Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether utility scale wind towers from Canada, Indonesia, Korea, and Vietnam are being dumped in the United States, and to find if producers in Canada, Indonesia, and Vietnam are receiving unfair subsidies. Although there is already an existing AD order on utility scale wind towers from Vietnam, the petition was filed with respect to one company that was excluded from the current order.
These investigations were initiated based on petitions filed by the Wind Tower Trade Coalition, the members of which are Arcosa Wind Towers Inc. (Dallas, TX) and Broadwind Towers, Inc. (Manitowoc, WI).
The alleged dumping margins are:
- Canada – 53.63 to 61.59 percent
- Indonesia – 26.00 to 47.19 percent
- Korea – 280.69 to 331.26 percent
- Vietnam – 39.97 to 65.96 percent
There are 30 subsidy programs alleged for Canada, 8 subsidy programs alleged for Indonesia, and 24 subsidy programs alleged for Vietnam.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of utility scale wind towers from Canada, Indonesia, Korea, and/or Vietnam are causing injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2018, imports of utility scale wind towers from Canada, Indonesia, Korea, and Vietnam were valued at an estimated $60.2 million, $37.4 million, $50 million, and $21.4 million, respectively.
Click HERE for a fact sheet on these initiations.
During Commerce’s investigations into whether utility scale wind towers from Canada, Indonesia, Korea, and Vietnam are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before August 23, 2019. If the ITC preliminarily determines that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled for October 2, 2019, and preliminary AD determinations scheduled for December 16, 2019, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing utility scale wind towers from Canada, Indonesia, Korea, and Vietnam.
Final determinations by Commerce in these cases are scheduled for December 16, 2019 for the CVD investigations and March 2, 2020 for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped and/or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 179 new antidumping and countervailing duty investigations – this is a 231 percent increase from the comparable period in the previous administration.
Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 492 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.