S. Court of Appeals for the Federal Circuit upheld the decision of the Commerce Department in a long-standing case on countervailing duties on Turkish steel fittings. The resolution confirms that the subsidies received by the Turkish recycling and shipbuilding company Nur cannot be attributed to the Turkish rebar manufacturer Kaptan Demir Celik.
The subsidy for Kaptan Demir Celik was set at 2.43 percent for the period from January 1, 2022 to December 31, 2022, as previously reported. SteelOrbis.
In its decision, the court agreed with Commerce that the conditions for "cross-attribution" had not been met. The trade has come to a conclusion:
- the steel scrap supplied by Nur was a common raw material used in many steel products,
- it was not intended primarily or exclusively for Kaptan rebar operations,
- Nur's scrap came from shipbuilding activities and it was not designed specifically for the manufacture of fittings.
According to US regulations, subsidies to a higher-level supplier can only be attributed to a lower-level manufacturer if the source data is "primarily intended" for the production of a lower-level product. The Court found that this standard had not been met.
