Utility Scale Wind Towers: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on utility scale wind towers from Canada, Indonesia, South Korea and Vietnam (A-122-867, A-560-833, A-580-902, A-552-825), as well as its new countervailing duty investigations on utility scale wind towers from Canada, Indonesia and Vietnam (A-122-868, A-560-834, A-552-825).

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized utility scale wind towers are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Aug. 23, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in October for CV duties and December for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CV duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

An AD duty order is already in place on utility scale wind towers from Vietnam, but CS Wind Group has been exempt from that AD duty order since 2017 after a court-ordered recalculation dropped its rate in that first investigation to zero (see 1703280012). This second AD duty investigation on utility scale wind towers from Vietnam, as well as any AD duty order issued in connection with the investigation, would only cover CS Wind Group.

Some products subject to these investigations may be subject to Section 301 tariffs on products from China covering tariff subheadings 7308.20.0020 and 8502.31.00. There are also AD/CV duty orders currently on place covering utility scale wind towers from China.

AD/CVD Respondent Selection

Commerce said it will pick respondents for its AD/CV investigations on Canada and South Korea based on CBP import data. For its AD/CV duty investigations on Indonesia, Commerce intends to select Kenertec as the sole respondent. CS Wind Group is the only company covered by the AD duty investigation on wind towers from Vietnam, and for the Vietnam CV duty investigation Commerce intends to select CS Wind Group and Metacor Vietnam Co., Ltd. as the only respondents.

Scope of the AD/CVD Investigations

The merchandise covered by these investigations 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 non-subject 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.

Further, excluded from the scope of the antidumping duty investigations are any products covered by the existing antidumping duty order on utility scale wind towers from the Socialist Republic of Vietnam. See Utility Scale Wind Towers from the Socialist Republic of Vietnam: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order, 78 FR 11150 (February 15, 2013).

Merchandise covered by these investigations 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 Start Printed Page 38221 subheadings are provided for convenience and customs purposes, the written description of the scope of the investigations is dispositive.

Comments on the scope of these investigations are due Aug. 19.

Investigations Timetable

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

The Commerce Department fact sheet on the initiation of these investigations is (here).