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New Antidumping and Countervailing Duty Petitions on Utility Scale Wind Towers from Canada, Indonesia, Korea, and Vietnam

The Wind Tower Trade Coalition (“petitioner”), on July 9, 2019, filed antidumping (AD) petitions on imports of certain utility scale wind towers from Canada, Indonesia, Korea, and Vietnam and countervailing duty (CVD) petitions on imports of certain utility scale wind towers from Canada, Indonesia, and Vietnam.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of certain utility scale wind towers.

Scope

The merchandise covered by these petitions consists of certain wind towers, whether or not tapered, and sections thereof. Certain wind towers are designed to 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 HTSUS under subheading 7308.20.00201  or 8502.31.0000.2  While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.

Alleged Dumping Margins

The petitioners allege the following dumping margins:

  • Canada: 46.32 percent to 57.70 percent

  • Indonesia: 27.23 percent to 38.58 percent

  • Korea: 350.62 percent to 422.87 percent

  • Vietnam: 79.96 percent to 109.86 percent

Estimated Schedule of Investigations

  • July 9, 2019 – Petition is filed

  • July 29, 2019 – DOC initiates investigation

  • July 30, 2019 – ITC staff conference

  • August 23, 2019 – Deadline for ITC preliminary injury determinations

  • October 2, 2019 – Deadline for DOC preliminary CVD determination, if not postponed

  • December 6, 2019 – Deadline for DOC preliminary CVD determination, if fully postponed

  • December 16, 2019 – Deadline for DOC preliminary AD determination, if not postponed

  • February 4, 2020 – Deadline for DOC preliminary AD determination, if fully postponed

  • June 18, 2020 – Deadline for DOC final AD determinations, if both preliminary and final determinations are fully postponed

  • August 3, 2020 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines


1 Wind towers of iron or steel are classified under HTSUS 7308.20.0020 when imported separately as a tower or tower section(s).
2 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).

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About this Author

Douglass Heffner, International trade lawyer, Drinker Biddle
Partner

Douglas J. Heffner litigates customs and international trade matters including antidumping duty, countervailing duty and safeguard cases. He represents foreign companies in Canada, Europe, Japan and Mexico, as well as domestic producers in industries that range from high-tech to heavy industry, to consumer and industrial goods. He also represents trade associations, government agencies and embassies in a broad range of matters.

202-230-5802
Richard P Ferrin, International Trade Lawyer, Drinker Biddle
Counsel

Richard P. Ferrin advises clients about international trade regulations, particularly antidumping and countervailing duty proceedings at both the administrative and appellate levels. He advocates for his client in global “safeguards” proceedings and on customs matters involving classification issues and country-of-origin determinations. Richard has represented foreign manufacturers, foreign exporters, and U.S. importers in antidumping and countervailing duty proceedings before the U.S. International Trade Commission, and in judicial review of administrative actions at the U.S. Court of International Trade, U.S. Court of Appeals for the Federal Circuit and North American Free Trade Agreement binational panels. In addition, Richard advises importers on how to minimize antidumping duty liability.

202-230-5803
Jared A. Angle Drinker Biddle Law Firm
International Trade Analyst

Jared A. Angle brings a wealth of experience in international trade policy and compliance issues, including antidumping/countervailing duty investigations, Department of Commerce verifications, and Section 201, 232 and 301 investigations. He provides deep analyses of trade matters for clients, leveraging his strong background in international affairs research and economics. Jared has worked with government agencies such as the U.S. International Trade Commission, Department of Commerce and U.S. Trade Representative, as well as major chemicals and...

(202) 230-5357