Uttam Galva Steels Ltd. v. United States, No. 20-1461 (Fed. Cir. 2021)Annotate this Case
Following two remands from the Trade Court in an antidumping duty investigation concerning certain corrosion-resistant steel products from India, the Department of Commerce granted Uttam a duty drawback adjustment under 19 U.S.C. 1677a(c)(1)(B) that resulted in no dumping margin. Commerce applied “circumstance of sale” adjustments to remedy the imbalance in the comparison between normal value and export price or constructed export price by removing unrecovered paid and exempted duties from constructed value or home market price and adding the per-unit amount of import duties]to normal value that was added to U.S. price. The Trade Court affirmed.
The Federal Circuit affirmed, rejecting a challenge to the propriety of the first remand to Commerce. It makes no difference whether the imported inputs that qualified for a drawback were actually incorporated into goods sold in the exporter’s domestic market because the Indian government credited the drawback to the quantity of goods that were in fact exported, whatever the source of the inputs used to produce foreign goods. The statute requires an upward adjustment to “export price and constructed export price” based on the drawback that occurred “by reason of the exportation of the subject merchandise to the United States.” The entire drawback was allowed “by reason of the exportation.”