Provisional duties on wind towers from China

Summary#

On July 20, 2023, the Canada Border Services Agency (CBSA) made preliminary findings that certain steel wind towers from the People’s Republic of China were being dumped and subsidized under the Special Import Measures Act. As a result, provisional duties can be charged on those imported towers while a full inquiry is carried out by the Canadian International Trade Tribunal (CITT).

What it does#

• Finds that certain steel utility wind towers and their sections from China are preliminarily dumped and subsidized.
• Allows provisional duties to be charged on subject goods released from CBSA custody from July 20, 2023 until the earlier of:
  • the investigations are ended,
  • the CITT makes an order or finding, or
  • an undertaking is accepted.
• Says provisional duties will not exceed the estimated margin of dumping plus the estimated subsidy.
• Identifies the main tariff classification for the goods as 7308.20.00.00, and, to a lesser extent, 8502.31.00.00 (these codes can cover both subject and non-subject goods).
• Notes the Customs Act rules apply to how duties are accounted for and paid (including interest for late payment).
• Promises a Statement of Reasons will be published on the CBSA website within 15 days of the decisions.
• Signals that the CITT will hold a full inquiry to decide whether Canadian industry has been injured; the tribunal must issue a decision within 120 days after it receives notice of the CBSA’s preliminary determinations.

Who's affected#

• Importers and shippers bringing steel wind towers from China into Canada.
• Canadian companies that make wind towers or related components (they may benefit if duties limit cheaper imports).
• Wind farm builders, operators, and utilities that buy towers (they may face higher costs or delays).
• Customs brokers, freight forwarders and lawyers who handle trade remedies and tariff classification.
• It is unclear from the notice how many shipments or what exact models are covered, because the tariff codes listed can include goods that are not subject to the finding.

Why it matters#

• Importers may have to pay provisional duties or post security, which raises the immediate cost of bringing towers from China.
• Higher costs or supply delays could affect the price and timing of wind-energy projects in Canada.
• The measure is meant to protect domestic producers from unfairly priced competition, but the full impact depends on the CITT inquiry outcome.
• The situation could change once the tribunal completes its inquiry and issues a final decision (or if an undertaking is accepted).