[Federal Register Volume 79, Number 246 (Tuesday, December 23, 2014)]
[Notices]
[Pages 76962-76965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30071]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-011]
Countervailing Duty Investigation of Certain Crystalline Silicon
Photovoltaic Products From the People's Republic of China: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) published the
Preliminary Determination of the countervailing duty (CVD)
investigation of certain crystalline silicon photovoltaic products
(certain solar products) from the People's Republic of China (the PRC)
on June 10, 2014.\1\ The Department determines that countervailable
subsidies are being provided to producers and exporters of certain
solar products from the PRC. For information on the estimated subsidy
rates, see the ``Suspension of Liquidation'' section of this notice.
The period of investigation (POI) is January 1, 2012, through December
31, 2012.
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\1\ See Certain Crystalline Silicon Photovoltaic Products From
the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, 79 FR 33174 (June 10, 2014)
(Preliminary Determination).
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DATES: Effective Date: December 23, 2014.
FOR FURTHER INFORMATION CONTACT: Gene Calvert or Justin Neuman, AD/CVD
Operations, Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; Phone: (202) 482-3586,
or (202) 482-0486, respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioner, SolarWorld Americas, Inc., filed its petition with
the Department on December 31, 2013, seeking the imposition of
countervailing duties on certain solar products from the PRC and we
initiated this investigation on January 29, 2014.\2\ The Department
published the Preliminary Determination on June 10, 2014. On
[[Page 76963]]
June 9, 2014, the Government of the People's Republic of China
submitted a ministerial error allegation regarding aspects of the
Preliminary Determination. On June 10, 2014, the mandatory company
respondents, Changzhou Trina Solar Energy Co., Ltd. and its cross-owned
affiliate Trina Solar (Changzhou) Science & Technology Co., Ltd.
(Collectively, Trina Solar), and Wuxi Suntech Power Co., Ltd. and its
cross-owned affiliates also submitted a ministerial error allegation.
On July 31, 2014, we aligned the final determination in this
investigation with the final determination in the companion antidumping
duty investigation on certain solar products from the PRC.\3\ On August
15, 2014, the Department rejected the Government of the People's
Republic of China's (the GOC's) June 9, 2014, ministerial error
allegation, as well as Trina Solar's and Wuxi Suntech's June 10, 2014,
submissions, explaining that their submissions were noncompliant with
the Department's procedures for submitting factual information. Trina
Solar and Wuxi Suntech each timely resubmitted their ministerial error
allegations on August 19, 2014. On August 21, 2014, the Department
determined that no ministerial errors exist with respect to Trina
Solar's and Wuxi Suntech's allegations.\4\ Between August 20 and
September 2, 2014, we conducted verification of the questionnaire
responses submitted by the GOC, Trina Solar, and Wuxi Suntech.\5\
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\2\ See Letter from Petitioner, ``Petition for the Imposition of
Antidumping and Countervailing Duties: Certain Crystalline Silicon
Photovoltaic Products from the People's Republic of China and
Taiwan,'' (December 31, 2013) (the petition); Certain Crystalline
Silicon Photovoltaic Products From the People's Republic of China:
Initiation of Countervailing Duty Investigation, 79 FR 4667 (January
29, 2014) (Initiation Notice).
\3\ See Certain Crystalline Silicon Photovoltaic Products From
the People's Republic of China: Alignment of Final Countervailing
Duty Determination With Final Antidumping Duty Determination, 79 FR
44402 (July 31, 2014).
\4\ See Department Memorandum, ``Allegations of Ministerial
Errors in the Preliminary Determination,'' (August 21, 2014).
\5\ See Department Memoranda, ``Verification of the
Questionnaire Responses Submitted by Changzhou Trina Solar Energy
Co., Ltd. and its Cross-Owned Companies,'' (October 2, 2014);
``Verification of the Questionnaire Responses Submitted by the
Government of the People's Republic of China,'' (October 3, 2014);
and ``Verification of the Questionnaire Responses Submitted by Wuxi
Suntech Power Co., Ltd. and its Cross-Owned Companies,'' (October 3,
2014).
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On October 3, 2014, in response to interested parties' comments on
the scope of this investigation, the Department announced that it was
considering the possibility of a scope clarification, described the
possible clarification, and provided interested parties with an
opportunity to submit comments on the potential clarification.\6\
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\6\ See Letter to All Interested Parties, ``Antidumping and
Countervailing Duty Investigations of Certain Crystalline Silicon
Photovoltaic Products from the People's Republic of China and the
Antidumping Duty Investigation of Certain Crystalline Silicon
Photovoltaic Products from Taiwan: Opportunity to Submit Scope
Comments,'' (October 3, 2014).
