Published today, November 20, 2018, the Commerce Department made a preliminary affirmative antidumping determination that common quartz surface products from China (A-570-084) is being sold in the U.S. at less than fair value. Commerce found “critical circumstances” for all Chinese companies, and will retroactively suspend liquidation and impose AD duty cash deposit requirements for all subject merchandise as of Aug. 22, 2018. Quartz surface products from China are also subject to an ongoing countervailing duty investigation. Commerce has already ordered suspension of liquidation and the collection of CV duty cash deposits for entries of merchandise subject to these investigations in its preliminary CV duty determination, issued in September, with suspension of liquidation for some companies retroactive to late June.
Quartz surface products consist of slabs and other surfaces created from a mixture of materials that includes predominately silica (e.g., quartz, quartz powder, cristobalite) as well as a resin binder (e.g., an unsaturated polyester). The incorporation of other materials, including, but not limited to, pigments, cement, or other additives does not remove the merchandise from the scope of the investigations. In addition to slabs, the scope of these investigations includes, but is not limited to, other surfaces such as countertops, backsplashes, vanity tops, bar tops, work tops, tabletops, flooring, wall facing, shower surrounds, fire place surrounds, mantels, and tiles. Quartz surface products are covered by these investigations whether or not polished, cut, fabricated, cured, edged, finished, thermal formed, packaged, and regardless of the type of surface finish.
Initiated in April 2018 by Cambria Company, LLC, a family-owned, American-made producer of natural quartz surfaces, the United States International Trade Commission (USITC) received anti-dumping and countervailing duty petitions citing concerns for the industry. The initial findings, published in May, determined reasonable indication that the U.S. industry has been materially injured by quartz surface products from China allegedly subsidized and sold in the United States at less than fair value.
TARIFFS + DUTIES
Shippers should note that AD/CVD duties are not the only thing impacting the bottom line; Section 301 tariffs are due for a 15% increase from the current 10% on imports from China starting January 1, 2019.
Section 301 Tariff (starting January 1, 2019): 25% imports from China
PLUS
Anti-Dumping Duty: 314.10%
Countervailing Duty: 34.38%
That’s 348% + 25%!
ANTI-DUMPING DETERMINATION (click to view the Federal Register notice):
Effective for entries on or after Aug. 22, 2018, Commerce will suspend liquidation, and require a cash deposit equal to the weighted average amount by which normal value exceeds U.S. price, at the following AD rates, and, where appropriate, adjusted for export subsidies and estimated domestic subsidy pass-through as indicated in the chart below:
Quartz-surfaces that arrived/arriving in the United States up to 90 days prior to Register publication (this means imports all the way back from August) and are “unliquidated” are also subject to the high anti-dumping tariffs. In a typical transaction, final liquidation doesn’t occur until up to 300 days after the goods are cleared.
COUNTERVAILING DETERMINATION (click to view the Federal Register notice):
Commerce will direct CBP to suspend liquidation of entries of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register (September 21, 2018) and require a cash deposit equal to the rates indicated below:
Shippers and project utilizing quartz stone products from China are encouraged to initiate conversations with vendors regarding price adjustments or start researching alternative sourcing options.
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