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Federal Register / Vol. 71, No.

66 / Thursday, April 6, 2006 / Notices 17445

Preliminary Results of Review company assigned these rates is certain welded carbon steel standard
requested. pipe from Turkey for the period January
In accordance with 19 CFR 1, 2004, through December 31, 2004. For
351.221(b)(4)(i), we calculated an Public Comment
information on the net subsidy rate for
individual subsidy rate for Atar and Pursuant to 19 CFR 351.224(b), the the reviewed company, see the
Corticella/Combattenti. Pasta Lensi had Department will disclose to parties to ‘‘Preliminary Results of Review’’
no countervailable subsidies. For the the proceeding any calculations section, infra. If the final results remain
period January 1, 2004, through performed in connection with these the same as the preliminary results of
December 31, 2004, we preliminarily preliminary results within five days this review, we will instruct U.S.
find the net subsidy rates for the after the date of the public Customs and Border Protection (‘‘CBP’’)
producers/exporters under review to be announcement of this notice. to assess countervailing duties as
those specified in the chart shown Pursuant to 19 CFR 351.309(c)(ii), detailed in the ‘‘Preliminary Results of
below: interested parties may submit written Review’’ section, infra. Interested
arguments in case briefs within 30 days parties are invited to comment on these
Producer/exporter Net subsidy rate of the date of publication of this notice. preliminary results. (See the ‘‘Public
Rebuttal briefs, limited to issues raised Comment’’ section, infra).
Pasta Lensi S.r.l ........ 0.00 percent.
Corticella Molini e 0.12 percent (de mini-
in case briefs, may be filed no later than
five days after the date of filing the case EFFECTIVE DATE: April 6, 2006.
Pastifici S.p.a./ mis).
Pasta Combattenti briefs, in accordance with 19 CFR FOR FURTHER INFORMATION CONTACT:
S.p.a. 351.309(d). Parties who submit briefs in Kristen Johnson, AD/CVD Operations,
Atar S.r.l .................... 0.20 percent (de mini- this proceeding should provide a Office 3, Import Administration,
mis). summary of the arguments not to exceed International Trade Administration,
five pages and a table of statutes, U.S. Department of Commerce, Room
If the final results of this review regulations, and cases cited. Copies of 4014, 14th Street and Constitution
remain the same as these preliminary case briefs and rebuttal briefs must be Avenue, NW., Washington, DC 20230;
results, because the countervailing duty served on interested parties in telephone: (202) 482–4793.
rates for all of the above-noted accordance with 19 CFR 351.303(f). SUPPLEMENTARY INFORMATION:
companies are less than 0.5 percent and, Interested parties may request a
consequently are either zero or de hearing within 30 days after the date of Background
minimis, we will instruct CBP to publication of this notice, pursuant to
On March 7, 1986, the Department
liquidate entries during the period 19 CFR 351.310(c). Any hearing, if
published in the Federal Register the
January 1, 2004, through December 31, requested, will be held two days after
CVD order on certain welded carbon
2004, without regard to countervailing the scheduled date for submission of
steel pipe and tube products from
duties in accordance with 19 CFR rebuttal briefs.
The Department will publish a notice Turkey. See Countervailing Duty Order:
351.106(c)(1). The Department will Certain Welded Carbon Steel Pipe and
issue appropriate instructions directly of the final results of this administrative
review within 120 days from the Tube Products from Turkey, 51 FR 7984
to CBP within 15 days of publication of (March 7, 1986) (‘‘Turkey Pipe Order’’).
these final results of this review. publication of these preliminary results,
in accordance with section 751(a)(3) of On March 1, 2005, the Department
For all other companies that were not published a notice of opportunity to
reviewed (except Barilla G. e R. F.lli the Act.
We are issuing and publishing these request an administrative review of this
S.p.A. and Gruppo Agricoltura Sana CVD order. See Antidumping or
S.r.l., which are excluded from the results in accordance with sections
751(a)(1) and 777(i)(1) of the Act and 19 Countervailing Duty Order, Finding, or
order), the Department has directed CBP Suspended Investigation; Opportunity
to assess countervailing duties on all CFR 351.221(b)(4).
to Request Administrative Review, 70
entries between January 1, 2004, and Dated: March 31, 2006. FR 9918 (March 1, 2005). On March 31,
December 31, 2004, at the rates in effect David M. Spooner, 2005, we received a timely request for
at the time of entry. Assistant Secretary for Import review from the Borusan Group
The Department also intends to Administration. (‘‘Borusan’’), a Turkish producer and
instruct CBP to collect cash deposits of [FR Doc. E6–5031 Filed 4–5–06; 8:45 am] exporter of subject merchandise. On
estimated countervailing duties. For the BILLING CODE 3510–DS–P April 22, 2005, the Department initiated
companies noted above (except Pasta an administrative review of the CVD
Lensi) the cash deposit rate is zero order on certain welded carbon steel
because each company’s rate is de DEPARTMENT OF COMMERCE standard pipe from Turkey, covering the
minimis. If the revocation in part period January 1, 2004, through
International Trade Administration
becomes final for Pasta Lensi, December 31, 2004. See Initiation of
suspension of liquidation will cease [C–489–502] Antidumping and Countervailing Duty
and, consequently, no duties will be Administrative Reviews, 70 FR 20862
collected. Notice of Preliminary Results of (April 22, 2005).
For all non-reviewed firms (except Countervailing Duty Administrative On June 13, 2005, the Department
Barilla G. e R. F.lli S.p.A. and Gruppo Review: Certain Welded Carbon Steel issued a questionnaire to Borusan and
Agricoltura Sana S.r.l., which are Standard Pipe from Turkey the Government of the Republic of
excluded from the order), we will AGENCY: Import Administration, Turkey (‘‘GOT’’); we received their
instruct CBP to collect cash deposits of International Trade Administration, questionnaire responses on August 22,
sroberts on PROD1PC70 with NOTICES

estimated countervailing duties at the Department of Commerce. 2005. On October 26, 2005, we issued
most recent company-specific or ‘‘all SUMMARY: The Department of Commerce supplemental questionnaires to Borusan
others’’ rate applicable to the company. (‘‘the Department’’) is conducting an and the GOT. We received the
These rates shall apply to all non- administrative review of the supplemental questionnaire response
reviewed companies until a review of a countervailing duty (‘‘CVD’’) order on from Borusan on November 25, 2005,

