China Quartz Surface Products: New AD/CVD Investigations Deadlines & Scope

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized quartz surface products are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due June 1, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in July for CV duties and September for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the antidumping duty "China-wide rate," which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters are available (here), and are due on or about June 15.

AD/CVD Respondent Selection

Commerce will send quantity and value questionnaires to each potential respondent to the AD duty investigation, and will base respondent selection in that investigation on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Quantity and value questionnaires are available on the Commerce website. Responses are due May 21.

For the CV duty investigation, Commerce will select respondents based on CBP import data. Commerce intends to finalize its selection of respondents by June 5.

Scope of the AD/CVD Investigations

The merchandise covered by the investigation is certain quartz surface products. Quartz surface products consist of slabs and other surfaces created from a mixture of materials that includes predominantly 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 investigation. However, the scope of the investigation only includes products where the silica content is greater than any other single material, by actual weight. Quartz surface products are typically sold as rectangular slabs with a total surface area of approximately 45 to 60 square feet and a nominal thickness of one, two or three centimeters. However, the scope of this investigation includes surface products of all other sizes, thicknesses and shapes. In addition to slabs, the scope of this investigation 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. Certain quartz surface products are covered by the investigation whether polished or unpolished, cut or uncut, fabricated or not fabricated, cured or uncured, edged or not edged, finished or unfinished, thermoformed or not thermoformed, packaged or unpackaged, and regardless of the type of surface finish.

In addition, quartz surface products are covered by the investigation whether or not they are imported attached to, or in conjunction with, non-subject merchandise such as sinks, sink bowls, vanities, cabinets and furniture. If quartz surface products are imported attached to, or in conjunction with, such non-subject merchandise, only the quartz surface product is covered by the scope.

Subject merchandise includes material matching the above description that has been finished, packaged or otherwise fabricated in a third country, including by cutting, polishing, curing, edging, thermoforming, attaching to, or packaging with another product, or any other finishing, packaging or fabrication that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the quartz surface products.

The scope of the investigation does not cover quarried stone surface products, such as granite, marble, soapstone or quartzite. Specifically excluded from the scope of the investigation are crushed glass surface products. Crushed glass surface products are surface products in which the crushed glass content is greater than any other single material, by actual weight.

The products subject to the scope are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheading: 6810.99.0010. Subject merchandise may also enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200, 6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010 and 2506.20.0080. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.

Comments on the scope of these investigations are due by May 29.

Investigations Timetable

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

The Commerce Department fact sheet on the initiation of these investigations is (here).

(Federal Register 05/16/18)