ITALY - GENERAL SUBSIDY PROGRAMS

ITALY

SUBSIDY PROGRAMS: GENERAL
Last Changes Made November 2008

Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a Memo was published, you will find a link to the memo listed below.

In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.

COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in those cases.

Please note that some of the programs listed below are funded and administered by the European Community.

Capital Grants/ Interest Rate Reduction under Law 902

Capital grants and low-interest loans are provided to firms with projects establishing new factories in the Mezzogiorno region, or for extending, modernizing, reactivating, converting or reorganizing existing plants. The Government of Italy pays a part of the interest which otherwise would be incurred by the borrower. For fixed investments up to 25.5 million dollars, the Government of Italy will pay 64 percent of the interest. For an investment above 25.5 million dollars, the Government of Italy will pay 40 percent of the interest.

Debt Consolidation Law 341/95

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final) not used
Pasta (1997) (New Shipper) 63 FR 46413 (9/1/98-prelim); 63 FR 66122 (12/1/98-final)

The Ministry of Industry, in accordance with the provisions of Law 341/95, provides interest contributions on medium-term debt consolidation loans to small- and medium-sized companies located in depressed areas. The interest rate on these loans is set at the Bank of Italy's reference rate with the GOI's interest contributions serving to reduce this rate.

Development Grants Under law 30 of 1984

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo

Law 30 of 1984 was enacted by the Regional Government of Friuli- Venezia Giulia to provide one-time development grants to companies for investments in industrial projects, including the construction of new plants and modernization or expansion of existing plants. Eligible companies could receive a grant amounting to 20 percent of the cost of the investment, with the grant not to exceed 1,000,000,000 lire. Because these grants are available to firms within designated areas of the Friuli-Venezia Giulia region, they are specific in accordance with section 771(5A)(D)(iv) of the Act. The grants provided under this program represent a financial contribution under section 771(5)(D)(i) of the Act.

European Community Structural Funds Programs

The European Community's structural funds provide funds for programs which meet at least one of five objectives. Specific cases and programs are listed below.

European Regional Development Fund (ERDF)

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final) not used
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66122 (12/1/98-final) not used
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30294 (6/14/96-final)
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended

The ERDF is one of three Structural Funds operated by the European Community and is aimed at reducing regional disparities in socio-economic performance within the European Community. The ERDF program provides grants to companies within regions which meet the criteria of Objective 1 (underdeveloped regions), Objective 2 (declining industrial regions) or Objective 5(b) (declining agricultural regions) under the Structural Funds.

European Social Fund (ESF) Grants

The ESF is one of the three Structural Funds operated by the EC and was created in order to improve employment opportunities for workers and to help raise their living standards. The ESF provides grants to companies within regions which meet the criteria of Objective 1 (underdeveloped regions), Objective 2 (declining industrial regions) or Objective 5 (b) (declining agricultural regions) under the Structural Funds, in order to train current employees for new jobs or to hire new employees.

Grant Received Pursuant to the Community Initiative Concerning the Preparation of Enterprises for the Single Market (PRISMA)

Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended not used
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final) not used
Pasta (1995/96) 63 FR 17378 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)

PRISMA, a program funded by the European Structural Fund, seeks to contribute to the creation of a single EU market by improving standardization and quality control procedures, and seeks to assist small and medium-sized enterprises in Objective 1 regions to adapt to a single EU market and increased competition.

Law 10/91 Grants to Fund Energy Conservation

Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memonot countervailable
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Decision Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

Law 10/91 is designed to provide grants to fund energy conservation projects. Companies seeking assistance under this program can apply under Article 8, 10, 11, 12, 13, or 14 of the Law. According to the GOI, aid under articles 8, 10, and 13 is limited to the autonomous regions and the provinces of Trento and Bolzano, while aid under articles 11, 12, and 14 is available throughout Italy. AST received its grant under article 12.

Law 46/82: Aid Under the National Research Plan

Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18364 (4/18/94) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used
Steel Wire Rod (1996) 63 FR 823 (1/7/98-prelim); 63 FR 40488 (7/29/98-final); Court decision Amended

(See also Law 46 and 706 and Laws 46 and 193/84)
The National Research Plan was provided under Law 46/82. Law No. 46 established a Technological Innovation Fund to be used for research and development of new products and processes. The Government of Italy supported similar research plans for 17 other industries or sectors, with no one sector receiving a disproportionate share of the funds provided. It was, therefore, determined that benefits under the program were not limited to a specific enterprise or industry or group of enterprise or industries. Thus, we found this program to be not countervailable.

Law 64/86

Industrial Development Grants Under Law 64/86

Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not countervailable
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46412 (9/1/98-prelim); 63 FR 66123 (12/1/98-final)
Pasta (1995/96) 63 FR 17374 (4/9/98-prelim); 63 FR 43907 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30292 (6/14/96-final)

Law 64/86 provides assistance to promote industrial development in the Mezzogiorno region. Grants are awarded to companies constructing new plants or expanding or modernizing existing plants. We determined that these grants are countervailable because they confer a countervailable subsidy within the meaning of section 771(5) of the Act. They are a direct transfer of funds from the GOI bestowing a benefit in the amount of the grant. Also, these grants were found to be regionally specific within the meaning of section 771(5A)(D)(iv) of the Act.

Industrial Development Loans Under Law 64/86

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17374 (4/9/98-prelim); 63 FR 43907 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30292 (6/14/96-final)

Law 64/86 provides reduced rate industrial development loans with interest contributions to companies constructing new plants or expanding or modernizing existing plants in the Mezzogiorno region. The interest rate on these loans is set at a reference rate, with the Government of Italy's interest contributions serving to reduce this rate. We determined that this program is countervailable because the loans are a direct transfer of funds from the GOI providing a benefit in the amount of the difference between the benchmark interest rate and the interest rate paid by the companies after accounting for the GOI's interest contributions. Also, these loans were found to be regionally specific within the meaning of section 771(5A)(D)(iv) of the Act.

