[Federal Register Volume 79, Number 178 (Monday, September 15, 2014)]
[Notices]
[Pages 54963-54965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21989]



[[Page 54963]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-819]


Steel Concrete Reinforcing Bar From the Republic of Turkey: Final 
Affirmative Countervailing Duty Determination Final Affirmative 
Critical Circumstances Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of steel concrete reinforcing bar (rebar) from the Republic of Turkey 
(Turkey). For more information, see the ``Suspension of Liquidation'' 
section of this notice.

DATES: Effective Date: September 15, 2014.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, Office III, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
4793.

SUPPLEMENTARY INFORMATION: 

Background

    The Petitioner in this investigation is the Rebar Trade Action 
Coalition.\1\ In addition to the Government of Turkey, the mandatory 
respondents in this investigation are Habas Sinai ve Tibbi Gazlar 
Istihsal Endustrisi A.S. (Habas) and Icdas Celik Enerji Tersane ve 
Ulasim Sanayi A.S. (Icdas). The period of investigation (POI), for 
which we are measuring subsidies, is January 1, 2012, through December 
31, 2012.
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    \1\ The members are Nucor Corporation, Gerdau Ameristeel US 
Inc., Commercial Metals Company, Cascade Steel Rolling Mills, Inc., 
and Byer Steel Corporation.
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Case History

    The events that occurred since the Department published the 
Preliminary Determination on February 26, 2014,\2\ are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Steel 
Concrete Reinforcing Bar from the Republic of Turkey'' (Issues and 
Decision Memorandum), which is dated concurrently with and hereby 
adopted by this notice.
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    \2\ See Steel Concrete Reinforcing Bar from the Republic of 
Turkey: Preliminary Negative Countervailing Duty Determination, 
Preliminary Negative Critical Circumstances Determination, and 
Alignment of Final Determination With Final Antidumping 
Determination, 79 FR 10771 (February 26, 2014) (Preliminary 
Determination).
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    The Issues and Decision Memorandum is a public document and is on 
file electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (IA ACCESS). 
IA ACCESS is available to registered users at http://iaaccess.trade.gov, and is available to all parties 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 at http://enforcement.trade.gov/frn/index.html. The 
signed Issues and Decision Memorandum and the electronic version of the 
Issues and Decision Memorandum are identical in content.

Scope of the Investigation

    The merchandise subject to this investigation is steel concrete 
reinforcing bar imported in either straight length or coil form (rebar) 
regardless of metallurgy, length, diameter, or grade. The subject 
merchandise is classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) primarily under item numbers 7213.10.0000, 
7214.20.0000, and 7228.30.8010. The subject merchandise may also enter 
under other HTSUS numbers including 7215.90.1000, 7215.90.5000, 
7221.00.0015, 7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 
7222.11.0059, 7222.30.0001, 7227.20.0080, 7227.90.6085, 7228.20.1000, 
and 7228.60.6000. Specifically excluded are plain rounds (i.e., non-
deformed or smooth rebar). Also excluded from the scope is deformed 
steel wire meeting ASTM A1064/A1064M with no bar markings (e.g., mill 
mark, size, or grade) and without being subject to an elongation test. 
HTSUS numbers are provided for convenience and customs purposes; 
however, the written description of the scope remains dispositive.

Critical Circumstances

    Pursuant to section 705(a)(2) of the Tariff Act of 1930, as amended 
(the Act), the Department determines that critical circumstances exist 
for imports of rebar from Turkey for the ``all other'' companies. 
Although we determine that Habas and Icdas benefited from programs that 
are inconsistent with the Subsidies Agreement, the companies' shipment 
data do not indicate a massive increase in shipments of subject 
merchandise to the United States. The shipment data, however, indicate 
a massive increase in shipments of subject merchandise by the ``all 
other'' companies. Therefore, we determine that critical circumstances 
exist with regard to imports of rebar from Turkey by companies subject 
to the all others rate. For further information on the Department's 
critical circumstances analysis, see the Issues and Decision 
Memorandum.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Act. For a full 
description of the methodology underlying our conclusions, see the 
Issues and Decision Memorandum.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of subsidy 
programs and the issues that parties raised, and to which the 
Department responded in the Issues and Decision Memorandum, is attached 
an appendix to this notice.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a countervailable subsidy rate for each individually 
investigated producer/exporter of the subject merchandise. Section 
705(c)(5)(A)(i) of the Act states that for companies not individually 
investigated, we will determine an ``all others'' rate equal to the 
weighted average of the countervailable subsidy rates established for 
exporters and producers individually investigated, excluding any de 
minimis countervailable subsidy rates. In this investigation, the only 
non-de minimis rate is the rate calculated for Icdas. Consequently, the 
rate calculated for Icdas is assigned as the ``all others'' rate.
    We determine the total estimated net countervailable subsidy rates 
to be:

