Commerce Sends Back Specificity Finding in Fluid End Blocks CVD Investigation

The Court of International Trade in an Oct. 12 confidential opinion remanded the Commerce Department's final determination in the countervailing duty investigation on forged steel fluid end blocks from Germany. In a text-only order, Judge Claire Kelly ordered Commerce to reconsider its position that the KAV program -- a concession fee ordinance program for public transport routes -- is a specific subsidy, and its rate calculations for the Electricity Tax Act and the Energy Tax Act. Kelly, in a letter to litigants, gave parties to the case until Oct. 19 to review the confidential information in the opinion (BGH Edelstahl Siegen v. United States, CIT #21-00080).

In Germany, municipalities must make public transport routes available for the laying and operation of power and gas pipelines by local network operators. Use of the routes is governed by a concession agreement between the operator and the municipality that sets the concession fee the operator must pay the municipality for such use. The operators can pass these concession fees on to their customers.

German law, though, says that these concession fees may not be agreed to or be paid for electricity given to certain special contract customers. By blocking operators from paying concession fees from these customers, the German government makes sure that this select group of customers are relieved of paying concession fees that would otherwise be passed to the operators. The trade court ruled that this program is not specific.