[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40245-40247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14439]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-868]
Utility Scale Wind Towers From Canada: Final Affirmative
Countervailing Duty Determination and Final Negative Determination of
Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of utility scale wind towers (wind towers) from Canada.
DATES: Applicable July 6, 2020.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Moses Song, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1121 or (202) 482-7885,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 13, 2019, Commerce published the Preliminary
Determination of the countervailing duty (CVD) investigation, which
aligned the final determination in this CVD investigation with the
final determination in the companion antidumping duty (AD)
investigation of wind towers from Canada.\1\
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\1\ See Utility Scale Wind Towers from Canada: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of
Final Determination With Final Antidumping Duty Determination, 84 FR
68126 (December 13, 2019) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, are discussed in the
Issues and Decision Memorandum.\2\ The Issues and Decision Memorandum
is a public document and is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
https://access.trade.gov. In addition, a complete version of the Issues
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\2\ See Memorandum, ``Issues and Decisions Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Utility Scale Wind Towers from Canada,'' dated concurrently with,
and hereby adopted by, this notice (Issues and Decisions
Memorandum).
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Period of Investigation
The period of investigation is January 1, 2018 through December 31,
2018.
Scope of the Investigation
The products covered by this investigation are wind towers from
Canada. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, and the concurrent AD and
CVD investigations of wind towers from Canada, Indonesia, the Republic
of Korea, and the Socialist Republic of Vietnam, Commerce did not
receive scope comments from interested parties. Accordingly, Commerce
preliminarily did not modify the scope language as it appeared in the
Initiation Notice.\3\ Additionally, because we received no scope
comments from interested parties for this final determination, we made
no changes to the scope of these investigations from that published in
the Preliminary Determination.
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\3\ See Utility Scale Wind Towers from Canada: Preliminary
Affirmative Determination of Sales at Less-Than-Fair Value,
Preliminary Negative Determination of Critical Circumstances, and
Postponement of Final Determination and Extension of Provisional
Measures, 85 FR 8563 (February 14, 2020).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\4\ For a full description of the methodology
[[Page 40246]]
underlying our final determination, see the Issues and Decision
Memorandum.
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\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Verification
As provided in section 782(i) of the Act, in February 2020, we
conducted verification of the information submitted by the mandatory
respondent, Marmen Inc. and Marmen [Eacute]nergie Inc., and cross-owned
affiliate Gestion Marmen (collectively, Marmen), for use in Commerce's
final determination. We used standard verification procedures,
including an examination of relevant accounting records and original
source documents provided by the respondents.\5\ As explained in the
Issues and decision Memorandum, we did not conduct verification of the
responses of the Government of Canada, Government of Quebec, or the
Government of Ontario.\6\
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\5\ See Memorandum, ``Verification of the Questionnaire
Responses of Marmen Inc., Marmen [Eacute]nergie Inc., and Gestion
Marmen,'' dated April 16, 2020.
\6\ See Issues and Decision Memorandum at 3 and Comment 1.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties and our verification findings, we made certain changes to the
subsidy rate calculations for Marmen. For a discussion of these
changes, See the Issues and Decision Memorandum.
Final Negative Determination of Critical Circumstances
On February 11, Commerce published a preliminary negative
determination of critical circumstances with respect to imports of wind
towers from Canada.\7\ In Preliminary Determinations of Critical
Circumstances, Commerce determined, pursuant to section 703(e)(1) of
the Act, that based on information provided in the critical
circumstances allegation, critical circumstances did not exist with
respect to imports of wind towers from Canada. We received no comments
regarding the preliminary negative determination of critical
circumstances in this investigation. For this final determination, we
continue to find that critical circumstances do not exist with respect
to imports of wind towers from Canada. For a full description of the
methodology and results of Commerce's analysis, see Preliminary
Determinations of Critical Circumstances and the accompanying
proprietary Critical Circumstances Calculation Memorandum.\8\
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\7\ See Utility Scale Wind Towers from Canada, Indonesia, and
the Socialist Republic of Vietnam; Countervailing Duty
Investigations: Preliminary Determinations of Critical
Circumstances, 28 FR 7724 (February 11, 2020) (Preliminary
Determinations of Critical Circumstances).
\8\ See Memorandum, ``Calculations for Preliminary Determination
of Critical Circumstances in the Countervailing Duty Investigation
of Utility-Wind Towers from Canada,'' dated February 4, 2020
(Critical Circumstances Calculation Memorandum).
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All-Others Rate
We continue to assign the countervailable subsidy rate calculated
for Marmen as the all-others rate applicable to all exporters and/or
producers not individually examined.\9\
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\9\ See Preliminary Determination.
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Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated subsidy rate for Marmen. We
determine the total estimated net countervailable subsidy rate to be:
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\10\ As discussed in the Preliminary Determination, Commerce
found the following companies to be cross-owned with Marmen Inc.:
Marmen[Eacute]nergie, Inc. and Gestion Marmen Inc. No party
commented on this finding in the case briefs.
