[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40241-40243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14529]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-834]


Utility Scale Wind Towers From Indonesia: Final Affirmative 
Countervailing Duty Determination 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 
countervailable subsidies are being provided to producers and exporters 
of utility scale wind towers (wind towers) from Indonesia. The period 
of investigation is January 1, 2018 through December 31, 2018.

DATES: Applicable July 6, 2020.

FOR FURTHER INFORMATION CONTACT: Alex Wood or Melissa Kinter, 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) 482-1959 or (202) 482-1413, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 13, 2019, 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 tower from Indonesia.\1\
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    \1\ See Utility Scale Wind Towers from Indonesia: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 84 FR 68109 
(December 13, 2019) (Preliminary Determination) and accompanying 
Preliminary Decision Memorandum (PDM).
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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, are discussed in the 
Issues and Decision Memorandum.\2\ 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 
http://access.trade.gov. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Utility Scale Wind Towers from Indonesia,'' 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 
Indonesia. For a complete description of the scope of the 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. Therefore, Commerce has made no changes to the scope 
of this investigation since the Preliminary Determination.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \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 Decision 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 and Use of Facts Otherwise Available

    Commerce normally verifies information relied upon in making its 
final determination, as provided in section 782(i) of the Act. In March 
2020, we conducted verification of the information submitted by the 
Government of Indonesia and the mandatory respondent, PT Kenertec Power 
System (Kenertec), for use in Commerce's final determination. We used 
standard verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.\6\ For the reasons discussed in the Issues and Decision 
Memorandum, we concluded verification early.
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    \6\ For discussion of our verification findings, see the 
following memoranda: Memorandum, ``Verification of the Questionnaire 
Responses of the Government of Indonesia,'' dated April 1, 2020 and 
Memorandum, ``Verification of PT Kenertec Power System's 
Questionnaire Responses,'' dated March 30, 2020; see also 
Memorandum, ``Antidumping and Countervailing Duty Investigations of 
Utility Scale Wind Towers from Indonesia: Early Conclusion of 
Verifications,'' dated March 27, 2020.
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    Pursuant to section 776(a)(2)(D) of the Act, in situations where 
information has been provided but the information has cannot be 
verified in accordance with

[[Page 40242]]

section 782(i) of the Act, Commerce may use ``facts otherwise 
available'' on the record in reaching the applicable determination. 
Accordingly, where Commerce was unable to verify certain information 
due to the early conclusion of verification, we have relied on the 
information submitted on the record that we used in making the 
Preliminary Determination, as facts otherwise available in making our 
final determination.
    Further, pursuant to section 776(a)(1) of the Act, where necessary 
information is not available on the record, Commerce may rely on facts 
otherwise available on the record in reaching the applicable 
determination. Accordingly, in certain circumstances in this final 
determination where necessary information is missing from the record, 
we have relied on the information submitted to the record as facts 
otherwise available, pursuant to section 776(a)(1) of the Act.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties and our verification findings, we made certain changes to the 
subsidy rate calculations for Kenertec. For a discussion of these 
changes, see the Issues and Decision Memorandum.

Final Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1)(B) of the Act, Commerce 
preliminarily determined that critical circumstances existed for all 
imports of utility scale wind towers from Indonesia.\7\ For this final 
determination, we continue to find that critical circumstances exist 
with respect to all imports of wind towers from Indonesia. For a full 
description of the methodology and results of our analysis, see the 
Issues and Decision Memorandum.
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    \7\ 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).
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All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, we continue to 
assign the countervailable subsidy rate calculated for Kenertec 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)(I) of the Act, we 
calculated an individual estimated subsidy rate for Kenertec. We 
determine that the following total estimated net countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                             Percent  Ad
                     Producer/exporter                         Valorem
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PT Kenertec Power System...................................         5.90
All Others.................................................         5.90
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of the 
date of publication of this notice 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), (d)(2), and (e)(2)(A) of the Act, Commerce 
instructed U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after September 14, 2019, which 
is 90 days prior to the publication of the Preliminary Determination in 
the Federal Register. In accordance with section 703(d) of the Act, we 
instructed CBP to discontinue the suspension of liquidation for CVD 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after April 11, 2020, but continue the suspension of liquidation 
of all entries from September 14, 2019 through April 10, 2020.
    If the U.S. International Trade Commission (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 Indonesia 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 will serve as the only reminder to parties subject to an 
administrative protective order (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 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

[[Page 40243]]

(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, 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
IV. Scope Comments
V. Final Determination of Critical Circumstances
VI. Use of Facts Otherwise Available
VII. Subsidies Valuation Information
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether the Government of Indonesia (GOI) Entrusted 
or Directed PT Krakatau POSCO (Krakatau POSCO) to Provide a 
Financial Contribution to PT Kenertec Power System (Kenertec)
    Comment 2: Whether the Benchmark Information for the Provision 
of cut-to-length (CTL) Plate for Less Than Adequate Renumeration 
(LTAR) is Accurate
    Comment 3: Whether the GOI Provided Electricity for LTAR
    Comment 4: Whether Commerce's Preliminary Critical Circumstances 
Determination Was Correct
    Comment 5: Whether the Exemption from Import Income Tax 
Withholding Program is Specific
    Comment 6: Whether Commerce Should Extend the Final 
Determination to Investigate the Upstream Subsidy Allegation
    Comment 7: Whether Commerce Sufficiently Verified the GOI's 
Questionnaire Responses with Respect to PT Krakatau Steel (Persero) 
TBK (Krakatau Steel) and Krakatau POSCO
X. Recommendation

[FR Doc. 2020-14529 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P