Law 181/89

Law 181 was created to finance reindustrialization efforts in order to ease the impact that employment reductions have on priority areas hit by the steel crisis. This program provides grants that cover up to 25 percent of the total investment, with projects in the Mezzogiorno receiving the greatest benefit. The program had four main components: (1) reindustrialization projects; (2) job promotion; (3) training; and (4) early retirement. However, these benefits were not limited to the steel industry.

Law 181/89 Early Retirement

Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18364 (4/18/94)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

No program description available.

Law 181/89 Job Promotion

Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18361 (4/18/94-final)
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

The job promotion component of Law 181/89 provides workers leaving the steel industry a number of measures designed to promote self-employment among workers in Naples, Taranto, Terni, and Genoa. These measures include, among others, assisting former workers in starting their own businesses, providing specialized management training, and increasing businesses, and increasing the level of financing available to new businesses. There was no indication that companies in Italy had an obligation legal or otherwise, to provide assistance to workers leaving the steel industry.

Law 181/89 Reindustrialization

Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

ILVA, a steel company, received payments under Law 181/89 for a training center to update the technical skills of its workers. Training also took place at this center to improve worker's skills for employment outside the steel industry. Since the center supported the training of steel workers who continued to be employed by ILVA, we found that ILVA received a countervailable benefit from reindustrialization payments under Law 181/89, a law which was implemented to ease the impact of employment reductions in the steel crisis areas of Naples, Taranto, Terni, and Genoa.

Law 181/89 Urban Redevelopment Financing

No program description available.

Law 181/89 Worker Training

Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18362 (4/18/94)
Oil Country Tubular Goods (1993) 59 FR 61875 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31998 (6/19/95) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Decision Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

Retraining grants were provided to ILVA under Law 181/89. The funds constituted the Italian Government's matching contribution to ECSC Article 56 (2) (b) training grants (under ECSC Article 56 Redeployment Aid). These funds were used to train workers remaining at ILVA.

Law 183/76 Industrial Development Grants

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo

Law 183/76 is a law that authorizes companies located in the Mezzogiorno to take reductions or exemptions in social security contributions for the hiring of new employees. Law 183/76 also allows for the provision of industrial development grants. We determined that this grant was a direct transfer of funds from the Government to the company and was, therefore, countervailable.

Law 227/77

Export Credits Under Law 227/77

Part IV of Italian Law 227 establishes medium-term credit financing to promote the exportation of goods and services. The Mediocredito Centrale administers the export credit financing through special medium and long-term credit institutions.

Preferential Export Financing Under Law 227/77

Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Oil Country Tubular Goods (1993) 59 FR 61875 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31998 (6/19/95-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used

Part IV of Law 227 establishes medium-term credit financing to promote the exportation of goods and services. The Instituto Centrale per il Credito and Medio Termine (Mediocredito Centrale) administers the export credit financing through "special medium and long-term credit institutions."

Province of Bolzano Law 25/81, Articles 13 Through 15

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo
Steel Wire Rod (SR) 69 FR 10205 (3/4/04-prelim); Prelim Memo; 69 FR 40354 (7/2/04-final); Decision Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo

(See also Province of Bolzano Law 25/81) Articles 13 through 15 of Law 25/81 are general aid measures providing grants to companies with limited investments in technical fixed assets and targeting technological investment, environmental investment, or restructuring projects. Articles 13 through 15 establish different requirements as the other assistance provided under other Articles of Law 25/81. We determined that these Articles are specific, and, therefore, countervailable.

Law 236/93 Training Grants

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used
; Correction Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo

Under Law 236/93, grants are provide to Italian companies for worker training. We determined that this program was countervailable, as companies would normally incur the costs of training to enhance the job-related skills of their own employees. Therefore, we determined that this program relieved companies of obligations that the company otherwise would have incurred, and was, therefore countervailable.

Law 488/92 (Aid to Depressed Areas) and Legislative Decree 96/93

Law 488/92 provides grants to industrial projects in depressed regions of Italy. The subsidy amount is based on the location of the investment and the size of the enterprise. The funds used to pay this benefit are derived in part from the Government of Italy and in part from the structural funds of the European Union. Because assistance is limited to enterprises located in certain regions, we determined that this program is specific and, therefore, countervailable.

Law 598/94 Interest Subsidies

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo

Under Law 598/94, the Government of Italy pays a portion of the interest on certain loans granted to small- and medium-sized industrial companies. These loans are to be used for investments related to technological innovation and/or environmental protection. The general level of subsidies under Law 598/94 is 30 percent of the initial interest payable, but is 45 percent for companies in disadvantaged regions of Italy. We determined that the higher level of interest subsidies for companies in disadvantaged regions is a countervailable benefit as it is a direct transfer of funds from the Government. In addition, because the program is limited to companies in certain regions in Italy, we determined that this program is regionally specific within the meaning of section 771(5A) of the Act, and is, therefore, countervailable.

Law 675/77

[For specific case cites, see below]

Law 675/77 established the Committee of Ministers for the Coordination of Industrial Policy ("CIPI") and created a framework for the planned intervention of the Government of Italy in the economy. CIPI identified several economic sectors as being in need of industrial restructuring and reconversion through various types of integrated assistance. These industrial sectors are: research, development, and industrialization for electronic technology, technology and marketing development of production machinery for the manufacturing industry, agro-food industry, chemical industry, steel industry, paper-paste and paper industry, fashion sector, optimal exploitation of energy resources, and production plants for ecological and environmental recovery. Law 675/77 allows the Government of Italy to target specific projects for certain companies and industries in each of the 11 sectors. Programs found under Law 675/77 are:

Capital Grants

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37330 (7/9/93-final
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Decision Memo
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18364 (4/18/94-final) not used
Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final)
Oil Country Tubular Goods (1993) 59 FR 61872 (12/2/94-prelim); 60 FR 33579 (6/28/95-final)
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended not used
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final) not used
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17378 (4/9/98-prelim); 63 FR 43908 (8/17/98-final) not used
Pasta (1994) 60 FR 53746 (10/17/95-prelim); 61 FR 30297 (6/14/96-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31995 (6/19/95-final)
Stainless Steel Plate in Coils (SR) 69 FR 61800 (10/21/04-prelim); Prelim Memo; 70 FR 10357 (3/3/05-final); Decision Memo
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final)

Capital Grants are nonrecurring grants provided for companies located in the south of Italy to finance desired changes within a specific company or industry.

