[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40243-40245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14438]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-902]


Utility Scale Wind Towers from the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value 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 imports 
of utility scale wind towers (wind towers) from the Republic of Korea 
(Korea) 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: Adam Simons or David Goldberger, 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) 482-6172 or (202) 
482-4136, 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 
Korea, 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, 
which is adopted by this notice.\2\
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    \1\ See Utility Scale Wind Towers from the Republic of Korea: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value and Preliminary Affirmative Determination of Critical 
Circumstances, 85 FR 8560 (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 the Republic of 
Korea,'' 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 
Korea. 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 accompanying this notice. 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/. 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 2020, we conducted verification of the 
cost information submitted by Dongkuk S&C Co., Ltd. (Dongkuk) 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 Dongkuk.\3\ Commerce did not 
conduct a sales verification.\4\
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    \3\ For discussion of our verification findings, see Memorandum, 
``Verification of Cost Response of Dongkuk S&C Co., Ltd. in the 
Antidumping Duty Investigation of Utility Wind Towers from Republic 
of Korea,'' dated April 17, 2020.
    \4\ See Memorandum, ``Antidumping Duty Investigations of Utility 
Scale Wind Towers from the Republic of Korea: Postponing Sales 
Verification of Dongkuk S&C Co., Ltd.,'' dated February 19, 2020 
(referencing postponing the sales verification due to the 
coronavirus outbreak in Korea); see also Memorandum, ``Antidumping 
Duty Investigations of Utility Scale Wind Towers from the Republic 
of Korea: Early Conclusion of Verification,'' dated March 27, 2020 
(referencing cancelling the sales verification).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at

[[Page 40244]]

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. Commerce calculated an individual estimated weighted-average 
dumping margin for Dongkuk, the only individually examined exporter/
producer in this investigation. Because the only individually 
calculated margin is not zero, de minimis, or based entirely on facts 
otherwise available, the estimated weighted-average dumping margin 
calculated for Dongkuk is the margin assigned to all other producers 
and exporters, pursuant to section 735(c)(5)(A) of the Act.

Final Affirmative Determination of Critical Circumstances

    For the Preliminary Determination, in accordance with 733(e) of the 
Act and 19 CFR 351.206, Commerce found that critical circumstances 
exist with respect to imports of wind towers from Korea. Our final 
determination remains unchanged. Accordingly, pursuant to section 
735(a)(3) of the Act and 19 CFR 351.206, we continue to find that 
critical circumstances exist for Dongkuk and companies covered by the 
``all others'' rate. 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:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Dongkuk S&C Co., Ltd........................................        5.41
All Others..................................................        5.41
------------------------------------------------------------------------

Disclosure

    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

    For this final determination, for entries made by Dongkuk and the 
companies covered by the all-others rate, in accordance with section 
735(c)(4)(A) of the Act, because we continue to find that critical 
circumstances exist, we will direct U.S. Customs and Border Protection 
(CBP) to continue to suspend liquidation of all entries of subject 
merchandise, as described in Appendix I of this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
November 16, 2019, which is 90 days prior to the date of publication of 
the preliminary determination of this investigation in the Federal 
Register.
    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.

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 Korea no later than 45 days 
after 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. 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

[[Page 40245]]

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 Affirmative Determination of Critical Circumstances
VI. Discussion of the Issues
    1. Whether to Apply Total Adverse Facts Available (AFA) to 
Dongkuk S&C Co., Ltd. (Dongkuk)
    2. Using Constructed Value (CV) as the Basis for Normal Value 
(NV)
    3. Treatment of Additional Revenues for U.S. Sales
    4. Treatment of Other Revenues for U.S. Sales
    5. Exclusion of Pre-POI Third Country Shipment
    6. Proposed Revisions to the Critical Circumstances Analysis
    7. Steel Plate Cost Adjustment
    8. Calculation of CV Profit and Selling Expenses
    9. Calculation of the General and Administrative (G&A) and 
Indirect Selling Expense Ratios
    10. Treatment of Scrap Offset
VII. Recommendation

[FR Doc. 2020-14438 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P