Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Initiation of Countervailing Duty Investigation, 70966-70970 [2011-29624]
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Federal Register / Vol. 76, No. 221 / Wednesday, November 16, 2011 / Notices
companies not selected for individual
examination were omitted:
Trinity Pac Co. Ltd.
U. Yong Industry Co., Ltd.
The weighted-average margin the
Department determined for these
companies is 28.74 percent. See
Memorandum to the File ‘‘Polyethylene
Retail Carrier Bags from Thailand—
Amended Final Results, Margin
Calculation for Respondents Not
Selected for Individual Examination’’
dated October 27, 2011. Accordingly,
the complete list of companies subject
to the Amended Final Results with their
respective margin rates is as follows:
Percent
margin
Producer/exporter
First Pack Co. Ltd ...........................
K International Packaging Co., Ltd
Landblue (Thailand) Co., Ltd ..........
Praise Home Industry, Co. Ltd .......
Siam Flexible Industries Co., Ltd ...
Thai Jirun Co., Ltd ..........................
Trinity Pac Co. Ltd ..........................
U. Yong Industry Co., Ltd ...............
28.74
28.74
25.73
28.74
28.74
28.74
28.74
28.74
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Cash Deposit Requirements and
Assessment Rates
The deposit rates will be effective
retroactively on any entries made on or
after September 28, 2011, the date of
publication of the final results of
review, for shipments of polyethylene
retail carrier bags from Thailand
entered, or withdrawn from warehouse,
for consumption on or after the
publication date, as provided by section
751(a)(1) of the Act: (1) The cashdeposit rates for the companies subject
to the review will be the rates shown
above; (2) for previously investigated or
reviewed companies not listed above,
the cash-deposit rate will continue to be
the company-specific rate published for
the most recent period; (3) if the
exporter is not a firm covered in this or
a previous review or the original lessthan-fair-value (LTFV) investigation but
the manufacturer is, the cash-deposit
rate will be the rate established for the
most recent period for the manufacturer
of the merchandise; (4) the cash-deposit
rate for all other manufacturers or
exporters will be 4.69 percent, the allothers rate from the amended final
determination of the LTFV investigation
revised as a result of the Section 129
determination published on August 12,
2010. See Notice of Implementation of
Determination Under Section 129 of the
Uruguay Round Agreements Act and
Partial Revocation of the Antidumping
Duty Order on Polyethylene Retail
Carrier Bags From Thailand, 75 FR
48940 (August 12, 2010). These deposit
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requirements, when imposed, shall
remain in effect until further notice.
The Department intends to issue
liquidation instructions to U.S. Customs
and Border Protection 15 days after
publication of this correction to the
amended final results of review.
This correction to the amended final
results of administrative review is
issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Tariff Act of 1930, as amended.
November 9, 2011.
Paul Piquado,
Assistant Secretary for Import
Administration.
[FR Doc. 2011–29620 Filed 11–15–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–980]
Crystalline Silicon Photovoltaic Cells,
Whether or Not Assembled Into
Modules, From the People’s Republic
of China: Initiation of Countervailing
Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: November 16,
2011.
FOR FURTHER INFORMATION CONTACT:
Gene Calvert, Jun Jack Zhao or Emily
Halle, AD/CVD Operations, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–3586, (202) 482–
1396 or (202) 482–0176, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On October 19, 2011, the Department
of Commerce (Department) received a
countervailing duty (CVD) petition
concerning imports of crystalline silicon
photovoltaic cells, whether or not
assembled into modules (solar cells),
from the People’s Republic of China
(PRC) filed in proper form by
SolarWorld Industries America Inc.
(Petitioner). See Petition for the
Imposition of Antidumping and
Countervailing Duties Against
Crystalline Silicon Photovoltaic Cells,
Whether or Not Assembled Into
Modules, from the People’s Republic of
China, dated October 19, 2011
(Petition).
On October 21, 24 and 31, 2011, and
November 4, 2011, the Department
issued supplemental questionnaires
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requesting information and clarification
of certain areas of the Petition.
On October 24, 2011, the Department
issued requests to Petitioner for
additional information and for
clarification of certain areas of the
general issues, antidumping (AD), and
CVD sections of the Petition. Based on
the Department’s requests, Petitioner
filed a supplement to the Petition
regarding the CVD section on October
26, 2011 (Supplement I), and requested
an extension until October 28, 2011, for
the AD and general issues supplemental
questionnaire. On October 28, 2011,
Petitioner filed the supplement to the
Petition regarding the AD and general
issues section (Supplement II–A—
General Issues and Supplement II–B—
AD Issues). On October 31, 2011, the
Department issued an additional request
for information, which Petitioner filed
on November 2, 2011 (Supplement III),
November 4, 2011 (Supplement IV) and
November 7, 2011 (Supplement V–A—
AD Issues and Supplement V–B—
General Issues).
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), Petitioner alleges that
producers/exporters of solar cells from
the PRC received countervailable
subsidies within the meaning of
sections 701 and 771(5) of the Act, and
that imports from these producers/
exporters materially injure, and threaten
further material injury to, an industry in
the United States.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because Petitioner is
an interested party, as defined in section
771(9)(C) of the Act, and has
demonstrated sufficient industry
support with respect to the investigation
that it requests the Department to
initiate. See ‘‘Determination of Industry
Support for the Petition,’’ below.
Period of Investigation
The period of investigation (POI) is
January 1, 2010, through December 31,
2010.
Scope of the Investigation
The products covered by the scope of
this investigation are solar cells from the
PRC. For a full description of the scope
of the investigation, see the ‘‘Scope of
the Investigation,’’ in Appendix I of this
notice.
Comments on Scope of the Investigation
During our review of the Petition, we
discussed the scope with Petitioner to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. Petitioner
submitted revised scope language on
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November 4, 2011, and November 7,
2011. The November 7, 2011,
submission included various revisions.
