CAFC Decision on Cross-Owned Input Suppliers Relevant to Turkish Rebar Case, Petitioner Says
The U.S. Court of Appeals for the Federal Circuit’s Oct. 8 decision clarifying the cross-owned input provider regulations also is applicable in a Turkish rebar case before CAFC, a petitioner said in an Oct. 13 letter (Kaptan Demir Celik Endustrisi ve Ticaret v. United States, Fed. Cir. # 24-1431).
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CAFC’s recent decision in Gujarat Fluorochemicals v. United States, which dealt with the countervailing duty investigation on polytetrafluoroethylene (PTFE) resin from India, determined that a subsidy provided to a cross-owned input provider can be attributed to an investigation respondent if the subsidy was meant “to benefit the production of both the input and the downstream products” (see 2510080027).
The issue is also at play in Turkish exporter Kaptan Demir Celik Endustrisi’s own CAFC case. In it, appellant and petitioner Rebar Trade Action Coalition is arguing that a steel scrap input supplier’s subsidy should be attributed to Kaptan, a steel rebar producer. Notably, in Sept. 5 oral argument, CAFC judges Raymond Chen, Richard Linn and Todd Hughes -- none of whom heard Gujarat Fluorochemicals -- seemed concerned about the possible breadth of the regulation (see 2509080064).
In its letter, the Rebar Trade Action Coalition said that Gujarat Fluorochemicals supports its argument in Kaptan “that an important consideration in the cross-attribution analysis is the physical relationship between the input and the downstream product.” It noted that it had already “relied heavily” on the Court of International Trade’s now-affirmed decision in the PTFE case.