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17446 Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices

and from the GOT on November 28, subject merchandise and export the interest rate for each quarter of 2004.4
2005. merchandise through Istikbal. We then simple averaged those
On November 7, 2005, the Department Prior to the November 2004 merger, quarterly rates to calculate an annual
published in the Federal Register an BBBF and MB were affiliated through short–term interest rate for Turkey. See
extension of the deadline for the their parent company, Borusan the March 31, 2006, Memorandum to
preliminary results. See Certain Welded Mannesmann Boru Yatirim Holding the File concerning the Calculations for
Carbon Steel Standard Pipe from A.S. (‘‘BMBYH’’). BMBYH, a holding the Preliminary Results of the Review of
Turkey: Extension of Time Limit for company, is majority–owned by the Countervailing Duty Order on
Preliminary Results of Countervailing Borusan Holding A.S.1 Post merger and Certain Welded Carbon Steel Standard
Duty Administrative Review, 70 FR company name change, BMB continued Pipe from Turkey (‘‘Preliminary
67455 (November 7, 2005). to be owned by BMBYH. During the Calculations’’). This methodology is
On February 15 through February 23, POR, Istikbal was majority–owned by consistent with the Department’s
2006, we conducted verification in Borusan Holding A.S.2 practice. See e.g., Certain Welded
Ankara, Turkey, of the questionnaire Carbon Steel Pipes and Tubes from
Subsidies Valuation Information Turkey; Final Results of Countervailing
responses submitted by the GOT, and in
Istanbul, Turkey, of the questionnaire Benchmark Interest Rates Duty Administrative Review, 65 FR
responses submitted by Borusan. 49230 (August 11, 2000) (‘‘1998 Pipe
To determine whether government–
In accordance with 19 CFR Final’’); and Carbon and Certain Alloy
provided loans under review conferred
351.213(b), this review covers only Steel Wire Rod from Turkey; Final
a benefit, the Department uses, where
those producers or exporters of the Negative Countervailing Duty
possible, company–specific interest
Determination, 67 FR 55815 (August 30,
subject merchandise for which a review rates for comparable commercial loans.
2002) (‘‘Wire Rod’’), and accompanying
was specifically requested. The only See 19 CFR 351.505(a). Borusan
Issues and Decision Memorandum, at 3–
company subject to this review is provided the interest rates it paid on
4 (‘‘Wire Rod Memorandum’’).
Borusan. During the period of review short–term Turkish Lira (‘‘TL’’)- Further, it is the Department’s
(‘‘the POR’’), Borusan was comprised of denominated and foreign currency practice to normally compare effective
Borusan Birlesik Boru Fabrikalari A.S. (‘‘FX’’)-denominated commercial loans. interest rates rather than nominal rates
(‘‘BBBF’’), Mannesmann Boru Endustrisi We preliminarily find that the in making the loan comparison. See
T.A.S. (‘‘MB’’), Borusan Mannesmann company–specific FX–denominated Countervailing Duties; Final Rule, 63 FR
Boru Sanayi ve Ticaret A.S. (‘‘BMB’’), short–term loans are comparable to the 65348, 65362 (November 25, 1998)
and Istikbal Ticaret T.A.S. (‘‘Istikbal’’). export credit FX–denominated loans (‘‘Preamble’’). ‘‘Effective’’ interest rates
This review covers fourteen programs. against which Borusan paid interest are intended to take account of the
during the POR. However, Borusan’s actual cost of the loan, including the
Scope of the Order
short–term TL–denominated amount of any fees, commissions,
The products covered by this order commercial loans, outstanding during compensating balances, government
are certain welded carbon steel pipe and the POR, were revolving, open account charges, or penalties paid in addition to
tube with an outside diameter of 0.375 loans and not comparable to the the ‘‘nominal’’ interest rate.
inch or more, but not over 16 inches, of maturity of the export financing loans The short–term TL interest rates
any wall thickness (pipe and tube) from that Borusan received from the Export sourced from The Economist do not
Turkey. These products are currently Credit Bank of Turkey (‘‘Export Bank’’). include commissions or fees paid to
provided for under the Harmonized Where no company–specific commercial banks, i.e., they are nominal
Tariff Schedule of the United States benchmark interest rates are available, rates. See Wire Rod Memorandum at 4.
(‘‘HTSUS’’) as item numbers 7306.30.10, the Department’s regulations direct us to For Pre–Shipment Export Credits,
7306.30.50, and 7306.90.10. Although use a national average interest rate as discussed infra, commercial banks,
the HTSUS subheadings are provided the benchmark. See 19 CFR through which the loans are extended,
for convenience and customs purposes, 351.505(a)(3)(ii). According to the GOT, can add a maximum 2.0 percent to the
the written description of the however, there is no official national interest rate for TL–denominated loan as
merchandise is dispositive. average short–term interest rate their commission. See GOT Verification
Period of Review available. See the March 31, 2006, Report at 4. Therefore, for these
Memorandum to the File concerning the preliminary results, we compared the
The period for which we are Verification of the Questionnaire benchmark TL interest rate, inclusive of
measuring subsidies is January 1, 2004, Responses Submitted by the the 2.0 percent commission, to the
through December 31, 2004. Government of the Republic of Turkey interest rate that Borusan was charged
Company History (‘‘GOT Verification Report’’) at 3.3 on the Pre–Shipment Export Credit TL–
Therefore, we have calculated the denominated loans to make the
As noted above, Borusan is composed benchmark interest rate for short–term comparison on an effective interest rate
of BBBF, MB, BMB, and Istikbal. During TL–denominated loans based on short– basis.5 Where a company–specific
the POR, BBBF produced the subject term interest rate data for 2004, as benchmark interest rate was used6 to
merchandise, which was first sold to reported by The Economist.
Istikbal, an export sales company, and Specifically, from issues of The 4 In each issue, The Economist reports short-term

