Federal Register, Volume 85 Issue 129 (Monday, July 6, 2020)

[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40243-40245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14438]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-902]

Utility Scale Wind Towers from the Republic of Korea: Final
Determination of Sales at Less Than Fair Value and Final Affirmative
Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of utility scale wind towers (wind towers) from the Republic of Korea
(Korea) are being, or are likely to be, sold in the United States at
less than fair value (LTFV) for the period of investigation July 1,
2018 through June 30, 2019.

DATES: Applicable July 6, 2020.

FOR FURTHER INFORMATION CONTACT: Adam Simons or David Goldberger, 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) 482-6172 or (202)
482-4136, respectively.

SUPPLEMENTARY INFORMATION:

Background

On February 14, 2020, Commerce published in the Federal Register
the Preliminary Determination of sales at LTFV of wind towers from
Korea, in which we also postponed the final determination until June
29, 2020.\1\ We invited interested parties to comment on the
Preliminary Determination. A summary of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by parties for this final
determination, may be found in the Issues and Decision Memorandum,
which is adopted by this notice.\2\
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\1\ See Utility Scale Wind Towers from the Republic of Korea:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value and Preliminary Affirmative Determination of Critical
Circumstances, 85 FR 8560 (February 14, 2020) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Utility Scale Wind Towers from the Republic of
Korea,'' dated concurrently with, and hereby adopted by, this notice
(Issues and Decision Memorandum).
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Scope of the Investigation

The product covered by this investigation is wind towers from
Korea. For a full description of the scope of this investigation, see
the ``Scope of the Investigation'' in Appendix I of this notice.

Analysis of Comments Received

All issues raised in the case and rebuttal briefs submitted by
parties in this investigation are addressed in the Issues and Decision
Memorandum accompanying this notice. A list of the issues addressed in
the Issues and Decision Memorandum is attached to this notice as
Appendix II. The Issues and Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Issues and Decision Memorandum are identical in content.

Verification

As provided in section 782(i) of the Tariff Act of 1930, as
amended, (the Act) in February 2020, we conducted verification of the
cost information submitted by Dongkuk S&C Co., Ltd. (Dongkuk) for use
in our final determination. We used standard verification procedures,
including an examination of relevant accounting and production records,
and original source documents provided by Dongkuk.\3\ Commerce did not
conduct a sales verification.\4\
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\3\ For discussion of our verification findings, see Memorandum,
``Verification of Cost Response of Dongkuk S&C Co., Ltd. in the
Antidumping Duty Investigation of Utility Wind Towers from Republic
of Korea,'' dated April 17, 2020.
\4\ See Memorandum, ``Antidumping Duty Investigations of Utility
Scale Wind Towers from the Republic of Korea: Postponing Sales
Verification of Dongkuk S&C Co., Ltd.,'' dated February 19, 2020
(referencing postponing the sales verification due to the
coronavirus outbreak in Korea); see also Memorandum, ``Antidumping
Duty Investigations of Utility Scale Wind Towers from the Republic
of Korea: Early Conclusion of Verification,'' dated March 27, 2020
(referencing cancelling the sales verification).
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Changes Since the Preliminary Determination

Based on our analysis of the comments received and our findings at

[[Page 40244]]

verification, we made certain changes to the margin calculations for
the respondent. For a discussion of these changes, see the ``Margin
Calculations'' section of the Issues and Decision Memorandum.

All-Others Rate

Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all-other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. Commerce calculated an individual estimated weighted-average
dumping margin for Dongkuk, the only individually examined exporter/
producer in this investigation. Because the only individually
calculated margin is not zero, de minimis, or based entirely on facts
otherwise available, the estimated weighted-average dumping margin
calculated for Dongkuk is the margin assigned to all other producers
and exporters, pursuant to section 735(c)(5)(A) of the Act.

Final Affirmative Determination of Critical Circumstances

For the Preliminary Determination, in accordance with 733(e) of the
Act and 19 CFR 351.206, Commerce found that critical circumstances
exist with respect to imports of wind towers from Korea. Our final
determination remains unchanged. Accordingly, pursuant to section
735(a)(3) of the Act and 19 CFR 351.206, we continue to find that
critical circumstances exist for Dongkuk and companies covered by the
``all others'' rate. For a full description of the methodology and
results of Commerce's critical circumstances analysis, see the Issues
and Decision Memorandum.

Final Determination

The final estimated weighted-average dumping margins are as
follows:

------------------------------------------------------------------------
Weighted-
average
Exporter or producer dumping
margin
(percent)
------------------------------------------------------------------------
Dongkuk S&C Co., Ltd........................................ 5.41
All Others.................................................. 5.41
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Disclosure

We intend to disclose the calculations performed in this final
determination within five days of the date of publication of this
notice to parties in this proceeding, in accordance with 19 CFR
351.224(b).

Continuation of Suspension of Liquidation

For this final determination, for entries made by Dongkuk and the
companies covered by the all-others rate, in accordance with section
735(c)(4)(A) of the Act, because we continue to find that critical
circumstances exist, we will direct U.S. Customs and Border Protection
(CBP) to continue to suspend liquidation of all entries of subject
merchandise, as described in Appendix I of this notice, which were
entered, or withdrawn from warehouse, for consumption on or after
November 16, 2019, which is 90 days prior to the date of publication of
the preliminary determination of this investigation in the Federal
Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin as follows: (1) The cash deposit rate for the company listed in
the table above will be equal to the company-specific estimated
weighted-average dumping margin identified for that company in the
table; (2) if the exporter is not a company 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. These suspension of
liquidation instructions will remain in effect until further notice.

International Trade Commission Notification

In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) of the Act, the
ITC will make its final determination as to whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of imports, or sales (or the likelihood of
sales) for importation of wind towers from Korea no later than 45 days
after this final determination. If the ITC determines that such injury
does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue an antidumping duty order directing CBP to
assess, upon further instruction by Commerce, antidumping duties on all
imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

This notice serves as a reminder to parties subject to an
administrative protective order (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 return or destruction of APO materials, or conversion
to judicial protective order, is hereby requested. Failure to comply
with the regulations and the terms of an APO is a sanctionable
violation.

Notification to Interested Parties

This determination is issued and published pursuant to sections
735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

Dated: June 29, 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

[[Page 40245]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Margin Calculations
V. Final Affirmative Determination of Critical Circumstances
VI. Discussion of the Issues
1. Whether to Apply Total Adverse Facts Available (AFA) to
Dongkuk S&C Co., Ltd. (Dongkuk)
2. Using Constructed Value (CV) as the Basis for Normal Value
(NV)
3. Treatment of Additional Revenues for U.S. Sales
4. Treatment of Other Revenues for U.S. Sales
5. Exclusion of Pre-POI Third Country Shipment
6. Proposed Revisions to the Critical Circumstances Analysis
7. Steel Plate Cost Adjustment
8. Calculation of CV Profit and Selling Expenses
9. Calculation of the General and Administrative (G&A) and
Indirect Selling Expense Ratios
10. Treatment of Scrap Offset
VII. Recommendation

[FR Doc. 2020-14438 Filed 7-2-20; 8:45 am]
BILLING CODE 3510-DS-P