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Subsidy
Producer/exporter rate
(percent)
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Marmen Inc., Marmen[Eacute]nergie Inc., and Gestion Marmen 1.18
Inc.\10\...................................................
All Others.................................................. 1.18
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Disclosure
We intend to disclose to interested parties the calculations and
analysis performed in this final determination within five days of the
date of the publication of this notice in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise, as described in the scope of the investigation
section, that were entered or withdrawn from warehouse for consumption
on or after December 13, 2019, which is the date of the publication of
the Preliminary Determination in the Federal Register. In accordance
with section 703(d) of the Act, we issued instructions to CBP to
discontinue the suspension of liquidation for countervailing duty (CVD)
purposes for subject merchandise entered, or withdrawn from warehouse,
on or after April 11, 2020, but to continue the suspension of
liquidation of all entries from December 13, 2019 through April 10,
2020.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and will
require a cash deposit of estimated countervailing duties for such
entries of subject merchandise in the amounts indicated above. If the
ITC determines that material injury, or threat of material injury, does
not exist, this proceeding will be terminated and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports of wind towers
from Canada no later than 45 days after our final determination. In
addition, we are making available to the ITC all non-privileged and
nonproprietary information related to this investigation. We will allow
the ITC access to all privileged and business proprietary information
in our files, provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective
order (APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
Notification Regarding Administrative Protective Orders
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials, or conversion to judicial protective order, is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
[[Page 40247]]
Dated: June 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by these investigations consists of
certain wind towers, whether or not tapered, and sections thereof.
Certain wind towers support the nacelle and rotor blades in a wind
turbine with a minimum rated electrical power generation capacity in
excess of 100 kilowatts and with a minimum height of 50 meters
measured from the base of the tower to the bottom of the nacelle
(i.e., where the top of the tower and nacelle are joined) when fully
assembled.
A wind tower section consists of, at a minimum, multiple steel
plates rolled into cylindrical or conical shapes and welded together
(or otherwise attached) to form a steel shell, regardless of
coating, end-finish, painting, treatment, or method of manufacture,
and with or without flanges, doors, or internal or external
components (e.g., flooring/decking, ladders, lifts, electrical buss
boxes, electrical cabling, conduit, cable harness for nacelle
generator, interior lighting, tool and storage lockers) attached to
the wind tower section. Several wind tower sections are normally
required to form a completed wind tower.
Wind towers and sections thereof are included within the scope
whether or not they are joined with non-subject merchandise, such as
nacelles or rotor blades, and whether or not they have internal or
external components attached to the subject merchandise.
Specifically excluded from the scope are nacelles and rotor
blades, regardless of whether they are attached to the wind tower.
Also excluded are any internal or external components which are not
attached to the wind towers or sections thereof, unless those
components are shipped with the tower sections.
Further, excluded from the scope of the antidumping duty
investigations are any products covered by the existing antidumping
duty order on utility scale wind towers from the Socialist Republic
of Vietnam. See Utility Scale Wind Towers from the Socialist
Republic of Vietnam: Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Order, 78 FR 11150 (February
15, 2013).
Merchandise covered by these investigations is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheading 7308.20.0020 or 8502.31.0000. Wind towers
of iron or steel are classified under HTSUS 7308.20.0020 when
imported separately as a tower or tower section(s). Wind towers may
be classified under HTSUS 8502.31.0000 when imported as combination
goods with a wind turbine (i.e., accompanying nacelles and/or rotor
blades). While the HTSUS subheadings are provided for convenience
and customs purposes, the written description of the scope of the
investigations is dispositive.
Appendix II--List of Topics Discussed in the Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Facts Otherwise Available
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
Comment 1: Whether Commerce Should Rely on Facts Available to
Determine Non-Countervailability, Non-Use, and Benefits of the
Programs Under Investigation in the Absence of the Government
Verifications
Comment 2: Whether the Federal ACCA and Quebec ACCA for Class 29
Assets Programs are Specific
Comment 3: Whether the Additional Depreciation for Class 1
Assets Program is Specific and Provides a Countervailable Benefit
Comment 4: Whether the Ontario LCR Program Provided
Countervailable Subsidies to Marmen during the POI
Comment 5: Whether the Quebec LCR Program Provided
Countervailable Subsidies to Marmen during the POI
Comment 6: Whether Marmen's Total Sales Denominator Should Be
Revised to Reflect Marmen's Total Sales as Expressed in Canadian
Dollars
Comment 7: Whether Marmen's Other Wind--Time-Billed Activities,
Repair Charges, Early Payment Discounts, Deferred Revenue, Inter-
Company Revenues, and Other Non-Production Related Income Should Be
Included in Marmen's Total Sales Denominator
Comment 8: Whether Additional Income Taxes Paid by Marmen during
the POI on the Previous Year's GASP[Eacute]TC Should Be Deducted
from Marmen's POI GASP[Eacute]TC Benefit
Comment 9: Tax credit for On-The-Job Training
IX. Recommendation
[FR Doc. 2020-14439 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P