[Federal Register Volume 84, Number 240 (Friday, December 13, 2019)]
[Notices]
[Pages 68104-68106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-826]


Utility Scale Wind Towers From the Socialist Republic of Vietnam: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Determination With Final Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of utility scale wind towers (wind towers) from the Socialist 
Republic of Vietnam (Vietnam). The period of investigation is January 
1, 2018 through December 31, 2018. Interested parties are invited to 
comment on this preliminary determination.

DATES: Applicable December 13, 2019.

FOR FURTHER INFORMATION CONTACT: Davina Friedmann, Paul Walker, or 
Julie Geiger, 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-
0698; (202) 482-0413; or (202) 482-2057, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 6, 
2019.\1\ On September 13, 2019, in accordance with section 703(c)(1)(A) 
of the Act and 19 CFR 351.205(b)(2), Commerce published its 
postponement of the deadline for the preliminary determination of the 
investigation, and the revised deadline is now December 6, 2019.\2\ For 
a complete description of the events that followed the initiation of 
this investigation, see the Preliminary Decision Memorandum.\3\ A list 
of topics discussed in the Preliminary Decision Memorandum is included 
as Appendix II to this notice. The Preliminary 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 and to all parties in the Central Records Unit, 
Room B8024 of the main Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ 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).
    \2\ See Utility Scale Wind Towers from Canada, Indonesia, and 
the Socialist Republic of Vietnam: Postponement of Preliminary 
Determinations of Countervailing Duty Investigations, 84 FR 48329 
(September 13, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Utility 
Scale Wind Towers from the Socialist Republic of Vietnam,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are wind towers from 
Vietnam. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. Accordingly, Commerce is preliminarily not modifying 
the scope language as it appeared in the Initiation Notice. See 
Appendix I.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 84 FR at 38217.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines

[[Page 68105]]

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.\6\
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    \6\ 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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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of wind towers from Vietnam based on a request 
made by the Wind Tower Trade Coalition (the petitioner).\7\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled to be 
issued no later than April 20, 2020, unless postponed.
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    \7\ See Petitioner's Letter, ``Utility Scale Wind Towers from 
the Socialist Republic of Vietnam: Request to Align Countervailing 
Duty Investigation Final Determination with Antidumping Duty 
Investigation Final Determination,'' dated November 27, 2019.
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All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely on 
facts otherwise available, as outlined under section 776 of the Act.
    In this investigation, Commerce calculated an individually-
estimated countervailable subsidy rate for the mandatory respondent, CS 
Wind Vietnam Co., Ltd. (CS Wind), which is not zero, de minimis, or 
based entirely on facts otherwise available. Because CS Wind is the 
only mandatory respondent in this investigation and its individually-
calculated rate is not zero, de minimis, or determined entirely under 
section 776 of the Act, Commerce has assigned CS Wind's rate as the 
estimated all-others rate.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                          rate
                                                               (percent)
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CS Wind Vietnam Co., Ltd....................................        2.43
All Others..................................................        2.43
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Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise, as described in 
the scope of the investigation section, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to section 
703(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct 
CBP to require a cash deposit equal to the rates indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline for 
submitting case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission (ITC) Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the ITC of its determination. Pursuant to 705(b)(2) of the Act, if the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination whether imports of the subject 
merchandise are materially injuring, or threaten material injury to, 
the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: December 6, 2019.
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.

[[Page 68106]]

    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 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Application of the CVD Law to Imports from Vietnam
VIII. Subsidies Valuation
IX. Analysis of Programs
X. Entered Value Adjustment
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Recommendation

[FR Doc. 2019-26947 Filed 12-12-19; 8:45 am]
 BILLING CODE 3510-DS-P