then resold to an unaffiliated customer Economist, we sourced a short–term interest date on a percentage per annum basis for
select countries.
in the United States. MB ceased 5 Borusan also received TL-denominated export
production of the subject merchandise 1 Mannesmannrohren-Werke A.G., a publicly
credit loans under the Foreign Trade Companies
in November 2003, and a year later, was traded company in Germany, also has ownership in
sroberts on PROD1PC70 with NOTICES

Short-Term Export Credit program and the Pre-


merged into BBBF on November 30, BMBYH. Export Credit program (see infra). However, those
2 Borusan Holding A.S. is owned by the family of loans are extended directly by Turkey’s Export
2004. BBBF was subsequently renamed
Asim Kocabiyik, the company’s founder. Bank and, therefore, not subject to a intermediary
Borusan Mannesmann Boru Sanayi ve 3 A public version of the verification report is bank commission charge.
Ticaret A.S. (i.e., BMB) on December 13, available on the public file in the Department’s 6 For these preliminary results, we used a

2004, and continued to produce the Central Records Unit (room B-099). company-specific benchmark interest rate to

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Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices 17447

determine whether government– The Department typically treats a tax paid interest against pre–shipment TL–
provided export loans under review deduction as a recurring benefit in denominated loans.
conferred a benefit, that comparison of accordance with 19 CFR 351.524(c)(1). Pursuant to section 771(5)(E)(ii) of the
interest rates was also made on an To calculate the countervailable subsidy Act, a benefit shall be treated as
effective basis. rate for this program, we calculated the conferred ‘‘in the case of a loan, if there
tax savings realized by Istikbal in 2004, is a difference between the amount the
Analysis of Programs
as a result of the deduction for export recipient of the loan pays on the loan
I. Programs Preliminarily Determined earnings. We then divided that benefit and the amount the recipient would pay
To Be Countervailable by Borusan’s total export sales for 2004. on a comparable commercial loan that
A. Deduction from Taxable Income On this basis, we preliminarily the recipient could actually obtain on
for Export Revenue determine the net countervailable the market.’’ To calculate the amount of
Addendum 4108 of Article 40 of the subsidy for this program to be 0.09 interest the recipient would pay on a
Income Tax Law allows companies that percent ad valorem. comparable TL–denominated
operate internationally to claim, directly B. Pre–Shipment Export Credits commercial loan, in absence of a
on their corporate income tax returns, a Turkey’s Export Bank provides short– company–specific interest rate on
tax deduction equal to 0.5 percent of the term pre–shipment export loans to comparable TL–denominated
foreign exchange revenue earned from exporters through intermediary commercial loans, we have used, as the
exports and other international commercial banks.8 This loan program benchmark rate, a simple average of the
activities.7 The income tax deduction is designed to support export–related 2004 quarterly short–term interest rates
for export earnings may either be taken firms. Loans are made to exporters who for Turkey as reported by The
as a lump sum or be used to cover commit to export within a specified Economist. See ‘‘Benchmark Interest
certain undocumented expenses, which period of time. Generally, loans are Rates’’ section, supra, for more
were incurred through international extended for a period of up to 180 days, information. To calculate the amount of
activities, that would otherwise be non– and cover up to 100 percent of the FOB interest the recipient would pay on a
deductible for tax purposes (e.g., export value. These loans are comparable FX–denominated
expenses paid in cash, such as for denominated in either TL or FX. The commercial loan, we have used a
lodging, gasoline, and food). interest rates charged on these pre– company–specific interest rate as the
Consistent with Wire Rod, we shipment loans are set by the Export benchmark rate. See Id.
preliminarily find that this tax Bank. In several previous Using these benchmark rates, we
deduction is a countervailable subsidy. determinations, the Department found continue to find the pre–shipment
See Wire Rod Memorandum at 4; see this program to be countervailable export loans countervailable because the
also Certain Welded Carbon Steel Pipe because receipt of the loans is interest rate charged is less than the rate
and Tube and Welded Carbon Steel Line contingent upon export performance for comparable commercial loans that
Pipe from Turkey; Final Results and and the interest rates paid on these the company could actually obtain on
Partial Rescission of Countervailing loans are less than the amount the the market. Therefore, the loans
Duty Administrative Review, 63 FR recipient would pay on comparable constitute a financial contribution in the
18885, 18886–87 (April 16, 1998) commercial loans. See 1998 Pipe Final, form of a direct transfer of funds from
(‘‘1996 Pipe Final’’). The deduction 65 FR 49231; and Certain Pasta from the GOT, under section 771(5)(D)(i) of
provides a financial contribution within Turkey: Final Results of Countervailing the Act. A benefit exists under section
the meaning of section 771(5)(D)(ii) of Duty Administrative Review, 66 FR 771(5)(E)(ii) of the Act in the amount of
the Tariff Act of 1930, as amended (‘‘the 64398 (December 13, 2001) (‘‘1999 Pasta the difference between the payments of
Act’’) because it represents revenue from Turkey’’), and accompanying interest that BBBF and MB made on
forgone by the GOT. The deduction Issues and Decision Memorandum, at 3– their loans during the POR and the
provides a benefit in the amount of the 4 (‘‘1999 Pasta Memorandum’’). payments the each company would
tax savings to the company pursuant to have made on comparable commercial
We also found that the pre–shipment loans. The program is also specific in
section 771(5)(E) of the Act. It is specific
loan program is an untied export loan accordance with section 771(5A)(B) of
under section 771(5A)(B) of the Act
program because the loans are not the Act because receipt of the loans is
because its receipt is contingent upon
specifically tied to a particular contingent upon export performance.
export performance. In this review, no
destination at the time of approval and To determine the benefit, we
new information or evidence of changed
the borrower only has to show that the calculated the countervailable subsidy
circumstances has been submitted to
export commitment was satisfied (i.e., as the difference between the actual
warrant reconsideration of the
exports amounting to the FOB value of interest paid on the pre–shipment loans
Department’s prior findings.
During the POR, BBBF, MB, and the credit) during the credit period to during the POR and the interest that
Istikbal filed separate corporate income close out the loan with the bank. See would have been paid using the
tax returns for tax year 2003. However, e.g., Wire Rod Memorandum at 5. In this benchmark interest rates. We then
only Istikbal utilized the deduction for review, no new information or evidence added the benefits and divided the sum
export earnings on its 2003 tax return. of changed circumstances has been by Borusan’s total export sales for 2004.
BBBF and MB did not have direct submitted to warrant reconsideration of On this basis, we preliminarily
exports of merchandise during 2003 the Department’s prior findings. See determine the countervailable subsidy
and, therefore, could not claim the GOT Verification Report at 3. under this program to be 0.07 percent ad
deduction for export earnings on their During the POR, BBBF paid interest valorem.
respective 2003 tax returns. against pre–shipment export loans C. Foreign Trade Companies Short–
sroberts on PROD1PC70 with NOTICES

