Preliminary Duties on Chinese Wind Towers

Summary#

On July 20, 2023, the Canada Border Services Agency (CBSA) made preliminary findings that certain steel utility wind towers from the People’s Republic of China were being dumped and subsidized under the Special Import Measures Act. Provisional duties can be charged on those imports while the Canadian International Trade Tribunal (CITT) holds a full inquiry to decide whether Canadian industry has been injured.

What it does#

• Declares preliminary determinations of dumping and subsidizing for certain steel wind towers from China. The goods are usually classified under tariff numbers 7308.20.00.00 (and to a lesser extent 8502.31.00.00).
• Makes provisional duties payable on subject goods released from CBSA starting July 20, 2023, until the earlier of the investigation ending, a CITT order or finding, or acceptance of an undertaking.
• Limits provisional duties to at most the estimated margin of dumping plus the estimated amount of subsidy.
• Says the Customs Act rules apply for accounting, payment and interest if duties are not paid on time.
• Announces that a Statement of Reasons will be issued within 15 days and posted on the CBSA website.
• Notes that the CITT will conduct a full inquiry and must make an order or finding within 120 days after it receives notice of the preliminary determinations. The Tribunal’s inquiry schedule includes participant deadlines (for example, filings by August 4, 2023) and a hearing set to begin on October 16, 2023.

Who's affected#

• Importers and customs brokers who bring steel wind towers or tower sections from China into Canada.
• Canadian manufacturers and suppliers of wind towers and related parts who may be the subject of the injury inquiry.
• Wind project developers and owners that rely on imported towers, since provisional duties can raise landed costs.
• Parties interested in the inquiry (companies, industry groups, governments) who may participate in the CITT process.

If it’s unclear whether a particular product is covered, the CBSA’s Statement of Reasons and the Tribunal’s product definition (on their websites) are the authoritative sources.

Why it matters#

• Provisional duties mean some imports from China can become more expensive immediately. That can affect the cost and scheduling of wind farm projects that use those towers.
• The CITT inquiry could end with final duties, an order finding no injury, or acceptance of an undertaking. Any final outcome could change competitive conditions for Canadian producers and importers.
• The process is time-limited and public: a formal review is under way and more detailed reasons and schedules will be posted by the CBSA and the Tribunal.