[Federal Register Volume 86, Number 195 (Wednesday, October 13, 2021)]
[Notices]
[Pages 56896-56898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22246]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-898]


Utility Scale Wind Towers From India: Final Affirmative 
Countervailing Duty Determination

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 India. The period of 
investigation is April 1, 2019, through March 31, 2020.

DATES: Applicable October 13, 2021.

FOR FURTHER INFORMATION CONTACT: David Crespo 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) 482-3693 or (202) 482-1413, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 2021, 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 investigation of wind towers from 
India.\1\ Commerce invited interested parties to comment on the 
Preliminary Determination. On July 20, 2021, we received case briefs 
from the Government of India, Vestas Wind Technology India Private 
Limited (Vestas); Anand Engineering Products Private Limited, Windar 
Renewable Energy Private Limited, and GRI Towers India Private Limited 
(collectively, the tollers); and the Wind Tower Trade Coalition (the 
petitioner).\2\ On July 27, 2021, we received rebuttal briefs from 
Vestas, the tollers, and the petitioner.\3\ On September 1, 2021, we 
held a public hearing at the request of Vestas, the tollers, and the 
petitioner.\4\
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    \1\ See Utility Scale Wind Towers from India: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 86 FR 15897 
(March 25, 2021) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Petitioner's Letter, ``Utility Scale Wind Towers from 
India: Petitioner's Case Brief,'' dated July 20, 2021; GOI's Letter, 
``CVD Investigation--Utility Scale Wind Towers from India: Case 
Brief on Behalf of Government of India,'' dated July 20, 2021; 
Vestas's Letter, ``Utility Scale Wind Towers from India: Case 
Brief,'' dated July 20, 2021; and Tollers' Letter, ``Certain Utility 
Scale Wind Towers from India (C-533-898): Case Brief on Behalf of 
Tolling Service Providers,'' dated July 20, 2021.
    \3\ See Petitioner's Letter, ``Utility Scale Wind Towers from 
India: Petitioner's Rebuttal Brief,'' dated July 27, 2021; Vestas's 
Letter, ``Utility Scale Wind Towers from India: Rebuttal Brief,'' 
dated July 27, 2021; and Tollers' Letter, ``Certain Utility Scale 
Wind Towers from India (C-533-898): Rebuttal Brief on Behalf of 
Respondents/Tolling Service Providers,'' dated July 27, 2021.
    \4\ See Hearing Transcript, ``Countervailing Duty Investigation 
on Utility-Scale Wind Towers from India,'' dated September 1, 2021.
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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.\5\
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    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Utility Scale Wind Towers from India,'' dated concurrently with, and 
hereby adopted by this notice (Issues and Decision Memorandum).
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Scope of the Investigation

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

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. 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\6\
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    \6\ See GRI Towers' Letter, ``Certain Utility Scale Wind Towers 
from India (C-533-898): Submission of In-Lieu-Of-Verification (ILOV) 
Questionnaire Response--GRI India,'' dated July 13, 2021; Vestas's 
Letter, ``Utility Scale Wind Towers from India: Response to the In 
Lieu of On-site Verification (ILOV) Questionnaire,'' dated July 13, 
2021; and Windar's Letter, ``Certain Utility Scale Wind Towers from 
India (C-533-898): Submission of In-Lieu-Of-Verification (ILOV) 
Questionnaire Response--Windar India,'' dated August 31, 2021.
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Methodology

    Commerce conducted this investigation in accordance with section 
701 of 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.\7\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \7\ 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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    As discussed in the Issues and Decision Memorandum, because several 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to

[[Page 56897]]

sections 776(a) and 776(b) of the Act. The respondents Naiks Brass & 
Iron Works, Nordex India Pvt., Prommada Hindustan, Suzlon Energy, 
Vinayaka Energy Tek, Wish Energy Solutions Pvt Ltd, and Zeeco India 
Pvt. Ltd. did not respond to Commerce's quantity and value 
questionnaire, and we have continued to use an adverse inference in our 
selection of facts available for determining the subsidy rates for 
these companies, pursuant to section 776(d) of the Act. For further 
information, see the section ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the accompanying Issues and Decision 
Memorandum.

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 Vestas. For a discussion of these 
changes, see the Issues and Decision Memorandum.

All-Others Rate

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

------------------------------------------------------------------------
                                                              Percent ad
                      Producer/exporter                         valorem
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Vestas Wind Technology India Private Limited................        2.25
Naiks Brass & Iron Works *..................................      397.70
Nordex India Pvt *..........................................      397.70
Prommada Hindustan *........................................      397.70
Suzlon Energy *.............................................      397.70
Vinayaka Energy Tek *.......................................      397.70
Wish Energy Solutions Pvt Ltd *.............................      397.70
Zeeco India Pvt. Ltd *......................................      397.70
All Others..................................................        2.25
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* Rate based on adverse facts available.

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) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of 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 the date of 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 July 23, 2021, but to continue 
the suspension of liquidation of all entries from March 25, 2021 
through July 22, 2021.
    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: October 6, 2021.
Christian Marsh,
Acting 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 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

[[Page 56898]]

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. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) to Vestas Wind Technology India Private Limited (Vestas)
    Comment 2: Whether the Advance Authorization Program (AAP) is 
Tied to Non-Subject Merchandise
    Comment 3: Whether Commerce Should Revise its Benefit 
Methodology for the Duty Drawback (DDB) Program
    Comment 4: Whether Commerce Unlawfully Cumulated Vestas's 
Benefits With the Benefits of its Tollers
    Comment 5: Whether the Merchandise Export Incentive Scheme 
(MEIS) Program is Tied to Non-Subject Merchandise
    Comment 6: Whether the Provision of Land for Less Than Adequate 
Remuneration (LTAR) by the Gujarat Industrial Development 
Corporation (GIDC) is Specific and Confers Countervailable Benefits
    Comment 7: Whether the Provision of Water for LTAR Conferred a 
Benefit
    Comment 8: Whether Commerce Correctly Attributed Benefits for 
the Export Promotion of Capital Goods (EPCG) Program
    Comment 9: Whether the AAP and DDB Programs are Countervailable 
Under the Agreement on Subsidies and Countervailing Measures (SCM 
Agreement)
    Comment 10: Whether Commerce Correctly Applied AFA to the 
Government of India (GOI)
    Comment 11: Whether Commerce Correctly Initiated New Subsidy 
Allegations (NSAs)
VII. Recommendation

[FR Doc. 2021-22246 Filed 10-12-21; 8:45 am]
BILLING CODE 3510-DS-P