On November 17, 2023 the Canadian International Trade Tribunal ("CITT") issued its finding under the Special Import Measures Act ("SIMA") concerning certain steel utility wind towers and sections thereof from China (NQ-2023-001).
Further to the final determination of the Canada Border Service Agency (October 18, 2023), which concluded that the subject goods have been dumped and subsidized into Canada, the Tribunal has found that this dumping and subsidizing have caused injury to the domestic industry. As a consequence, definitive anti-dumping and countervailing duty measures now apply to imports of the subject goods.
The Tribunal's finding covers steel utility wind towers and sections thereof that are designed to, or capable of, supporting the nacelle and rotor blades for a wind turbine with both of the following attributes: (i) a minimum rated electrical power generation capacity in excess of 100 kilowatts; and (ii) a minimum height of 50 meters (164 feet), measured from the base of the tower to the bottom of the nacelle when fully assembled. This includes "a kit of fabricated steel components that are designed and intended to be assembled or constructed into a wind tower or section thereof".
The Tribunal's finding also covers any flanges (i.e., steel rings used to connect tower sections together), doors, and internal or external components that are either: (i) attached or adjoined to the subject wind towers; or (ii) shipped with the subject wind towers and intended to be attached as part of their final assembly or construction in Canada. The Tribunal's finding provides the following examples of such "internal or external components": flooring / decking / platforms, ladders, lifts, brackets, electrical busbars, electrical cabling, conduit, cable harness for nacelle generator, interior lighting, tool and storage lockers). As this list is not exhaustive, other internal and external components may also be covered.
Excluded from the Tribunal's finding are the nacelles and rotors of the wind towers (e.g., the rotor blades and hubs), regardless of whether they are attached to the subject goods, and any flanges, doors, and internal or external components that are imported separately and independently (e.g., as parts for existing wind towers and/or non-subject wind towers from Canada or third-countries).
Also excluded from the Tribunal's finding are subject goods "imported for installation in energy projects located west of the Ontario-Manitoba border" (i.e., in British Columbia, Yukon, Northwest Territories, Alberta, Saskatchewan, Manitoba, and Nunavut).
Three exporters of the subject goods have been issued company-specific normal values and amounts of subsidy (CS Wind China Co., Ltd.; Penglai Dajin Offshore Heavy Industry Co., Ltd.; and Shanghai Taisheng Wind Power Equipment Co., Ltd.). For imports from all other exporters, the following measures apply: an anti-dumping duty equal to 159.3% of the export price; and a countervailing duty equal to 101,292.73 CNY per section (approximately CAD $19,975 as of November 21, 2023). (see https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/wt-eng.html for more information).
The CITT is expected to issue a full statement of reasons by Monday, December 4, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
