Turkey - General Subsidies

TURKEY

SUBSIDY PROGRAMS: GENERAL
Last Changes Made November 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.

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.

Banking and Insurance Transaction (BIST) Tax Exemption on Export-Related Loans

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not countervailable in final

Pursuant to Article 4 of Resolution no. 94/5782 of June 13, 1994, Turkish companies are exempted from paying the BIST tax on export-related short- term loans regardless of whether the loans are denominated in TL or foreign currencies. These exemptions are allowed both on loans at preferential interest rates and on loans at non-preferential interest rates. We determined that these tax exemptions confer a countervailable subsidy within the meaning of section 771(5) of the Act. They constitute revenue forgone by the GRT, providing a benefit in the amount of the tax exemptions. We also determined that the tax exemptions are specific in accordance with section 771(5A)(B) of the Act because their receipt is contingent upon exportation. Therefore, these exemptions are countervailable.

Customs Duty Exemption

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not countervailable
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1271 (1/10/86-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

(Also called Inward Processing Certificate Exemptions)Under this program of the GIP, machinery and equipment imported are exempt from customs duties. We find the exemptions from paying the customs duty and VAT charges on the input in question to be countervailable subsidies within the meaning of section 771(5) of the Act. These exemptions provide a financial contribution to the extent that the exemptions extend to an input that is not consumed in the production of the exported product. Also, this subsidy program is specific in accordance with 771(5A)(B) of the Act because eligibility in the program is contingent upon export performance. Therefore, we find this program to be countervailable.

Deduction from Taxable Income for Export Revenues
[See also Tax Exemption Based on Export Earnings]

This program allows companies that produce and export industrial products valued in excess of $250,000 annually to deduct 20 percent of their export revenues from taxable corporate income. A five percent deduction was allowed for exporters that were not producers.

Export Credit Through the Foreign Trade Corporate Companies Rediscount Credit Facilities

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim);
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18885 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

Established in 1989, the Foreign Trade Corporate Companies Rediscount Credit Facility provides Foreign Trade Corporate Companies (FTCC) and the Sectoral Foreign Trade Companies (SFTC) credits through the Turkish Eximbank if their exports were at least $100 million. We determined that the loans under this program constitute a financial contribution in the form of a direct transfer of funds, a benefit exists, and the program is specific because it is contingent upon export performance. Therefore, we find this program to be countervailable.

Export Tax Rebate and Supplemental Tax Rebate

Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47621 (12/15/87-prelim); 53 FR 9791 (3/25/88-final)
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43599 (10/28/85-prelim); 51 FR 1269 (1/10/86-final)

The Government of Turkey provides tax rebates to exporters of certain products, pursuant to Law number 261 of July 1963 and Decree number 7/10624 of September 16, 1975, as amended by Decrees numbers 8/2625 (April 23, 1981), 8/4397 (April 22, 1982), and 8/37542 (December 29, 1983). The program is administered by Turkey's State Planning Office and its Central Bank.

Foreign Currency Expenditure Tax Exemption (FCET)

Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

No program description available.

Foreign Exchange Loan Assistance

Steel Pipe and Tube and Steel Line Pipe (SR) (Expedited review - no prelim); 70 FR 62097 (10/28/05-final); Final Memo
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16927 (4/7/99-prelim); 64 FR 44496 (8/6/99-final)
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 6481 (12/9/97-prelim); 63 FR 18886 (4/16/98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16784 (4/8/97-prelim); 62 FR 43986 (8/18/97-final)
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

This assistance allows commercial banks to exempt certain fees provided that the loans are used in the financing of exportation and other foreign exchange earning activities.

Freight Program [IS]

Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16927 (4/7/99-prelim); 64 FR 44496 (8/6/99-final)
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64811 (12/9/97-prelim); 63 FR 18886 (4/16/98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16785 (4/8/97-prelim); 62 FR 43985 (8/18/97-final)

[See also Payments for Exports on Turkish Ships]
This program provides freight rebate payments to exporters for merchandise exported on Turkish vessels, and smaller per-ton rebate for goods shipped on non-Turkish vessels.

