Eregli Demir ve Celik Fabrikalari T.A.S. v. United States, No. 16-00218 (Ct. Int'l Trade 2019)
Annotate this CaseThis opinion or order relates to an opinion or order originally issued on March 22, 2018.
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Slip Op. 19-135 UNITED STATES COURT OF INTERNATIONAL TRADE (5(ö/, '(0,5 9( d(/,K )$%5,.$/$5, 7 $ ù, Plaintiff, and d2/$.2ö/8 0(7$/85-, A.S. $1' d2/$.2ö/8 ',6 7,&$5(7 $ 6, &RQVROLGDWHG 3ODLQWLIIV, %HIRUH: 0DUN $ %DUQHWW, -XGJH &RQVRO &RXUW 1R. 16-00218 v. 81,7(' 67$7(6, 'HIHQGDQW, and 67((/ '<1$0,&6 ,1& (7 $/ , 'HIHQGDQW-,QWHUYHQRUV. 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See )LQDO 5HVXOWV RI 5HGHWHUPLQDWLRQ 3XUVXDQW WR 6HFRQG &RXUW 5HPand ³2nd 5HPDQG 5HVXOWV´ (&) 1R 133. 3ODLQWLII (UH÷OL 'HPLU YH dHOLN )DEULNDODUL 7 $ ù ³(UGHPLU´ DQG &RQVROLGDWHG 3ODLQWLIIV dRODNR÷OX 0HWDOXUML $ 6 DQG dRODNR÷OX 'LV 7LFDUHW $ 6 WRJHWKHU ³dRODNR÷OX´ HDFK FKDOOHQJHG DVSHFWV RI &RPPHUFH¶V ILQDO GHWHUPLQDWLRQ LQ WKH VDOHV DW OHVV WKDQ IDLU YDOXH LQYHVWLJDWLRQ RI FHUWDLQ KRW-UROOHG VWHHO IODW SURGXFWV IURP WKH 5HSXEOLF RI 7XUNH\ See Certain Hot-Rolled Steel Flat Products from the Republic of Turkey, 81 )HG 5HJ 'HS¶W &RPPHUFH $XJ ILQDO GHWHUPLQDWLRQ RI VDOHV DW OHVV WKDQ IDLU YDOXH – ³Final Determination´ (&) 1R - DQG DFFRPSDQ\LQJ ,VVXHV DQG 'HFLVLRQ 0HP $- - $XJ (&) 1R - DV DPHQGHG E\ Certain Hot-Rolled Steel Flat Products from Australia, Brazil, Japan, the Republic of Korea, the Netherlands, the Republic of Turkey, and the United Kingdom )HG 5HJ 'HS¶W &RPPHUFH 2FW DP ILQDO &RQVRO &RXUW 1R 16-00218 3DJH 3 aff. 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DW 2Q UHPDQG IURP Erdemir I, &RPPHUFH UHYLVHG LWV GDWH RI VDOH GHWHUPLQDWLRQ IRU (UGHPLU¶V KRPH PDUNHW VDOHV in a PDQQHU IDYRUDEOH WR (UGHPLU JUDQWHG dRODNR÷OX¶V GXW\ GUDZEDFN DGMXVWPHQW EXW UHYLVHG LWV PHWKRG RI FDOFXODWLQJ WKH DGMXVWPHQW DQG SURYLGHG DGGLWLRQDO HYLGHQFH DQG H[SODQDWLRQ VXSSRUWLQJ LWV UHMHFWLRQ RI dRODNR÷OX¶V FRUUHFWLRQV WR LQWHUQDWLRQDO IUHLJKW H[SHQVHV See &RQILGHQWLDO )LQDO 5HVXOWV RI 5HGHWHUPLQDWLRQ 3XUVXDQW WR 5HPDQG ³ VW 5HPDQG 5HVXOWV´ DW – (&) 1R . 