[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 75978-75980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-982]


Utility Scale Wind Towers From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of utility scale wind towers (wind towers) from the People's Republic 
of China (the PRC). For information on the estimated subsidy rates, see 
the ``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: December 24, 2012.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson or Patricia Tran, AD/
CVD Operations, Office 8, Import Administration, U.S. Department of 
Commerce, Room 4014, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: 202-482-4793 and 202-482-1503, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This investigation, which covers 54 programs, was initiated on 
January 18, 2012.\1\ The Petitioner in this investigation is the Wind 
Tower Trade Coalition.\2\ The respondents in this investigation are: CS 
Wind China Co., Ltd. and its affiliates (collectively, CS Wind) and 
Titan Wind Energy (Suzhou) Co., Ltd. and its affiliates (collectively, 
the Titan Companies).
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    \1\ See Utility Scale Wind Towers From the People's Republic of 
China: Initiation of Countervailing Duty Investigation, 77 FR 3447 
(January 24, 2012) (Initiation Notice), and accompanying Initiation 
Checklist.
    \2\ The following companies compose the Wind Tower Trade 
Coalition: Broadwind Towers, Inc., DMI Industries, Katana Summit 
LLC, and Trinity Structural Towers, Inc.
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2011, through December 31, 2011.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination \3\ on June 6, 2012, are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Utility Scale 
Wind Towers from the People's Republic of China (Decision 
Memorandum).\4\
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    \3\ See Utility Scale Wind Towers From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 77 
FR 33422 (June 6, 2012) (Preliminary Determination).
    \4\ Public versions of all business proprietary documents and 
all public documents are on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (IA ACCESS). Access to IA ACCESS is 
available to registered users at http://iaaccess.trade.gov and in 
the Central Records Unit (CRU), room 7046 of the main Department of 
Commerce building.
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Scope of the Investigation

    The merchandise covered by this investigation are certain wind 
towers, whether or not tapered, and sections thereof. Certain wind 
towers are designed to 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.
    Merchandise covered by the investigation is currently classified in 
the Harmonized Tariff System of the United States (HTSUS) under 
subheadings 7308.20.0020 \5\ or 8502.31.0000.\6\ Prior to 2011, 
merchandise covered by this investigation was classified in the HTSUS 
under subheading 7308.20.0000 and may continue to be to some degree. 
While the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of the investigation is 
dispositive.
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    \5\ Wind towers are classified under HTSUS 7308.20.0020 when 
imported as a tower or tower section(s) alone.
    \6\ Wind towers may also be classified under HTSUS 8502.31.0000 
when imported as part of a wind turbine (i.e., accompanying nacelles 
and/or rotor blades).
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Scope Comments

    In accordance with the preamble to the Department's regulations, we 
set aside a period of time in our Initiation Notice for parties to 
raise issues regarding product coverage, and encouraged all parties to 
submit

[[Page 75979]]

comments within 20 calendar days of publication of that notice.\7\ On 
February 7, 2012, we received scope comments from the Petitioner.
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    \7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997); and Initiation Notice, 77 FR 3447-8.
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    The Department considered Petitioner's comments and issued its 
decision to not adopt the revised scope language proposed by Petitioner 
in the preliminary determination of the companion antidumping (AD) 
investigation.\8\ For the final determination, the Department received 
comments regarding the scope of the investigation from Petitioner, 
Chengxi Shipyard Co., Ltd., and Titan Companies. After analyzing the 
comments, the Department has made no changes to the scope of this 
investigation. For a complete discussion of this issue, see the Issues 
and Decision Memorandum at Comment 4 of the AD investigation.
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    \8\ See Utility Scale Wind Towers From the People's Republic of 
China: Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination, 77 FR 46034, 46035-36 
(August 2, 2012).
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Analysis of Subsidy Program and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs submitted by parties in this investigation 
are addressed in the Decision Memorandum, dated concurrently with this 
notice and hereby adopted by this notice. A list of the issues raised 
is attached to this notice as Appendix I. The Decision Memorandum is a 
public document and is on file electronically via IA ACCESS. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the internet at http://www.trade.gov/ia/. The signed 
Decision Memorandum and the electronic versions of the Decision 
Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act of 
1930, as amended (the Act), we have calculated an individual rate for 
each producer/exporter of the subject merchandise investigated. We 
determine the total net countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                             Net subsidy
                                                              ad valorem
                     Producer/exporter                           rate
                                                              (percent)
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CS Wind China Co., Ltd., CS Wind Tech (Shanghai) Co., Ltd.,        21.86
 and CS Wind Corporation (collectively, CS Wind)...........
Titan Wind Energy (Suzhou) Co. Ltd. (Titan Wind), Titan            34.81
 Lianyungang Metal Product Co. Ltd. (Titan Lianyungang),
 Baotou Titan Wind Power Equipment Co., Ltd. (Titan
 Baotou), and Shenyang Titan Metal Co., Ltd. (Titan
 Shenyang) (collectively, Titan Companies).................
All Others.................................................        28.34
------------------------------------------------------------------------