Incentive Premium on Domestically Obtained Goods (GIP) [IS]

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used
Pasta (SR) (Expedited Review-no prelim); 66 FR 51019 (10/05/01-final); Final Memo
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo
Pasta (1994) 60 FR 53749 (10/17/95-prelim); 61 FR 30369 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (SR) (Expedited review - no prelim); 70 FR 62097 (10/28/05-final); Final Memo
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final)
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64811 (12/9/97-prelim); 62 FR 18885 (4/16/98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16785 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

[Also called Rebate of VAT on Domestically-Sourced Machinery and Equipment)
The Incentive Premium on Domestically Obtained Goods is part of the General Incentives Program (GIP), which is discussed further elsewhere. The incentive premium program provides companies holding investment incentive certificates under the GIEP with rebates of the 15 percent VAT paid on locally-sourced machinery and equipment plus a 10 percent premium.

Pre-Export Credits

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim);
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo

Under the pre-export credit program, a company's past export performance is considered in evaluating a company's eligibility and establishing the company's credit limit. Like FTC loans, the Export Bank directly extends to companies pre-export loans, which are denominated in either TL or FX and have a maturity of 180 days. We determined this program to be countervailable.

Pre-Shipment Export Loans

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo
Pasta (SR) (Expedited Review-no prelim); 66 FR 51019 (10/05/01-final); Final Memo
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo
Pasta (1994) 60 FR 53748 (10/17/95-prelim); 61 FR 30367 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (SR) (Expedited review - no prelim); 70 FR 62097 (10/28/05-final); Final Memo
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final)
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16926 (4/7/99-prelim); 64 FR 44496 (8/6/99-final)
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64809 (12/9/97-prelim); 62 FR 18885 (4/16/98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16783 (4/8/97-prelim); 62 FR 43986 (8/18/97-final)
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

The Export Credit Bank of Turkey (Turk Eximbank) provides short-term pre-shipment export loans to exporters through intermediary commercial banks. Because the interest rate apid on these loans is less than the amount the recipient would pay on a comparable commercial loan, we determine this program to be countervailable.

Resource Utilization Support Fund (KKDF) Tax Exemption on Export-Related Loans

Pursuant to Article 4 of Resolution no. 94/5782 of June 13, 1994, Turkish companies are exempted from paying the KKDF taxes on export-related short-term loans regardless of whether the loans are denominated in TL or foreign currencies. These exemptions are allowed both on loans at preferential interest rates and on loans at non-preferential interest rates. We determined that these tax exemptions confer a countervailable subsidy within the meaning of section 771(5) of the Act. They constitute revenue forgone by the GRT and provide a benefit in the amount of the tax exemptions. We determined that the tax exemptions are specific in accordance with section 771(5A)(B) of the Act because their receipt is contingent upon exportation.

State Aid for Exports [IS]

Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64811 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16785 (4/8/97-prelim); 62 FR 43985 (8/18/97-final) not used

[See also Payments for Exports on Turkish Ships and Freight Program.]
Under this program, exporters receive cash grants or bonds from the Central Bank based on the number of tons of product transported. This program specifically excludes aid to pasta exports.

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" 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.

Customs Duty Exemptions on Imported Machinery and Equipment

Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used

Under this program, machinery and equipment imported under an investment certficate are exempt from customs duties.

Export Credit Insurance Program (Eximbank)

Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18885 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

The Turkish Eximbank provides export credit insurance through the exporter's commercial bank in Turkey. The credit is a fixed value insurance policy equal to the value of the exporter's shipments covered during a six- to twelve-month period. Coverage is provided for 90 percent of the loss. Because the premiums paid for export insurance exceed the insurance claims paid to participating companies, we determine this program to be not countervailable.

Investment Allowance [GIP]

Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64810 (12/9/97-prelim); 63 FR 18886 (4-16-98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43984 (8/18/97-final)
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

Under this program, companies are permitted to deduct 70% of the cost of their investment in the first year, while investments located in any other region are deductible at 20% of the fixed investment. Because this program is not limited to any enterprise or industry, we determined that it was not countervailable.

Special Importance Sector Under Investment Allowances

Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final)
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final)

The special importance sector is a provision under the Investment Allowance program that allows companies a 100 percent corporate tax deduction of their fixed investment, regardless of the region in which the investment is made. We found that the enabling legislation does not expressly limit access to an enterprise of industry.

Stamp Tax Exemption on Export-Related Loans

Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

We determined that the stamp tax exemption in question is an indirect tax as defined in 19 CFR 351.102. In accordance with 19 CFR 351.517(a), the non-excessive exemption of indirect taxes upon exports is not countervailable. We determined that the stamp tax exemption on pre-shipment and other export-related short-term loans is not countervailable.

