[Federal Register Volume 65, Number 64 (Monday, April 3, 2000)]
[Notices]
[Pages 17486-17487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8157]


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DEPARTMENT OF COMMERCE

International Trade Administration

[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
------------------------------------------------------------------------

    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