On April 21, 2023, the Canada Border Services Agency (“CBSA”) released a notice that it was initiating investigations under the Special Import Measures Act into the alleged dumping and subsidizing of certain wind towers from China. The investigation was initiated following a complaint by Marmen Inc. and Marmen Énergie Inc., from Trois-Rivières, Québec.

According to the posted Investigation Schedule, responses to Importer and Exporter questionnaires are due May 12, 2023 and May 29, 2023 respectively! These dates are unlikely to change or be extended.  The CITT also recently announced its parallel process, with notices of participation due May 4, 2022!

CBSA states the Subject Goods are usually classified under HS Code 7308.20.00.00, but can be imported under HS Code 8502.31.00.00, particularly if other wind turbine components are included.

The Subject Goods are defined as follows:

1. Certain steel utility wind towers and sections thereof originating in or exported from the People's Republic of China.
   
   
   1. with or without flanges, doors, or internal or external components (e.g., flooring/decking/platforms, ladders, lifts, brackets, electrical busbars, electrical cabling, conduit, cable harness for nacelle generator, interior lighting, tool and storage lockers) attached or adjoined to the wind tower or section, and
      
      
   2. whether or not they are joined with non-subject merchandise, such as nacelles or rotor blades, and whether or not they have internal or external components attached to the subject merchandise,
      
      
   3. but excluding,
      
      
      1. nacelles and rotors (e.g. blades and hubs), regardless of whether they are attached to the wind tower or sections,
         
         
      2. Subject to paragraph 1.C.i., flanges, doors and internal or external components which are not attached to the wind towers or sections thereof, unless those components are shipped with the wind towers or sections and are intended to be attached to the wind tower or sections as part of its final assembly or construction,
         
         
2. For certainty and clarity,Items described at paragraph 1.A. and attached to the towers or sections thereof are part of the tower or tower sections and within scope unless specifically excluded under paragraph 1.C.,
   
   
   1. The wind towers and sections described at paragraph 1 are designed to, or capable of, supporting the nacelle and rotor blades for a wind turbine with both:
      
      
      1. a minimum rated electrical power generation capacity in excess of 100 kilowatts ("kW"), and
         
         
      2. with a minimum height of 50 meters measured from the base of the tower to the bottom of the nacelle (i.e., where the top of the tower and nacelle are joined) when fully assembled,
         
         
3. The goods described at paragraph 1.A. are a non-exhaustive list. The absence of a good from the list does not mean the good is excluded.
   
   
4. The goods described at paragraph 1.A include a kit of fabricated steel components that are designed and intended to be assembled or constructed into a wind tower or section thereof.

What Does this Mean for Me?

A CBSA Investigation is the first step of the anti-dumping process. CBSA will make a preliminary determination within 90 days, at which point provisional duties may apply. The next step will be a more fulsome investigation and final determinations by the CBSA.

Due to the short statutory deadlines, affected parties – importers, exporters, manufacturers, and Canadian users – should contact experienced Canadian legal counsel in order to determine how to respond, including how to get involved in investigation process.

Do you require assistance in this area?  If so, please click here.

Want a PDF copy of this blog?