VAT Deferrals on Imported Machinery and Equipment

Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)

Under this program, an eligible certificate holder can defer the payment of VAT on machinery and equipment under the end of the investment period. Because the benefits under this program are no longer tied to the purchase of domestically produced machinery and equipment, and because the program is not de jure or de facto specific, we determined this program to be 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.

Exemption From Mass Housing Fund Levy

[See also Mass Housing Fund Levy Exemptions]
This program provides an exemption from the Mass Housing Fund levy which is imposed on the importation of certain raw materials and finished or semi-finished goods. [For wheat, this tax amounted to $100 per metric ton.]

Export Incentive Certificate -- Customs Duty and Other Tax Exemptions

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final)
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64815 (12/9/97-prelim); 63 FR 18886 (4/16/98-final) Amended 65 FR 62334 (10/18/00)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16784 (4/8/97-prelim); 62 FR 43985 (8/18/97-final)
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47622 (12/15/87-prelim); 53 FR 9791 (3/25/88-final)
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1270 (1/10/86-final0

These certificates permitted companies to import spare parts free of customs duties and other taxes levied on imports used in the manufacture of goods to be exported. Communique No 96/1 dated January 5, 1996 rescinded Communique No 95/7, which provided export incentive certificates for the exclusion of taxes and duties, effective January 1, 1996. There are no residual benefits accruing from this program.

Export Performance Credits

Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final)

This program was administed by the Central Bank of Turkey to provide credits to manufacturers and exporters based on a percentage of the FOB value of exports shipped between March 7, 1994 and December 31, 1994.

Interest Spread Return Program (GIP) (Also called Interest Rebates)

Certificate holders were eligible for short-term credits for exports, and medium-or long-term credits for investment. Companies apply for rebates through commercial banks, which in turn applied for rediscounts through the Central Bank. Pursuant to Decree number 84/8860, the provisions of Decree number 83/7507 pertaining to interest rebates were repealed and this program was terminated as of January 1, 1985, although loans outstanding will continue to receive rebates until maturity.

Mass Housing Fund Levy Exemptions

Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used

[See also Exemption from Mass Housing Fund Levy]
Imports of machinery, equipment, and other capital goods needed for the manufacture and/or storage of raw materials and semi-finished goods are exempt from the 5% Mass Housing Fund levy.

Payments for Exports on Turkish Ships/State Aid for Exports Program [IS]

[See also Freight Program]
Under this program, exporters receive cash grants or bonds from the Central Bank based on the number of tons of product transported by sea. An additional amount is received if the goods are shipped on a Turkish vessel. [The Payment for Exports on Turkish Ships Program was terminated on December 31, 1994 and replaced with a new transportation program entitled State Aid for Exports. The State Aid for Exports Program differs from the earlier program in that it covers sea, air, and truck transportation, and specifically excludes exports of pasta.]

Preferential Export Financing

Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final)
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47623 (12/15/87-prelim); 53 FR 9791 (3/25/88-final)
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1269 (1/10/86-final)

The Government of Turkey through the Interest Equalization Fund of the Central Bank, provided short-term export credits at preferential rates. This program was terminated by decree No. 84/8861 on December 15, 1984.

Resource Utilization Support Fund (GIP) [IS]

Pasta (SR) (Expedited Review-no prelim); 66 FR 51019 (10/05/01-final); Final Memo
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30370 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (SR) 64 FR 66895 (11/30/99-prelim); 65 FR 17486 (4/3/00-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18885 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16785 (4/8/97-prelim); 62 FR 43985 (8/18/97-final) not used
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47622 (12/15/87-prelim); 53 FR 9792 (3/25/88-final)
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43599 (10/28/85-prelim); 51 FR 1270 (1/10/86-final)
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

The Resource Utilization Support Fund (RUSF), or Resource Utilization Support Premium (RUSP), program operates like other programs under the General Incentive Program (GIP), which is discussed further elsewhere, in that it provides rebates of the 15 percent VAT paid on domestically-sourced machinery and equipment or investments approved by the General Directorate of Incentive and Applications (GDIA). RUSF is provided only to industries located within specific regions.

Resource Utilization Support Fund (GIP) Payments to Exporters in the Amount of 4 percent of FOB Value of Certain Export Receipts

Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

No program description available.