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Between October 16 and October 27, 2014, interested parties
submitted case and rebuttal briefs. We did not conduct a hearing in
this proceeding, as any requests for a hearing were timely withdrawn. A
full discussion of the issues raised by parties for this final
determination may be found in the Final Decision Memorandum.\7\ The
Final 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).\8\
ACCESS is available to registered users at http://access.trade.gov, and
is available to all parties in the Central Records Unit, room 7046 of
the main Department of Commerce building. In addition, a complete
version of the Final Decision Memorandum can be accessed directly at
http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum
and the electronic version are identical in content.
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\7\ See the Department's Memorandum to Paul Piquado, Assistant
Secretary for Enforcement and Compliance, ``Issues and Decision
Memorandum for the Final Determination in the Countervailing Duty
Investigation of Certain Crystalline Silicon Photovoltaic Products
from the People's Republic of China,'' dated concurrently with this
notice and hereby adopted by this notice (Final Decision
Memorandum).
\8\ On November 24, 2014, Enforcement and Compliance changed the
name of Enforcement and Compliance's AD and CVD Centralized
Electronic Service System (IA ACCESS) to AD and CVD Centralized
Electronic Service System (ACCESS). The Web site location was
changed from http://iaaccess.trade.gov to http://access.trade.gov.
The Final Rule changing the references to the Regulations can be
found at 79 FR 69046 (November 20, 2014).
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Scope Comments and Scope Clarification
As indicated in the ``Background'' section above, the Department
received comments regarding the scope of this investigation from
numerous interested parties. The Department summarized these comments
and addressed them in the accompanying Final Decision Memorandum.\9\ As
explained in the Final Decision Memorandum, to facilitate the scope's
administrability and enforcement, we have clarified the scope language
such that subject merchandise includes all modules, laminates and/or
panels assembled in the PRC that contain crystalline silicon
photovoltaic cells produced in a customs territory other than the
PRC.\10\ The scope of the investigation for this final determination is
below.
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\9\ See Final Decision Memorandum at Comment 1, ``Scope Comments
and Scope Clarification.''
\10\ Id.
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Scope of the Investigation
The merchandise covered by this investigation is modules, laminates
and/or panels consisting of crystalline silicon photovoltaic cells,
whether or not partially or fully assembled into other products,
including building integrated materials. For purposes of this
investigation, subject merchandise includes modules, laminates and/or
panels assembled in the PRC consisting of crystalline silicon
photovoltaic cells produced in a customs territory other than the PRC.
Subject merchandise includes modules, laminates and/or panels
assembled in the PRC consisting of 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.
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 modules, laminates
and/or panels assembled in the PRC, consisting of 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 cells. Where more than
one module, laminate and/or panel is permanently integrated into a
consumer good, the surface area for purposes of this exclusion shall be
the total combined surface area of all modules, laminates and/or panels
that are integrated into the consumer good. Further, also excluded from
the scope of this investigation are any products covered by the
existing antidumping and countervailing duty orders on crystalline
silicon photovoltaic cells, whether or not assembled into modules,
laminates and/or panels, from the PRC.\11\
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\11\ See Crystalline Silicon Photovoltaic Cells, Whether or Not
Assembled Into Modules, From the People's Republic of China: Amended
Final Determination of Sales at Less Than Fair Value, and
Antidumping Duty Order, 77 FR 73018 (December 7, 2012); Crystalline
Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules,
From the People's Republic of China: Countervailing Duty Order, 77
FR 73017 (December 7, 2012).
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[[Page 76964]]
Merchandise covered by this investigation is currently classified
in the Harmonized Tariff Schedule of the United States (HTSUS) under
subheadings 8501.61.0000, 8507.20.8030, 8507.20.8040, 8507.20.8060,
8507.20.8090, 8541.40.6020, 8541.40.6030 and 8501.31.8000. These HTSUS
subheadings are provided for convenience and customs purposes; the
written description of the scope of this investigation is dispositive.
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 Final Decision Memorandum. A list of the issues that
parties raised, and to which we responded in the Final Decision
Memorandum, is attached to this notice as an Appendix.
Use of Adverse Facts Available
The Department notes that, in making these findings, we relied, in
part, on facts available and, because one or more respondents did not
act to the best of their ability to respond to the Department's
requests for information, we drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\12\
For further information, see the section ``Use of Facts Otherwise
Available and Adverse Inferences,'' in the Final Decision Memorandum.
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\12\ See sections 776(a) and (b) of the Tariff Act of 1930, as
amended (the Act).
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Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated a rate for each company respondent. Section 705(c)(5)(A)(i)
of the Act states that, for companies not individually investigated, we
will determine an ``all others'' rate equal to the weighted-average
countervailable subsidy rates established for exporters and producers
individually investigated, excluding zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act.