2 ,Q UHVSRQVH WR dRODNR÷OX¶V FKDOOHQJHV WR 1 7KH DGPLQLVWUDWLYH UHFRUG ILOHG LQ FRQQHFWLRQ ZLWK WKH 2nd 5HPDQG 5HVXOWV LV FRQWDLQHG LQ D 3XEOLF 2nd 5HPDQG 5HFRUG (&) 1R - DQG D &RQILGHQWLDO 2nd 5HPDQG 5HFRUG ³2nd &55´ (&) 1R - 3DUWLHV VXEPLWWHG SXEOLF DQG FRQILGHQWLDO MRLQW DSSHQGLFHV FRQWDLQLQJ UHFRUG GRFXPHQWV FLWHG LQ WKHLU EULHIV See 1RQ&RQILGHQWLDO - $ WR QG 5HPDQG 5HGHWHUPLQDWLRQ (&) 1R &RQILGHQWLDO - $ WR QG 5HPDQG 5HGHWHUPLQDWLRn ³&5-$´ (&) 1R 7KH FRXUW UHIHUHQFHV WKH FRQILGHQWLDO YHUVLRQ RI UHFRUG GRFXPHQWV XQOHVV RWKHUZLVH VSHFLILHG 2 7KH DGPLQLVWUDWLYH UHFRUG ILOHG LQ FRQQHFWLRQ ZLWK WKH VW 5HPDQG 5HVXOWV LV FRQWDLQHG in D 3XEOLF VW 5HPDQG 5HFRUG (&) 1R -2, DQG D &RQILGHQWLDO VW 5HPDQG 5HFRUG ³ VW &55´ (&) 1R -3. &RQVRO &RXUW 1R 16-00218 3DJH &RPPHUFH¶V PHWKRG RI FDOFXODWLQJ WKH GXW\ GUDZEDFN DGMXVWPHQW DQG FRQWLQXHG UHMHFWLRQ RI LWV IUHLJKW H[SHQVH FRUUHFWLRQV RQ 'HFHPEHU WKH FRXUW UHPDQGHG WKH IRUPHU GHWHUPLQDWLRQ DQG VXVWDLQHG WKH ODWWHU See Ere÷li Demir ve Çelik Fabrikalari T.A.ù v. United States ³Erdemir II´ &,7 BB_, ___, ) 6XSS G , 1332– 1336 3 2Q -XQH &RPPHUFH ILOHG LWV VHFRQG UHPDQG UHVXOWV See QG 5HPDQG 5HVXOWV 7KHUHLQ &RPPHUFH DJDLQ UHYLVHG LWV PHWKRG RI FDOFXODWLQJ dRODNR÷OX¶V GXW\ GUDZEDFN DGMXVWPHQWV WR 8 6 SULFH DQG PDGH D FLUFXPVWDQFH RI VDOH ³&26´ DGMXVWPHQW WR QRUPDO YDOXH WR LQFUHDVH LW E\ WKH VDPH DPRXQW DV WKH GXW\ GUDZEDFN DGMXVWPHQW Id. at 2, 6–16, 21– 7KH FKDQJHV PDGH E\ &RPPHUFH LQFUHDVHG dRODNR÷OX¶V ZHLJKWHG-DYHUDJH GXPSLQJ PDUJLQ IURP SHUFHQW WR SHUFHQW Id. at 16. dRODNR÷OX ILOHG FRPPHQWV RSSRVLQJ &RPPHUFH¶V XVH RI D &26 DGMXVWPHQW. See &RQVRO 3OV dRODNR÷OX 0HWDOXUML $ 6 DQG dRODNR÷OX 'LV 7LFDUHt A.S.¶V &RPPHQWV RQ 5HPDQG 5HGHWHUPLQDWLRQ ³dRODNR÷OX¶V &PWV ´ (&) 1R . 'HIHQGDQW 8QLWHG 6WDWHV ³WKH *RYHUQPHQW´ DQG 'HIHQGDQW-,QWHUYHQRUV ILOHG FRPPHQWV LQ VXSSRUW RI WKH 2nd 5HPDQG 5HVXOWV See 'HI ¶V 5HVS WR &RPPHQWV RQ 6HFRQG 5HPDQG 3 Erdemir I and Erdemir II SUHVHQW DGGLWLRQDO EDFNJURXQG RQ WKLV FDVH IDPLOLDULW\ ZLWK ZKLFK LV SUHVXPHG &RQVRO &RXUW 1R 16-00218 3DJH 5HGHWHUPLQDWLRQ ³*RY¶W¶V 5HSO\ &PWV ´ (&) 1R 38 'HI -,QWV ¶ &RPPHQWV LQ 6XSS RI 2nd 5HPDQG 5HVXOWV ³'HI -,QWV ¶ 5HSO\ &PWV ´ (&) 1R 39. 