Tax Exemption Based on Export Earnings

Corporate Tax Law 3946, dated December 25, 1993, provides that companies exporting industrial products valued in excess of U.S.$250,000 (or the equivalent) are entitled to deduct five percent of total export revenues from taxable profit.

Wharfage Fee Exemption (GIP)

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)

This exemption was provided for under the General Incentives Program, which is further described elsewhere. The Official Gazette dated July 11,1992 discusses the termination of the Wharfage Fee Exemption, effective January 1, 1993.

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.

Energy Support

No program description available.

Export Credit Bank of Turkey Buyers Credits

Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

No program description available.

Export Credit Bank of Turkey Revolving Export Credits

Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

No program description available.

General Incentives Program (GIP)

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47622 (12/15/87-prelim); 53 FR 9791 (3/25/88-final) not used
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1271 (1/10/86-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

The GIP is designed to eliminate the developmental differences between regions in Turkey and to support investments in industry sectors where the country is lacking investment. The Government of Turkey has designated all areas in Turkey as belonging to one of four classifications of economic development: 1) First Priority Development Regions, 2) Second priority Development Regions, 3) Normal Regions, and 4) Developed Regions. In January 1995, the program was modified such that 18 provinces and 20 other areas, which are included in the four development areas, have been renamed Industrial Belts of Planned Industrial Regions. Qualified firms located in the 18 provinces can obtain an investment certificate that will allow that firm to receive First Priority Area incentives until the end of 1997, and firms in the 20 other areas will be eligible for First Priority Area incentives until the year 2000. The following incentives which were not found to be used, fall under the General Incentives Program and apply to those in a Priority Area, Industrial Belt, and with an investment certificate:

Additional Refunds of VAT

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18886 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used

Manufacturers may obtain a premium refund of certain VAT taxes paid.

Corporate Tax Deferral

Companies with investment certificates were able to defer up to 20% of their corporate taxes for up to three years, provided that the amount of deferred tax did not exceed 20% of the company's expenditure on research and development during the fiscal year in which the corporate tax was levied.

Law 4325 Land Allocation

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30367 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

Manufacturers in Priority Areas and Industrial Belts that invest in new facilities, or in extending existing facilities, are eligible for free land to erect the planned facilities. These land grants are available to firms undertaking certain types of investment, including agricultural investment.

Income and Corporation Tax Allowances

Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47622 (12/15/87-prelim); 53 FR 9791 (3/25/88-final) not used
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1270 (1/10/86-final) not used

This program provides investment deductions to companies with an incentive certificate which are eligible under the General Incentives Program. These are deductions from taxable income on account of investments in new assets. The amount of the deduction varies from 30 percent to 100 percent of the cost of the investment, depending on the region and the economic sector in which it is made.

Normal Foreign Currency Export Loans

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used

The Government of Turkey loans exporters, through the Turkish Eximbank, an amount equivalent to 70% of the FOB value of an export commitment which must be shipped within six months of receipt of the loan. The interest rate is the LIBOR rate plus 0.75%, 1.05% or 1.75%, depending on the creditworthiness of the borrower and the extent of any other outstanding loans. The loans must be repaid within six months following receipt.

Payment of Certain Obligations of Firms Undertaking Large Investments (GIP)

The Government of Turkey provides incentives to large projects in all areas of the country, but requires smaller investments in priority areas than in non-priority areas. For qualifying investments, a special government fund pays 30 percent of electricity consumption, 50 percent of social security (employer share) and 100 percent compulsory savings and housing funds (employer share).

Performance Foreign Currency Export Loans

Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

Performance Foreign Currency Export Loans are a form of credit, for which a company must demonstrate that is has exported goods valued at a minimum of one million U.S. dollars in the previous 12 months. The loans cover up to 50 percent of the value of an export commitment, half of which must be shipped within six months of receipt. Moreover, the loan must be repaid within six months of receipt of the loan. As with the Normal Foreign Currency Export Loans, these loans carry an interest rate equal to LIBOR plus a surcharge, but also may require collateral.

Postponement of VAT on Imported Goods

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used

The VAT due on goods imported for projects may be accrued and deferred against a guarantee. The VAT is written-off when the VAT colleted by the investor equals the deferred liability.

