[Federal Register Volume 85, Number 166 (Wednesday, August 26, 2020)]
[Notices]
[Pages 52543-52545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18793]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-868, C-560-834, C-552-826]
Utility Scale Wind Towers From Canada, Indonesia, and the
Socialist Republic of Vietnam: Amended Final Affirmative Countervailing
Duty Determination and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (Commerce) and the International Trade Commission (ITC),
Commerce is issuing countervailing duty orders on utility scale wind
towers (wind towers) from Canada, Indonesia, and the Socialist Republic
of Vietnam (Vietnam). In addition, Commerce is amending its final
determination with respect to wind towers from Canada to correct
ministerial errors.
DATES: Applicable August 26, 2020.
FOR FURTHER INFORMATION CONTACT: Moses Song at (202) 482-7885 or Tyler
Weinhold at (202) 482-1121 (Canada); Alex Wood at (202) 482-1959
(Indonesia); and Davina Friedmann at (202) 482-0698 (Vietnam); AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
In accordance with sections 705(a), 705(d), and 777(i)(1) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on
July 6, 2020, Commerce published its affirmative final determinations
that countervailable subsidies are being provided to producers and
exporters of wind towers
[[Page 52544]]
from Canada, Indonesia, and Vietnam.\1\ In the investigations of wind
towers from Canada and Indonesia, an interested party to each
investigation submitted a timely filed allegation on the respective
records that Commerce made certain ministerial errors in the final
countervailing duty determinations on wind towers from Canada and
Indonesia. Section 705(e) of the Act and 19 CFR 351.224(f) define
ministerial errors as errors in addition, subtraction, or other
arithmetic function, clerical errors resulting from inaccurate copying,
duplication, or the like, and any other type of unintentional error
which Commerce considers ministerial. We reviewed the allegations and
determined that we made certain ministerial errors in the final
countervailing duty determination on wind towers from Canada, and
further determined that we did not make ministerial errors in the final
countervailing duty determination on wind towers from Indonesia. See
``Amendment to the Final Determination'' section below for further
discussion.
---------------------------------------------------------------------------
\1\ See Utility Scale Wind Towers from Canada: Final Affirmative
Countervailing Duty Determination and Final Negative Determination
of Critical Circumstances, 85 FR 40245 (July 6, 2020) (Canada Final
Determination); Utility Scale Wind Towers from Indonesia: Final
Affirmative Countervailing Duty Determination and Final Affirmative
Determination of Critical Circumstances, 85 FR 40241 (July 6, 2020)
(Indonesia Final Determination); and Utility Scale Wind Towers from
the Socialist Republic of Vietnam: Final Affirmative Countervailing
Duty Determination and Negative Determination of Critical
Circumstances, 85 FR 40229 (July 6, 2020) (Vietnam Final
Determination).
---------------------------------------------------------------------------
On August 19, 2020, the ITC notified Commerce of its affirmative
final determination that pursuant to sections 705(b)(1)(A)(i) and
705(d) of the Act, that an industry in the United States is materially
injured by reason of subsidized imports of subject merchandise from
Canada, Indonesia, and Vietnam.\2\
---------------------------------------------------------------------------
\2\ See ITC's Letter, ``Notification of ITC Final
Determinations,'' dated August 19, 2020 (ITC Notification Letter).
---------------------------------------------------------------------------
Scope of the Orders
The merchandise covered by these orders is wind towers from Canada,
Indonesia, and Vietnam. For a complete description of the scope of
these orders, see the appendix to this notice.
Amendment to the Final Determination
On July 6, 2020, Marmen Inc., Marmen [Eacute]nergie Inc., and
cross-owned affiliate Gestion Marmen (collectively, Marmen) timely
alleged that the Canada Final Determination contained certain
ministerial errors and requested that Commerce correct such errors.\3\
On July 15, 2020, the petitioner filed rebuttal comments.\4\
---------------------------------------------------------------------------
\3\ See Marmen's Letter, ``Utility Scale Wind Towers from
Canada: Ministerial Error Comments,'' dated July 6, 2020.
\4\ The petitioner to these investigations is the Wind Tower
Trade Coalition, whose individual members are Arcosa Wind Towers
Inc. and Broadwind Towers, Inc. See Petitioner's Letter, ``Utility
Scale Wind Towers from Canada: Response to Marmen's Ministerial
Error Allegation,'' dated July 15, 2020.