7KH FRXUW UHFHQWO\ UHPDQGHG &RPPHUFH¶V GHFLVLRQ WR PDNH D &26 DGMXVWPHQW WR QRUPDO YDOXH LQ WKH VDPH DPRXQW DV WKH GXW\ GUDZEDFN DGMXVWPHQW WR 8 6 SULFH See generally +DEDú 6LQDL Ye 7LEEL *D]ODU ,VWLKVDO (QG VWULVL $ ù Y 8QLWHG 6WDWHV, Slip Op. 19-130, :/ &,7 2FW . )RU WKH UHDVRQV GLVFXVVHG LQ +DEDú and KHUHLQ WKH FRXUW VXVWDLQV &RPPHUFH¶V GXW\ GUDZEDFN DGMXVWPHQW DV DSSOLHG WR H[SRUW SULFH DQG UHPDQGV &RPPHUFH¶V GHFLVLRQ WR PDNH D &26 DGMXVWPHQW LQ WKH VDPH DPRXQW JURISDICTION AND STANDARD OF REVIEW 7KH FRXUW KDV MXULVGLFWLRQ SXUVXDQW WR $ D % L RI WKH 7DULII $FW RI DV DPHQGHG 8 6 & D D % L DQG 8 6 & F 7KH FRXUW ZLOO XSKROG DQ DJHQF\ GHWHUPLQDWLRQ WKDW LV VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH DQG RWKHUZLVH LQ DFFRUGDQFH ZLWK ODZ 8 6 & D E % L ³7KH UHVXOWV RI D UHGHWHUPLQDWLRQ SXUVXDQW WR FRXUW UHPDQG DUH DOVR UHYLHZHG IRU FRPSOLDQFH ZLWK WKH FRXUW¶V UHPDQG RUGHU ´ SolarWorld Ams., Inc. v. United States &,7 BB_, ___, ) 6XSS G FLWDWLRQ DQG LQWHUQDO TXRWDWLRQ PDUNV RPLWWHd 'HIHQGDQW-,QWHUYHQRUV FRQVLVW RI $UFHORU0LWWDO 86$ //& $. 6WHHO &RUSRUDWLRQ 1XFRU &RUSRUDWLRQ 6WHHO '\QDPLFV ,QF 66$% (QWHUSULVHV //& DQG 8QLWHG 6WDWHV 6WHHO &RUSRUDWLRQ 'HI -,QWV ¶ 5HSO\ &PWV DW $OO IXUWKHU FLWDWLRQV WR WKH 7DULII $FW RI DV DPHQGHG DUH WR 7LWOH RI WKH 8 6 &RGH DQG DOO UHIHUHQFHV WR WKH 8 6 &RGH DUH WR WKH HGLWLRQ XQOHVV RWKHUZLVH VWDWHG &RQVRO &RXUW 1R 16-00218 3DJH 6 DISCUSSION I. Duty Drawback and Circumstance of Sale Adjustments A. Commerce’s Duty Drawback Calculation Methodologies Prior to Erdemir II 7R GHWHUPLQH ZKHWKHU WKH VXEMHFW PHUFKDQGLVH LV EHLQJ VROG DW OHVV WKDQ IDLU YDOXH &RPPHUFH FRPSDUHV WKH H[SRUW SULFH RU FRQVWUXFWHG H[SRUW SULFH 6 RI WKH VXEMHFW PHUFKDQGLVH WR LWV QRUPDO YDOXH See generally 8 6 & et seq. *HQHUDOO\ DQ DQWLGXPSLQJ GXW\ LV WKH DPRXQW E\ ZKLFK WKH QRUPDO YDOXH RI D SURGXFW—W\SLFDOO\ LWV SULFH