Turkey OCTG: Commerce Finds Subsidization, CV Rates Take Effect
The Commerce Department issued its final countervailing duty determination on oil country tubular goods from Turkey (C-489-817). In a change from its negative preliminary determination, Commerce found illegal subsidies. As such, the agency will direct CBP to suspend liquidation for CV purposes and collect cash deposits of estimated CV duties for entries on or after April 19.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
(Commerce also issued a final affirmative determination in the companion antidumping duty investigation (see 14071412).
Suspension of Liquidation Retroactive 90 Days
Commerce continued to find "critical circumstances" for all Turkish companies because they allegedly ramped up sales of subject merchandise in the U.S. during the run-up to the preliminary determination in an attempt to get in as much product as possible before duties were imposed. Commerce didn't impose suspension of liquidation or impose CV duty cash deposit requirements at the preliminary stage, because it didn't find countervailable subsidization. But now that it has, 90-day retroactivity still applies, so Commerce will order CBP to suspend liquidation for all subject merchandise from these companies back 90 days before this final determination, i.e. April 19.
CV Cash Deposit Requirements
Commerce will instruct CBP to require cash deposits for all entries of subject merchandise from Turkey that are entered, or withdrawn from warehouse, for consumption on or after April 19. If the International Trade Commission does not find injury to U.S. industry in its final determination (due Sept. 23), CV cash deposits or bonds will be refunded or canceled.
| Company | CV Rate |
|---|---|
| Borusan Istikbal Ticaret, Borusan Mannesmann Boru Sanayi, Borusan Mannesmann Boru Yatirim Holding A.S., and Borusan Holding A.S. | 15.89% |
| Tosyali Dis Ticaret A.S, Tosçelik Profil ve Sac Endustrisi A.S., Tosyali Elektrik Enerjisi Toptan Satis Ith. Ihr. A.S., Tosyali Demir Celik San. A.S., and Tosyali Holding A.S. | 2.53% |
| All Others | 9.21% |
(The period of investigation is 01/01/12 -- 12/31/12. See Commerce's notice for more information, including the scope of the order (unchanged since the preliminary determination), detailed instructions on cash deposit and assessment rates, etc. See 13122020 for summary of the preliminary negative determination in this investigation.)
AD/CVD Operations contact -- Jennifer Meek (202) 482-2778
(Federal Register 07/18/14)