Law 1329/65 Interest Contributions on Bank Loans

Italian commercial banks provide long-term loans at market interest rates to industries designated under Law 675/77. Under this program, the interest owed by the recipient companies on these loans is offset by contributions from the Government of Italy.

Interest Grants Financed by IRI Bonds

Multi-year contributions to companies in connection with the issuance of debentures. The level of assistance provided under Law 675 varied with the location of the recipient. Companies located in the Mezzogiorno would pay 30 percent of the reference rate as opposed to 40 percent in other less developed regions and 60 percent in the rest of Italy.

Mortgage Loans Provided by the Ministry of Industry

The Committee of Ministers for the Coordination of Industrial Policy ("CIPI") provides long- term mortgage loans at subsidized rates (subsidized by the Italian Government) inconsistent with commercial considerations. The dominant users of this program were the Auto and Steel industries.

Personnel Retraining under Law 675/77

Grants are provided by the Italian Government under Law 675/77 for the purpose of retraining employees to better meet the changing needs of the industry sector.

Preferential Lending

Electrical Steel (SR) 65 FR 39129 (6/23/00-prelim); Prelim Memo; 65 FR 39129 (11/01/00-final); Decision Memo
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)

Loans were made under several different circumstances such as for reconstruction and reconversion of facilities, disaster relief, and through regional programs.

VAT Reductions

Companies receive VAT reductions under Law 675/77 in the form of "recurring" payments. Receipt of the VAT reductions is automatic provided the company is eligible and the proper forms are filed.

Law 908/55 Revolving Fund for Ecnomic Initiatives (FRIE)

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo

The GOI created the Fondo di Rotzaione Iniziative Economiche (Rotational Fund for Economic Initiatives) ("FRIE") through Law 908 of October 18, 1955. The fund provides reduced-interest loans for the construction, re-activation, transformation, modernization, improvement, and industrial development of industrial plants and handicraft companies in the above-noted areas. Companies who receive long-term, variable rate loans under this program receive an interest rate equal to 50 percent of the 6-month Euro Interbank Offered Rate. We determined that these loans are countervailable as they are a direct transfer of funds from the GOI, a benefit exists, and a benefit was conferred through these loans.

Local Income Tax ("ILOR") Exemptions

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final)
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final) not used
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17374 (4/9/98-prelim); 63 FR 43907 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30297 (6/14/96-final) not used

Companies located in the Mezzogiorno region may receive a complete exemption for a period of 10 years from the ILOR tax on profits deriving from new plant and equipment or from plant expansion and improvement. In addition, otherwise non- qualifying profits which are reinvested in plant or equipment may receive an exemption from the ILOR tax for the year of reinvestment. The provisions for ILOR expired on December 31, 1993, but companies which were approved for the exemptions prior to this date may continue to benefit from the exemption until the expiration of the 10-year benefit period approved for each company. On Jnuary 1, 1998, this program was replaced with a new regional tax, the IRAP, as a result of Legislative Decree 446 (December 15, 1997).

Local Tax Concessions Under Law 614

Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 52 FR 27199 (7/19/88-final)
Pads for Wooded Instruments Keys (1982/83) 49 FR 4540 (2/7/84-prelim); 49 FR 17793 (4/25/84-final)

(See also Regional Development Incentives)
Under this program, Italian companies that establish or expand facilities in designated and depressed territories in northern and central Italy are entitled to reductions in local corporate income tax rates. Reductions may be claimed for the establishment of expansion of a facility. Residual benefits under this program may continue for ten years following expiration. Because this program is available only to firms that invest in designated areas in northern and central Italy, it was determined that it is limited to a specific industry or enterprise or industry and is therefore countervailable.

Lump-Sum Interest Payment Under the Sabatini Law (Law 1329) (Interest Contributions Under Sabatini Law)

The Sabatini Law was enacted in 1965 to encourage the purchase of machine tools and production machinery. It provides a deferral of up to five years of payments due on installment contracts for the purchase of such equipment and for a one-time, lump-sum interest contribution from Mediocredito Centrale toward interest owed on these contracts.

Preferential Interest Rate Program

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final)
Float Glass (1976-1979) 46 FR 22776 (4/21/81-prelim); 47 FR 5026 (2/3/82-final)

Under this program, firms can obtain medium- and long-term government loans at preferential rates. These lower rates encourage firms to locate in the economically disadvantaged Mezzogiorno region of Southern Italy. The difference between the interest which would be paid at the commercial rate and that actually paid at the preferential rate is the subsidy.

Province of Bolzano Law 25/81

Steel Wire Rod (1996) 63 FR 824 (1/7/98-prelim); 63 FR 40485 (7/29/98-final); Court decision Amended

(See also Province of Bolzano Law 25/81, Articles 13-15) This law is a general aid measure that provides grants to companies with limited investments in technical fixed assets. It targets advanced technology, environmental investments, or restructuring projects. We found that the assistance provided under this law is countervailable because Bolzano receives a disproportionate share of benefits.

Province of Bolzano Law 25/81: Environmental and Research and Development Assistance

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo

Under this program, grants were provided for the adaption of existing facilities to new environmental requirements. We determined that these grants were specific, and, therefore, countervailable.

Rebates Granted under Italian Law 639

Cap Screws (1980) 46 FR 31462 (6/16/81-prelim); 46 FR 40242 (8/7/81-final)
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Compressors (1980) 46 FR 31463 (6/16/81-prelim); 46 FR 40243 (8/7/81-final)
Die Presses (1980) 46 FR 26671 (5/14/81-prelim); 46 FR 34618 (7/2/81-final)
Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52112 (11/16/83-final)
Granite Products (1986) 52 FR 48736 (12/24/87-prelim); 53 FR 27203 (7/19/88-final) not used
Refrigerating Equipment (1980) 46 FR 23512 (4/27/81-prelim); 46 FR 37067 (7/17/81-final)
Ski-Lifts (1980) 46 FR 30161 (6/5/81-prelim); 46 FR 40244 (8/7/81-final)
Steel Units for Electrical Towers (1980) 46 FR 23782 (4/28/81-prelim); 46 FR 40719 (8/11/81-final)
Wire Mesh (1980) 46 FR 30162 (6/5/81-prelim); 46 FR 38397 (7/27/81-final)

Italian Law 639 authorizes the rebate of customs duties and certain indirect taxes upon the export of specified products containing iron and steel.