denominated in both TL and FX. MB Term Export Credits9


conduct the loan comparison for loans denominated
in a foreign currency. 8 As discussed in the ‘‘Benchmark Interest Rates’’ 9 This program was previously known as ‘‘Export
7 These actions include construction, repair, section, supra, the intermediary bank can add a Credit Through the Foreign Trade Corporate
installation, and transportation activities that occur commission fee rate to the loan program’s interest Companies Rediscount Credit Facility’’ or ‘‘Foreign
abroad. rate, which is set by the Export Bank. Trade Corporate Companies Credit Facility.’’

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17448 Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices

The Foreign Trade Company (‘‘FTC’’) interest that Istikbal made on its FTC countervailable regardless of whether
loan program was implemented to assist loans during the POR and the payments the loans were used for exports to the
large export trading companies with the company would have made on United States.
their export financing needs. This comparable commercial loans. In Pursuant to 19 CFR 351.505(a)(1), we
program is specifically designed to accordance with section 771(6)(A) of the have calculated the benefit as the
benefit Foreign Trade Corporate Act, we subtracted from the benefit difference between the payments of
Companies (‘‘FTCC’’) and Sectoral amount the fees which Istikbal paid to interest that BBBF made on its pre–
Foreign Trade Companies (‘‘SFTC’’).10 commercial banks for the required export loans during the POR and the
An FTCC is a company whose export letters of guarantee. We then divided the payments the company would have
performance was at least U.S. $75 resulting benefit by Borusan’s total made on comparable commercial
million in the previous year. For eligible export value for 2004. On this basis, we loans.14 In accordance with section
companies, the Export Bank will preliminarily find that the 771(6)(A) of the Act, we subtracted from
provide short–term export credits based countervailable subsidy for this program the benefit amount the fees which BBBF
on their past export performance. Under is 0.09 percent ad valorem.11 paid to commercial banks for the
this credit program, the Export Bank D. Pre–Export Credits12 required letters of guarantee. We then
extends short–term export credits This program is similar to the FTC divided the resulting benefit by
directly to exporters in TL and FX, up credit program described above; Borusan’s total export value for 2004.
to 100 percent of FOB export however, companies classified as either On this basis, we preliminarily find that
commitment. The program’s interest FTC or SFTC are not eligible for pre– the countervailable subsidy for this
rates are set by the Export Bank and the export loans. Under the pre–export program is 0.02 percent ad valorem.
maturity of the loans is usually 180 credit program, a company’s past export
days. To qualify for a FTC loan, in performance is considered in evaluating II. Program Preliminarily Determined To
addition to submitting the necessary a company’s eligibility and establishing Be Not Countervailable
application documents, a company must the company’s credit limit. Like FTC A. Investment Allowance Under
provide a bank letter of guarantee, loans, the Export Bank directly extends Article 19 of Law 4842
equivalent to the loan’s principal and to companies pre–export loans, which In Wire Rod, the Department
interest amount. are denominated in either TL or FX and investigated investment allowances
Istikbal acquired FTCC status in April have a maturity of 180 days.13 To provided for under Investment Incentive
2003 and was the only Borusan quality for a pre–export loan, in Certificates, which were granted under
company to receive FTC credits. During addition to submitting the necessary the General Incentives Encouragement
the POR, Istikbal paid interest against application documents, a company must Program (‘‘GIEP’’), and found certain
FTC loans denominated in both TL and provide a bank letter of guarantee, investment allowances to be
FX. equivalent to the loan’s principal and countervailable and others to be non–
Consistent with previous interest amount. During the POR, BBBF countervailable.15
determinations, we preliminarily find paid interest against pre–export loans During the POR of the instant review,
that these loans confer a countervailable that were denominated in both TL and investment allowances were no longer
subsidy within the meaning of section FX. provided for under the GIEP via an
771(5) of the Act. See e.g., Wire Rod Consistent with previous
Investment Incentive Certificate. With
Memorandum at 6–7. The loans determinations, we preliminarily find
Article 19 of Law 4842, published on
constitute a financial contribution in the that these loans confer a countervailable
April 24, 2003, the obligation to have an
form of a direct transfer of funds from subsidy within the meaning of section
Investment Incentive Certificate to
the GOT, under section 771(5)(D)(i) of 771(5) of the Act. See e.g., Wire Rod
benefit from an investment allowance
the Act. A benefit exists under section Memorandum at 7–8. The loans
was abolished and the ability to claim
771(5)(E)(ii) of the Act in the amount of constitute a financial contribution in the
an investment allowance on a corporate
the difference between the payments of form of a direct transfer of funds from
the GOT, under section 771(5)(D)(i) of income tax return was made available to
interest that Istikbal made on its loans all taxpayers at a uniform rate.16
during the POR and the payments the the Act. A benefit exists under section
771(5)(E)(ii) of the Act in the amount of Specifically, by the provisions of Article
company would have made on 19, taxpayers without regard to region or
comparable commercial loans. The the difference between the payments of
interest that BBBF made on its loans sector, and without any requirement of
program is also specific in accordance an Investment Incentive Certificate, are
with section 771(5A)(B) of the Act during the POR and the payments the
company would have made on eligible to claim an investment
because receipt of the loans is
contingent upon export performance. comparable commercial loans. The 14 See ‘‘Benchmark Interest Rates,’’ supra

