[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Notices]
[Pages 11152-11154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03728]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-982]


Utility Scale Wind Towers from the People's Republic of China: 
Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the ``Department'') and the International Trade Commission 
(``ITC''), the Department is issuing a countervailing duty order on 
utility scale wind towers (``wind towers'') from the People's Republic 
of China (``PRC'').

DATES: Effective Date: February 15, 2013.

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

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 705(d) of the Tariff Act of 1930, as 
amended (``Act''), on December 26, 2012, the Department published the 
final determination in the countervailing duty investigation of wind 
towers from the PRC.\1\ On February 8, 2013, the ITC notified the 
Department of its affirmative determination that an industry in the 
United States is materially injured or threatened with material injury 
by reason of imports of wind towers from the PRC.\2\
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    \1\ See Utility Scale Wind Towers From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination, 77 FR 
75978 (December 26, 2012).
    \2\ See Utility Scale Wind Towers from China and Vietnam, USITC 
Investigation Nos. 701-TA-486 and 731-TA-1195-1196 (Final), USITC 
Publication 4372 (February 2013) (``ITC Report'').
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Scope of the Order

    The merchandise covered by this order 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

[[Page 11153]]

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.
    Merchandise covered by the order is currently classified in the 
Harmonized Tariff System of the United States (``HTSUS'') under 
subheadings 7308.20.0020\3\ or 8502.31.0000.\4\ Prior to 2011, 
merchandise covered by the order 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 order is 
dispositive.
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    \3\ Wind towers are classified under HTSUS 7308.20.0020 when 
imported as a tower or tower section(s) alone.
    \4\ 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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Countervailing Duty Order

    As noted above, on February 8, 2013, in accordance with section 
705(d) of the Act, the ITC notified the Department of its determination 
that an industry in the United States is materially injured or 
threatened with material injury by reason of imports of wind towers 
from the PRC. Therefore, in accordance with section 706(a)(1) of the 
Act, the Department will direct U.S. Customs and Border Protection 
(``CBP'') to assess, upon further instruction by the Department, 
countervailing duties equal to the amount of the net countervailable 
subsidy for all relevant entries of wind towers from the PRC.
    Section 706(b)(1) of the Act establishes a ``general rule'' that, 
if the ITC, in its final determination, finds ``material injury or 
threat of material injury which, but for the suspension of liquidation 
under section 703(d)(2) {of the Act{time}  would have led to a finding 
of material injury,'' then entries of the subject merchandise, the 
liquidation of which has been suspended pursuant to the Department's 
preliminary determination under section 703(d)(2) of the Act, shall be 
subject to the imposition of countervailing duties. Section 706(b)(2) 
of the Act establishes a ``special rule'' that, if the ITC's final 
injury determination is based on the threat of material injury (other 
than threat of material injury described in the ``general rule'') 
countervailing duties shall be assessed on subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of the ITC's notice of final determination. Under this 
``special rule,'' the Department orders CBP to terminate suspension and 
refund any cash deposit of estimated countervailing duties for entries 
made since the Department's preliminary countervailing duty 
determination\5\ and before publication of the ITC's final injury 
determination.\6\
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    \5\ 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).
    \6\ Section 736(b)(2) of the Act (``the Department shall release 
any bonds or other security made, and refund any cash deposit made . 
. . with respect to entries of the merchandise entered, or withdrawn 
from warehouse, for consumption before {the date of the publication 
of the ITC's affirmative final injury determination{time} ''); see, 
e.g., Narrow Woven Ribbons With Woven Selvedge From the People's 
Republic of China: Countervailing Duty Orders, 75 FR 53642, 53643 
(September 1, 2010) (where the Department ordered the termination of 
suspension and refund of duties for entries occurring prior to the 
publication of the ITC's affirmative threat determination).
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    After reviewing the ITC's final determination, the Department 
determines that the ``special rule'' pursuant to section 706(b)(2) of 
the Act is applicable to the imposition of countervailing duties under 
this order. Of the votes in the ITC's final determination, two 
commissioners determined that an industry in the United States is 
materially injured by reason of imports of utility scale wind towers 
from the PRC and the Socialist Republic of Vietnam, one commissioner 
determined that an industry in the United States is threatened with 
material injury by reason of such imports and further determined that 
he would not have found material injury but for the suspension of 
liquidation, and three commissioners determined that an industry in the 
United States is not materially injured or threatened with material 
injury by reason of such imports.\7\ Because the ITC's determination 
that an industry in the United States is materially injured or 
threatened with material injury is not accompanied by a finding that 
material injury would have resulted but for the suspension of 
liquidation of entries since the Preliminary Determination, the 
Department determines that the ``general rule'' of section 706(b)(1) of 
the Act does not apply.\8\ Therefore, in accordance with the ``special 
rule'' of section 706(b)(2) of the Act, the Department will instruct 
CBP to terminate the suspension of liquidation for entries of wind 
towers from the PRC entered, or withdrawn from warehouse, for 
consumption prior to the publication of the ITC's final determination 
and refund any cash deposit of estimated countervailing duties for 
these entries.
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    \7\ See ITC Report.
    \8\ See MBL (USA) Corp. v. United States, 16 C.I.T. 108, 111-114 
(1992) (finding that the Act requires the Department, when 
confronted with the same ITC voting pattern as present here, to 
refund duties collected prior to the ITC's publication of its final 
injury determination).
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Suspension of Liquidation and Collection of Cash Deposit

    In accordance with sections 705(c)(1)(B) and 706(b)(2) of the Act, 
the Department will instruct CBP to suspend liquidation on all entries 
of subject merchandise from the PRC made on or after the date of the 
publication of the ITC's final affirmative injury determination. \9\ 
The Department will also instruct CBP to require a cash deposit for 
each entry of subject merchandise in an amount equal to the net 
countervailable subsidy rates noted below. These instructions 
suspending liquidation will remain in effect until further notice.
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    \9\ The Department instructed CBP to discontinue the suspension 
of liquidation on October 4, 2012, four months after the publication 
of the Preliminary Determination, in accordance with section 703(d) 
of the Act. Section 703(d) states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months. Entries of wind towers from the PRC made on 
or after October 4, 2012, and prior to the date of publication of 
the ITC's final determination in the Federal Register are not liable 
for the assessment of countervailing duties because of the 
Department's discontinuation, effective October 4, 2012, of the 
suspension of liquidation.
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Final Determination of Countervailing Duty Investigation

    Net countervailable subsidy rates noted below.

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                                                 Net Subsidy Ad Valorem
              Producer/exporter                           Rate
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CS Wind China Co., Ltd., CS Wind Tech          21.86 percent
 (Shanghai) Co., Ltd., and CS Wind
 Corporation (collectively, CS Wind).

[[Page 11154]]

 
Titan Wind Energy (Suzhou) Co. Ltd. (Titan     34.81 percent
 Wind), Titan 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 percent
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    This notice constitutes the countervailing duty order with respect 
to wind towers from the PRC pursuant to section 706(a) of the Act. This 
order is published in accordance with section 706 (a) of the Act and 19 
CFR 351.211(b).

     Dated: February 12, 2013.
Paul Piquado,
Assistant Secretary
    for Import Administration.
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[FR Doc. 2013-03728 Filed 2-14-13; 8:45 am]
BILLING CODE 3510-DS-P