Reduction in the General Turnover Tax

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final) not used
Float Glass (1976-1979) 46 FR 22776 (4/21/81-prelim); 47 FR 5026 (2/3/82-final)

Under this program, a reduction in the rate of the General Turnover Tax of a company's total investment is granted.

Social Security Reductions and Exemptions

Reduced Contributions to l'Instituto Nazionale Previdenza Sociale (INPS)

Certain Steel Products (1991) 57 FR 57743 (12/7/92-prelim); 58 FR 37329 (7/9/93-final)
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used
Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18361 (4/18/94-final) not used
Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final)
Float Glass (1976-1979) 46 FR 22776 (4/21/81-prelim); 47 FR 5026 (2/3/82-final)
Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27197 (7/19/88-final)

Italian law grants firms located in the Mezzogiorno reduction in social security payments to the Instituto Nazionale Previdenza Sociale (INPS) ranging from 8.5 to 28.5 percent for each worker, depending on gender, labor classification, date of employment, and size of the workforce.

Sgravi Benefits

Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission)
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) found not countervailable; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final)
Pasta (1995/96) 63 FR 17377 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30293 (6/14/96-final)

Pursuant to Law 1089, companies located in the Mezzogiorno region are granted a 10 percent reduction in social security contributions for all employees on the payroll as of September 1, 1968, as well as those hired thereafter. Subsequent laws authorized companies located in the Mezzogiorno region to take additional reductions in social security contributions for employees hired during later periods.

Law 407/90 Benefits

Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not countervailable
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46413 (9/1/98-prelim); 63 FR 66123 (12/1/98-final)
Pasta (1995/96) 63 FR 17376 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30294 (6/14/96-final)

This program grants a two-year exemption from social security taxes when a company hires a worker who has been previously unemployed for a period of two years. A 100 percent exemption was allowed for companies in southern Italy, while companies in northern Italy received only a 50 percent exemption.

Law 589/71

Certain Steel Products (1991) 57 FR 57746 (12/7/92-prelim); 58 FR 37333 (7/9/93-final)

Law 589/71 raised the additional reduction from ten to twenty percent for employees hired after January 1, 1971. A total waiver from social security contributions was granted to companies for all employees hired after July 1, 1976. The total waiver was for ten years from the date the worker was hired. The waiver was terminated on December 1, 1991, and replaced by Law 345/92.

Law 863 Benefits

Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46413 (9/1/98-prelim); 63 FR 66123 (12/1/98-final)
Pasta (1995/96) 63 FR 17376 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30294 (6/14/96-final)

This law provides companies in northern Italy 25 percent reduction in social security payments for employees who are participating in a training program. Companies in southern Italy receive a 100 percent reduction in social security payments for their employees.

Law 1089/68

Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended
Certain Steel Products (1991) 57 FR 57746 (12/7/92-prelim); 58 FR 37333 (7/9/93-final)

Law 1089/68 allowed industrial companies and small-scale craft industries in southern Italy a ten percent reduction in all social security contributions for all workers employed on September 30, 1968. (This base reduction was reduced to eight and one-half percent by Law 887/84.) An additional reduction of ten percent was subsequently granted for all employees hired after September 30, 1968, and numbering more than the total number of persons employed on this date.

Valle D'Aosta Regional Law 12/87

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended

Law 12/87 of the Autonomous Region of Valle d'Aosta funds the promotion of commercial activities of local firms in other regions of Italy, and abroad. Companies apply to ICED for funding up to 30 percent of the costs of promotional activities in Italy (up to 10 million lire) and 40 percent of the costs of promotional activities abroad (up to 15 million lire). Law 12/87 provides a financial contribution within the meaning of section 771(5)(D)(i) of the Act, and provides a benefit to the recipient in the amount of the grant.

Valle D'Aosta Regional Law 64/92

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final); Court decision Amended

Law 64/92 of the Autonomous Region of Valle d'Aosta provides funding to cover up to 30 percent of the cost of installing environmentally-friendly industrial plants in the province. Any firm in Valle d'Aosta may apply to the Regional Industry, Craft, and Energy Department (ICED) to have part of its costs covered for a specific environmentally-friendly project. CAS received a disproportionate share of the total assistance under this program. Accordingly, we find Law 64/92 to be de facto specific within the meaning of section 771(5A)(D)(iii) of the Act. Therefore, we determine that Law 64/92 provides a countervailable subsidy within the meaning of section 771(5) of the Act.

Law 289/02

Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;

We preliminarily find that Article 62 of Law 289/02 is a credit towards taxes payable. The law was established to promote investment in disadvantaged areas by providing a tax credit to companies that make investments such as the purchase of new equipment for existing structures, or the building of new structures. See the GOI's Second Supplemental Response at 3-4 and Annex 1, 2, 5, and 6 (April 13, 2007). We preliminarily determine that Article 62 of Law 289/02 confers a countervailable subsidy in the form of a financial contribution within the meaning of section 771(5)(D)(ii) of the Act because it represents revenue foregone by the GOI. A benefit is conferred in the amount of the tax savings received by the companies per section 771(5)(E)(iv) of the Act. Also, the program is specific within the meaning of 751(5A)(D)(iv) of the Act because it is limited to certain geographical regions in Italy, specifically, the regions of Calabria, Campania, Basilicata, Pugilia, Sicilia, and Sardegna, and certain municipalities in the Abruzzo and Molise region, and certain municipalities in central and northern Italy.

Law 662/96

Pasta (2006) 73 FR 45721 (6/6/08-prelim);
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;

The GOI describes the Patti Territoriali grant (Law 662/96 Article 2, Paragraph 203, Letter d) as provided to companies for entrepreneurial initiatives such as new plants, additions, modernization, restructuring, conversion, reactivation, or transfer. . . . The Department preliminarily determines that the Patti Territoriali grant confers a countervailable subsidy within the meaning of section 771(5)(D)(i) of the Act because it is a direct transfer of funds. A benefit is conferred in the full amount of the grant. Further, the grant is regionally specific within the meaning of section 771(5A)(D)(iv) of the Act because it is limited to companies located within regions which meet the criteria of Objective 1 or Objective 2 under the Structural Funds or article 87.3.c of the Treaty of Rome.