Among these revisions was the
following substantive provision:
These proceedings cover crystalline silicon
PV cells, whether exported directly to the
United States or via third countries;
crystalline silicon PV modules/panels
produced in the PRC, regardless of country
of manufacture of the cells used to produce
the modules or panels, and whether exported
directly to the United States or via third
countries, and crystalline silicon PV modules
or panels produced in a third country from
crystalline silicon PV cells manufactured in
the PRC, whether exported directly to the
United States or via third countries.
The Department has not adopted this
specific revision recommended by
Petitioner for the purposes of initiation.1
Because Petitioner’s November 7, 2011,
scope submission was filed one day
prior to the statutory deadline for
initiation, the Department has had
neither the time nor the administrative
resources to evaluate Petitioner’s
proposed language regarding
merchandise produced using inputs
from third-country markets, or
merchandise processed in third-country
markets. Petitioner’s November 7, 2011,
scope submission also contained the
following language:
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Unless explicitly excluded from the scope
of these proceedings, crystalline silicon PV
cells possessing the physical characteristics
of subject merchandise are covered by these
proceedings.
The Department has not adopted this
specific revision recommended by
Petitioner for the purposes of initiation
because this language is superfluous,
and appears to add no additional
clarification as to the description of
merchandise covered by the scope of the
Petition. However, as discussed in the
preamble to the regulations, we are
setting aside a period for interested
parties to raise issues regarding product
coverage. See Antidumping Duties;
Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997). The Department
encourages interested parties to submit
such comments by Monday, November
28, 2011, which is twenty calendar days
from the signature date of this notice.
All comments must be filed on the
records of both the PRC AD
investigation as well as the PRC CVD
investigation. Comments must be filed
electronically through Import
Administration’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (IA ACCESS),
1 We note that the Department has independent
authority to determine the scope of its
investigations. See Diversified Products Corp. v.
United States, 572 F. Supp. 883, 887 (CIT 1983).
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https://iaaccess.trade.gov, in accordance
with 19 CFR 351.303. See Antidumping
and Countervailing Duty Proceedings:
Electronic Filing Procedures;
Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011).
The period of scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of
the Act, on October 20, 2011, the
Department invited representatives of
the Government of the PRC (GOC) for
consultations with respect to the CVD
petition. On November 2, 2011, the
Department held consultations with
representatives of the GOC via
conference call. See Memorandum to
the File, regarding ‘‘Consultations with
Officials from the Government of the
People’s Republic of China on the
Countervailing Duty Petition Regarding
Certain Crystalline Silicon Photovoltaic
Cells, Whether or Not Assembled Into
Modules,’’ dated November 4, 2011
(Consultations Memorandum).
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) Poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A); or (ii) determine
industry support using a statistically
valid sampling method to poll the
industry.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The U.S.
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International Trade Commission (ITC),
which is responsible for determining
whether ‘‘the domestic industry’’ has
been injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (see section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law. See USEC, Inc. v.
United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp., Ltd. v.
United States, 688 F. Supp. 639, 644
(CIT 1988), aff’d 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
record, we have determined that solar
cells constitute a single domestic like
product and we have analyzed industry
support in terms of that domestic like
product. For a discussion of the
domestic like product analysis in this
case, see ‘‘Countervailing Duty
Investigation Initiation Checklist:
Certain Crystalline Silicon Photovoltaic
Cells, Whether or Not Assembled Into
Modules, From the People’s Republic of
China’’ (Initiation Checklist), at
Attachment II, Analysis of Industry
Support for the Petitions Covering
Crystalline Silicon Photovoltaic Cells
from the People’s Republic of China, on
file electronically on IA ACCESS,
accessible via the Central Records Unit,
Room 7046 of the main Commerce
building, and also accessible on the Web
at https://ia.ita.doc.gov/frn. The paper
copy and electronic versions of the
Initiation Checklist are identical in
content.
In determining whether Petitioner has
standing under section 702(c)(4)(A) of
the Act, we considered the industry
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support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of
Investigation’’ section, above. To
establish industry support, Petitioner
provided its production volume of the
domestic like product in 2010, and
compared this to the estimated total
production volume of the domestic like
product for the entire domestic
industry. See Initiation Checklist at
Attachment II. Petitioner estimated 2010
production volume of the domestic like
product by non-petitioning companies
based on production data published by
an industry source, Photon
International, along with affidavits of
support for the Petition, and its
knowledge of the industry. We have
relied upon data Petitioner provided for
purposes of measuring industry support.
For further discussion, see Initiation
Checklist at Attachment II.
On November 2, 2011, in its
consultations with the Department, the
Government of China raised the issue of
industry support. See Consultations
Memorandum; see also Initiation
Checklist at Attachment II. On
November 7, 2011, certain Chinese
producers/exporters and affiliated
importers of Solar Cells, interested
parties to this proceeding as defined in
section 771(9)(A) of the Act filed
comments regarding industry support.
Because the comments did not include
certifications as required under 19 CFR
351.303(g), we allowed the parties to refile the comments. On November 8,
2011, we received comments with
proper certifications. On November 8,
2011, the same Chinese producers/
exporters filed additional comments
regarding industry support. However,
those comments were not limited to
industry support as required by section
732(c)(4)(E) of the Act. Accordingly, we
rejected the comments as improperly
filed. The interested parties re-filed this
submission on November 8 and
properly limited their comments to
industry support.2
Based on information provided in the
Petition, supplemental submissions, and
other information readily available to
the Department, we determine that the
domestic producers and workers have
met the statutory criteria for industry
support under section 702(c)(4)(A)(i) of
the Act because the domestic producers
(or workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product. Because the Petition did not
establish support from domestic
producers (or workers) accounting for
2 For further discussion of these submissions see
Initiation Checklist at Attachment II.
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more than 50 percent of the total
production of the domestic like product,
the Department was required to take
further action in order to evaluate
industry support. See section
702(c)(4)(D) of the Act. In this case, the
Department was able to rely on other
information, in accordance with section
702(c)(4)(D)(i) of the Act, to determine
industry support. See Initiation
Checklist at Attachment II; see also
Memorandum to the File from Stephen
Bailey, titled ‘‘Conference Call,’’ dated
November 3, 2011. Based on
information provided in the Petition,
supplemental submissions, and
additional information obtained by the
Department, the domestic producers
and workers have met the statutory
criteria for industry support under
section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition. Accordingly, the
Department determines that the Petition
was filed on behalf of the domestic
industry within the meaning of section
702(b)(1) of the Act. See Initiation
Checklist at Attachment II.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in sections
771(9)(C) of the Act and it has
demonstrated sufficient industry
support with respect to the CVD
investigation that it is requesting the
Department initiate. Id.
Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of
subject merchandise from the PRC
materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
Petitioner alleges that imports of solar
cells from the PRC are benefitting from
countervailable subsidies and that such
imports are causing, or threaten to
cause, material injury to the domestic
industry producing solar cells. In
addition, Petitioner alleges that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.
Petitioner contends that the industry’s
injured condition is illustrated by
reduced market share, reduced
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shipments, unused capacity,
underselling and price depression or
suppression, reduced employment, a
decline in financial performance, lost
sales and revenue, and an increase in
import penetration. See Volume I of the
Petition, at 1–4, 25–44, and Exhibits I–
6, I–8–9, I–14–16, I–17a, I–18a, I–19–20,
I–21a, I–21b, I–22 and I–24, and
Supplement II–A–General Issues, at 1–
2. We have assessed the allegations and
supporting evidence regarding material
injury, threat of material injury, and
causation, and we have determined that
these allegations are properly supported
by adequate evidence and meet the
statutory requirements for initiation. See
Initiation Checklist at Attachment III,
Injury.
Initiation of Countervailing Duty
Investigation
Section 702(b)(i) of the Act requires
the Department to initiate a CVD
proceeding whenever an interested
party files a petition on behalf of an
industry that: (1) Alleges the elements
necessary for an imposition of a duty
under section 701(a) of the Act; and (2)
is accompanied by information
reasonably available to the petitioner(s)
supporting the allegations. The
Department has examined the CVD
Petition on solar cells from the PRC and
finds that it complies with the
requirements of section 702(b) of the
Act. Therefore, in accordance with
section 702(b) of the Act, we are
initiating a CVD investigation to
determine whether manufacturers,
producers, or exporters of solar cells in
the PRC receive countervailable
subsidies. For a discussion of evidence
supporting our initiation determination,
see Initiation Checklist.
We are including in our investigation
the following programs alleged in the
Petition to have provided
countervailable subsidies to producers
and exporters of the subject
merchandise in the PRC:
A. Grant Programs
1. Export Product Research and
Development Fund
2. Subsidies for Development of
‘‘Famous Brands’’ and ‘‘China
World Top Brands’’
3. Sub-Central Government Subsidies
for Development of ‘‘Famous
Brands’’ and ‘‘China World Top
Brands’’
4. Special Energy Fund (Established
by Shandong Province)
5. Funds for Outward Expansion of
Industries in Guangdong Province
6. Golden Sun Demonstration
Program
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B. Government Provision of Goods and
Services for Less Than Adequate
Remuneration (LTAR)
1. Government Provision of
Polysilicon for LTAR
2. Government Provision of
Aluminum for LTAR
3. Government Provision of Power for
LTAR
C. Government Provision of Land for
LTAR
D. Policy Lending to the Renewable
Energy Industry
E. Income and Other Direct Tax
Exemption and Reduction Programs
1. ‘‘Two Free, Three Half’’ Program for
Foreign Invested Enterprises (FIEs)
2. Income Tax Reductions for ExportOriented FIEs
3. Income Tax Benefits for FIEs Based
on Geographic Location
4. Local Income Tax Exemption and
Reduction Programs for
‘‘Productive’’ FIEs
5. Tax Reductions for FIEs Purchasing
Chinese-Made Equipment
6. Tax Offsets for Research and
Development by FIEs
7. Tax Refunds for Reinvestment of
FIE Profits in Export-Oriented
Enterprises
8. Preferential Tax Programs for FIEs
Recognized as High or New
Technology Enterprises
9. Tax Reductions for High and NewTechnology Enterprises Involved in
Designated Projects
10. Preferential Income Tax Policy for
Enterprises in the Northeast Region
11. Guangdong Province Tax
Programs
F. Indirect Tax and Tariff Exemption
Programs
1. Value Added Tax (VAT)
Exemptions for Use of Imported
Equipment
2. VAT Rebates on FIE Purchases of
Chinese-Made Equipment
3. VAT and Tariff Exemptions for
Purchases of Fixed Assets Under
the Foreign Trade Development
Fund Program
G. Export Credit Subsidy Programs
H. Export Guarantees and Insurance for
Green Technology
For a description of each of these
programs and a full discussion of the
Department’s decision to initiate an
investigation of these programs, see
Initiation Checklist.
We are not including in our
investigation the following programs
alleged to benefit producers/exporters of
the subject merchandise in the PRC.
A. Grant Programs
1. Fund for Economic, Scientific, and
Technology Development
(Established by Foshan City)
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2. Provincial Fund for Fiscal and
Technological Innovation
(Established by Guangdong
Province)
B. Government Provision of Water for
LTAR
C. Currency Undervaluation
For further information explaining
why the Department is not initiating an
investigation of these programs, see
Initiation Checklist.
Critical Circumstances
Petitioner alleges, based on trade
statistics since August 2010 and prior
knowledge of an impending trade case,
that there is a reasonable basis to believe
or suspect that critical circumstances
exist with regard to imports of solar
cells from the PRC. See Volume IV of
the Petition, at 1, 7, and 10.
Section 703(e)(1) of the Act states that
if a petitioner alleges critical
circumstances, the Department will find
that such circumstances exist, at any
time after the date of initiation, when
there is a reasonable basis to believe or
suspect that under, subparagraph (A)
the alleged countervailable subsidy is
inconsistent with the Subsidies
Agreement, and (B) there have been
massive imports of the subject
merchandise over a relatively short
period. Section 351.206(h) of the
Department’s regulations defines
‘‘massive imports’’ as imports that have
increased by at least 15 percent over the
imports during an immediately
preceding period of comparable
duration. Section 351.206(i) of the
Department’s regulations states that a
relatively short period will normally be
defined as the period beginning on the
date the proceeding begins and ending
at least three months later.
