Kaptan Demir Celik Endustrisi Ve Ticaret A.S. v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedNovember 17, 2025
Docket24-1431
StatusPublished

This text of Kaptan Demir Celik Endustrisi Ve Ticaret A.S. v. United States (Kaptan Demir Celik Endustrisi Ve Ticaret A.S. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Kaptan Demir Celik Endustrisi Ve Ticaret A.S. v. United States, (Fed. Cir. 2025).

Opinion

Case: 24-1431 Document: 77 Page: 1 Filed: 11/17/2025

United States Court of Appeals for the Federal Circuit ______________________

KAPTAN DEMIR CELIK ENDUSTRISI VE TICARET A.S., COLAKOGLU DIS TICARET A.S., COLAKOGLU METALURJI A.S., Plaintiffs-Appellees

v.

UNITED STATES, Defendant-Appellee

REBAR TRADE ACTION COALITION, BYER STEEL GROUP, INC., COMMERCIAL METALS COMPANY, GERDAU AMERISTEEL U.S. INC., NUCOR CORPORATION, STEEL DYNAMICS, INC., Defendants-Appellants ______________________

2024-1431 ______________________

Appeal from the United States Court of International Trade in No. 1:21-cv-00565-GSK, Judge Gary S. Katzmann. ______________________

Decided: November 17, 2025 ______________________

ANDREW THOMAS SCHUTZ, Grunfeld, Desiderio, Le- bowitz, Silverman & Klestadt LLP, Washington, DC, Case: 24-1431 Document: 77 Page: 2 Filed: 11/17/2025

argued for plaintiff-appellee Kaptan Demir Celik Endus- trisi ve Ticaret A.S. Also represented by JORDAN CHARLES KAHN; MAX F. SCHUTZMAN, New York, NY.

SOSUN BAE, Commercial Litigation Branch, Civil Divi- sion, United States Department of Justice, Washington, DC, argued for defendant-appellee. Also represented by BRIAN M. BOYNTON, PATRICIA M. MCCARTHY, LOREN MISHA PREHEIM; HEATHER HOLMAN, WILLIAM MITCHELL PURDY, Office of the Chief Counsel for Trade Enforcement and Compliance, United States Department of Commerce, Washington, DC.

MAUREEN E. THORSON, Wiley Rein, LLP, Washington, DC, argued for defendants-appellants. Also represented by STEPHANIE MANAKER BELL, ALAN H. PRICE, JOHN R. SHANE.

JESSICA R. DIPIETRO, ArentFox Schiff LLP, Washing- ton, DC, for plaintiffs-appellees Colakoglu Dis Ticaret A.S., Colakoglu Metalurji A.S. Also represented by DIANA DIMITRIUC QUAIA, NANCY NOONAN, LEAH N. SCARPELLI. ______________________

Before CHEN, LINN, and HUGHES, Circuit Judges. LINN, Circuit Judge. Rebar Trade Action Coalition and other domestic steel producers (collectively, “RTAC”) appeal the decision of the Court of International Trade (“CIT”), sustaining the final decision by the U.S. Department of Commerce (“Com- merce”), which determined that the Turkish government’s subsidies to Nur, a shipbuilder and co-owned affiliate of Kaptan, should not be cross-attributed to Kaptan Demir Celik Endustrisi ve Ticaret A.S. (“Kaptan”). See Kaptan Demir Celik Endustrisi ve Ticaret A.S. v. United States, 666 F. Supp. 3d 1334 (Ct. Int’l Trade 2023) (“Kaptan II”). Case: 24-1431 Document: 77 Page: 3 Filed: 11/17/2025

KAPTAN DEMIR CELIK ENDUSTRISI VE TICARET A.S. v. US 3

Because Commerce’s final remand decision is in ac- cordance with law, adequately explained, and supported by substantial evidence, we affirm. BACKGROUND I The Tariff Act of 1930 permits Commerce to impose countervailing duties (“CVDs”) on merchandise imported from countries whose governments subsidized the manu- facture, production, or export of said merchandise. 19 U.S.C. § 1671(a)(1). Commerce subsequently issued a regulation providing that: If there is cross-ownership between an input sup- plier and a downstream producer, and production of the input product is primarily dedicated to production of the downstream product, the Secre- tary will attribute subsidies received by the input producer to the combined sales of the input and downstream products produced by both corpora- tions (excluding the sales between the two corpora- tions). 19 C.F.R. § 351.525(b)(6)(iv) (emphases added). 1 Commerce explained that, as relevant to the “primarily dedicated” inquiry, the “main concern” addressed by the regulation “is the situation where a subsidy is provided to an input producer whose production is dedicated almost ex- clusively to the production of a higher value added

