Commerce Finds Tubes for Solar Panel Tracking System Mechanical, Exempt From Circular Welded Pipe Duties

The “Torque Tubes” imported by NEXTracker are mechanical tubing exempt from antidumping and countervailing duties on circular welded carbon quality steel pipe from China (A-570-910/C-570-911), the Commerce Department said in a preliminary scope ruling. The tubing is used for mechanical purposes to turn solar panels, not as structural or standard pipe covered by the AD/CV duty orders, the agency preliminarily found. Comments on the scope ruling are due Nov. 21.

The scope of the orders on circular welded pipe says that, though standard or structural pipe “may be referred to as … mechanical tubing,” the AD/CV duties don’t cover “mechanical tubing, whether or not cold-drawn.” NEXTracker had argued its 123 types of NT Torque Tubes, used in solar panel systems to rotate solar panels to track the movement of the sun, qualify for the exemption. Commerce found no good definition of “mechanical tubing” in the scope or records from the original investigation, so the agency looked to its five-part “(k)(2)” test to determine whether the Torque Tubes qualify for the exemption.

Turning first to physical characteristics, Commerce preliminarily found the tubing is made to ASTM A-513 specifications, which describe mechanical tubing. While it also meets or exceeds the less-stringent requirements for the structural tubing standard ASTM A-500, “this does not necessarily require finding the NT Torque Tubes to be subject merchandise,” Commerce said. The tubes are also consistent with definitions for mechanical tubing from the International Trade Commission and Steel Tube Institute of North America, the agency said.

As for consumer expectations, Commerce preliminarily determined that the NT Torque Tubes are used both as a structural component of a solar panel tracking system and as a mechanical component. The tubes are load-bearing and form part of the support structure for the system. “Yet the NT Torque Tubes do more than simply support the solar panels,” also performing a mechanical function by connecting to the output shaft of a gear box and motor that functions as the drive system to rotate the NT Torque Tubes.

That mechanical function predominates, Commerce said. “Not only are NT Torque Tubes not purely structural, the essence of the entire solar panel tracking system is to rotate the solar panels to track the sun. Therefore, the lynch pin of the system is a tube suitable for this rotational function.” Even though they have structural functions, definitions of mechanical tubing say they may be used in light gauge structural applications like the solar panel tracking systems, the agency said.

Finally, regarding channels of trade and advertising, Commerce found that the NT Torque Tubes are more similar to mechanical tubing in that they are produced on a made-to-order basis, using customized specifications, and sold solely to NEXTracker. As such, like mechanical tubing, the tubes aren’t advertised.

Email ITTNews@warren-news.com for a copy of this scope ruling.