Utility Scale Wind Towers From Indonesia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures, 8558-8560 [2020-02963]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 85, Number 31 (Friday, February 14, 2020)]
[Notices]
[Pages 8558-8560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02963]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-833]


Utility Scale Wind Towers From Indonesia: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Preliminary Negative 
Determination of Critical Circumstances, Postponement of Final 
Determination, and Extension of Provisional Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that utility scale wind towers (wind towers) from Indonesia are being, 
or are likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is July 1, 2018 through June 
30, 2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable February 14, 2020.

FOR FURTHER INFORMATION CONTACT: Benjamin Luberda or Brittany Bauer, 
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) 482-2185 or (202) 
482-3860, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 5, 
2019.\1\ On December 3, 2019, Commerce postponed the preliminary 
determination of this investigation; the revised deadline is now 
February 4, 2019. \2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary 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 https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Commerce building. In addition, a complete version of the Preliminary 
Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Utility Scale Wind Towers from Canada, Indonesia, the 
Republic of Korea, and the Socialist Republic of Vietnam: Initiation 
of Less-Than-Fair-Value Investigations, 84 FR 37992 (August 5, 2019) 
(Initiation Notice).
    \2\ See Utility Scale Wind Towers from Canada, Indonesia, the 
Republic of Korea, and the Socialist Republic of Vietnam: 
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 84 FR 66151 (December 3, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Utility 
Scale Wind Towers from Indonesia,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is wind towers from 
Indonesia. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. Commerce is not preliminarily modifying the scope 
language as it appeared in the Initiation Notice. See the scope in 
Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Constructed export prices have been calculated 
in accordance with section 772(b) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Negative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily finds that critical circumstances do not exist 
for PT Kenertec Power System (Kenertec) or for all other producers or 
exporters. For a full description of the methodology and results of 
Commerce's critical circumstances analysis, see the Preliminary 
Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for Kenertec, the only individually examined exporter/
producer in this investigation. Because

[[Page 8559]]

the only individually calculated dumping margin is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
weighted-average dumping margin calculated for Kenertec is the margin 
assigned to all other producers and exporters, pursuant to section 
735(c)(5)(A) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:
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    \6\ In the companion countervailing duty (CVD) investigation, 
Commerce calculated a 0.03 percent export subsidy rate for Kenertec 
and for all other producers and exporters under the program 
``Exemption from Import Income Tax Withholding for Companies in 
Bonded Zones.'' See Utility Scale Wind Towers from Indonesia: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 68109 (December 13, 2019) and accompanying 
Preliminary Decision Memorandum at 21-23. Because we determined the 
LTFV all-others rate based on Kenertec's estimated weighted-average 
dumping margin, the export subsidy offset for all other producers 
and exporters is the lesser of the export subsidy rate for Kenertec 
and the export subsidy rate for all other producers and exporters in 
the CVD preliminary determination (i.e., 0.03 percent).

------------------------------------------------------------------------
                                             Estimated     Cash deposit
                                             weighted-    rate (adjusted
            Exporter/producer                 average       for subsidy
                                          dumping margin      offset)
                                             (percent)     (percent)\6\
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PT Kenertec Power System................            6.38            6.35
All Others..............................            6.38            6.35
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin, as follows: (1) The cash deposit rate for the 
respondent listed above will be equal to the company-specific estimated 
weighted-average dumping margin determined in this preliminary 
determination; (2) if the exporter is not a respondent identified 
above, but the producer is, then the cash deposit rate will be equal to 
the company-specific estimated weighted-average dumping margin 
established for that producer of the subject merchandise; and (3) the 
cash deposit rate for all other producers and exporters will be equal 
to the all-others estimated weighted-average dumping margin.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of export subsidies countervailed in a companion 
CVD proceeding, when CVD provisional measures are in effect. 
Accordingly, where Commerce preliminarily made an affirmative 
determination for countervailable export subsidies, Commerce has offset 
the estimated weighted-average dumping margin by the appropriate CVD 
rate. Any such adjusted cash deposit rate may be found in the 
Preliminary Determination section above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting estimated 
antidumping duty cash deposits unadjusted for countervailed export 
subsidies at the time that the provisional CVD measures expire. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of the date of publication of this notice, in 
accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\7\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a

[[Page 8560]]

request for extension of provisional measures from a four-month period 
to a period not more than six months in duration.
    On January 17 and 30, 2020, pursuant to 19 CFR 351.210(e), the 
petitioner and Kenertec, respectively, requested that Commerce postpone 
the final determination, and Kenertec consented to the extension of 
provisional measures for a period not to exceed six months.\8\ In 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, Commerce 
will make its final determination no later than 135 days after the date 
of publication of this preliminary determination.
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    \8\ See Petitioner's Letter, ``Utility Scale Wind Towers from 
Canada, Indonesia, Republic of Korea and Socialist Republic of 
Vietnam: Request to Postpone Final Determination,'' dated January 
17, 2020; see also Kenertec's Letter, ``Utility Scale Wind Towers 
from Indonesia: Request to Postpone Final Determination,'' dated 
January 30, 2020.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: February 4, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain wind towers, whether or not tapered, and sections thereof. 
Certain wind towers support the nacelle and rotor blades in a wind 
turbine with a minimum rated electrical power generation capacity in 
excess of 100 kilowatts and with a minimum height of 50 meters 
measured from the base of the tower to the bottom of the nacelle 
(i.e., where the top of the tower and nacelle are joined) when fully 
assembled.
    A wind tower section consists of, at a minimum, multiple steel 
plates rolled into cylindrical or conical shapes and welded together 
(or otherwise attached) to form a steel shell, regardless of 
coating, end-finish, painting, treatment, or method of manufacture, 
and with or without flanges, doors, or internal or external 
components (e.g., flooring/decking, ladders, lifts, electrical buss 
boxes, electrical cabling, conduit, cable harness for nacelle 
generator, interior lighting, tool and storage lockers) attached to 
the wind tower section. Several wind tower sections are normally 
required to form a completed wind tower.
    Wind towers and sections thereof are included within the scope 
whether or not they are joined with nonsubject merchandise, such as 
nacelles or rotor blades, and whether or not they have internal or 
external components attached to the subject merchandise.
    Specifically excluded from the scope are nacelles and rotor 
blades, regardless of whether they are attached to the wind tower. 
Also excluded are any internal or external components which are not 
attached to the wind towers or sections thereof, unless those 
components are shipped with the tower sections.
    Merchandise covered by 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Negative Preliminary Determination of Critical Circumstances
VII. Discussion of the Methodology
VIII. Date of Sale
IX. Product Comparisons
X. Constructed Export Price
XI. Normal Value
XII. Currency Conversion
XIII. Recommendation

[FR Doc. 2020-02963 Filed 2-13-20; 8:45 am]
 BILLING CODE 3510-DS-P