Commerce finds dumping and subsidization of imports of utility scale wind towers from the People’s Republic of China and dumping of imports of utility scale wind towers from the Socialist Republic of Vietnam.
The AD and CVD laws provide U.S. businesses, workers, and farmers with a transparent and internationally approved mechanism to seek relief from the market distorting effects caused by injurious dumping and subsidization of imports into the United States, and thus to have an opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.
- Commerce determined that producer and exporters from China and Vietnam have sold utility scale wind towers in the United States at dumping margins of 44.99 to 70.63% and 51.50 to 58.49%, respectively.
- Commerce also determined that producers and exporters from China have received countervailable subsidies of 21.86 to 34.81%.
- In the China AD investigation, mandatory respondents Chengxi Shipyard Co., Ltd. (“CXS”) and Titan Wind Energy (Suzhou) Co., Ltd. were determined to have final dumping margins of 47.59 and 44.90%, respectively. Three other exporters qualified for a separate rate of 46.38%. All other producers and exporters from China received a final dumping margin of 70.63%.
- In the China CVD investigation, mandatory respondent CS Wind China Co., Ltd., CS Wind Tech (Shanghai) Co., Ltd., and CS Wind Corporation (collectively, CS Wind) was determined to have a final net subsidy rate of 21.86%. Mandatory respondent Titan Wind Energy (Suzhou) Co., Ltd. (Titan Wind), Titan Lianyungang Metal Product Co. Ltd. (Titan Lianyungang), Baotou Titan Wind Power Equipment Co., Ltd. (Titan Baotou), and Shenyang Titan Metal Co., Ltd. (Titan Shenyang) (collectively, Titan Companies) was determined to have a final net subsidy rate of 34.81%. All other producers and exporters from China received a final net subsidy rate of 28.34%.
- In the Vietnam AD investigation, the mandatory respondents, CS Wind Corporation and CS Wind Vietnam Co. Ltd. (collectively, CS Wind Group) were determined to have a final dumping margin of 51.50%. All other producers and exporters from Vietnam received a final dumping margin of 58.49%.
- As a result of the final AD determinations, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits equal to the applicable weighted-average dumping margins. As a result of the affirmative final CVD determination, Commerce will order the resumption of the suspension of liquidation and require a cash deposit equal to the final net subsidy rates if the U.S. International Trade Commission issues a final affirmative injury determination.
- In the CVD investigation, Commerce concluded that all producers and exporters benefited from an export subsidy. Commerce, in accordance with the statute, is required to adjust the China AD rates to account for such export subsidies. In keeping with Commerce’s practice in investigations, if Commerce orders the resumption of the suspension of liquidation and requires a cash deposit equal to the final subsidy rates, Commerce will require cash deposits in the China AD proceeding equal to the calculated dumping margins reduced by the appropriate export subsidy rates.
- The petitioner for these investigations is the Wind Tower Trade Coalition, a group comprised of Broadwind Towers, Inc. (Manitowoc, WI); DMI Industries (Fargo, ND); Katana Summit LLC (Columbus, NE); and Trinity Structural Towers, Inc. (Dallas, TX).
- Only utility scale wind towers are covered by these investigations.
- 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.
- Imports of subject merchandise are provided for under the following categories of the Harmonized Tariff Schedule of the United States (HTSUS): HTSUS 7308.20.0020 and 8502.31.0000. Some HTSUS subheadings include basket categories and may cover both subject and non-subject merchandise. Note that HTSUS code 7308.20.0000 was in effect for subject merchandise prior to 2011 and is included for historic data purposes. These HTS numbers are provided for convenience and Customs purposes only; the written description of the scope is dispositive.
- In 2011, imports of utility scale wind towers from China and Vietnam were valued at an estimated $222 million and $79 million, respectively.
In the next steps, the ITC is scheduled to make its final injury determinations on or before January 31, 2013. If the ITC makes final determinations that imports of utility scale wind towers from China, or Vietnam, or both materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes a negative determination of injury for China, or Vietnam, or both, the investigations will be terminated.
U.S. Department of Commerce
Filed Under: News, Policy, Towers