and are not eligible for the rebate. These value
added tax (``VAT'') rebates are countervailable subsidies within the
meaning of section 771(5)(D)(ii) of the Act because the rebates
constitute revenue foregone by the GRT, and they provide a benefit in
the amount of the VAT savings to the company. Also, they are specific
under section 771(5A)(C) because their receipt is contingent upon the
use of domestic goods rather than imported goods (62 FR 64808, December
9, 1997).
This notice also serves as the only reminder to parties subject to
administrative protective orders (``APO'') of their responsibility
concerning the return or disposition of proprietary information
disclosed under APO in accordance with 19 CFR 351.305 of the
Department's regulations. Timely written notification of the return or
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
This five-year (``sunset'') review and notice are in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: March 28, 2000.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-8157 Filed 3-31-00; 8:45 am]
BILLING CODE 3510-DS-P