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Federal Circuit Upholds CIT Ruling in Case Over Indonesian Wind Towers CVD Review

The U.S. Court of Appeals for the Federal Circuit in a Jan. 18 order upheld the Court of International Trade's ruling in a case on the Commerce Department's countervailing duty investigation on utility scale wind towers from Indonesia. At the trade court, Commerce reversed the outcome of the actual investigation, leading to a lack of countervailable subsidization and a rescinding of the order.

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CIT ruled that Commerce properly found that PT. Kraktu POSCO -- a joint venture between a private South Korean steel company and an Indonesian government-owned firm -- wasn't an authority nor directed by an authority and thus couldn't dole out countervailable benefits (see 2112280046). Further, the trade court held that Indonesia's Rediscount Loan Program wasn't export contingent and thus not an upstream subsidy.

The Federal Circuit's order, issued without an opinion, comes a few days after Judges Alan Lourie, Timothy Dyk and Kara Stoll heard oral argument on the matter, during which Lourie hinted that Commerce was owed deference on whether the Indonesian government entrusted the joint venture with providing steel plate below cost (see 2301110042).

(PT. Kenertec Power System v. U.S., Fed. Cir. # 22-1408, dated 01/18/23, Judges Alan Lourie, Timothy Dyk and Kara Stoll. Attorneys: Daniel Wilson of Arnold & Porter for plaintiff-appellee Kenertec; Elizabeth Speck for defendant-appellee U.S. government; Robert DeFrancesco III of Wiley Rein for defendant-appellant Wind Tower Trade Coalition)