With regard to the subsidies alleged in
the Petition, Petitioner notes that the
subsidies alleged include subsidies
based on export performance, subsidies
for inputs provided for LTAR, as well as
interest free or low interest loans that
are not otherwise available to the
general public. See Volume IV of the
Petition, at 13. Petitioner argues that
based on information provided in the
Petition, it is clear that Chinese
exporters and producers of subject
merchandise have received subsidies
that are inconsistent with the
Agreement on Subsidies and
Countervailing Measures. See Volume
IV of the Petition, at 13–15; see also
Volume III of the Petition.
With regard to the criteria of massive
imports over a relatively short period of
time, Petitioner argues that the
Department should evaluate the level of
imports during a period prior to the
filing a petition because importers and
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70969
foreign exporters and producers had
reason to believe that an AD or CVD
proceeding was likely. See Volume IV of
the Petition, at 3–9, and Exhibits IV–1
through IV–16; see also 19 CFR
351.206(i). Petitioner contends that
there were newspaper articles beginning
in August 2009 that discussed unfair
pricing on behalf of Chinese producers.
See Volume IV of the Petition, at 4, and
Exhibits IV–1 and IV–2. Petitioner
further notes that the very widely
publicized closure of a large solar cell
producer resulted in much media
discussion of the effects of unfair trade
in January 2011. Therefore, Petitioner
states that ‘‘the effects of any behavioral
shifts of Chinese producers would be
likely to manifest themselves in
February 2011 as shipments of goods
ordered in the days immediately
following Evergreen’s demise in January
2011 would not have reached the
United States until February.’’ See
Supplement II–A–General Issues, at 6.
Thus, Petitioner demonstrates massive
imports over a relatively short period of
time by comparing imports of subject
merchandise between the six-month
period of August 2010 and January 2011
(base period) and the six-month period
of February 2011 and July 2011
(comparison period). Based on
Petitioner’s calculation, imports surged
220 percent between base period and
comparison period, which is greater
than the 15 percent threshold defined in
the Department’s regulations. See
Volume IV of the Petition, at 10–11; see
also 19 CFR 351.206(h).
Petitioner requests that the
Department examine the information it
has provided and make a preliminary
finding of critical circumstances on an
expedited basis, within 45 days of the
filing of the Petition. See Volume IV of
the Petition, at 1, 2, and 16; see also 19
CFR 351.206(c)(2)(iii). Section 702(e) of
the Act states that when there is a
reasonable basis to suspect that the
alleged countervailable subsidy is
inconsistent with the Subsidies
Agreement, the Department may request
U.S. Customs and Border Protection
(CBP) to compile information on an
expedited basis regarding entries of the
subject merchandise.
Taking into consideration the
foregoing, we will analyze this matter
further. We will monitor imports of
solar cells from the PRC and we will
request that CBP compile information
on an expedited basis regarding entries
of subject merchandise. See Section
702(e) of the Act. If, at any time, the
criteria for a finding of critical
circumstances are established, we will
issue a critical circumstances finding at
the earliest possible date. See Change in
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70970
Federal Register / Vol. 76, No. 221 / Wednesday, November 16, 2011 / Notices
Policy Regarding Timing of Issuance of
Critical Circumstances Determinations,
63 FR 55364 (October 15, 1998).
Respondent Selection
For this investigation, the Department
expects to select respondents based on
CBP data for U.S. imports during the
POI. We intend to make our decision
regarding respondent selection within
20 days of publication of this Federal
Register notice. The Department will
release CBP data under Administrative
Protective Order shortly after the
signature date of this notice. Given that
certain Harmonized Tariff Schedule of
the United States headings used in the
description of the scope of this
investigation are for broad ‘‘basket
categories’’ of merchandise (e.g.,
headings 8501.61.0000 and 8507.20.80),
the Department intends to rely only on
headings 8541.40.6020 and
8541.40.6030, which cover solar cells
exclusively, in selecting respondents.
Therefore, we will only release CBP data
under those same two headings as well.
The Department invites comments
regarding the CBP data and respondent
selection to be submitted to the
Department within seven calendar days
of publication of this Federal Register
notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to
representatives of the GOC. Because of
the particularly large number of
producers/exporters identified in the
Petition, the Department considers the
service of the public version of the
Petition to the foreign producers/
exporters satisfied by the delivery of the
public version to the GOC, consistent
with 19 CFR 351.203(c)(2).
ITC Notification
mstockstill on DSK4VPTVN1PROD with NOTICES
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
subsidized solar cells from the PRC are
causing material injury, or threatening
to cause material injury, to a U.S.
industry. See section 703(a)(2) of the
Act. A negative ITC determination will
result in the investigation being
terminated; otherwise, the investigation
will proceed according to statutory and
regulatory time limits.
17:45 Nov 15, 2011
forward the electricity that is generated by
the cell.
Subject merchandise may be described at
the time of importation as parts for final
finished products that are assembled after
importation, including, but not limited to,
modules, laminates, panels, buildingintegrated modules, building-integrated
panels, or other finished goods kits. Such
parts that otherwise meet the definition of
subject merchandise are included in the
scope of this investigation.
Excluded from the scope of this
investigation are thin film photovoltaic
products produced from amorphous silicon
(a-Si), cadmium telluride (CdTe), or copper
indium gallium selenide (CIGS).
Also excluded from the scope of this
investigation are crystalline silicon
photovoltaic cells, not exceeding 10,000mm2
in surface area, that are permanently
integrated into a consumer good whose
function is other than power generation and
that consumes the electricity generated by
the integrated crystalline silicon photovoltaic
cell. Where more than one cell is
permanently integrated into a consumer
good, the surface area for purposes of this
exclusion shall be the total combined surface
area of all cells that are integrated into the
consumer good.
