[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40229-40231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14528]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-826]
Utility Scale Wind Towers From the Socialist Republic of Vietnam:
Final Affirmative Countervailing Duty Determination and Negative
Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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).
DATES: Applicable July 6, 2020.
FOR FURTHER INFORMATION CONTACT: Davina Friedmann, 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.
SUPPLEMENTARY INFORMATION:
Background
On December 13, 2020, Commerce published the Preliminary
Determination of the countervailing duty (CVD) investigation, which
aligned the final determination in this CVD investigation with the
final determination in the companion antidumping duty (AD)
investigation of utility scale wind towers from Vietnam.\1\ On February
11, 2020, Commerce published its Preliminary Determination of Critical
Circumstances in which we found that no critical circumstances exist
for CS Wind or for all other producers or exporters for imports of wind
towers from Vietnam.\2\
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\1\ See 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, 84 FR 68104 (December 13, 2019) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(Preliminary Decision Memorandum).
\2\ See Utility Scale Wind Towers from Canada, Indonesia, and
the Socialist Republic of Vietnam; Countervailing Duty
Investigations: Preliminary Determinations of Critical
Circumstances, 85 FR 7724 (February 11, 2020) (Preliminary
Determination of Critical Circumstances).
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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 hereby adopted by this this
notice.\3\ 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.
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Utility Scale Wind Towers from the Socialist Republic of Vietnam,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2018 through December 31,
2018.
Scope of the Investigation
The merchandise covered by this investigation is utility scale wind
towers from Vietnam. For a complete
[[Page 40230]]
description of the scope of this investigation, see Appendix I.
Scope Comments
As stated in the Preliminary Determination, no interested parties
commented on the scope of the investigation as it appeared in the
Initiation Notice.\4\ Accordingly, the scope of the investigation
remains the same as it appeared in the Initiation Notice. See Appendix
I of this notice.
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\4\ 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).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines 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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decisions Memorandum.
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\5\ 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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Verification
As provided in section 782(i) of the Act, in February 2020, we
conducted verification of the information reported by the mandatory
respondent, CS Wind Vietnam Co. Ltd. (CS Wind), for use in Commerce's
final determination. We used standard verification procedures,
including examination of relevant accounting records, and original
source documents provided by CS Wind.\6\
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\6\ See Commerce Letter, ``Countervailing Duty Investigation of
Utility Scale Wind Towers from the Socialist Republic of Vietnam,''
dated March 18, 2020.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties and the results of verification, we made certain changes to the
subsidy rate calculations for CS Wind. For a discussion of these
changes, see the Issues and Decision Memorandum.
Final Negative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act and 19 CFR 351.206,
Commerce preliminarily determined that critical circumstances did not
exist with respect to imports of wind towers from Vietnam because
section 703(e)(1)(B) of the Act was not met (i.e., U.S. imports did not
increase by 15 percent from the base to the comparison period).\7\ Our
final determination remains unchanged. Accordingly, pursuant to section
705(a)(2) of the Act, we find that critical circumstances do not exist
with respect to imports of wind towers from Vietnam. For a full
description of the methodology and results of Commerce's critical
circumstances analysis, see the Issues and Decision Memorandum.
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\7\ See Preliminary Determination of Critical Circumstances.
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All-Others Rate
We continue to assign the countervailable subsidy rate calculated
for CS Wind as the all-others rate applicable to all exporters and/or
producers not individually examined.\8\
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\8\ See Preliminary Determination.
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Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual rate for CS Wind. We determine the total
estimated net countervailable subsidy rate to be:
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Subsidy
Producer/exporter rate
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CS Wind Vietnam Co., Ltd. (a.k.a. CS Wind Tower Co., Ltd.) \9\ 2.84
All Others.................................................... 2.84
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Disclosure
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\9\ See Issues and Decision Memorandum at Section III for
additional information.
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We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of public announcement of our final determination, in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of all entries of
subject merchandise, as described in the scope of the investigation
section, that were entered or withdrawn from warehouse, for
consumption, on or after December 13, 2019, the date of publication of
the Preliminary Determination in the Federal Register. In accordance
with section 703(d) of the Act, we will instruct CBP to discontinue the
suspension of liquidation for countervailing duty (CVD) purposes for
subject merchandise entered, or withdrawn from warehouse, on or after
April 11, 2020 but to continue the suspension of liquidation of all
entries from December 13, 2019 through April 10, 2020.
If the U.S. International Trade Commission (the ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for such
entries of subject 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. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) 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 of wind towers
from Vietnam no later than 45 days after our final determination. If
the ITC determines that material injury or threat of material injury
does not exist, the proceeding will be terminated and all cash deposits
will be refunded. If the ITC determines that material injury or threat
of material injury does exist, Commerce will issue a CVD order
directing CBP to assess, upon further instruction by Commerce,
countervailing 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
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the
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destruction of proprietary information disclosed under APO in
accordance with 19 CFR 351.305(a)(3). Timely written notification of
the return or 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 subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) 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.
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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Clarification of Respondent
IV. Scope of the Investigation
V. Changes from the Preliminary Determination
VI. Final Negative Determination of Critical Circumstances
VII. Discussion of the Issues
1: Unreported Affiliated Supplier
2: Import Duty Exemptions on Raw Materials for Exporting Goods
Program
3: Provision of Utilities for LTAR
4: Provision of Electricity for LTAR
5: Land-Use Rights for LTAR
6: Entered Value Adjustment
7: Excessive Indirect Tax Exemptions on Exports
8: Income Tax Preferences Under Chapter V of Decree 24
9: Import Duty Exemptions on Imports of Equipment and Machinery
to Create Fixed Assets
10: Non-Verification of the Government of Vietnam
VIII. Recommendation
[FR Doc. 2020-14528 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P