[Federal Register Volume 78, Number 210 (Wednesday, October 30, 2013)]
[Notices]
[Pages 64916-64918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25816]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-502]


Circular Welded Carbon Steel Pipes and Tubes From Turkey: Final 
Results of Countervailing Duty Administrative Review; Calendar Year 
2011

AGENCY: Enforcement and Compliance (Formerly Import Administration), 
International Trade Administration, Department of Commerce.

SUMMARY: On April 9, 2013, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results of 
administrative review of the countervailing duty (CVD) order on 
circular welded carbon steel pipes and tubes (steel pipes and tubes) 
from Turkey for the January 1, 2011, through December 31, 2011, period 
of review (POR).\1\ The Department preliminarily found that the 
following producers/exporters of subject merchandise covered by this 
review had de minimis net subsidy rates for the POR: (1) Borusan Group, 
Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (BMB), and Borusan 
Istikbal Ticaret T.A.S. (Istikbal) (collectively, Borusan); (2) Erbosan 
Erciyas Boru Sanayi ve Ticaret A.S. (Erbosan AS) and Erbosan Erciyas 
Pipe Industry and Trade Co. Kayseri Free Zone Branch (Erbosan FZB), 
(collectively Erbosan), and (3) Tosyali dis Ticaret A.S. (Tosyali) and 
Toscelik Profil ve Sac Endustrisi A.S. (Toscelik Profil), 
(collectively, Toscelik). The Department has now completed the 
administrative review in accordance with section 751(a) of the Tariff 
of 1930, as amended (the Act). Based on our analysis of comments 
received, the net subsidy rates for Borusan and Erbosan, although 
revised, continue to be de minimis. The Department has also revised the 
net subsidy rate for Toscelik. Further discussion of our analysis of 
the comments received is provided in the accompanying Final Decision 
Memorandum.\2\ The final net subsidy rates for Borusan, Erbosan, and 
Toscelik

[[Page 64917]]

are listed below in the ``Final Results of Review'' section.
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    \1\ See Circular Welded Carbon Steel Pipes and Tubes from 
Turkey: Preliminary Results of Countervailing Duty Administrative 
Review; Calendar Year 2011, 78 FR 21107 (April 9, 2013) (Preliminary 
Results).
    \2\ See Decision Memorandum for Final Results of Countervailing 
Duty (CVD) Administrative Review: Circular Welded Carbon Steel Pipes 
and Tubes from Turkey from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance 
dated concurrently with these final results (Final Decision 
Memorandum).

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DATES: Effective: October 30, 2013.

FOR FURTHER INFORMATION CONTACT: Jolanta Lawska at 202-482-8362 (for 
Borusan and Erbosan) at 202-482-8362 and John Conniff at 202-482-1009 
(for Toscelik), AD/CVD Operations, Office III, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230.

Background

    On March 7, 1986, the Department published in the Federal Register 
the CVD order on steel pipes and tubes from Turkey.\3\ On April 9, 
2013, the Department published in the Federal Register the preliminary 
results for this review. In the Preliminary Results, we invited 
interested parties to submit case briefs commenting on the preliminary 
results and to request a hearing.\4\ On May 9, 2013, we received case 
briefs from Borusan and Petitioners.\5\ On May 14, 2013, we received a 
rebuttal brief from Toscelik. We did not hold a hearing in this review, 
as none was requested by interested parties.
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    \3\ See Countervailing Duty Order: Certain Welded Carbon Steel 
Pipe and Tube Products From Turkey, 51 FR 7984 (March 7, 1986).
    \4\ See Preliminary Results.
    \5\ Petitioners in this review are Wheatland Tube Company 
(Wheatland), Allied Tube and Conduit Corporation and TMK IPSCO, and 
United States Steel Corporation (collectively, Petitioners).
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Scope of Order

    The products covered by this order are certain welded carbon steel 
pipe and tube with an outside diameter of 0.375 inch or more, but not 
over 16 inches, of any wall thickness (pipe and tube) from Turkey. 
These products are currently provided for under the Harmonized Tariff 
Schedule of the United States (HTSUS) as item numbers 7306.30.10, 
7306.30.50, and 7306.90.10. Although the HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
merchandise is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Final Decision 
Memorandum, dated concurrently with this notice and which is hereby 
adopted by this notice. A list of the issues which parties have raised, 
and to which we have responded in the Final Decision Memorandum, is 
attached to this notice as an Appendix. The Final Decision Memorandum 
is a public document and is on file electronically via IA ACCESS. IA 
ACCESS is available to registered users at http://iaaccess.trade.gov 
and in the Central Records Unit, room 7046 of the main Department of 
Commerce building. In addition, a complete version of the Final 
Decision Memorandum can be accessed directly on the Internet at http://enforcement.ita.doc.gov/frn/index.html. The signed Final Decision 
Memorandum and the electronic versions of the Final Decision Memorandum 
are identical in content.

Final Results of Review

    Consistent with the Preliminary Results, the total net subsidy rate 
for Erbosan remained 0.30 percent ad valorem. In these final results, 
we have revised Borusan's total net subsidy rate to 0.19 percent ad 
valorem. Pursuant to 19 CFR 351.106(c), the calculated rates for 
Erbosan and Borusan are de minimis. We have also revised the net 
subsidy rate for Toscelik. In these final results, we have calculated a 
total net subsidy rate of 0.83 percent for Toscelik.