Merchandise covered by this investigation
is currently classified in the Harmonized
Tariff System of the United States (HTSUS)
under subheadings 8501.61.0000, 8507.20.80,
8541.40.6020 and 8541.40.6030. These
HTSUS subheadings are provided for
convenience and customs purposes; the
written description of the scope of this
investigation is dispositive.
Dated: November 8, 2011.
Paul Piquado,
Assistant Secretary for Import
Administration.
Technology Innovation Program
Advisory Board
Jkt 226001
The merchandise covered by this
investigation are crystalline silicon
photovoltaic cells, and modules, laminates,
and panels, consisting of crystalline silicon
photovoltaic cells, whether or not partially or
fully assembled into other products,
including, but not limited to, modules,
laminates, panels and building integrated
materials.
This investigation covers crystalline silicon
photovoltaic cells of thickness equal to or
greater than 20 micrometers, having a p/n
junction formed by any means, whether or
not the cell has undergone other processing,
including, but not limited to, cleaning,
etching, coating, and/or addition of materials
(including, but not limited to, metallization
and conductor patterns) to collect and
Frm 00017
Fmt 4703
Sfmt 4703
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Institute of Standards and
Technology
National Institute of Standards
and Technology, Department of
Commerce.
ACTION: Notice of public meeting.
Scope of the Investigation
PO 00000
[FR Doc. 2011–29624 Filed 11–15–11; 8:45 am]
AGENCY:
Appendix I
We have notified the ITC of our
initiation, as required by section 702(d)
of the Act.
VerDate Mar<15>2010
Notification to Interested Parties
Interested parties must submit
applications for disclosure under
administrative protective orders in
accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634. Parties
wishing to participate in this
investigation should ensure that they
meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.
See section 782(b) of the Act. Parties are
hereby reminded that revised
certification requirements are in effect
for company/government officials as
well as their representatives in all
segments of any antidumping duty or
countervailing duty proceedings
initiated on or after March 14, 2011. See
Certification of Factual Information to
Import Administration during
Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR
7491 (February 10, 2011) (Interim Final
Rule) amending 19 CFR 351.303(g)(1)
and (2). The formats for the revised
certifications are provided at the end of
the Interim Final Rule. The Department
intends to reject factual submissions in
any proceeding segments initiated on or
after March 14, 2011, if the submitting
party does not comply with the revised
certification requirements.
This notice is issued and published
pursuant to section 777(i) of the Act.
The Technology Innovation
Program (TIP) Advisory Board will hold
a meeting via teleconference on
Tuesday, December 6, 2011, from
10 a.m. to 12 noon, Eastern time. The
primary purpose of this meeting is to
discuss the future of TIP. Interested
members of the public will be able to
participate in the meeting from remote
locations by calling into a central phone
number.
DATES: The TIP Advisory Board will
hold a meeting via teleconference
meeting on Tuesday, December 6, 2011,
from 10 a.m. to 12 noon, Eastern time.
The meeting will be open to the public.
SUMMARY:
E:\FR\FM\16NON1.SGM
16NON1
Agencies
[Federal Register Volume 76, Number 221 (Wednesday, November 16, 2011)]
[Notices]
[Pages 70966-70970]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29624]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-980]
Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled
Into Modules, From the People's Republic of China: Initiation of
Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: November 16, 2011.
FOR FURTHER INFORMATION CONTACT: Gene Calvert, Jun Jack Zhao or Emily
Halle, AD/CVD Operations, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3586, (202) 482-1396 or (202) 482-0176, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On October 19, 2011, the Department of Commerce (Department)
received a countervailing duty (CVD) petition concerning imports of
crystalline silicon photovoltaic cells, whether or not assembled into
modules (solar cells), from the People's Republic of China (PRC) filed
in proper form by SolarWorld Industries America Inc. (Petitioner). See
Petition for the Imposition of Antidumping and Countervailing Duties
Against Crystalline Silicon Photovoltaic Cells, Whether or Not
Assembled Into Modules, from the People's Republic of China, dated
October 19, 2011 (Petition).
On October 21, 24 and 31, 2011, and November 4, 2011, the
Department issued supplemental questionnaires requesting information
and clarification of certain areas of the Petition.
On October 24, 2011, the Department issued requests to Petitioner
for additional information and for clarification of certain areas of
the general issues, antidumping (AD), and CVD sections of the Petition.
Based on the Department's requests, Petitioner filed a supplement to
the Petition regarding the CVD section on October 26, 2011 (Supplement
I), and requested an extension until October 28, 2011, for the AD and
general issues supplemental questionnaire. On October 28, 2011,
Petitioner filed the supplement to the Petition regarding the AD and
general issues section (Supplement II-A--General Issues and Supplement
II-B--AD Issues). On October 31, 2011, the Department issued an
additional request for information, which Petitioner filed on November
2, 2011 (Supplement III), November 4, 2011 (Supplement IV) and November
7, 2011 (Supplement V-A--AD Issues and Supplement V-B--General Issues).
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), Petitioner alleges that producers/exporters of solar
cells from the PRC received countervailable subsidies within the
meaning of sections 701 and 771(5) of the Act, and that imports from
these producers/exporters materially injure, and threaten further
material injury to, an industry in the United States.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because Petitioner is an interested party, as
defined in section 771(9)(C) of the Act, and has demonstrated
sufficient industry support with respect to the investigation that it
requests the Department to initiate. See ``Determination of Industry
Support for the Petition,'' below.
Period of Investigation
The period of investigation (POI) is January 1, 2010, through
December 31, 2010.
Scope of the Investigation
The products covered by the scope of this investigation are solar
cells from the PRC. For a full description of the scope of the
investigation, see the ``Scope of the Investigation,'' in Appendix I of
this notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Petitioner submitted
revised scope language on
[[Page 70967]]
November 4, 2011, and November 7, 2011. The November 7, 2011,
submission included various revisions. Among these revisions was the
following substantive provision:
These proceedings cover crystalline silicon PV cells, whether
exported directly to the United States or via third countries;
crystalline silicon PV modules/panels produced in the PRC,
regardless of country of manufacture of the cells used to produce
the modules or panels, and whether exported directly to the United
States or via third countries, and crystalline silicon PV modules or
panels produced in a third country from crystalline silicon PV cells
manufactured in the PRC, whether exported directly to the United
States or via third countries.
