Duties on Wind Towers from China

Summary#

On October 18, 2023, the Canada Border Services Agency (CBSA) found that wind towers imported from China were being dumped and subsidized under the Special Import Measures Act. Provisional duties already in place will remain while the Canadian International Trade Tribunal (CITT) finishes a separate injury inquiry.

What it does#

• Announces final determinations that wind towers from China are being dumped and subsidized.
• Keeps provisional duties in place on those wind towers until the CITT issues its injury decision by November 17, 2023.
• Says that if the CITT finds the dumping or subsidizing has caused (or threatens to cause) injury, anti‑dumping and/or countervailing duties will be applied to future imports. In that case the importer in Canada must pay those duties.
• Notes the CBSA will publish a Statement of Reasons within 15 days of its decision.
• Lists the main tariff classifications used for the goods: 7308.20.00.00 and, where parts are imported with other turbine components, 8502.31.00.00.

Who's affected#

• Importers and customs brokers bringing wind towers from China into Canada.
• Companies buying towers in Canada (for example, wind farm developers and turbine integrators), since duties can raise the landed cost.
• Canadian manufacturers or fabricators of wind towers, who may be affected if duties change market conditions.
• The notice does not name specific companies, and it’s unclear from the notice what the final duty rates would be if applied.

Why it matters#

• If the CITT finds injury and duties are applied, wind towers from China could become more expensive to import. That can raise costs or delay wind farm projects that rely on those towers.
• The measure aims to protect Canadian producers from unfairly priced competition, while the Tribunal decides whether domestic industry was harmed.
• The CBSA’s upcoming Statement of Reasons and the CITT decision by November 17, 2023 are the next things to watch for people and businesses affected.