PROGRAMS FOUND TO BE NOT COUNTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.

Research and Investigation Program of Legislative Decree 297/99 and Ministerial Decree 593/00

Pasta (2006) 73 FR 45721 (6/6/08-prelim);

We preliminarily find that L.D. 297/99 is a nationwide program that potentially provides a similar level of deductions to all recipients and is not de jure specific to any particular company or industry pursuant to sections 771(5A)(D)(i) or 771(5A)(D)(ii) of the Act. We reviewed the translated text of this law and find the only location requirement for consideration under L.D. 297/99 Article 5 is that applicants must have a permanent establishment in the national territory. Therefore, it appears to be not regionally specific under section 771(5A)(D)(iv) of the Act. Additionally, we find that L.D. 297/99/M.D. 593/00 is not de facto specific pursuant to 771(5A)(D)(iii), as during the POR, companies from diverse sectors were granted benefits under this law and the agro-food sector received only 3.7 percent of the total disbursements granted by the Ministry of University and Research. Moreover, there is no record evidence indicating that there are a limited number of recipients under this program. Accordingly, we preliminarily determine that assistance provided under L.D. 297/99 and M.D. 593/00 is not countervailable.

Accelerated Depreciation

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final) not used
Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 53 FR 27203 (7/19/88-final)

Articles 68 of DPR 597 sets forth the rules governing the depreciation of assets under Italian tax law. The normal deductible depreciation of a company's assets is dependent upon how the asset is classified in the Italian government's depreciation schedule. The deduction may be increased during each fiscal year if assets are used more intensely than is normal for that particular production activity. In additional, accelerated depreciation above the normal rate can be claimed during the first three years after the asset is acquired.

ADAPT

Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended

The funding for this program comes in part from the EU's Social Fund and from the GOI. The GOI's Ministry of Labor administers these contributions on behalf of the EU. Assistance under the ADAPT program is neither de jure nor de facto specific but is widely available throughout the EU and has been widely used. Therefore, we determined that the ADAPT Program does not confer a countervailable subsidy.

Benefits for Innovative Investments Under Law 317/91

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Law 317/91 allows for a capital contribution or a tax credit up to a maximum amount of Euro 232,405.60 to small and medium-sized industrial, commercial, and service companies for innovative investments. Pursuant to 19 CFR 351.524(c)(1), the Department normally considers tax programs to provide recurring benefits. Because neither Pasta Zara nor its affiliates received tax benefits under Law 317/91 during the POR, we determine that this program did not confer a countervailable subsidy in the POR.

Bolzano Regional Law 44/92

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo
Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended

Article 3 of Law 44/92 allows for the provision of loans at reduced rates. Loans under Law 44/92 were widely and evenly distributed with no one sector or enterprise receiving a disproportionate amount. As a result, we determined this program is not specific within the meaning of the Act, and, therefore, not countervailable.

Brescia Chamber of Commerce Training Grants

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission)
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) found not countervailable; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo

The Chamber of Commerce of Brescia provided training grants during 2002 and 2003 to companies in the province of Brescia for the professional training of entrepreneurs, directors, and employees. In situations where any benefit to the subject merchandise would be so small that there would be no impact on the overall subsidy rate, regardless of a determination of countervailability, it may not be necessary to determine whether benefits conferred under these programs to the subject merchandise are ocuntervailable. Thus, consistent with our past practice, we do not consider it necessary to determine whether benefits conferred thereunder to the subject merchandise are countervailable.

Brite EuRam

No program description available.

CIG-S under Law 223/91

Electrical Steel (1992) 59 FR 4682 (2/1/94-prelim); 59 FR 18362 (4/18/94-final)
Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not countervailable

CIG-S (the extraordinary compensation fund) is regulated by Law 223/91 and provides for layoffs by companies that are (1) undergoing restructuring, (2) have more than 15 employees, and (3) belong to a wide range of industries. The Government of Italy must approve use of this program, under which laid-off workers receive a certain percentage of their wages for three years. The Government of Italy pays 80 percent while the companies pay 20 percent of the employee's benefits.

Contributions for Purchases of Electronic Equipment Under Law 696

Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 53 FR 27201 (7/19/88-final)

Under Law 696 of December 19, 1983, small- and medium-sized production companies engaged in production activities could apply for a contribution from the MIC toward the price of certain electronic machinery. Under this program, a contribution of 32 percent of the price of the machinery is available to firms operating in the Mezzogiorno region. The remaining areas of Italy are eligible to receive a 25 percent contribution.

Contributions under Article 55 of DPR 597

Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 53 FR 27203 (7/19/88-final)

Article 55 of DPR 597 authorizes all Italian companies to establish a reserve fund which postpones the payment of taxes on certain monies received by a company until such funds are distributed as profits to that company's shareholders. Because Article 55 applies to all taxpayers regardless of geographic location or type of industry, we determined that it was not countervailable.

Convertible Debt

Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52113 (11/16/83-final)

IMES issued convertible debt in 1977. This debt was converted to capital stock in November 1982. The conversion was consistent with commercial considerations and therefore did not confer a countervailable benefit.

Disaster Relief

Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final) not used
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30297 (6/14/96-final)

Under Law 219, disaster relief was granted for the repair and reconstruction of residential buildings, public locations, schools, churches and industries damaged in the earthquakes of November 1980 and 1981. Aid to industries was provided to repair and rebuild facilities such that the rebuilt facility would employ the same number of workers as prior to the disaster. It has been determined that the disaster relief provided under Law 219 was granted to numerous companies in a variety of industries, therefore, it was determined to be non-countervailable.

European Economic Commission (EEC) Decision 94/217

Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo

Under EEC Decision 94/217, SMEs could receive onetime interest contributions on European Investment Bank ("EIB") loans for investments that led to the creation of new jobs. The loans under this program were limited to ECU 30,000 times the number of jobs created, and interest contribution payments were in total limited to ten percent of the size of the loan (equal to two percent per year on the five-year loans that were required under this program). The application deadline for applying for benefits under this program was December 15, 1995, and all payments under this program were finalized by the end of 1997. We find that this program is not specific and thus, not countervailable.