The Department has not adopted this specific revision recommended by
Petitioner for the purposes of initiation.\1\ Because Petitioner's
November 7, 2011, scope submission was filed one day prior to the
statutory deadline for initiation, the Department has had neither the
time nor the administrative resources to evaluate Petitioner's proposed
language regarding merchandise produced using inputs from third-country
markets, or merchandise processed in third-country markets.
Petitioner's November 7, 2011, scope submission also contained the
following language:
---------------------------------------------------------------------------
\1\ We note that the Department has independent authority to
determine the scope of its investigations. See Diversified Products
Corp. v. United States, 572 F. Supp. 883, 887 (CIT 1983).
Unless explicitly excluded from the scope of these proceedings,
crystalline silicon PV cells possessing the physical characteristics
---------------------------------------------------------------------------
of subject merchandise are covered by these proceedings.
The Department has not adopted this specific revision recommended by
Petitioner for the purposes of initiation because this language is
superfluous, and appears to add no additional clarification as to the
description of merchandise covered by the scope of the Petition.
However, as discussed in the preamble to the regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage. See Antidumping Duties; Countervailing Duties, 62 FR
27296, 27323 (May 19, 1997). The Department encourages interested
parties to submit such comments by Monday, November 28, 2011, which is
twenty calendar days from the signature date of this notice. All
comments must be filed on the records of both the PRC AD investigation
as well as the PRC CVD investigation. Comments must be filed
electronically through Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (IA ACCESS),
https://iaaccess.trade.gov, in accordance with 19 CFR 351.303. See
Antidumping and Countervailing Duty Proceedings: Electronic Filing
Procedures; Administrative Protective Order Procedures, 76 FR 39263
(July 6, 2011). The period of scope consultations is intended to
provide the Department with ample opportunity to consider all comments
and to consult with parties prior to the issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, on October 20,
2011, the Department invited representatives of the Government of the
PRC (GOC) for consultations with respect to the CVD petition. On
November 2, 2011, the Department held consultations with
representatives of the GOC via conference call. See Memorandum to the
File, regarding ``Consultations with Officials from the Government of
the People's Republic of China on the Countervailing Duty Petition
Regarding Certain Crystalline Silicon Photovoltaic Cells, Whether or
Not Assembled Into Modules,'' dated November 4, 2011 (Consultations
Memorandum).
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (see section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp., Ltd. v. United
States, 688 F. Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that solar cells constitute a single
domestic like product and we have analyzed industry support in terms of
that domestic like product. For a discussion of the domestic like
product analysis in this case, see ``Countervailing Duty Investigation
Initiation Checklist: Certain Crystalline Silicon Photovoltaic Cells,
Whether or Not Assembled Into Modules, From the People's Republic of
China'' (Initiation Checklist), at Attachment II, Analysis of Industry
Support for the Petitions Covering Crystalline Silicon Photovoltaic
Cells from the People's Republic of China, on file electronically on IA
ACCESS, accessible via the Central Records Unit, Room 7046 of the main
Commerce building, and also accessible on the Web at https://ia.ita.doc.gov/frn. The paper copy and electronic versions of the
Initiation Checklist are identical in content.
In determining whether Petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry
[[Page 70968]]
support data contained in the Petition with reference to the domestic
like product as defined in the ``Scope of Investigation'' section,
above. To establish industry support, Petitioner provided its
production volume of the domestic like product in 2010, and compared
this to the estimated total production volume of the domestic like
product for the entire domestic industry. See Initiation Checklist at
Attachment II. Petitioner estimated 2010 production volume of the
domestic like product by non-petitioning companies based on production
data published by an industry source, Photon International, along with
affidavits of support for the Petition, and its knowledge of the
industry. We have relied upon data Petitioner provided for purposes of
measuring industry support. For further discussion, see Initiation
Checklist at Attachment II.
On November 2, 2011, in its consultations with the Department, the
Government of China raised the issue of industry support. See
Consultations Memorandum; see also Initiation Checklist at Attachment
II. On November 7, 2011, certain Chinese producers/exporters and
affiliated importers of Solar Cells, interested parties to this
proceeding as defined in section 771(9)(A) of the Act filed comments
regarding industry support. Because the comments did not include
certifications as required under 19 CFR 351.303(g), we allowed the
parties to re-file the comments. On November 8, 2011, we received
comments with proper certifications. On November 8, 2011, the same
Chinese producers/exporters filed additional comments regarding
industry support. However, those comments were not limited to industry
support as required by section 732(c)(4)(E) of the Act. Accordingly, we
rejected the comments as improperly filed. The interested parties re-
filed this submission on November 8 and properly limited their comments
to industry support.\2\
---------------------------------------------------------------------------
\2\ For further discussion of these submissions see Initiation
Checklist at Attachment II.
---------------------------------------------------------------------------
Based on information provided in the Petition, supplemental
submissions, and other information readily available to the Department,
we determine that the domestic producers and workers have met the
statutory criteria for industry support under section 702(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petition account for at least 25 percent of the total production of the
domestic like product. Because the Petition did not establish support
from domestic producers (or workers) accounting for more than 50
percent of the total production of the domestic like product, the
Department was required to take further action in order to evaluate
industry support. See section 702(c)(4)(D) of the Act. In this case,
the Department was able to rely on other information, in accordance
with section 702(c)(4)(D)(i) of the Act, to determine industry support.
See Initiation Checklist at Attachment II; see also Memorandum to the
File from Stephen Bailey, titled ``Conference Call,'' dated November 3,
2011. Based on information provided in the Petition, supplemental
submissions, and additional information obtained by the Department, the
domestic producers and workers have met the statutory criteria for
industry support under section 702(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petition account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition. Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 702(b)(1) of the Act. See Initiation Checklist
at Attachment II.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in sections 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the CVD investigation that it is
requesting the Department initiate. Id.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of subject merchandise from the PRC materially injure,
or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that imports of solar cells from the PRC are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the domestic industry
producing solar cells. In addition, Petitioner alleges that subject
imports exceed the negligibility threshold provided for under section
771(24)(A) of the Act.
