On December 15, 2021, the European Commission imposed definitive anti-dumping duties on certain utility scale steel wind towers originating in the People's Republic of China (PRC) with Implementing Regulation 2021/2239. The European Commission expects that the anti-dumping measure will not affect the accomplishment of the EU's renewable energy and CO2 reduction targets. Romy de Jong of Ploum's Customs, Trade & Logistics team briefly discusses the measure in this blog.
The anti-dumping measure covers wind towers designed to support the nacelle and rotor blades for use in wind turbines with an electrical generating capacity, either in onshore or offshore applications, equal to or in excess of 1,00 megawatt and with, in fully assembled condition, a minimum height of 50 meters between the base of the tower and the bottom of the nacelle. The measure was imposed to protect the European wind energy industry from trade-distorting practices that the industry faces from competition from China. The definitive anti-dumping duty is set at 19,2% on the net, free-at-Union-frontier price for customs clearance for 'all other companies'. Individual duty rates ranging from 7,2% to 14,4% were imposed on three named companies. Other co-operating companies listed in the Annex will be subject to a rate of 11,2%. Regulation 2021/2239 entered into force on December 17, 2021.
A non-EU company is 'dumping' goods when it exports goods to the EU at a price lower than the normal value of a product. Dumping practices are used by exporters to improve their own market position. After a thorough investigation, the EU may decide to impose anti-dumping measures to compensate for the material injury caused by dumping and thus protect its own European industry from unfair competition from a third country. In order to impose an anti-dumping duty, the anti-dumping investigation preceding the imposition of a definitive anti-dumping duty must establish that a number of cumulative conditions have been met. For example, there must be dumping and there must be injury caused to the industry of similar products in the EU as a result. In addition, there must be a causal link between the injury and the imports of the product in question. It must also be examined whether the possible anti-dumping measure is in the interest of the EU. The substantive and procedural conditions are laid down in the Basic Anti-Dumping Duty Regulation with which all concrete anti-dumping measures must comply. To determine whether the conditions are met, the European Commission opens an anti-dumping investigation. Such an investigation is often initiated following complaints from EU producers of the product concerned.
On 21 October 2020, the European Commission initiated an anti-dumping investigation into steel wind towers from China following a complaint from European Wind Tower Association (EWTA). This complaint was filed on behalf of the EU steel wind tower industry. The European Commission investigation ran from 1 July 2019 to 30 June 2020. In the investigation, for comparison purposes, the European Commission used production costs in Mexico to determine the "normal" price for a wind tower and found that all Chinese prices were significantly lower. The investigation confirmed that wind towers from China were being imported into the EU at dumped prices of 300 million euros per year, causing material injury to the European industry. The investigation covered Chinese state-owned companies, partly state-owned companies and private manufacturers of steel wind towers.
Thus, following the conclusions on dumping, injury, causation and the interest of the EU, a definitive anti-dumping duty was imposed at the end of last year to prevent further injury to the EU industry from the dumped imports of the wind towers destined for large-scale application originating in the PRC.
The definitive anti-dumping duty has been imposed on certain utility scale steel wind towers, whether or not tapered, and sections thereof, whether assembled or not, whether or not including an embedded tower foundation section, whether or not joined with nacelles or rotor blades and that are designed to support the nacelle and rotor blades for use in wind turbines that have electrical power generation capacities – either in onshore or offshore applications – equal to or in excess of 1,00 megawatt and with a minimum height of 50 meters measured from the base of the tower to the bottom of the nacelle. The products currently fall under CN codes 7308 20 00 (TARIC code 7308 20 00 11), 7308 90 98 (TARIC code 7308 90 98 11) and, when imported as part of a wind turbine, currently falling under CN code 8502 31 00 (TARIC codes 8502 31 00 11 and 8502 31 00 85), originating in the PRC.
The European Commission expects that the anti-dumping measure on Chinese steel wind towers will not harm the achievement of the EU's renewable energy and CO2 reduction objectives, nor lead to the cancellation of wind turbine projects.
In the investigation, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), among others, had indicated that the imposition of an anti-dumping duty on Chinese wind towers would increase production costs for the wind energy sector in the EU. It would prevent member states from meeting renewable energy targets and wind turbine projects would no longer be profitable.
On the contrary, the European Commission expects the measure to contribute to the deployment of wind energy in the EU by creating a level playing field on which all market participants, including Chinese producers, can compete under fair conditions.
In addition, the European Commission has found no evidence that the measure regarding steel wind towers would lead to significant increases in energy prices for consumers in the EU.
According to the European Commission, the measure will support producers of steel wind towers in the EU and provide them with growth, job stability, revenues and investment. Importers should benefit from a large number of competitive, reliable and financially sound steel wind tower producers in the EU and from convenient lead-times that EU producers can offer due to their proximity.
The specialists of Ploum's Customs, Trade & Logistics team will be pleased to help you if you have any questions about the new anti-dumping measure on Chinese wind towers and parts. The same applies, of course, if you want to obtain legal advice about anti-dumping measures on other products, challenge an additional tax assessment for customs or antidumping duties or have other questions about international trade, customs, logistics or import and export. Due to our many years of experience in customs practice, we can support you quickly and effectively. You may contact Jikke Biermasz or Arjan Wolkers.
The specialists of Ploum's integrated Energy team closely follow the developments within the energy sector. They assist developers, investors and financiers of wind energy projects, both onshore and offshore. They also advise international and national market operators in the context of solar projects, solar on roof, solar on water, solar meadows and agricultural photovoltaics (Agri-PV). For our Energy team please contact lead partner Stephan Sluijters.
 Council Implementing Regulation (EU) 2021/2239 of 15 December 2021 imposing a definitive anti-dumping duty on imports of certain utility scale steel wind towers originating in the People’s Republic of China
 Regulation (EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union
 Article 1(2) Regulation 2021/2239
18 Sep 23
08 Sep 23
07 Aug 23
11 Jul 23
10 Jul 23
19 Jun 23
16 May 23
10 May 23
03 May 23
02 May 23
12 Apr 23
17 Mar 23
Met uw inschrijving blijft u op de hoogte van de laatste juridische ontwikkelingen op dit gebied. Vul hieronder uw gegevens in om per e-mail op te hoogte te blijven.
Stay up to date with the latest legal developments in your sector. Fill in your personal details below to receive invitations to events and legal updates that matches your interest.
*This field is requiredI already have an account
Follow what you find interesting
Receive recommendations based on your interests
We ask for your first name and last name so we can use this information when you register for a Ploum event or a Ploum academy.
A password will automatically be created for you. As soon as your account has been created you will receive this password in a welcome e-mail. You can use it to log in immediately. If you wish, you can also change this password yourself via the password forgotten function.