Maverick Tube Corp. v. United States, No. 16-2330 (Fed. Cir. 2017)Annotate this Case
The Commerce Department conducted an antidumping investigation into Turkish oil country tubular goods, 19 U.S.C. 1677b(a)(1)(B)(i). When calculating the dumping margin, if a foreign country would normally impose an import duty on an input used to manufacture the subject merchandise, but offers a rebate or exemption from the duty if the input is exported to the U.S., Commerce increases the export price to account for the rebated or unpaid import duty (duty drawback). Çayirova produces oil country tubular goods only from J55-grade coils. Çayirova imported various grades of coils but sourced all its J55 from a domestic Turkish producer. Normally, Çayirova would pay an import duty on its imported non-J55 coils. Turkey, however, has a duty drawback regime under which “equivalent goods” may be substituted for each other. A Turkish importer may import goods into Turkey duty-free if the importer exports a sufficient volume of finished goods incorporating either the imported or equivalent goods. Turkey considers Çayirova’s imported coils to be “equivalent” to Çayirova’s domestically-acquired J55 coils. Çayirova used its exports of oil country tubular goods to the U.S. to receive duty drawbacks on its imported non-J55 coils. Commerce, the Trade Court, and the Federal Circuit agreed that Çayirova was not entitled to a duty drawback adjustment to reduce its antidumping margin because none of the goods for which duties were exempted (non-J55 coils) could be used to produce Çayirova’s oil country tubular goods.