Petitioner contends that the industry's injured condition is
illustrated by reduced market share, reduced shipments, unused
capacity, underselling and price depression or suppression, reduced
employment, a decline in financial performance, lost sales and revenue,
and an increase in import penetration. See Volume I of the Petition, at
1-4, 25-44, and Exhibits I-6, I-8-9, I-14-16, I-17a, I-18a, I-19-20, I-
21a, I-21b, I-22 and I-24, and Supplement II-A-General Issues, at 1-2.
We have assessed the allegations and supporting evidence regarding
material injury, threat of material injury, and causation, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Initiation Checklist at Attachment III, Injury.
Initiation of Countervailing Duty Investigation
Section 702(b)(i) of the Act requires the Department to initiate a
CVD proceeding whenever an interested party files a petition on behalf
of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioner(s)
supporting the allegations. The Department has examined the CVD
Petition on solar cells from the PRC and finds that it complies with
the requirements of section 702(b) of the Act. Therefore, in accordance
with section 702(b) of the Act, we are initiating a CVD investigation
to determine whether manufacturers, producers, or exporters of solar
cells in the PRC receive countervailable subsidies. For a discussion of
evidence supporting our initiation determination, see Initiation
Checklist.
We are including in our investigation the following programs
alleged in the Petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise in the PRC:
A. Grant Programs
1. Export Product Research and Development Fund
2. Subsidies for Development of ``Famous Brands'' and ``China World
Top Brands''
3. Sub-Central Government Subsidies for Development of ``Famous
Brands'' and ``China World Top Brands''
4. Special Energy Fund (Established by Shandong Province)
5. Funds for Outward Expansion of Industries in Guangdong Province
6. Golden Sun Demonstration Program
[[Page 70969]]
B. Government Provision of Goods and Services for Less Than Adequate
Remuneration (LTAR)
1. Government Provision of Polysilicon for LTAR
2. Government Provision of Aluminum for LTAR
3. Government Provision of Power for LTAR
C. Government Provision of Land for LTAR
D. Policy Lending to the Renewable Energy Industry
E. Income and Other Direct Tax Exemption and Reduction Programs
1. ``Two Free, Three Half'' Program for Foreign Invested
Enterprises (FIEs)
2. Income Tax Reductions for Export-Oriented FIEs
3. Income Tax Benefits for FIEs Based on Geographic Location
4. Local Income Tax Exemption and Reduction Programs for
``Productive'' FIEs
5. Tax Reductions for FIEs Purchasing Chinese-Made Equipment
6. Tax Offsets for Research and Development by FIEs
7. Tax Refunds for Reinvestment of FIE Profits in Export-Oriented
Enterprises
8. Preferential Tax Programs for FIEs Recognized as High or New
Technology Enterprises
9. Tax Reductions for High and New-Technology Enterprises Involved
in Designated Projects
10. Preferential Income Tax Policy for Enterprises in the Northeast
Region
11. Guangdong Province Tax Programs
F. Indirect Tax and Tariff Exemption Programs
1. Value Added Tax (VAT) Exemptions for Use of Imported Equipment
2. VAT Rebates on FIE Purchases of Chinese-Made Equipment
3. VAT and Tariff Exemptions for Purchases of Fixed Assets Under
the Foreign Trade Development Fund Program
G. Export Credit Subsidy Programs
H. Export Guarantees and Insurance for Green Technology
For a description of each of these programs and a full discussion
of the Department's decision to initiate an investigation of these
programs, see Initiation Checklist.
We are not including in our investigation the following programs
alleged to benefit producers/exporters of the subject merchandise in
the PRC.
A. Grant Programs
1. Fund for Economic, Scientific, and Technology Development
(Established by Foshan City)
2. Provincial Fund for Fiscal and Technological Innovation
(Established by Guangdong Province)
B. Government Provision of Water for LTAR
C. Currency Undervaluation
For further information explaining why the Department is not
initiating an investigation of these programs, see Initiation
Checklist.
Critical Circumstances
Petitioner alleges, based on trade statistics since August 2010 and
prior knowledge of an impending trade case, that there is a reasonable
basis to believe or suspect that critical circumstances exist with
regard to imports of solar cells from the PRC. See Volume IV of the
Petition, at 1, 7, and 10.
Section 703(e)(1) of the Act states that if a petitioner alleges
critical circumstances, the Department will find that such
circumstances exist, at any time after the date of initiation, when
there is a reasonable basis to believe or suspect that under,
subparagraph (A) the alleged countervailable subsidy is inconsistent
with the Subsidies Agreement, and (B) there have been massive imports
of the subject merchandise over a relatively short period. Section
351.206(h) of the Department's regulations defines ``massive imports''
as imports that have increased by at least 15 percent over the imports
during an immediately preceding period of comparable duration. Section
351.206(i) of the Department's regulations states that a relatively
short period will normally be defined as the period beginning on the
date the proceeding begins and ending at least three months later.
With regard to the subsidies alleged in the Petition, Petitioner
notes that the subsidies alleged include subsidies based on export
performance, subsidies for inputs provided for LTAR, as well as
interest free or low interest loans that are not otherwise available to
the general public. See Volume IV of the Petition, at 13. Petitioner
argues that based on information provided in the Petition, it is clear
that Chinese exporters and producers of subject merchandise have
received subsidies that are inconsistent with the Agreement on
Subsidies and Countervailing Measures. See Volume IV of the Petition,
at 13-15; see also Volume III of the Petition.
With regard to the criteria of massive imports over a relatively
short period of time, Petitioner argues that the Department should
evaluate the level of imports during a period prior to the filing a
petition because importers and foreign exporters and producers had
reason to believe that an AD or CVD proceeding was likely. See Volume
IV of the Petition, at 3-9, and Exhibits IV-1 through IV-16; see also
19 CFR 351.206(i). Petitioner contends that there were newspaper
articles beginning in August 2009 that discussed unfair pricing on
behalf of Chinese producers. See Volume IV of the Petition, at 4, and
Exhibits IV-1 and IV-2. Petitioner further notes that the very widely
publicized closure of a large solar cell producer resulted in much
media discussion of the effects of unfair trade in January 2011.
