U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Utility Scale Wind Towers from India, Malaysia, and Spain
For Immediate Release
November 10, 2020
Contact: Office of Public Affairs
WASHINGTON - Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations of utility scale wind towers from India, Malaysia, and Spain (AD only).
The petitions were filed by the Wind Tower Trade Coalition, whose members are Arcosa Wind Towers, Inc. (Dallas, TX) and Broadwind Towers, Inc. (Manitowoc, WI).
In the AD investigations, Commerce will determine whether utility scale wind towers from these three countries are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
- 54.03 percent for India;
- 93.83 percent for Malaysia; and
- 73.00 percent for Spain.
In the CVD investigations, Commerce will determine whether producers of utility scale wind towers in India and Malaysia are receiving unfair government subsidies.
For India, Commerce initiated an investigation on 69 subsidy programs, including the provision of goods for and services for less than adequate remuneration (LTAR), direct/indirect tax programs, export subsidies, energy and resource subsidies, loans, and grant programs.
For Malaysia, Commerce initiated an investigation on seven subsidy programs, including LTAR programs, direct/indirect tax programs, a preferential lending program, a grant program, and a program relating to subsidies to producers of wind tower inputs.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized utility scale wind towers from India, Malaysia, and/or Spain materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2019, utility scale wind towers were valued at:
- $29 million for India;
- $27 million for Malaysia; and
- $21.7 million for Spain.
Read the fact sheet on these initiations.
During Commerce’s investigations into whether utility scale wind towers from India, Malaysia, and Spain are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether these imports injure or threaten to injure the U.S. industry and its workforce. The ITC will make its preliminary determinations on or before December 4, 2020. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled for January 13, 2021, and the preliminary AD determinations scheduled for March 29, 2021. Both of these deadlines may be extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing utility scale wind towers from these countries, as appropriate.
Final determinations by Commerce are scheduled for March 29, 2021, for the CVD investigations, and June 14, 2021, for the AD investigations, although these deadlines may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 302 new AD and CVD investigations – a 278 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 539 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits their production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.