Further, like the pre–shipment loans, program is also specific in accordance (discussing the benchmark rates used in these
the FTC loans are not tied to a particular with section 771(5A)(B) of the Act preliminary results).
export destination. See GOT because receipt of the loans is 15 Specifically, in Wire Rod, we determined that

contingent upon export performance. because the criteria governing the minimum
Verification Report at 3. Therefore, we investment allowance (i.e., 40 percent) were
have treated this program as an untied Further, these loans are not tied to a identical to those of the GIEP itself, our analysis of
export loan program which renders it particular export destination. See GOT the minimum investment allowance was identical
countervailable regardless of whether Verification Report at 3. Therefore, we to that for the GIEP, which we found to be non-
have treated this program as an untied countervailable. Therefore, because we found that
the loans were used for exports to the the GIEP is not countervailable, we also found that
United States. See Wire Rod export loan program which renders it the minimum investment allowance is not
Memorandum at 6–7. countervailable. See Wire Rod Memorandum at 14-
11 See ‘‘Benchmark Interest Rates,’’ supra,
sroberts on PROD1PC70 with NOTICES

Pursuant to 19 CFR 351.505(a)(1), we 16. Investment allowances greater than 40 percent


(discussing the benchmark rates used in these were found to be countervailable. See Id. at 8-11.
have calculated the benefit as the preliminary results). 16 Expenses for investments covered by an
difference between the payments of 12 This loan program was formerly known as
Investment Incentive Certificate continued to be
’’Past Performance Related Export Credits.‘‘ subject to the previous investment allowance rules
10 A grouping of small- and medium-sized 13 The Export Bank also sets the interest rates for if the application for the certificate was made before
companies that operate together in a similar sector. this export loan program. the effective date of Law 4842.

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Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices 17449

