[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40241-40243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14529]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-560-834]
Utility Scale Wind Towers From Indonesia: Final Affirmative
Countervailing Duty Determination and Final Affirmative 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 Indonesia. The period
of investigation is January 1, 2018 through December 31, 2018.
DATES: Applicable July 6, 2020.
FOR FURTHER INFORMATION CONTACT: Alex Wood or Melissa Kinter, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1959 or (202) 482-1413,
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 utility scale wind tower from Indonesia.\1\
---------------------------------------------------------------------------
\1\ See Utility Scale Wind Towers from Indonesia: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 84 FR 68109
(December 13, 2019) (Preliminary Determination) and accompanying
Preliminary Decision Memorandum (PDM).
---------------------------------------------------------------------------
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
http://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.
---------------------------------------------------------------------------
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Utility Scale Wind Towers from Indonesia,'' dated concurrently with,
and hereby adopted by this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is wind towers from
Indonesia. For a complete description of the scope of the
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. Therefore, Commerce has made no changes to the scope
of this investigation since the Preliminary Determination.
---------------------------------------------------------------------------
\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Utility Scale Wind Towers from Canada, Indonesia, and
the Socialist Republic of Vietnam: Initiation of Countervailing Duty
Investigations, 84 FR 38216 (August 6, 2019) (Initiation Notice).
---------------------------------------------------------------------------
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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\5\ 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.
---------------------------------------------------------------------------
Verification and Use of Facts Otherwise Available
Commerce normally verifies information relied upon in making its
final determination, as provided in section 782(i) of the Act. In March
2020, we conducted verification of the information submitted by the
Government of Indonesia and the mandatory respondent, PT Kenertec Power
System (Kenertec), 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.\6\ For the reasons discussed in the Issues and Decision
Memorandum, we concluded verification early.
---------------------------------------------------------------------------
\6\ For discussion of our verification findings, see the
following memoranda: Memorandum, ``Verification of the Questionnaire
Responses of the Government of Indonesia,'' dated April 1, 2020 and
Memorandum, ``Verification of PT Kenertec Power System's
Questionnaire Responses,'' dated March 30, 2020; see also
Memorandum, ``Antidumping and Countervailing Duty Investigations of
Utility Scale Wind Towers from Indonesia: Early Conclusion of
Verifications,'' dated March 27, 2020.
---------------------------------------------------------------------------
Pursuant to section 776(a)(2)(D) of the Act, in situations where
information has been provided but the information has cannot be
verified in accordance with
[[Page 40242]]
section 782(i) of the Act, Commerce may use ``facts otherwise
available'' on the record in reaching the applicable determination.
Accordingly, where Commerce was unable to verify certain information
due to the early conclusion of verification, we have relied on the
information submitted on the record that we used in making the
Preliminary Determination, as facts otherwise available in making our
final determination.
Further, pursuant to section 776(a)(1) of the Act, where necessary
information is not available on the record, Commerce may rely on facts
otherwise available on the record in reaching the applicable
determination. Accordingly, in certain circumstances in this final
determination where necessary information is missing from the record,
we have relied on the information submitted to the record as facts
otherwise available, pursuant to section 776(a)(1) of the Act.
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 Kenertec. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1)(B) of the Act, Commerce
preliminarily determined that critical circumstances existed for all
imports of utility scale wind towers from Indonesia.\7\ For this final
determination, we continue to find that critical circumstances exist
with respect to all imports of wind towers from Indonesia. For a full
description of the methodology and results of our analysis, see the
Issues and Decision Memorandum.
---------------------------------------------------------------------------
\7\ See Utility Scale Wind Towers from Canada, Indonesia, and
the Socialist Republic of Vietnam; Countervailing Duty
Investigations: Preliminary Determinations of Critical
Circumstances, 85 FR 7724 (February 11, 2020).
---------------------------------------------------------------------------
All-Others Rate
In accordance with section 705(c)(5)(A) of the Act, we continue to
assign the countervailable subsidy rate calculated for Kenertec as the
all-others rate applicable to all exporters and/or producers not
individually examined.\8\
---------------------------------------------------------------------------
\8\ See Preliminary Determination.
---------------------------------------------------------------------------
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual estimated subsidy rate for Kenertec. We
determine that the following total estimated net countervailable
subsidy rates exist:
------------------------------------------------------------------------
Percent Ad
Producer/exporter Valorem
------------------------------------------------------------------------
PT Kenertec Power System................................... 5.90
All Others................................................. 5.90
------------------------------------------------------------------------
Disclosure
We intend to disclose to interested parties the calculations and
analysis performed in this final determination within five days of the
date of 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), (d)(2), and (e)(2)(A) of the Act, Commerce
instructed U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of subject merchandise entered, or withdrawn
from warehouse, for consumption on or after September 14, 2019, which
is 90 days prior to the publication of the Preliminary Determination in
the Federal Register. In accordance with section 703(d) of the Act, we
instructed CBP to discontinue the suspension of liquidation for CVD
purposes for subject merchandise entered, or withdrawn from warehouse,
on or after April 11, 2020, but continue the suspension of liquidation
of all entries from September 14, 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
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 Indonesia no later than 45 days after our final determination. If
the ITC determines that material injury or threat of material injury
does not exist, the proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that material injury
or threat of material injury does exist, Commerce will issue a CVD
order directing CBP to assess, upon further instruction by Commerce,
countervailing duties on all imports of the subject merchandise
entered, or withdrawn from warehouse, for consumption on or after the
effective date of the suspension of liquidation, as discussed above in
the ``Continuation of Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event the ITC issues a final negative injury determination,
this notice will serve as the only reminder to parties subject to an
administrative protective order (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).
Dated: June 29, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation 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
[[Page 40243]]
(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.
Merchandise covered by this investigation 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
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope
IV. Scope Comments
V. Final Determination of Critical Circumstances
VI. Use of Facts Otherwise Available
VII. Subsidies Valuation Information
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether the Government of Indonesia (GOI) Entrusted
or Directed PT Krakatau POSCO (Krakatau POSCO) to Provide a
Financial Contribution to PT Kenertec Power System (Kenertec)
Comment 2: Whether the Benchmark Information for the Provision
of cut-to-length (CTL) Plate for Less Than Adequate Renumeration
(LTAR) is Accurate
Comment 3: Whether the GOI Provided Electricity for LTAR
Comment 4: Whether Commerce's Preliminary Critical Circumstances
Determination Was Correct
Comment 5: Whether the Exemption from Import Income Tax
Withholding Program is Specific
Comment 6: Whether Commerce Should Extend the Final
Determination to Investigate the Upstream Subsidy Allegation
Comment 7: Whether Commerce Sufficiently Verified the GOI's
Questionnaire Responses with Respect to PT Krakatau Steel (Persero)
TBK (Krakatau Steel) and Krakatau POSCO
X. Recommendation
[FR Doc. 2020-14529 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P