Therefore, Petitioner states that ``the effects of any behavioral
shifts of Chinese producers would be likely to manifest themselves in
February 2011 as shipments of goods ordered in the days immediately
following Evergreen's demise in January 2011 would not have reached the
United States until February.'' See Supplement II-A-General Issues, at
6. Thus, Petitioner demonstrates massive imports over a relatively
short period of time by comparing imports of subject merchandise
between the six-month period of August 2010 and January 2011 (base
period) and the six-month period of February 2011 and July 2011
(comparison period). Based on Petitioner's calculation, imports surged
220 percent between base period and comparison period, which is greater
than the 15 percent threshold defined in the Department's regulations.
See Volume IV of the Petition, at 10-11; see also 19 CFR 351.206(h).
Petitioner requests that the Department examine the information it
has provided and make a preliminary finding of critical circumstances
on an expedited basis, within 45 days of the filing of the Petition.
See Volume IV of the Petition, at 1, 2, and 16; see also 19 CFR
351.206(c)(2)(iii). Section 702(e) of the Act states that when there is
a reasonable basis to suspect that the alleged countervailable subsidy
is inconsistent with the Subsidies Agreement, the Department may
request U.S. Customs and Border Protection (CBP) to compile information
on an expedited basis regarding entries of the subject merchandise.
Taking into consideration the foregoing, we will analyze this
matter further. We will monitor imports of solar cells from the PRC and
we will request that CBP compile information on an expedited basis
regarding entries of subject merchandise. See Section 702(e) of the
Act. If, at any time, the criteria for a finding of critical
circumstances are established, we will issue a critical circumstances
finding at the earliest possible date. See Change in
[[Page 70970]]
Policy Regarding Timing of Issuance of Critical Circumstances
Determinations, 63 FR 55364 (October 15, 1998).
Respondent Selection
For this investigation, the Department expects to select
respondents based on CBP data for U.S. imports during the POI. We
intend to make our decision regarding respondent selection within 20
days of publication of this Federal Register notice. The Department
will release CBP data under Administrative Protective Order shortly
after the signature date of this notice. Given that certain Harmonized
Tariff Schedule of the United States headings used in the description
of the scope of this investigation are for broad ``basket categories''
of merchandise (e.g., headings 8501.61.0000 and 8507.20.80), the
Department intends to rely only on headings 8541.40.6020 and
8541.40.6030, which cover solar cells exclusively, in selecting
respondents. Therefore, we will only release CBP data under those same
two headings as well. The Department invites comments regarding the CBP
data and respondent selection to be submitted to the Department within
seven calendar days of publication of this Federal Register notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to representatives of the GOC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the Petition
to the foreign producers/exporters satisfied by the delivery of the
public version to the GOC, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of subsidized solar cells from the PRC are
causing material injury, or threatening to cause material injury, to a
U.S. industry. See section 703(a)(2) of the Act. A negative ITC
determination will result in the investigation being terminated;
otherwise, the investigation will proceed according to statutory and
regulatory time limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective orders in accordance with 19 CFR 351.305. On
January 22, 2008, the Department published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634. Parties wishing to participate in this
investigation should ensure that they meet the requirements of these
procedures (e.g., the filing of letters of appearance as discussed at
19 CFR 351.103(d)).
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information. See
section 782(b) of the Act. Parties are hereby reminded that revised
certification requirements are in effect for company/government
officials as well as their representatives in all segments of any
antidumping duty or countervailing duty proceedings initiated on or
after March 14, 2011. See Certification of Factual Information to
Import Administration during Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR 7491 (February 10, 2011)
(Interim Final Rule) amending 19 CFR 351.303(g)(1) and (2). The formats
for the revised certifications are provided at the end of the Interim
Final Rule. The Department intends to reject factual submissions in any
proceeding segments initiated on or after March 14, 2011, if the
submitting party does not comply with the revised certification
requirements.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 8, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation are crystalline
silicon photovoltaic cells, and modules, laminates, and panels,
consisting of crystalline silicon photovoltaic cells, whether or not
partially or fully assembled into other products, including, but not
limited to, modules, laminates, panels and building integrated
materials.
This investigation covers crystalline silicon photovoltaic cells
of thickness equal to or greater than 20 micrometers, having a p/n
junction formed by any means, whether or not the cell has undergone
other processing, including, but not limited to, cleaning, etching,
coating, and/or addition of materials (including, but not limited
to, metallization and conductor patterns) to collect and forward the
electricity that is generated by the cell.
Subject merchandise may be described at the time of importation
as parts for final finished products that are assembled after
importation, including, but not limited to, modules, laminates,
panels, building-integrated modules, building-integrated panels, or
other finished goods kits. Such parts that otherwise meet the
definition of subject merchandise are included in the scope of this
investigation.
Excluded from the scope of this investigation are thin film
photovoltaic products produced from amorphous silicon (a-Si),
cadmium telluride (CdTe), or copper indium gallium selenide (CIGS).
Also excluded from the scope of this investigation are
crystalline silicon photovoltaic cells, not exceeding 10,000mm\2\ in
surface area, that are permanently integrated into a consumer good
whose function is other than power generation and that consumes the
electricity generated by the integrated crystalline silicon
photovoltaic cell. Where more than one cell is permanently
integrated into a consumer good, the surface area for purposes of
this exclusion shall be the total combined surface area of all cells
that are integrated into the consumer good.
Merchandise covered by this investigation is currently
classified in the Harmonized Tariff System of the United States
(HTSUS) under subheadings 8501.61.0000, 8507.20.80, 8541.40.6020 and
8541.40.6030. These HTSUS subheadings are provided for convenience
and customs purposes; the written description of the scope of this
investigation is dispositive.
[FR Doc. 2011-29624 Filed 11-15-11; 8:45 am]
BILLING CODE 3510-DS-P