On September 30, 2020, a petition was filed seeking antidumping (AD) duties on Utility Scale Wind Towers from India, Malaysia and Spain, and countervailing (CVD) duties on imports from India and Malaysia. The Wind Tower Trade Coalition (comprising Arcosa Wind Towers Inc. and Broadwind Towers, Inc.) filed the petition with the US Department of Commerce (DOC) and the US International Trade Commission (ITC).
Under US law, a domestic industry can petition the government to initiate an AD investigation into the pricing of an imported product to determine whether it is sold in the United States at less than fair value (i.e., „dumped“) and into the injurious impact of allegedly dumped imports on the domestic industry. A domestic industry can also petition for the initiation of a CVD investigation of subsidization of foreign producers by a foreign government and of the injurious impact of allegedly subsidized imports on the domestic industry. Additional duties can be imposed if DOC determines that imported goods are „dumped“ and/or subsidized and if the ITC also determines that the domestic industry is materially injured or threatened with such injury by reason of subject imports.
If the ITC and DOC make preliminary affirmative determinations, US importers will be required to post cash deposits in the amount of the AD and/or CVD duties for all entries on or after the date DOC’s preliminary determination is published in the Federal Register. The preliminary AD/CVD rates can change in the final DOC determination, especially if foreign producers and their governments participate fully in the investigations.
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.
Foreign Producers and Exporters of Subject Merchandise
A list of foreign producers and exporters, as identified by the petitioners, is provided in Attachment 1.
US Importers of Subject Merchandise
A list of US importers, as identified by the petitioners, is provided in Attachment 2.
Alleged Margins of Dumping/Subsidization
Petitioner alleges dumping margins of:
DOC generally assigns duties at the alleged dumping rates to exporters that fail to cooperate with the investigation.
No specific subsidy rates are included in the petition, which is typical.
Potential Trade Impact
According to official US import statistics, 42,193,243 kilograms of the subject merchandise, valued at $86,497,960, were imported into the United States in 2019.
Below are the quantities and values listed by country.
2019 Quantity (Kilograms)
2019 Value (USD)
Estimated Schedule of Investigations
September 30, 2020 – Petition filed
November 16, 2020 – ITC preliminary injury determination
December 24, 2020 – DOC preliminary CVD determination, if not postponed
February 12, 2021 – DOC preliminary CVD determination, if fully postponed
March 9, 2021 – DOC preliminary AD determination, if not postponed
April 28, 2021 – DOC preliminary AD determination, if fully postponed
September 10, 2021 – DOC final AD and CVD determinations, if both preliminary and final determinations are fully postponed and aligned
October 25, 2021 – ITC final injury determination, if DOC’s determinations are fully postponed
November 1, 2021 – AD/CVD orders published
If you have any questions about the petition, please contact the experienced lawyers in McDermott’s international trade group.