    Section 705(c)(5)(A)(i) of the Act states that for companies not 
individually investigated, we will determine an all others rate equal 
to the weighted average of the countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero and de minimis countervailable subsidy rates, and 
any rates based entirely on AFA under section 776 of the Act.
    Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, 
we have not calculated the ``all others'' rate by weight averaging the 
rates of CS Wind and the Titan Companies, because doing so risks 
disclosure of proprietary information. Therefore, for the all others 
rate, we have calculated a simple average of the two responding firms' 
rates.
    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from the PRC which were entered or withdrawn from 
warehouse, for consumption on or after June 6, 2012, the date of the 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
countervailing duty purposes for subject merchandise entered or 
withdrawn from warehouse, on or after October 4, 2012, but to continue 
the suspension of liquidation of all entries from June 6, 2012, through 
October 3, 2012.
    If the ITC issues a final affirmative injury determination, we will 
issue a CVD order, we will instruct CBP to reinstate the suspension of 
liquidation under section 706(a) of the Act, and we will instruct CBP 
to require a cash deposit of estimated countervailing duties for such 
entries of 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. In addition, we are making available to the 
ITC all non-privileged and non-proprietary 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 Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve 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/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 which is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: December 17, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix--List of Comments and Issues in the Decision Memorandum

General Issues

Comment 1: Application of CVD Law to China
Comment 2: Simultaneous Application of CVD and AD Non-Market Economy 
Measures

Preferential Policy Lending

Comment 3: Specificity of Preferential Policy Lending
Comment 4: Whether State-Owned Commercial Banks Are Authorities
Comment 5: Use of an In-Country Benchmark to Measure the Benefit 
from Preferential Policy Lending
Comment 6: Flaws in the Calculation of the External Preferential 
Policy Lending Benchmark

[[Page 75980]]

Export Buyer's Credits Program

Comment 7: Application of Adverse Facts Available (AFA) to the 
Export Buyer's Credits Program
Comment 8: Selection of AFA Rate for Export Buyer's Credits
Comment 9: Treatment of the AFA Rate for Export Buyer's Credits in 
the AD Investigation

Provision of Hot-Rolled Steel (HRS) for Less Than Adequate Remuneration 
(LTAR)

Comment 10: Whether HRS Allegation Was Sufficient to Initiate an 
Investigation
Comment 11: Whether Application of AFA for HRS for LTAR Establishes 
the Existence of a Financial Contribution
Comment 12: Whether HRS Producers are Authorities
Comment 13: Specificity Finding for HRS for LTAR
Comment 14: Whether HRS Purchases are Alloy or Non-Alloy
Comment 15: Construction of HRS Benchmark

Provision of Electricity for LTAR

Comment 16: Electricity Benchmarks

Tax Programs

Comment 17: De Jure Specificity of Three Tax Programs; Whether the 
Tax Programs Are Limited to Certain Enterprises or Groups of 
Enterprises

Company-Specific Issues

Comment 18: Allocation of CS Wind's Grants
Comment 19: Value Added Tax and Import Duties in the HRS Benchmark 
Used to Calculate CS Wind's Benefit
Comment 20: Whether the Department Should Apply Total AFA for HRS 
for LTAR with Respect to Titan Companies
Comment 21: Titan Companies' Sales Denominator

[FR Doc. 2012-30947 Filed 12-21-12; 8:45 am]
BILLING CODE 3510-DS-P