1 While Commerce has since issued a new version of the regulation, effective January 15, 2025, that more ex- plicitly defines the factors relevant to the primarily dedi- cated inquiry, this appeal requires us to review Commerce’s application of the 1998 version of the regula- tion. Accordingly, our analysis pertains to the 1998 version of the regulation. Case: 24-1431 Document: 77 Page: 4 Filed: 11/17/2025

product—the type of input product that is merely a link in the overall production chain.” Countervailing Duties, 63 Fed. Reg. 65348, 65401 (Nov. 25, 1998) (“Preamble”) (em- phasis added). Commerce explained that this requirement was met in the case of “stumpage subsidies on timber that was primarily dedicated to lumber production and subsi- dies to semolina primarily dedicated to pasta production” and “in situations such as these, the purpose of a subsidy provided to the input producer is to benefit the production of both the input and downstream products.” Id. (citing Fi- nal Affirmative Countervailing Duty Determination: Cer- tain Softwood Lumber Products from Canada, 57 Fed. Reg. 22570 (May 28, 1992); Final Affirmative Countervailing Duty Determination: Certain Pasta (“Pasta”) From Italy, 61 Fed. Reg. 30288 (June 14, 1996)). Conversely, Com- merce explained that duties should not be imposed to coun- tervail subsidies to inputs that are not primarily dedicated to downstream products, like plastics incorporated into products like appliances or automobiles. Id. II In 2014, Commerce issued a CVD order covering steel rebar from Turkey. Steel Concrete Reinforcing Bar From the Republic of Turkey: Countervailing Duty Order, 79 Fed. Reg. 65926 (Nov. 6, 2014). During a 2018 administra- tive review, Kaptan reported producing rebar by remelting steel scrap and listed only steel scrap as a raw material input to its rebar production. Kaptan reported that its steel scrap suppliers included affiliate Nur Gemicilik ve Tic. A.S. (“Nur”), Martas Marmara Ereglisi Liman Tesisleri A.S. (“Martas”), and Aset Madencilik A.S. (“Aset”). In 2020, Commerce selected Kaptan as a manda- tory respondent in the administrative review. Commerce subsequently determined that the steel scrap Kaptan received from Nur, Martas, and Aset was pri- marily dedicated to Kaptan’s production of rebar and, thus, found that all three companies were cross-owned input Case: 24-1431 Document: 77 Page: 5 Filed: 11/17/2025

KAPTAN DEMIR CELIK ENDUSTRISI VE TICARET A.S. v. US 5

suppliers. While Martas and Aset received no countervail- able subsidies, Nur did. Accordingly, Commerce prelimi- narily cross-attributed Nur’s subsidies to Kaptan and proposed imposing a CVD on Kaptan’s rebar to countervail the benefit it received from Nur’s subsidies. After receiving comments challenging cross-attribution, Commerce contin- ued to cross-attribute Nur’s subsidies to Kaptan. Com- merce explained that it had previously treated steel scrap as an input primarily dedicated to rebar production and the CIT had previously affirmed that decision. J. App’x 1832–33 (citing Icdas Celik Enerji Tersane ve Ulasim Sanayi A.S. v. United States, 498 F. Supp. 3d 1345, 1364 (Ct. Int’l Trade 2021)). Kaptan appealed. The CIT concluded that Commerce did not adequately address whether steel scrap was merely a link in the chain of rebar production or distinguish prior cases that held that steel scrap was merely a byproduct. Kaptan Demir Celik Endustrisi ve Ticaret A.S. v. United States, 633 F. Supp. 3d 1276, 1284–85 & n.3 (Ct. Int’l Trade 2023) (“Kaptan I”). Accordingly, the CIT remanded the matter for Commerce to explain its reasoning. Id. at 1285.

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