allowance at the rate of 40 percent. Department further determined that by the program exceeded the insurance
There is no special application or particular investment allowances claims paid to participating companies
approval process to claim and receive extended under the GIEP are and operating costs of the program. See
the investment allowance. The amount countervailable and others are non– GOT Verification Report at 5. On this
of the investment allowance is indicated countervailable. See Wire Rod basis, consistent with Wire Rod and
on a company’s tax return. The amount Memorandum at 8–11 and 14–16. 1999 Pasta Final, and in accordance
of the deduction is 40 percent of the During the POR, MB had an Investment with 19 CFR 351.520(a)(1), we
costs of depreciable economic assets Incentive Certificate, received prior to preliminarily find that the export credit
that are purchased or produced for use the effective date of Article 19 of Law insurance program did not confer
in the company’s operations. See GOT 4842, that provided for a 40 percent countervailable benefits during the POR.
Verification Report at 8. investment allowance, which the See Wire Rod Memorandum at 18; and
BBBF and MB both took an Article 19 company claimed on its 2003 income 1999 Pasta Memorandum at 7.
investment allowance deduction on tax return filed during the POR. MB was B. Inward Processing Certificate
their respective 2003 tax returns that eligible for a 40 percent investment Exemption
were filed during the POR. We analyzed allowance because of its location in a Under the Inward Processing
whether this investment allowance is de developed region.18 Certificate (‘‘IPC’’)19 program,
jure specific, within the meaning of In Wire Rod, we determined that companies are exempt from paying
section 771(5A)(D) of the Act. As because the criteria governing the customs duties and value added taxes
discussed above, Article 19 of Law 4842 minimum investment allowance (i.e., 40 (‘‘VAT’’) on raw material imports to be
does not limit access to the investment percent for a developed region) were used in the production of exported
allowance deduction to an enterprise, identical to those of the GIEP itself, our goods. Companies may choose whether
industry, group of industries, or region. analysis of the minimum investment to be exempted from the applicable
Eligibility for the investment allowance allowance was identical to that for the duties and taxes or have them refunded
is automatic as a company calculates the GIEP, which we found to be non– upon export. Under the exemption
40 percent deduction of its depreciable countervailable. Therefore, because we system, companies provide a letter of
economic assets and reports that found that the GIEP was not guarantee that is returned to the
amount on its income tax return. A countervailable, we also found the companies upon fulfillment of the
company’s annual income tax return is minimum investment allowance to be committed export.
subject to a statutory tax audit. The To participate in this program, a
not countervailable. See Id. at 14–16. In
conditions under which a company can company must hold an IPC, which lists
this review, no new information or
enjoy the investment allowance are the amount of raw materials to be
evidence of changed circumstances has
delineated in the law and use of the imported and the amount of product to
been submitted to warrant
be exported. The input/output usage
investment allowance is clearly reconsideration of the Department’s
rates listed on the IPC are set by the
indicated in the income tax return and prior findings.
GOT working in conjunction with
tax audit report.
At verification, we confirmed BBBF’s III. Programs Preliminary Determined Turkey’s Exporter Associations, which
and MB’s usage of the investment To Not Confer Countervailable Benefits are quasi–governmental organizations
allowance provided for under Article whose leadership are subject to GOT
A. Export Credit Insurance
19, through an examination of each approval. The input/output usage rates
Through this program, exporters can
vary by product and industry and are
company’s 2003 annual income tax obtain export credit insurance from
determined using data from capacity
return and accompanied 2003 tax audit Turkey’s Export Bank. These are one-
reports submitted by companies that
report. See the March 31, 2006, year blanket insurance policies that
apply for IPCs. The input/output usage
Memorandum to the File concerning the cover up to 90 percent of losses incurred
rates are subject to periodic review and
Verification of the Questionnaire due to political risk (e.g., loss resulting
verification by the GOT. In the case of
Responses Submitted by the Borusan from a war) and commercial risk (e.g., the pipe and tube industry, the input/
Group (‘‘Borusan Verification Report’’) the insolvency of the buyer). The output usage rates were last modified in
at 11–12.17 insurance provided under this program June 2001. See Borusan Verification
Based on our analysis of Article 19 of is post–shipment insurance because the Report at 12–13. The GOT uses the
Law 4842 and the process by which Export Bank becomes liable only if the input/output usage rates to ensure that
companies realize the investment loss occurs on or after the date of a company’s expected export quantities
allowance, we preliminarily determine shipment. Beginning in February 1997, are sufficient to cover the quantity of
that the investment allowance under use of the export credit insurance inputs imported duty–free under the
Article 19 of Law 4842 is not specific program became voluntary for program. An IPC specifies the maximum
under section 771(5A)(D) of the Act and, borrowers under the pre–shipment quantity of inputs that can be imported
therefore, is not countervailable. export financing programs. under the program. Further, under the
B. Investment Allowance Under During the POR, Istikbal had in place IPC program, the value of imported
Investment Incentive Certificate an export credit insurance program. We
In Wire Rod, the Department inputs may not exceed the value of the
verified that the company did not exported products.
determined that the threshold submit an insurance claim or receive a Pursuant to 19 CFR 351.519(a)(1)(ii), a
requirement for eligibility of any GIEP reimbursement under the program in benefit exists to the extent that the
benefit is the receipt of an Investment 2004. We also verified with the Export exemption extends to inputs that are not
Incentive Certificate, which specifies Bank that for 2002, 2003, and 2004, the consumed in the production of the
the benefit programs (e.g., investment premiums paid for the export credit exported product, making normal
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allowance and customs duty exemption) insurance and other income generated
a certificate holder can receive. The 19 The IPC program is governed by the following
18 Companies located in a normal region received GOT provisions: Customs Code No. 4458 (Articles
17 A public version of the verification report is a 60 percent allowance and those in a priority 80, 108, 111, 115, and 121), IPC Council of
available on the public file in the Department’s region received a 100 percent allowance. The Ministers’ Decree No. 2005/8391, and Communique
Central Records Unit (room B-099). different regions were determined by the GOT. of IPR No. Export 2005/1.

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17450 Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices

