Notice2021-22246
Utility Scale Wind Towers From India: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 13, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
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.
Full Text
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<title>Federal Register, Volume 86 Issue 195 (Wednesday, October 13, 2021)</title>
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[Federal Register Volume 86, Number 195 (Wednesday, October 13, 2021)]
[Notices]
[Pages 56896-56898]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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:
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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
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</html>Indexed from Federal Register on October 13, 2021.
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