European Union Fourth Framework

The European Union's Fourth Framework Programme covered activities in research and technological development from 1994 - 1998. For more specific cites, see cases listed below.

THERMIE

Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final)
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used

Under this program, funds were provided to promote research and development in the field of non-nuclear energy. This program is de jure specific because eligibility is not limited to certain industries or groups thereof.

Imposta Sul Valore Agguinto (IVA) Deductions

Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27202 (7/19/88-final)

Under Article 15 of Law 130, companies operating in Italy were granted a six percent credit on the balance of their value-added tax, the "imposta sul valore agguinto" for purchases of depreciable assets ordered between April 26 and December 31, 1983, and delivered before December 31, 1984. For purchases ordered or delivered after these dates, credits in the same amount were allowed only for purchases approved under Law 696.

Interest Contributions Under Law 25 of 1965

Carbon Steel Plate (1998)64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final

Under Regional Law 25 of 1965, companies making manufacturing investments in the region of Friuli-Venezia Giulia were eligible to receive interest contributions from the region on loans taken out for those investments. For a firm to receive interest contributions, it had to construct a new industrial plant, or modernize or expand an existing plant. Interest contributions effectively lower the interest rate on a loan taken out for such an investment. Assistance under Law 25 was provided to a large number of firms from a wide range of industries throughout the entire region of Friuli-Venezia Giulia. Because interest contributions under Regional Law 25 are not specific in accordance with section 771(5A)(D) of the Act, we determine that this program is not countervailable.

Interest Rate Reductions Under Decree 902 of 1976

Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27200 (7/19/88-final)

Manufacturers, producers and exporters in Italy receive loans under decree 902 of 1976 that are offered to firms located in all regions of Italy and involved in all types of production activity. Because this program is not limited to a geographic region, or to a specific industry, we determined it to be non-countervailable.

Investment In Energy Conservation Under Law 308/82

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final); CIT Decision; Amended Final
Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final)
Steel Wire Rod (1996) 63 FR 409 (1/7/98-prelim); 63 FR 40488 (7/29/98-final); Court decision Amended

This law provides grants to encourage lower energy consumption and the use of renewable energy sources. Projects are evaluated and approved based on whether a 20 percent energy savings will be realized. Because Law 308/82 grants are provided to a wide range of industries and appear to be fairly evenly distributed throughout the industry sectors with no sector receiving a disproportionate amount, the program has been determined not to be countervailable.

Labor Assistance

Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)

Under this program, labor assistance programs are granted under which the government of Italy assumes such costs as redundancy payments, housing allowances, and special assistance to support employment. These programs are not countervailable because they are generally available on equal terms to all firms in Italy.

Law 337/90

Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission)

No program description available.

Law 617/81 Interest Grant Accruals

Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used

ILVA's annual reports reflect interest grant accruals of 97 million lira and 104 million lira in 1989 and 1990, respectively, from Law 617 loans. The 97 and 104 million lira are listed in ILVA's annual reports as receivables. Because the accruals are being treated as receivables, we determined they were not countervailable.

Loans from Italian Special Credit Institutions

Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27201 (7/19/88-final)

Medium- and long-term loans disbursed by Italian special credit institutions (MLTs) to manufacturers, producers, and exporters are either financed or directed by the GOI. Many of these institutions were established pursuant to Law 445 of 1952, and they derive their lending authority pursuant to this law. Except in very limited circumstances, only MLTs are authorized to disburse loans of more than 18 months.

Loans Under Trento Provincial Law 17

Pads for Woodwind Instrument Keys (1982/83) 49 FR 4540 (2/7/84-prelim); 49 FR 17793 (4/25/84-final)

Province of Trento Law 17 of 1975 provides for medium term financing on terms inconsistent with commercial considerations to companies within the province which are experiencing financial difficulties. Every business within the province has the potential to receive assistance under this law. The benefits are generally available and, therefore, not countervailable.

Loans Under Trento Provincial Law 58

Pads for Woodwind Instrument Keys (1982/83) 49 FR 4540 (2/7/84-prelim); 49 FR 17793 (4/25/84-final)

Province of Trento Law 58 of December 11, 1978, provides for medium-term loans to small companies for the purpose of establishing and expanding plant equipment and thereby promotes employment and the training of new employees within the province. Although limited to small companies, the provisions of Law 58 nonetheless apply to a wide variety of enterprises and industries and is therefore not countervailable.

Ministerial Decree 87/02

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo not used;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo

Ministerial Decree Number 87 (February 25, 2002), in accordance with Law 193 of June 22, 2000, allows companies that hire or have training programs for prisoners to benefit from a monthly tax credit amounting to 516.46 Euros for every prisoner recruited. In this instance, any benefit to the subject merchandise resulting from this grant would be so small that there would be no impact on the overall subsidy rate, regardless of a determination of countervailability. Thus, consistent with our past practice, we do not consider it necessary to determine whether benefits conferred thereunder to the subject merchandise are countervailable.

Preferential Financing under Law 623

Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52113 (11/16/83-final)

Law 623 provides for a reduction in the rate of interest on loans from Mediocredito Regionale Lombardo. Because the interest rate reduction received under Law 623 is not limited to a specific industry, group of industries, or to companies in specific regions, it was determined that this program does not confer a countervailable subsidy.

Preferential Loans for Applied Research

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final) not used

A loan from the Instituto Mobiliare Italiano (IMI) was given at a preferential interest rate for applied research. However, this loan was tied to research on a particular modification for float glass. As it did not benefit unmodified gloat glass production nor was it an untied program which benefited total production, we determined it was not countervailable.

Reinvestment Fund Under Article 54 of DPR 597/73

Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 53 FR 27203 (7/19/88-final)

Italian firms are permitted to claim a tax exemption for any capital gains earned on the sale of fixed assets, provided that the gains are reinvested in capital assets. Article 54 of Presidential Decree 597/73 states that firms must establish a special liability fund for capital gains, and reinvest these tax-exempt gains in depreciable assets in the second fiscal year following the one in which the gains were realized. Because these benefits are available to all Italian firms, we determined that this provision is not limited to a specific enterprise or industry, or group of enterprises or industries, and was not, therefore, countervailable.