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           Company                            Subsidy rate
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Habas Sinai ve Tibbi Gazlar    0.74 percent (de minimis).
 Istihsal Endustrisi A.S..
Icdas Celik Enerji Tersane ve  1.25 percent.
 Ulasim Sanayi A.S..
All Others...................  1.25 percent.
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    Because the Preliminary Determination was negative, we did not 
instruct U.S. Customs and Border Protection (CBP) to suspend entries of 
subject merchandise. In accordance with sections 705(c)(1)(C) of the 
Act, we are now directing CBP to suspend liquidation of and to require 
the posting of a cash deposit on all imports of the subject merchandise 
from Turkey, other than those produced and exported by Habas because 
Habas' rate is de minimis, that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The suspension of liquidation will 
remain in effect until further notice.
    Additionally, as a result of this final affirmative determination 
of critical circumstances for ``all other'' companies, we are 
instructing CBP to suspend liquidation of all entries of subject 
merchandise from those producers/exporters of rebar from Turkey, which 
were entered or withdrawn from warehouse for consumption 90 days prior 
to the date of publication of this notice in the Federal Register, 
pursuant to section 703(e)(2) of the Act.
    As our final determination is affirmative and our preliminary 
determination was negative, in accordance with section 705(b)(3) of the 
Act, the U.S. International Trade Commission (ITC) will determine 
within 75 days whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. We will issue a CVD order if the ITC issues a 
final affirmative injury determination. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice serves as the only reminder to parties 
subject to APO of their responsibility concerning the return or 
destruction 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 terms of an APO is a violation that is subject to 
sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: September 8, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Issues and Decision 
Memorandum

1. Summary
2. Background
3. Scope Comments
4. Scope of the Investigation
5. Critical Circumstances
6. Subsidies Valuation
7. Analysis of Programs
    A. Programs Determined To Be Countervailable
    1. Provision of Natural Gas for Less Than Adequate Remuneration 
(LTAR)
    2. Provision of Lignite for LTAR
    3. Rediscount Program
    4. Deductions from Taxable Income for Export Revenue
    B. Program Determined Not To Confer a Benefit During the POI
    1. Research and Development Grant Program
    C. Programs Found Not To Be Used
    1. Export Credits, Loans and Insurance from Turk Eximbank
    a. Pre-Shipment Export Credits from Turk Eximbank
    b. Turk Eximbank's Foreign Trade Company Export Loans
    c. Turk Eximbank's Pre-Export Credits Program
    d. Short-term Export Credit Discount Program
    e. Export Insurance Provided by Turk Eximbank
    2. Regional Investment Incentives
    a. VAT Exemptions, Customs Duty Exemptions, Income Tax 
Reductions, and Social Security Support
    b. Land Allocation
    3. Large-Scale Investment Incentives
    a. VAT and Customs Duty Exemptions
    b. Tax Reduction
    c. Income Tax Withholding Allowance
    d. Social Security and Interest Support
    e. Land Allocation
    4. Strategic Investment Incentives
    a. VAT and Customs Duty Exemptions
    b. Tax Reductions
    c. Income Tax Withholding
    d. Social Security and Interest Support
    e. Land Allocation
    f. VAT Refunds
    5. Incentives for Research & Development (R&D) Activities
    a. Tax Breaks and Other Assistance
    b. Product Development R&D Support--UFT
    6. Provision of Land for LTAR
    7. Provision of Electricity for LTAR
    8. Withholding of Income Tax on Wages and Salaries
    9. Exemption from Property Tax
    10. Employers' Share in Insurance Premiums Program
    11. Preferential Tax Benefits for Turkish Rebar Producers 
Located in Free Zones
    12. Preferential Lending to Turkish Rebar Producers Located in 
Free Zones
    13. Exemptions from Foreign Exchange Restrictions to Turkish 
Rebar Producers Located in Free Zones
    14. Preferential Rates for Land Rent and Purchase to Turkish 
Rebar Producers Located in Free Zones
8. Analysis of Comments
    Comment 1: Whether the Department Used an Improper Methodology 
for Deriving the Benchmark for Purchases of Natural Gas for LTAR
    Comment 2: Whether VAT Should Be Included in the Natural Gas 
Benchmark
    Comment 3: Whether Sales by Habas to Affiliates Should Be 
Included in the Sales Denominators
    Comment 4: Whether Corrections to Habas' Natural Gas Purchase 
Data Collected at Verification Should Be Used for the Final 
Calculations
    Comment 5: Whether the Department Should Use a Lignite Price to 
Calculate the Benefit for the Provision of Lignite for LTAR
    Comment 6: Calculation of the Export Revenue Tax Deduction for 
Icdas
    Comment 7: Whether the Department Unjustly Rejected Petitioner's 
New Subsidy Allegation

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    Comment 8: Whether the Department Failed to Initiate on the 
GOT's Purchase of Electricity for MTAR
9. Recommendation
[FR Doc. 2014-21989 Filed 9-12-14; 8:45 am]
BILLING CODE 3510-DS-P