LQ WKH H[SRUWLQJ FRXQWU\—H[FHHGV H[SRUW SULFH, DV DGMXVWHG See id 2QH RI WKH DGMXVWPHQWV &RPPHUFH PDNHV WR H[SRUW SULFH SXUVXDQW WR 8 6 & D F LV NQRZQ DV WKH ³GXW\ GUDZEDFN DGMXVWPHQW ´ 6SHFLILFDOO\ &RPPHUFH LV WR LQFUHDVH H[SRUW SULFH E\ ³WKH DPRXQW RI DQ\ LPSRUW GXWLHV LPSRVHG E\ WKH FRXQWU\ RI H[SRUWDWLRQ ZKLFK KDYH EHHQ UHEDWHG RU ZKLFK KDYH QRW EHHQ FROOHFWHG E\ UHDVRQ RI WKH H[SRUWDWLRQ RI WKH VXEMHFW PHUFKDQGLVH WR WKH 8QLWHG 6WDWHV ´ Id. D F % 7KLV VWDWXWRU\ DGMXVWPHQW LV LQWHQGHG WR SUHYHQW WKH GXPSLQJ PDUJLQ IURP EHLQJ LQFUHDVHG E\ LPSRUW WD[HV WKDW DUH LPSRVHG RQ LQSXWV XVHG WR SURGXFH VXEMHFW PHUFKDQGLVH LI WKRVH LPSRUW WD[HV DUH UHEDWHG RU H[HPSWHG IURP SD\PHQW ZKHQ WKH VXEMHFW PHUFKDQGLVH LV H[SRUWHG WR WKH 8QLWHG 6WDWHV See Saha Thai Steel Pipe (Public) Co. Ltd. v. United States ) G )HG &LU Wheatland Tube Co. v. 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E H &RQVRO &RXUW 1R 16-00218 3DJH 8 DGMXVWPHQW WR FRVW RI SURGXFWLRQ ,Q &RPPHUFH PRGLILHG LWV GXW\ GUDZEDFN DGMXVWPHQW ³E\ DOORFDWLQJ H[HPSWHG GXWLHV RYHU WRWDO SURGXFWLRQ UDWKHU WKDQ H[SRUWV ´ Erdemir II, ) 6XSS G DW –31 &RPPHUFH DGMXVWHG LWV PHWKRGRORJ\ LQ UHVSRQVH WR DVVHUWLRQV WKDW PDUJLQ GLVWRUWLRQV DURVH ZKHQ IRUHLJQ SURGXFHUV ³XVH>G@ IXQJLEOH LQSXWV ERWK IURP IRUHLJQ VRXUFHV ZKLFK LQFXU>UHG@ LPSRUW GXWLHV DQG GRPHVWLF VRXUFHV ZKLFK [did] QRW ´ Id. at 1331 &RPPHUFH UHDVRQHG WKDW ³WKH ODUJHU GHQRPLQDWRU RQ WKH FRVW-VLGH >L H WRWDO SURGXFWLRQ@ UHVXOWHG LQ D VPDOOHU DGMXVWPHQW WR QRUPDO YDOXH WKDQ 8 6 SULFH´ FRQVHTXHQWO\ LW GHWHUPLQHG WKDW ³HTXDOL]LQJ WKH GHQRPLQDWRUV XVHG LQ HDFK DGMXVWPHQW´ HQVXUHG WKDW DQ HTXDO DPRXQW ZRXOG EH DGGHG WR 8 6 SULFH DQG QRUPDO YDOXH DQG WKH DJHQF\ ZRXOG FRPSDUH WKH WZR YDOXHV RQ D ³GXW\ QHXWUDO´ EDVLV Id. at 1331. ,Q WKH DGPLQLVWUDWLYH SURFHHGLQJ XQGHUO\LQJ Erdemir II &RPPHUFH XVHG WKLV PRGLILHG GXW\ GUDZEDFN PHWKRGRORJ\ WR FDOFXODWH WKH DGMXVWPHQW WR 8 6 SULFH DQG PDNH D FRUUHVSRQGLQJ HTXDO XSZDUG DGMXVWPHQW RQ WKH FRVW VLGH SXUVXDQW WR Saha Thai. 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