Utility Scale Wind Towers From Malaysia: Final Affirmative Countervailing Duty Determination, 30593-30595 [2021-12024]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Notices]
[Pages 30593-30595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12024]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-557-822]


Utility Scale Wind Towers From Malaysia: 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 Malaysia.

DATES: Applicable June 9, 2021.

FOR FURTHER INFORMATION CONTACT: Nathan James, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5305.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 2021, Commerce published the Preliminary Determination 
in this investigation in the Federal Register.\1\ The petitioner in 
this investigation is the Wind Tower Trade Coalition. In addition to 
the Government of Malaysia, the mandatory respondent in this 
investigation is CS Wind Malaysia Sdn Bhd (CS Wind).
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    \1\ See Utility Scale Wind Towers from Malaysia: Preliminary 
Affirmative Countervailing Duty Determination, 86 FR 15887 (March 
25, 2021) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum.
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination is found in the Issues and Decision 
Memorandum, which is hereby adopted by this notice.\2\ 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 https://access.trade.gov. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Utility Scale Wind Towers from Malaysia,'' dated concurrently with 
this notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

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

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 on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\3\
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    \3\ See Commerce's Letter, ``Countervailing Duty Investigation 
of Utility Scale Wind Towers from Malaysia: In Lieu of Verification 
Questionnaire,'' dated March 25, 2021.
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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. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see Appendix II of this notice.

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.\4\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \4\ 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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    In making this final determination, Commerce is relying, in part, 
on facts otherwise available pursuant to section 776(a) of the Act. For 
a full discussion of our application of facts available, see the 
Preliminary Determination \5\ and Comment 3 of the accompanying Issues 
and Decision Memorandum.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Utility 
Scale Wind Towers from Malaysia,'' dated March 19, 2021 at 7.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the record and the comments 
received from parties, we made certain changes to the countervailable 
subsidy rate calculation for CS Wind. For a discussion of these 
changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an all-others rate for 
companies not individually examined. This rate shall be an amount equal 
to the weighted average of the estimated subsidy rates established for 
those companies individually examined, excluding any rates that are 
zero, de minimis, or based entirely under section 776 of the Act.
    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for CS Wind that is not zero, de minimis, 
or based entirely on facts otherwise available. Accordingly, we have 
assigned CS Wind's subsidy rate to all

[[Page 30594]]

other producers and exporters, pursuant to section 705(c)(5)(A)(i) of 
the Act.\6\
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    \6\ CS Wind reported its sales values as public information.
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Final Determination

    Commerce determines that the following countervailable subsidy 
rates exist:

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                                                                Subsidy
                           Company                               rate
                                                               (percent)
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CS Wind Malaysia Sdn Bhd....................................        6.42
All Others..................................................        6.42
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Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of publication of this notice in the Federal 
Register, 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, we 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 March 25, 2021, the date of publication of the Preliminary 
Determination in the Federal Register.
    We are directing CBP to continue to suspend liquidation of all 
imports of the subject merchandise from Malaysia that were entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. The suspension of 
liquidation instructions will remain in effect until further notice. We 
are also directing CBP to collect countervailing duty deposits at the 
rate described above.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and require a cash deposit of estimated countervailing duties for 
such entries of subject merchandise in the amounts indicated above, in 
accordance with section 706(a) of the Act. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated, and all cash deposits will be refunded 
or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination. Because Commerce's 
final determination 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 wind towers from Malaysia 
no later than 45 days after our final determination. In addition, we 
are making available to the ITC all non-privileged and non-proprietary 
information related to this investigation. We will allow the ITC access 
to all privileged and business proprietary information in our files, 
provided the ITC confirms that it will not disclose such information, 
either publicly or under an administrative protective order (APO), 
without the written consent of the Assistant Secretary for Enforcement 
and Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the disposition 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
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 which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: June 2, 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 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 this 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Available
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether Commerce Should Determine that the Government 
of Malaysia (GOM) Duty Exemption Program Is Specific on the Basis of 
Facts Available
    Comment 2: Whether the GOM Has an Effective System in Place to 
Track Input Consumption Pursuant to 19 CFR 351.519
    Comment 3: Whether Commerce Should Revise Its Analysis of the 
Electricity for Less Than Adequate Remuneration (LTAR) Program
    Comment 4: Whether Commerce Should Select A Different Tier-One 
Benchmark to Measure the Adequacy of Remuneration for CS Wind's Land
    Comment 5: Whether Commerce Should Modify the Denominator Used 
in Its Benefit Calculations

[[Page 30595]]

    Comment 6: Whether Commerce Incorrectly Declined to Initiate an 
Investigation into the Cut-to-Length (CTL) Plate for LTAR New 
Subsidy Allegation (NSA)
VIII. Recommendation

[FR Doc. 2021-12024 Filed 6-8-21; 8:45 am]
BILLING CODE 3510-DS-P