---------------------------------------------------------------------------
Commerce reviewed the record and on August 5, 2020, agreed that a
certain error referenced in Marmen's allegation constituted a
ministerial error within the meaning of section 705(e) of the Act and
19 CFR 351.224(f).\5\ Commerce found that another error alleged in
Marmen's submission did not constitute a ministerial error. Commerce
found that it made an error in calculating Marmen's sales denominator
used in the Canada Final Determination by inadvertently excluding
Marmen's sales to Marmen Energy Co. (i.e., an affiliate of Marmen).\6\
Pursuant to 19 CFR 351.224(e), Commerce is amending the Canada Final
Determination to reflect the correction of the ministerial error
described above. Based on this correction, the subsidy rate for Marmen
decreased from 1.18 percent ad valorem to 1.13 percent ad valorem.\7\
Because we based the all-others rate on Marmen's ad valorem subsidy
rate,\8\ the correction described above also applies to the all-others
rate. As a result, the all-others rate determined in the Canada Final
Determination also decreased from 1.18 percent ad valorem to 1.13
percent ad valorem.\9\
---------------------------------------------------------------------------
\5\ See Memorandum, ``Countervailing Duty Investigation on
Utility-Scale Wind Towers from Canada--Allegation of Ministerial
Errors in the Final Determination,'' dated August 5, 2020
(Ministerial Error Memorandum) at 2-5.
\6\ Id. at 5-7.
\7\ Id. at 5.
\8\ See Canada Final Determination, 85 FR at 40246.
\9\ See Ministerial Error Memorandum.
---------------------------------------------------------------------------
On July 7, 2020, PT Kenertec Power System (Kenertec) timely alleged
that the Indonesia Final Determination contained certain ministerial
errors and requested that Commerce correct such errors.\10\ On July 13,
2020, the petitioner filed rebuttal comments.\11\ Commerce reviewed the
record and on August 7, 2020, determined that Kenertec's allegations
did not constitute ministerial errors within the meaning of section
705(e) of the Act and 19 CFR 351.224(f).\12\ Accordingly, Commerce is
not amending the Indonesia Final Determination to reflect the alleged
ministerial error.
---------------------------------------------------------------------------
\10\ See Kenertec's Letter, ``Utility Scale Wind Towers from
Indonesia: Ministerial Error Allegation,'' dated July 7, 2020.
\11\ See Petitioner's Letter, ``Utility Scale Wind Towers from
Indonesia: Response to Kenertec's Ministerial Error Comments,''
dated July 13, 2020.
\12\ See Memorandum, ``Countervailing Duty Investigation of
Utility Scale Wind Towers from Indonesia: Allegations of Ministerial
Errors in the Final Determination,'' dated August 7, 2020 at 3-7.
---------------------------------------------------------------------------
Countervailing Duty Orders
On August 19, 2020, in accordance with sections 705(b)(1)(A)(i) and
705(d) of the Act, the ITC notified Commerce of its final determination
in these investigations, in which it found that an industry in the
United States is materially injured by reason of subsidized imports of
wind towers from Canada, Indonesia, and Vietnam.\13\ Therefore, in
accordance with section 705(c)(2) of the Act, Commerce is issuing these
countervailing duty orders. Because the ITC determined that imports of
wind towers from Canada, Indonesia, and Vietnam are materially injuring
a U.S. industry, unliquidated entries of such merchandise from Canada,
Indonesia, and Vietnam, entered or withdrawn from warehouse for
consumption, are subject to the assessment of countervailing duties.
---------------------------------------------------------------------------
\13\ See ITC Notification Letter.
---------------------------------------------------------------------------
Therefore, in accordance with section 706(a) of the Act, Commerce
will direct U.S. Customs and Border Protection (CBP) to assess, upon
further instruction by Commerce, countervailing duties for all relevant
entries of wind towers from Canada, Indonesia, and Vietnam, which are
entered, or withdrawn from warehouse, for consumption on or after
December 13, 2019, the date of publication of the Preliminary
Determinations,\14\ but will not include entries occurring after the
expiration of the provisional measures period and before the
publication of the ITC's final injury determination under section
705(b) of the Act, as further described below.
---------------------------------------------------------------------------
\14\ See Utility Scale Wind Towers from Canada: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of
Final Determination with Final Antidumping Duty Determination, 84 FR
68126 (December 13, 2019) (Canada Preliminary Determination);
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) (Indonesia Preliminary Determination); and
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) (Vietnam Preliminary
Determination) (collectively, Preliminary Determinations).