Revaluation of Assets Under Law 72 of 1983 and Law 576 of 1975

Granite Products (1986) 52 FR 48735 (12/24/87-prelim); 53 FR 27203 (7/19/88-final)

The Italian government allowed all companies to revalue assets in 1975 and again in 1983 to reflect market value rather than book value. The revaluations were necessary to account for periods of high inflation which preceded these years. Because all Italian firms, regardless of geographic region or type of industry, were permitted to revalue their assets, it was determined that these revaluations were not limited to a specific enterprise or industry and are not, therefore, countervailable.

Transportation Subsidies Under Law 210 (Preferential Transportation Benefits)

Certain Steel Products (1991) 57 FR 57746 (12/7/92-prelim); 58 FR 37336 (7/9/93-final)
Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final)
Granite Products (1986) 52 FR 48736 (12/24/87-prelim); 52 FR 27198 (7/19/88-final)

Under Italian State Act 210/85, Italian firms may apply for and receive preferential transportation rates from the state-owned railroad of Italy. Italian State Act 877/84 provides a 30 percent reduction in state-owned railroad rates for shipments of raw mineral substances produced in the Italian islands. Law 210/86 provides that the National Railway Agency may enter into reduced rate agreements with its clients based on volume and competition. Companies in a wide range of industries entered into reduced rate agreements and it does not appear that any industry was given reduced rates alarmingly outside of the median range of rates. Because Law 210 Transportation Subsidies are not limited to a specific enterprise or industry, or group of industries, it has been determined non-countervailable.

Tremonti Law 383/01 (Formerly Law Decree 357/94 and 489/94) Tax Benefits

Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission)
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used

Tremonti Law 383/01 allowed for a deduction from taxable income of 50 percent of the difference between investments in new plant and equipment compared to the average investment rate for the preceding five years. We determined that this program is not specific, and therefore, is not countervailable.

SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED

The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.

Law 337/90 - Sgravi Social Security Reductions & Exemptions

Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;

No program description available.

Law 448/01 - Sgravi Article 44 Social Security Reductions & Exemptions

Pasta (2006) 73 FR 45721 (6/6/08-prelim) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;

No program description available.

Decree 218/1978: Corporate Tax Exemptions from "ILOR" & "IRPEG"

[Terminated] Under this program, companies are eligible for a 100 percent exemption from 16.2 percent ILOR tax on profits arising from eligible projects in the Mezzogiorno region and less developed regions of the center-north for ten consecutive years after profits arise. New companies undertaking productive activities in the Mezzogiorno region are entitled to a 100 percent exemption from the 36 percent IRPEG tax on profits for ten consecutive years after the project is completed.

IRAP Exemptions

Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended

[Terminated] This program replaced the local income tax (ILOR) program as a result of Legislative Decree 466 (December 15, 1997). Existing exemptions from the ILOR continued under IRAP/ In particular, income from production facilities located in the Mezzogiorno was exempt from tax for ten years. We determined that this exemption confers a countervailable subsidy within the meaning of section 771(5) of the Act, as it represents revenue foregone by the authority and confers a benefit in the amount of the tax savings to the recipient companies.

Law 64/86 VAT Reductions

Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended not used
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used

[Terminated] Under this Law, companies were allowed to reduce the value added (VAT) they paid on the purchase of fixed assets. Because the company under review did not receive VAT reductions in the period of review, we determined that this program was not countervailable.

Law 113/86 Training Grant

This program, which is no longer in effect, was available only to companies located in the Mezzogiorno. The company did not receive any benefits under this program during the period of review. Therefore, we determined that this program did not provide a countervailable benefit.

Social Security Reductions and Exemptions

Fiscalizzazione Benefits - Article 120 of Law 388/00

Float Glass (1980) 47 FR 56160 (12/15/82-prelim); 48 FR 25255 (6/6/83-final) not used
Pasta (2005) 72 FR 43616 (8/6/07-prelim); 73 FR 7251 (2/7/08-final); Decision Memo;
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not countervailable
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46413 (9/1/98-prelim); 63 FR 66123 (12/1/98-final)
Pasta (1995/96) 63 FR 17376 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30293 (6/14/96-final)

(Terminated January 1, 1998) Fiscalizzazione is a nationwide measure which provides a deduction of certain social security payments related to health care or insurance. The program provides an equivalent level of deductions throughout Italy.

Preferential Export Insurance Under Law 227/77 (Remission of Taxes on Export Credit Insurance)

Oil Country Tubular Goods (1993) 59 FR 61875 (12/2/94-prelim); 60 FR 33581 (6/28/95-final) not used
Pasta (SR) (Expedited Review-no prelim); 66 FR 51640 (10/10/01-final); Decision Memo
Pasta (2004) 71 FR 17440 (4/6/06-prelim & partial rescission); 71 FR 36318 (6/26-06-final & partial rescission) not used
Pasta (2003) 70 FR 17971 (4/8/05-prelim); 70 FR 37084 (6/2/05-final) not used; Correction
Pasta (2002) 69 FR 45676 (7/30/04-prelim & partial rescission); 69 FR 70657 (12/14/04-final); Decision Memo not used
Pasta (2001) 68 FR 17346 (4/07/03-prelim & partial rescission; 68 FR 48599 (8/14/03-final); Decision Memo not used
Pasta (2000) 67 FR 16722 (4/8/02-prelim); 67 FR 155 (8/12/02-final); Decision Memo not used
Pasta (1999) 66 FR 40987 (8/6/01-prelim); 66 FR 64214 (12/12/01-final); Decision Memo Amended not used
Pasta (1998) 65 FR 48479 (8/8/00-prelim); 66 FR 11269 (2/23/01-final); Decision Memo not used
Pasta (1997) 64 FR 17618 (4/12/99-prelim); 64 FR 44489 (8/16/99-final)
Pasta (1997) (New Shipper) 63 FR 46414 (9/1/98-prelim); 63 FR 66123 (12/1/98-final) not used
Pasta (1995/96) 63 FR 17377 (4/9/98-prelim); 63 FR 43908 (8/17/98-final)
Pasta (1994) 60 FR 53744 (10/17/95-prelim); 61 FR 30296 (6/14/96-final)
Seamless Pipe (1993) 59 FR 60778 (11/28/94-prelim); 60 FR 31998 (6/19/95-final) not used
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used

[Terminated] The Special Section for Export Credit Insurance ("SACE") was created under Article 2 of Law 227/77 as the branch of the Government of Italy responsible for the administration of government export credit insurance and guarantee programs. SACE insures and reinsures political, catastrophic, economic, commercial and exchange-rate risks which Italian operators are exposed to in their foreign activities.