Rebate of VAT on Domestically-Sourced Machinery and Equipment

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used

(Also called Incentive Premium on Domestically Obtained Goods)
The incentive program provides companies holding investment certificates under the GIP with rebates of the 15 percent VAT paid on locally-sourced machinery and equipment plus a 10 percent premium.

Regional Subsidies

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16785 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); not used

No program description available.

Subsidized Turkish Lira Credit Facilities

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used

Investment certificate holders are provided credits equal to 50% to 60% of their investment, while credits could be obtained for only 30% to 40% of investments made in other areas.

Subsidized Credit for Proportion of Fixed Expenditures

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used
Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

Investment certificate holders can obtain credit at preferential rates from various banks. Interest rates vary by Priority Region.

Subsidized Credit in Foreign Currency

Under Decree 31, the Government of Turkey provides investment currency loans. Foreign currency loans are re-lent to the Turkish investor at a fixed interest rate set by the Money and Credit Council.

Support Price Stability Fund

Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47623 (12/15/87-prelim); 53 FR 9791 (3/25/88-final) not used

No program description available.

Tax Exemptions

Pasta (2004) 71 FR 33439 (6/9/06-final); 71 FR 52774 (9/7/06-final) not used
Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used

Taxes, fees (duties), and construction charges are not levied on housing covered by an investment certificate. Additionally, other minor taxes are not levied on projects located in priority regions.

200 Percent Investment Allowances

Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo not used

No program description available.

Twenty-five dollar per Ton Back-Up Fund

Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1271 (1/10/86-final) not used

No program description available.

Post-Shipment Export Loans

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used

No program description available.

Pre-Shipment Rediscount Loans

Carbon Steel Standard Pipe (2005) 71 FR 68550 (11/27/06-prelim); not used
Carbon Steel Standard Pipe (2004) 71 FR 17445 (4/6/06-prelim); 71 FR 4311 (7/31/06-final); Final Memo not used

No program description available.

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.

Advance Refunds of Tax Savings

Pasta (1999) 66 FR 41553 (8/8/01-prelim); 66 FR 64398 (12/13/01-final); Final Memo not used
Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final) not used
Steel Pipe and Tube and Steel Line Pipe (1998) 65 FR 18070 (4/6/00-prelim); 65 FR 49230 (8/11/00-final) not used
Steel Pipe and Tube and Steel Line Pipe (1997) 64 FR 16928 (4/7/99-prelim); 64 FR 44496 (8/6/99-final) not used
Steel Pipe and Tube and Steel Line Pipe (1996) 62 FR 64812 (12/9/97-prelim); 63 FR 18887 (4/16/98-final) Amended 65 FR 62334 (10/18/00) not used
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final) not used
Wire Rod (2000) 67 FR 5976 (02/08/02-prelim); 67 FR 169 (8/30/02-final); Final Memo

Under this program, a cash advance is granted equal to 30% of the company's export tax refund.

Export Credit Program and Export Credits Under Communique No. 1

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (1995) 62 FR 16787 (4/8/97-prelim); 62 FR 43986 (8/18/97-final)
Steel Pipe and Tube and Steel Line Pipe (1985/6) 52 FR 47623 (12/15/87-prelim); 53 FR 9791 (3/25/88-final)

It was alleged that exporters were provided with export credits at below market interest rates. Eligibility for this program was limited to exporters who have shipped at least $5 million in exports over the past three year's; no year's export value being less than $1 million. [This program is the same program alleged in the Pipe and Tube case under Export Credits Under Communique No. 1.]

Export Promotion Program

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)

It was alleged that exporters applied to the State Planning Organization for an export incentive certificate which provided them with an allocation of foreign exchange.

Foreign Exchange Allocation Program (GIP)

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)

It was alleged that exporters were eligible to receive special foreign exchange allocations equivalent to 50 percent of the value of the goods to be exported in order to facilitate the purchase of imported raw materials for export, and that such imported raw materials were exempt from customs duties and other taxes.

Interest Rebates on Export Financing (GIP)

Pasta (1994) 60 FR 53750 (10/17/95-prelim); 61 FR 30372 (6/14/96-final)
Steel Pipe and Tube and Steel Line Pipe (1984) 50 FR 43600 (10/28/85-prelim); 51 FR 1271 (1/10/86-final)

It was alleged that manufacturers were allowed to claim duty drawback from the Customs and Excise Authority for customs duties levied on raw materials which were used in the manufacture of exported goods and packaging materials.