allowances for waste, or if the imported inputs under the IPC program benefits under these programs during
exemption covers charges other than did not confer countervailable benefits the POR:
imported charges that are imposed on as Borusan consumed the imported A. VAT Support Program (Incentive
the input. In regard to the VAT inputs in the production of the exported Premium on Domestically Obtained
exemption granted under this program, product, making normal allowance for Goods)21
pursuant to 19 CFR 351.517(a), in the waste. We further preliminarily find B. Post–Shipment Export Loans
case of the exemption upon export of that the VAT exemption did not confer C. Pre–Shipment Rediscount Loans
indirect taxes, a benefit exists to the countervailable benefits on Borusan D. Subsidized Turkish Lira Credit
extent that the Department determines because the exemption does not exceed Facilities
that the amount exempted exceeds the the amount levied with respect to the
amount levied with respect to the production and distribution of like E. Subsidized Credit for Proportion of
production and distribution of like products when sold for domestic Fixed Expenditures
products when sold for domestic consumption. F. Regional Subsidies.
consumption. During our verification meeting with
During the POR, Borusan used IPCs to Preliminary Results of Review
the GOT, we learned of a previously
receive duty and VAT exemptions on unreported form of IPC, i.e., a D3 In accordance with 19 CFR
certain imported inputs used in the license, in which the GOT provides 351.221(b)(4)(i), we have calculated a
production of steel pipes and tubes. exemptions and refunds on quantities of subsidy rate for Borusan for calendar
Borusan did not receive any duty or imported inputs that are incorporated year 2004. We preliminarily determine
VAT refunds under the program during into products sold on the domestic that the total estimated net
the POR. There is no indication that market. Using records available at the countervailable subsidy rate is 0.27
Borusan used the imported inputs for GOT’s UFT, we identified Borusan’s D3 percent ad valorem, which is de
any other product besides those licenses that were open during the POR. minimis, pursuant to 19 CFR 351.106(c).
exported or that the amount of See GOT Verification Report at 12. If the final results of this review
exempted inputs imported under the During Borusan’s verification, we remain the same as these preliminary
program were excessive. examined each of the D3 licenses. We results, the Department intends to
At verification, we learned that the instruct CBP within 15 days of
confirmed that Borusan did not use the
GOT sets the waste/usage rate for each publication of the final results of this
licenses to import any raw materials
imported raw material.20 The usage review, to liquidate without regard to
during the POR. We also confirmed that,
ratios are developed on an industry and countervailing duties all shipments of
under the D3 certificates, Borusan was
product basis. These rates are used to subject merchandise produced by
exempt from paying import duties and
determine the amount of each raw Borusan entered, or withdrawn from
material input required to produce a VAT by providing a bank letter of
guarantee. See Borusan Verification warehouse, for consumption from
given unit of exported product. In January 1, 2004, through December 31,
setting the rates, the GOT relies on Report at 13–14.
As the issuance of a D3 license is not 2004. The Department will also instruct
company capacity reports and conducts CBP not to collect cash deposits of
on–site inspections of production based on exportation, we preliminarily
find that this aspect of the IPC program estimated countervailing duties on all
facilities. The GOT periodically reviews shipments of the subject merchandise
the waste/usage rates. A company may is not an export program but rather falls
under 19 CFR 351.510. Pursuant to 19 produced by Borusan, entered, or
request that a raw material ratio be withdrawn from warehouse, for
modified if there have been CFR 351.510(a)(1), in the case of a
program, other than an export program, consumption on or after the date of
improvements in productivity and publication of the final results of this
efficiency of the company’s facilities. At that provides for the full or partial
exemption or remission of an indirect review.
verification, we confirmed, through We will also instruct CBP to continue
examination of the company’s tax or an import charge, a benefit exists
to the extent that the taxes or import to collect cash deposits for non–
production records, that the waste rate reviewed companies at the most recent
established by the GOT, in June 2001, charges paid by a firm are less than the
taxes the firm would have paid in the company–specific or country–wide rate
reflects Borusan’s actual production applicable to the company. Accordingly,
experience. See Borusan Verification absence of the program. Further, under
19 CFR 351.510(b)(1), the Department the cash deposit rates that will be
Report at 12–14 and GOT Verification applied to non–reviewed companies
Report at 10–11. normally will consider the benefit as
having been received at the time the covered by this order are those
On this basis, we preliminarily established in the most recently
determine that the tax and duty recipient firm otherwise would be
required to pay the indirect tax or completed administrative proceeding
exemptions that Borusan received on conducted under the URAA. If such a
import charge. Because Borusan did not
20 Specifically, the Undersecretariat for Foreign import any goods under a D3 certificate review has not been conducted, the rate
Trade (‘‘UFT’’) works in conjunction with various during the POR, we preliminarily established in the most recently
exporter associations (quasi-governmental determine that this aspect of the IPC completed administrative proceeding
organizations comprised of industry officials) and
program was not used. We will, conducted pursuant to the statutory
the Chamber of Industries (independent non- provisions that were in effect prior to
governmental organization) to set the waste/loss however, continue to examine the use of
ratios. For example, the Chamber of Industries D3 licenses under the IPC program in the URAA amendments is applicable.
issues the company-specific capacity reports, which future CVD proceedings involving See Certain Welded Carbon Steel Pipe
a company must submit to the UFT for
Turkish producers/exporters. and Tube Products from Turkey; Final
consideration of a certificate. To obtain a capacity Results of Countervailing Duty
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report, a company first establishes a production IV. Programs Preliminarily Determined


plan and then requests an inspection of its Administrative Review, 53 FR 9791
production facilities to confirm production To Not Be Used
capability, efficiency, annual consumption and 21 Although we found this program to be

production capacity, etc. Each capacity report has


We examined the following programs terminated in Wire Rod, residual payments for
an expiration date and an updated capacity report and preliminarily determine that purchases made prior to the program’s termination
is generated every three or four years. Borusan did not apply for or receive were permitted. See Wire Rod Memorandum at 11.

