[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40231-40233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14532]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-560-833]
Utility Scale Wind Towers From Indonesia: Final Determination of
Sales at Less Than Fair Value 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 imports
of utility scale wind towers (wind towers) from Indonesia are being, or
are likely to be, sold in the United States at less than fair value
(LTFV) for the period of investigation July 1, 2018 through June 30,
2019.
DATES: Applicable July 6, 2020.
FOR FURTHER INFORMATION CONTACT: Brittany Bauer or Benjamin Luberda,
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) 482-3860 or (202)
482-2185, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 14, 2020, Commerce published in the Federal Register
the Preliminary Determination of sales at LTFV of wind towers from
Indonesia, in which we also postponed the final determination until
June 29, 2020.\1\ We invited interested parties to comment on the
Preliminary Determination. 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, may be found in the Issues and Decision Memorandum.\2\
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\1\ See Utility Scale Wind Towers from Indonesia: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Preliminary Negative Determination of Critical Circumstances,
Postponement of Final Determination, and Extension of Provisional
Measures, 84 FR 8558 (February 14, 2020) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Utility Scale Wind Towers from Indonesia,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is wind towers from
Indonesia. For a full description of the scope of this investigation,
see the ``Scope of the Investigation'' in Appendix I of this notice.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
parties in this investigation are addressed in the Issues and Decision
Memorandum. A list of the issues addressed in the Issues and Decision
Memorandum is attached to this notice as Appendix II. 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/.
[[Page 40232]]
The signed and electronic versions of the Issues and Decision
Memorandum are identical in content.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in February and March 2020, we conducted verification of the
sales and cost information submitted by PT Kenertec Power System
(Kenertec) for use in our final determination. We used standard
verification procedures, including an examination of relevant
accounting and production records, and original source documents
provided by Kenertec.\3\
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\3\ For discussion of our verification findings, see the
following memoranda: Memorandum, ``Verification of the Sales
Response of PT Kenertec Power System in the Less-Than-Fair-Value
Investigation of Utility Scale Wind Towers from Indonesia,'' dated
March 30, 2020; and Memorandum, ``Verification of the Cost Response
of PT. Kenertec Power System in the Less-than-Fair-Value
Investigation of Utility Scale Wind Towers from Indonesia,'' dated
April 1, 2020. See also Memorandum, ``Antidumping and Countervailing
Duty Investigations of Utility Scale Wind Towers from Indonesia:
Early Conclusion of Verifications,'' dated March 27, 2020.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations for
the respondent. For a discussion of these changes, see the ``Margin
Calculations'' section of the Issues and Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. Kenertec is the only respondent for which Commerce calculated an
estimated weighted-average dumping margin that is not zero, de minimis,
or based entirely on facts otherwise available. Therefore, for purposes
of determining the all-others rate, and pursuant to section
735(c)(5)(A) of the Act, we are using the estimated weighted-average
dumping margin calculated for Kenertec, as referenced in the ``Final
Determination'' section below.
Final Negative Determination of Critical Circumstances
In accordance with section 733(e)(1) of the Act and 19 CFR 351.206,
we preliminarily determined that critical circumstances did not exist
with respect to imports of wind towers from Indonesia because neither
of the factors under section 773(e)(1)(A) of the Act were met. Our
final determination remains unchanged. Accordingly, pursuant to section
735(a)(3) of the Act, we find that critical circumstances do not exist
with respect to imports of wind towers from Indonesia. For a full
description of the methodology and results of Commerce's critical
circumstances analysis, see the Issues and Decision Memorandum.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Cash
Estimated deposit
weighted- rate
average (adjusted
Exporter or producer dumping for subsidy
margin offset)
(percent) (percent)
\4\
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PT Kenertec Power System...................... 8.53 8.50
All Others.................................... 8.53 8.50
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Disclosure
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\4\ In the companion countervailing duty (CVD) investigation,
Commerce calculated a 0.03 percent export subsidy rate for Kenertec
and for all other producers and exporters under the program
``Exemption from Import Income Tax Withholding for Companies in
Bonded Zones.'' See unpublished Federal Register notice, ``Utility
Scale Wind Towers from Indonesia: Final Affirmative Countervailing
Duty Determination,'' dated concurrently with this notice, and
accompanying Issues and Decision Memorandum. Because we determined
the LTFV all-others rate based on Kenertec's estimated weighted-
average dumping margin, the export subsidy offset for all other
producers and exporters is the lesser of the export subsidy rate for
Kenertec, the only individually investigated company in the CVD
investigation, and the export subsidy rate for all other producers
and exporters in the CVD final determination (i.e., 0.03 percent).
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We intend to disclose the calculations performed in this final
determination within five days of the date of publication of this
notice to parties in this proceeding, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, for this final
determination, we will direct U.S. Customs and Border Protection (CBP)
to continue to suspend liquidation of all entries of wind towers, as
described in Appendix I of this notice, which are entered, or withdrawn
from warehouse, for consumption on or after February 14, 2020, the date
of publication in the Federal Register of the affirmative Preliminary
Determination.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin as follows: (1) The cash deposit rate for the company listed in
the table above will be equal to the company-specific estimated
weighted-average dumping margin identified for that company in the
table; (2) if the exporter is not a company identified above, but the
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that
producer of the subject merchandise; and (3) the cash deposit rate for
all other producers and exporters will be equal to the all-others
estimated weighted-average dumping margin. These suspension of
liquidation instructions will remain in effect until further notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of export
subsidies determined in a companion CVD proceeding when CVD provisional
measures are in effect. Accordingly, where Commerce makes an
affirmative determination for export subsidies, Commerce offsets the
calculated estimated weighted-average dumping margin by the appropriate
rate(s). In the CVD investigation, we have found export subsidies for
all producers and exporters of subject merchandise. However, suspension
of liquidation for provisional measures in the companion CVD case has
been discontinued; therefore, we are not instructing CBP to collect
cash deposits based upon the estimated weighted-average dumping margin
adjusted for export subsidies at this time.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) 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, or sales (or the likelihood of
sales) for importation of wind towers from Indonesia no later than 45
days after
[[Page 40233]]
this final determination. If the ITC determines that such injury does
not exist, this proceeding will be terminated, and all cash deposits
will be refunded and suspension of liquidation will be lifted. If the
ITC determines that such injury does exist, Commerce will issue an
antidumping duty order directing CBP to assess, upon further
instruction by Commerce, antidumping 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
This notice serves as a reminder to parties subject to an
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return or destruction of APO materials, or conversion
to judicial protective order, is hereby requested. Failure to comply
with the regulations and the terms of an APO is a sanctionable
violation.
Notification to Interested Parties
This determination is issued and published pursuant to sections
735(d) and 777(i)(1) 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 (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 nonsubject 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 of the Investigation
IV. Margin Calculations
V. Final Negative Determination of Critical Circumstances
VI. Adjustment for Countervailed Export Subsidies
VII. Discussion of the Issues
Comment 1: Kenertec's Constructed Export Price (CEP) Profit Rate
Comment 2: Revenue Capping
Comment 3: Kenertec's Cost of Goods Sold (COGS) Denominator
Comment 4: Whether to Grant Kenertec a CEP Offset
Comment 5: Kenertec's Raw Material and Conversion Costs
Comment 6: Date of Sale
Comment 7: Constructed Value (CV) Profit
Comment 8: Early Conclusion of Verification
Comment 9: Cost Adjustments in Commerce's SAS Programming
VIII. Recommendation
[FR Doc. 2020-14532 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P