PROGRAMS DETERMINED NOT TO BE USED

When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

Please note that some of the programs listed below are funded and administered by the European Community.

Circolare 38522

Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used

No program description available.

European Agricultural Guidance and Guarantee Fund (EAGGF)

No program description available.

European Investment Bank Loans

Certain Steel Products (1991) 57 FR 57739 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used
Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27197 (7/19/88-final) not used

The European Investment Bank (EIB) is a European Community (EC) financial institution which offers loans to designated depressed areas for EC member states.

Financing for Northern and Central Regions Under Law 902 of 1976

Pads for Woodwind Instrument Keys (1982/83) 49 FR 4540 (2/7/84-prelim); 49 FR 17794 (4/25/85-final) not used

(See also Regional Development Incentives)
Law 902 of 1976 provides loans at less than prevailing market rates to small- and medium-sized companies in northern and central Italy.

Financing Under Law 464/72

Article 1 of Law 464/72 provides wage subsidies to workers laid-off for specified reasons, including restructuring of industrial enterprises. Article 9 of that law provides "tax and credit measures" for enterprises engaged in conversion, reorganization, etc., when criteria with regard to the number of workers displaced are met.

Government Equity Infusions

Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52113 (11/16/83-final) not used

No program description available.

Law 341/95 and Circolare 50175/95

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Sheet and Strip in Coils (1997) 63 FR 63900 (11/17/98-prelim); 64 FR 30624 (6/8/99-final) not used
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Stainless Steel Plate in Coils (1997) 63 FR 47246 (9/4/98-prelim); 64 FR 15508 (3/31/99-final) not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended

No program description available.

Law 481/94

Carbon Steel Plate (1998) 64 FR 40416 (7/26/99-prelim); 64 FR 73244 (12/29/99-final) not used; CIT Decision; Amended Final
Stainless Steel Bar (2000) 66 FR 30414 (6/6/01-prelim); 67 FR 3163 (01/23/02-final); Decision Memo not used
Steel Wire Rod (2000) 67 FR 39357 (6/7/02-prelim); 67 FR 63619 (10/15/02-final); Decision Memo not used
Steel Wire Rod (1996) 63 FR 809 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended

Law 481/94 is generally available to all business in Italy and provided tax relief on fifty percent of the amount a company's 1995 investments in tangible fixed assets exceeded the average investment of the previous five years.

Long-Term Financing From Mediocredito Centrale

Pads for Woodwind Instrument Keys (1982/83) 49 FR 4540 (2/7/84-prelim); 49 FR 17794 (4/25/84-final) not used

Mediocredito Centrale offered loans with preferential long-term financing.

Mezzogiorno Regional Assistance Programs

Granite Products (1986) 52 FR 48736 (12/24/87-prelim); 52 FR 27203 (7/19/88-final) not used

Companies with facilities located in the Mezzogiorno region of southern Italy are eligible for certain government programs aimed at the economic development of this region. The programs made under this regional development program are (1) national corporate tax exemptions; (2) local corporate tax exemptions; (3) capital grants; (4) interest rate reductions; and (5) reductions in social security payments.

NCI Loans

Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used

No program description available.

Preferential Bond Issuances

Certain Steel Products (1981) 47 FR 26327 (6/17/82-prelim); 47 FR 39356 (9/7/82-final) not used

No program description available.

Preferential Financing for Export Promotion Under Law 394/81

No program description available.

Regional Development Incentives

Forged Undercarriage Components (1982/83) 48 FR 39273 (8/30/83-prelim); 48 FR 52113 (11/16/83-final) not used

The following development benefits are provided by the Government of Italy under the following programs: (1) Law 908 which provides subsidized loans at below market rates and on preferential terms to qualifying industrial projects in northern and central Italy; (2) Law 614 which provides tax incentives, including a ten-year total exemption from local taxes, to certain industrial enterprises establishing or expanding in areas of northern and central Italy; and (3) Law 902, which assists small and medium-sized businesses in northern and central Italy with selective investments, particularly for modernizing existing plants to save labor costs.

Reconversider

Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final) not used

Reconversider is a regional task force and development institute formed to assist steel firms in the Lombardy region undergo restructuring and implement energy saving programs.

Rotation Fund

Electrical Steel (1998) 65 FR 41950 (7/7/00-prelim); 66 FR 2885 (1/12/01-final); Decision Memo not used

No program description available.

Valle d'Aosta Regional Law 16/88

Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used; Court decision Amended

No program description available.

Valle d'Aosta Regional Law 3/92

Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) not used Court decision Amended

No program description available.

SUBSIDY PROGRAMS DETERMINED NOT TO EXIST

The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.

Loans Under Law 908

Granite Products (1986) 52 FR 48732 (12/24/87-prelim); 53 FR 27197 (7/19/88-final)

It was alleged that under Italian Law 908, manufacturers, producers and exporters in Italy received subsidized loans at below market rates and on preferential terms for certain industrial projects in northern and central Italy. We determined that this program does not exist.

Research and Development Grants to Valbruna

Steel Wire Rod (1996) 63 FR 826 (1/7/98-prelim); 63 FR 40474 (7/29/98-final) Court decision Amended

No program description available.

Transportation Subsidies Under Law 866

Certain Steel Products (1991) 57 FR 57748 (12/7/92-prelim); 58 FR 37336 (7/9/93-final)

This program was determined not to exist. However, transportation subsidies were granted under Law 210.