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Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices 17451

(March 25, 1988). These rates shall Dated: March 31, 2006. leatherback, 10 green, and 5 hawksbill
apply to all non–reviewed companies David M. Spooner, sea turtles each year over the course of
until a review of a company assigned Assistant Secretaryfor Import Administration. the permit. The turtles will be captured
these rates is requested. [FR Doc. E6–5028 Filed 4–5–06; 8:45 am] by relocation trawlers as part of
BILLING CODE 3510–DS–S
dredging activities authorized under
Public Comment separate permits, or incidentally
captured in pound net fisheries and
Pursuant to 19 CFR 351.224(b), the
DEPARTMENT OF COMMERCE then turned over to the applicant.
Department will disclose to parties to
Turtles will be measured, weighed,
the proceeding any calculations National Oceanic and Atmospheric blood sampled, flipper tagged, and PIT
performed in connection with these Administration tagged. A subset of these animals will
preliminary results within five days have satellite and/or radio/sonic
after the date of the public [I.D. 031406G]
transmitters attached to their carapace.
announcement of this notice. Pursuant Twenty loggerhead sea turtles will be
Endangered Species; File No. 1527
to 19 CFR 351.309, interested parties used in a whelk gear bycatch reduction
may submit written comments in AGENCY: National Marine Fisheries study. The research will identify sea
response to these preliminary results. Service (NMFS), National Oceanic and turtle’s relative abundance over time;
Unless otherwise indicated by the Atmospheric Administration (NOAA), detect changes in size and age
Department, case briefs must be Commerce. composition; monitor and document
submitted within 30 days after the date ACTION: Notice; issuance of permit. movement and migration patterns; and
of publication of this notice. Rebuttal study sea turtle interactions with whelk
SUMMARY: Notice is hereby given that pot gear. The permit is issued for 5
briefs, limited to arguments raised in
case briefs, must be submitted no later John A. Musick, Ph.D., Virginia Institute years.Issuance of this permit, as
of Marine Science (VIMS), Gloucester required by the ESA, was based on a
than five days after the time limit for
Point, VA 23062, has been issued a finding that such permit (1) was applied
filing case briefs, unless otherwise
permit to take loggerhead (Caretta for in good faith, (2) will not operate to
specified by the Department. Parties caretta), Kemp’s ridley (Lepidochelys
who submit argument in this proceeding the disadvantage of any endangered or
kempii), leatherback (Dermochelys threatened species, and (3) is consistent
are requested to submit with the coriacea), green (Chelonia mydas), and with the purposes and policies set forth
argument: (1) A statement of the issues, hawksbill (Eretmochelys imbricata) sea in section 2 of the ESA.
and (2) a brief summary of the turtles for purposes of scientific
argument. Parties submitting case and/ Dated: March 31, 2006.
research.
or rebuttal briefs are requested to Stephen L. Leathery,
ADDRESSES: The permit and related Chief, Permits, Conservation and Education
provide the Department copies of the
documents are available for review Division, Office of Protected Resources,
public version on disk. Case and
upon written request or by appointment National Marine Fisheries Service.
rebuttal briefs must be served on in the following office(s): [FR Doc. E6–5025 Filed 4–5–06; 8:45 am]
interested parties in accordance with 19 Permits, Conservation and Education BILLING CODE 3510–22–S
CFR 351.303(f). Also, pursuant to 19 Division, Office of Protected Resources,
CFR 351.310, within 30 days of the date NMFS, 1315 East-West Highway, Silver
of publication of this notice, interested Spring, MD 20910; phone (301)713– DEPARTMENT OF COMMERCE
parties may request a public hearing on 2289; fax (301)427–2521; and
arguments to be raised in the case and Northeast Regional Office, NMFS, National Oceanic and Atmospheric
rebuttal briefs. Unless the Secretary One Blackburn Drive, Gloucester, MA Administration
specifies otherwise, the hearing, if 01930-2298; phone (978)281-9328; fax [I.D. 011306B]
requested, will be held two days after (978)281-9394.
the date for submission of rebuttal FOR FURTHER INFORMATION CONTACT: Endangered Species; File No. 1552
briefs, that is, 37 days after the date of Patrick Opay or Kate Swails, (301)713– AGENCY: National Marine Fisheries
publication of these preliminary results. 2289. Service (NMFS), National Oceanic and
Representatives of parties to the SUPPLEMENTARY INFORMATION: On August Atmospheric Administration (NOAA),
proceeding may request disclosure of 24, 2005, notice was published in the Commerce.
proprietary information under Federal Register (70 FR 49577) that a ACTION: Notice; issuance of permit.
administrative protective order no later request for a scientific research permit
than 10 days after the representative’s to take loggerhead, Kemp’s ridley, green, SUMMARY: Notice is hereby given that
client or employer becomes a party to leatherback, and hawksbill sea turtles NMFS, Southeast Fisheries Science
the proceeding, but in no event later had been submitted by the applicant. Center (SEFSC), 75 Virginia Beach
The requested permit has been issued Drive, Miami, Florida 33149 has been
than the date the case briefs, under 19
under the authority of the Endangered issued a permit to take green (Chelonia
CFR 351.309(c)(ii), are due. See 19 CFR
Species Act of 1973, as amended (ESA; mydas), loggerhead (Caretta caretta),
351.305(b)(3). The Department will Kemp’s ridley (Lepidochelys kempii),
16 U.S.C. 1531 et seq.) and the
publish the final results of this hawksbill (Eretmochelys imbricata),
regulations governing the taking,
administrative review, including the leatherback (Dermochelys coriacea),
importing, and exporting of endangered
results of its analysis of arguments made and threatened species (50 CFR parts olive ridley (Lepidochelys olivacea), and
in any case or rebuttal briefs. 222–226). unidentified hardshell sea turtles for
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This administrative review is issued The research will take place in the purposes of scientific research.
and published in accordance with waters of the Chesapeake Bay, and the ADDRESSES: The permit and related
section 751(a)(1), 777(i)(1) of the Act, local Virginia and Maryland tributaries documents are available for review
and 19 CFR 351.221(b)(4). to the Bay. Researchers will capture up upon written request or by appointment
to 100 loggerhead, 30 Kemp’s ridley, 10 in the following offices:

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