In accordance with section 703(d) and 705(c)(5)(A) of the Act, for
companies not investigated, we apply an ``all others'' rate, which is
normally calculated by weighing the subsidy rates of the individual
companies selected as respondents by those companies' exports of the
subject merchandise to the United States. Under section 705(c)(5)(A)(i)
of the Act, the all others rate should exclude zero and de minimis
rates calculated for the exporters and producers individually
investigated. Where the rates for the investigated companies are all
zero or de minimis, section 705(c)(5)(A)(ii) of the Act instructs the
Department to establish an all others rate using ``any reasonable
method.'' Notwithstanding the language of section 705(c)(5)(A)(i) of
the Act, we have not calculated the all others rate by weight averaging
the rates of the two individually investigated company respondents,
because doing so risks disclosure of proprietary information.
Therefore, and consistent with the Department's practice, for the all
others rate, we calculated a simple average of the two company
respondents' rates.\13\ We determine the total estimated net
countervailable subsidy rates to be:
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\13\ See, e.g., Countervailing Duty Investigation of Chlorinated
Isocyanurates From the People's Republic of China: Preliminary
Determination and Alignment of Final Determination With Final
Antidumping Determination, 79 FR 10097 (February 24, 2014),
unchanged in Countervailing Duty Investigation of Chlorinated
Isocyanurates From the People's Republic of China: Final Affirmative
Countervailing Duty Determination, 79 FR 56560 (September 22, 2014).
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Subsidy Rate
Company (ad valorem)
(Percent)
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Wuxi Suntech Power Co., Ltd............................ 27.64
Changzhou Trina Solar Energy Co., Ltd.................. 49.79
All Others............................................. 38.72
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As a result of our Preliminary Determination, and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of merchandise
under consideration from the PRC that were entered or withdrawn from
warehouse, for consumption, on or after June 10, the date of
publication of the Preliminary Determination in the Federal Register.
In accordance with section 703(d) of the Act, we issued instructions to
CBP to discontinue the suspension of liquidation for CVD purposes for
subject merchandise entered, or withdrawn from warehouse, on or after
October 8, 2014, but to continue the suspension of liquidation of all
entries from June 10, 2014 through October 7, 2014.\14\
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\14\ See CBP's Antidumping Duty and Countervailing Duty Message
Database, http://adcvd.cbp.dhs.gov/adcvdweb/, at Message No. 4283302
(October 10, 2014).
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If the U.S. International Trade Commission (the ITC) issues a final
affirmative injury determination, we will issue a CVD order and will
reinstate the suspension of liquidation under section 706(a) of the Act
and will require a cash deposit of estimated CVDs for such entries of
subject merchandise in the amounts indicated above. If the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. 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.
Return or Destruction of Proprietary Information
In the event the ITC issues a final negative injury determination,
this notice will serve as the only reminder to parties subject to an
APO of their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/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.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: December 15, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix--Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Application of the Countervailing Duty Law to Imports from the
PRC
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
[[Page 76965]]
IX. Analysis of Comments
Comment 1: Scope Comments and Scope Clarification
Comment 2: Whether the Department Should Investigate the Effects of
the GOC's Alleged Cyberhacking on this Investigation
Comment 3: Whether Input Providers are ``Authorities'' Within the
Meaning of the Act
Comment 4: Whether the Provision of Chinese Polysilicon for LTAR is
Countervailable
Comment 5: Whether the Department Should Attribute Subsidies Under
the Provision of Polysilicon for LTAR Program to Wuxi Suntech's
Cross-owned Companies
Comment 6: Whether the Provision of Aluminum Extrusions for LTAR is
Countervailable
Comment 7: Whether the Provision of Solar Glass for LTAR is
Countervailable
Comment 8: Whether AFA is Applicable to Trina Solar's Land Purchases
Comment 9: Whether All Banks in China Offering Preferential Loans to
Respondents Constitute ``Authorities''
Comment 10: Whether the Department Should Adjust Its Benefit
Calculations for Loans Received by Wuxi Suntech and Zhenjiang Ren De
Comment 11: Whether the High or New Technology Tax Program is
Specific
Comment 12: Whether the Tax Offsets for R&D under the Enterprise
Income Tax Law Program is Specific
Comment 13: Whether the Department Should Adjust Its Benefit
Calculation for Wuxi Suntech's Use of the ``Preferential Income Tax
Program for High or New Technology Enterprises'' and for the ``Tax
Offsets for R&D under the Enterprise Income Tax Law'' Programs
Comment 14: Whether the Golden Sun Program is Countervailable
Comment 15: Whether the Department Should Countervail the
``Discovered Subsidies'' or Subsidies Discovered During the Course
of Verification
Comment 16: Whether the Department Should Apply AFA to the Ex-Im
Bank Buyer's Credit Program
Comment 17: Whether the Department Should Find Trina Solar and Wuxi
Suntech to be Uncreditworthy
Comment 18: Whether the Department Should Adjust the Sales
Denominators Used in Calculating Subsidy Benefits for Wuxi Suntech
Comment 19: Whether the Department Should Accept the Minor
Corrections Presented by Wuxi Suntech at Verification
X. Recommendation Attachment
[FR Doc. 2014-30071 Filed 12-22-14; 8:45 am]
BILLING CODE 3510-DS-P