---------------------------------------------------------------------------
[[Page 52545]]
Critical Circumstances
On July 30, 2020, the ITC found that critical circumstances do not
exist with respect to imports of subject merchandise from
Indonesia.\15\ In light of the ITC's negative critical circumstances
determination on imports of wind towers from Indonesia, we will
instruct CBP to lift suspension and to refund any cash deposits made to
secure the payment of estimated countervailing duties with respect to
entries of wind towers from Indonesia, entered or withdrawn from
warehouse, for consumption on or after September 14, 2019 (i.e., 90
days prior to the date of publication of the Indonesia Preliminary
Determination), but before December 13, 2019 (i.e., the date of the
publication of the Indonesia Preliminary Determination).
---------------------------------------------------------------------------
\15\ See the ITC's News Release 20-078 (https://www.usitc.gov/press_room/news_release/2020/er0730ll1614.htm).
---------------------------------------------------------------------------
Suspension of Liquidation and Cash Deposits
In accordance with section 706 of the Act, Commerce will instruct
CBP to reinstitute the suspension of liquidation of wind towers from
Canada, Indonesia, and Vietnam, as described in the appendix to this
notice, effective on the date of publication of the ITC's notice of
final determination in the Federal Register, and to assess, upon
further instruction by Commerce, pursuant to section 706(a)(1) of the
Act, countervailing duties for each entry of the subject merchandise in
an amount based on the net countervailable subsidy rates below for the
subject merchandise. On or after the date of publication of the ITC's
final injury determination in the Federal Register, CBP must require,
at the same time as importers would normally deposit estimated duties
on this merchandise, a cash deposit equal to the rates noted below. The
all-others rate applies to all producers or exporters not specifically
listed below.
Canada
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Marmen Inc., Marmen [Eacute]nergie Inc., and Gestion 1.13
Marmen Inc.\16\.....................................
All Others........................................... 1.13
------------------------------------------------------------------------
Indonesia
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
PT Kenertec Power System \17\........................ 5.90
All Others........................................... 5.90
------------------------------------------------------------------------
Vietnam
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
CS Wind Vietnam Co., Ltd. (a.k.a. CS Wind Tower Co., 2.84
Ltd.) \18\..........................................
All Others........................................... 2.84
------------------------------------------------------------------------
Provisional Measures
---------------------------------------------------------------------------
\16\ See Canada Final Determination, 85 FR at 40246; see also
Ministerial Error Memorandum at 5.
\17\ See Indonesia Final Determination, 85 FR at 40242.
\18\ See Vietnam Final Determination, 85 FR at 40230.
---------------------------------------------------------------------------
Section 703(d) of the Act states that instructions issued pursuant
to an affirmative preliminary determination may not remain in effect
for more than four months. In the underlying investigations, Commerce
published the Preliminary Determinations on December 13, 2019. As such,
the four-month period beginning on the date of the publication of the
Preliminary Determinations ended on April 10, 2020. Furthermore,
section 707(b) of the Act states that definitive duties are to begin on
the date of publication of the ITC's final injury determination.
Therefore, in accordance with section 703(d) of the Act, we
instructed CBP to terminate the suspension of liquidation and to
liquidate, without regard to countervailing duties, unliquidated
entries of wind towers from Canada, Indonesia, and Vietnam, entered, or
withdrawn from warehouse, for consumption, on or after April 11, 2020,
the date on which the provisional measures expired, until and through
the day preceding the date of publication of the ITC's final injury
determination in the Federal Register. Suspension of liquidation will
resume on the date of publication of the ITC's final determination in
the Federal Register.
Notification to Interested Parties
This notice constitutes the CVD orders with respect to wind towers
from Canada, Indonesia, and Vietnam, pursuant to section 706(a) of the
Act. Interested parties can find a list of CVD orders currently in
effect at http://enforcement.trade.gov/stats/iastats1.html.
These orders are issued and published in accordance with section
706(a) of the Act and 19 CFR 351.211(b).
Dated: August 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Orders
The merchandise covered by these orders 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.
Merchandise covered by these orders 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 these
orders is dispositive.
[FR Doc. 2020-18793 Filed 8-25-20; 8:45 am]
BILLING CODE 3510-DS-P