Assessment Rates/Cash Deposits

    The Department intends to issue assessment instructions to U.S. 
Customs and Border Protection (CBP) 15 days after the date of 
publication of these final results, to liquidate shipments of subject 
merchandise by Borusan and Erbosan entered, or withdrawn from 
warehouse, for consumption on or after January 1, 2011, through 
December 31, 2011, without regard to CVDs because a de minimis subsidy 
rate was calculated for each company. We will also instruct CBP to 
continue to suspend liquidation but to collect no cash deposits of 
estimated CVDs on shipments of the subject merchandise by Borusan and 
Erbosan, entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this review.
    For Toscelik, the Department intends to issue assessment 
instructions to CBP 15 days after the date of publication of these 
final results of review to liquidate shipments of subject merchandise 
by Toscelik entered, or withdrawn from warehouse, for consumption on or 
after January 1, 2011, through December 31, 2011, at the ad valorem 
assessment rate listed above. We will also instruct CBP to collect cash 
deposits for Toscelik at the CVD cash deposit rate indicated above on 
all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of these 
final results of review.
    For all non-reviewed companies, we will instruct CBP to continue to 
collect cash deposits at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to companies covered by this order, but not 
examined in this review, are those established in the most recently 
completed administrative proceeding for each company. The cash deposit 
rates for all companies not covered by this review are not changed by 
the results of this review, and remain in effect until further notice.

Return or Destruction of Proprietary Information

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and the terms of an APO is a sanctionable 
violation.
    We are issuing and publishing these final results in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: October 23, 2013.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

I. Methodology and Background Information

Subsidies Valuation Information

A. Attribution of Subsidies
B. Benchmark Interest Rates

II. Analysis of Programs

I. Programs Determined To Be Countervailable
    A. Deduction from Taxable Income for Export Revenue
    B. Short Term Pre-Shipment Rediscount Program
    C. Law 5084: Withholding of Income Tax on Wages and Salaries
    D. Law 5084: Incentive for Employers' Share in Insurance 
Premiums
    E. Law 5084: Allocation of Free Land and Purchase of Land for 
Less Than Adequate Remuneration (LTAR)
    F. Law 5084: Energy Support
    G. Organized Industrial Zone (OIZ): Exemption From Property Tax
    H. Corporate Income Tax Exemption Under the Free Zones Law
    I. Investment Encouragement Program (IEP): Customs Duty 
Exemptions
II. Programs Determined To Not Confer Countervailable Benefits 
During the POR
    A. Inward Processing Certificate Exemption
    B. Provision of Buildings and Land Use Rights for LTAR Under the 
Free Zones Law

[[Page 64918]]

III. Programs Found Not Countervailable During the POR
    A. Deductions on Social Security Payments Program Under Law 5510
    B. Deductions on Social Security Payments Program Under Law 5921
    C. Customs Duties and Value-Added Tax (VAT) Exemptions Under the 
Free Zones Law
IV. Programs Determined To Not Be Used During the POR
    A. Stamp Duties and Fees Exemptions Under the Free Zones Law
    B. Other Programs Not Used
     Post-Shipment Export Loans
     Export Credit Bank of Turkey Buyer Credits
     Subsidized Turkish Lira Credit Facilities
     Subsidized Credit for Proportion of Fixed Expenditures
     Subsidized Credit in Foreign Currency
     Regional Subsidies
     VAT Support Program (Incentive Premium on Domestically 
Obtained Goods)
     IEP: VAT Exemptions
     IEP: Reductions in Corporate Taxes
     IEP: Interest Support
     IEP: Social Security Premium Support
     IEP: Land Allocation
     National Restructuring Program
     Regional Incentive Scheme: Reduced Corporate Tax Rates
     Regional Incentive Scheme: Social Security Premium 
Contribution for Employees
     Regional Incentive Scheme: Allocation of State Land
     Regional Incentive Scheme: Interest Support
     OIZ: Waste Water Charges
     OIZ: Exemptions From Customs Duties, VAT, and Payments 
for Public Housing Fund, for Investments for Which an Income 
Certificate Is Received
     OIZ: Credits for Research and Development Investments, 
Environmental Investments, Certain Technology Investments, Certain 
``Regional Development'' Investments, and Investments Moved From 
Developed Regions to ``Regions of Special Purpose''
     Foreign Trade Companies Short Term Export Credits
     Pre-Export Credits
     Pre-shipment Export Credits
     OIZ: Exemption From Building and Construction Charges
     OIZ: Exemption From Amalgamation and Allotment 
Transaction Charges

Analysis of Comments

Borusan

Comment 1: Whether the Department Should Grant an Offset to the 
Gross Subsidy Found on Turkish Eximbank Loans for the Bank Guarantee 
Fees
Comment 2: Whether the Department Erred in Including Certain 
Eximbank Loans in the Department's Preliminary Benefit Calculations

Erbosan

Comment 3: Whether the Department Should Find Provision of Buildings 
and Land Use Rights for Less than Adequate Remuneration under the 
Free Zones Law Program Countervailable

Toscelik

Comment 4: Benchmark Used to Calculate the Benefit under the 
Osmaniye Organized Industrial Zone Program Used by Toscelik
Comment 5: Treatment of Investment Encouragement Program (IEP)

[FR Doc. 2013-25816 Filed 10-29-13; 8:45 am]
BILLING CODE 3510-DS-P