The case was initiated by the Rebar Trade Action Coalition (RTAC), representing US domestic steel producers. RTAC alleged that state subsidies received by Nur Gemicilik, a subsidiary involved in shipbuilding, were indirectly passed on to Kaptan Demir Çelik through scrap steel supply, justifying the imposition of higher duties on the company.
However, the Appeals Court, relying on the Department of Commerce’s technical review, concluded that Nur Gemicilik’s core business is shipbuilding and that the scrap steel it produces is a general input used across diverse industries. Therefore, the scrap could not be considered a “dedicated intermediate input” solely for Kaptan Demir Çelik’s rebar production.
Furthermore, the court ruled that state subsidies granted to Nur Gemicilik are not automatically attributable to Kaptan Demir Çelik, as the shipbuilding activities are not directly linked to high value-added final product manufacturing.
As a result, the court dismissed RTAC’s claims and approved a reduction in the tax rate imposed on Kaptan Demir Çelik. This decision is regarded as a precedent that could influence future tax calculations on Turkish steel exports to the US.
In conclusion, the ruling strengthens Kaptan Demir Çelik’s position in international markets by lowering its tax burden and enhancing its competitiveness.
Source: Dünya
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