On September 30, 2020, the Wind Tower Trade Coalition (Petitioners) filed antidumping duty (AD) petitions on utility-scale wind towers from India, Malaysia and Spain, and countervailing duty (CVD) petitions on utility-scale wind towers from India and Malaysia. The member companies of the Wind Tower Trade Coalition are Arcosa Wind Towers, Inc. and Broadwind Towers, Inc.
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 the prices and/or decreasing the supply of utility-scale wind towers.
Per the petitions:
The physical characteristics of the covered product, which define the scope, are as follows:
The merchandise covered by these petitions 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 these orders 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 these orders is dispositive.
The Petitioners allege the following dumping margins:
- India — 71.80%
- Malaysia — 55.88%
- Spain — 83.66%
The Petitioners allege significant subsidy margins for India and Malaysia, although the petition does not quantify the alleged net subsidy margins.
Estimated Schedule of Investigations
The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):
- September 30, 2020 — Petitions are filed.
- October 20, 2020 — DOC initiates investigations.
- October 21, 2020 — ITC staff conference (estimated).
- November 16, 2020 — Deadline for ITC preliminary injury determination.
- December 24, 2020 — Deadline for DOC preliminary CVD determination, if deadlines are NOT postponed.
- March 1, 2021 — Deadline for DOC preliminary CVD determinations, if deadlines are fully postponed.
- March 9, 2021 — Deadline for DOC preliminary AD determinations, if deadlines are NOT postponed.
- April 28, 2021 — Deadline for DOC preliminary AD determinations, if deadlines are fully postponed.
- September 10, 2021 — Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.
- October 25, 2021 — Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.
For further information, contact Douglas J. Heffner, Richard P. Ferrin, or any other member of the Customs and International Trade Team.