China Quartz Surface Products: Commerce Issues AD Duty Final Determination
The Commerce Department issued its final determination in the antidumping duty investigation on quartz surface products from China (A-570-084). Cash deposit rates set in this final determination, as well as an expansion of the scope to cover more glass surface products, take effect May 23.
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The next step is for the International Trade Commission to make its final injury determination, currently scheduled for June 24. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.
Commerce is also issuing its final determination in the concurrent countervailing duty investigation on quartz surface products from China (see 1905220015), setting CV duty rates ranging from 45.32% to 190.99%. Collection of CV duties is currently on hold pending the ITC's final injury determination. The agency is currently considering whether to initiate AD/CV duty investigations on quartz surface products from India and Turkey.
Scope Amendment: Some 'Quartz Glass' Now Included in Scope
According to Commerce, since the beginning of these AD/CV duty investigations some Chinese companies have begun manufacturing and marketing crushed glass surface products to take advantage of an exemption for such products in the scope of these investigations, as initiated. Commerce says these companies specifically adjusted their formulas so that the products are predominantly glass, while still being quartz products, and are openly marketing that the purchaser will not have to worry about paying high tariffs if these investigations result in AD/CVD orders. To address these concerns, Commerce is narrowing the exemption for crushed glass surface products as follows:
"Specifically excluded from the scope of the investigation(s) are crushed glass surface products. Crushed glass surface products must meet each of the following criteria to qualify for this exclusion: (1) the crushed glass content is greater than any other single material, by actual weight; (2) there are pieces of crushed glass visible across the surface of the product; (3) at least some of the individual pieces of crushed glass that are visible across the surface are larger than one centimeter wide as measured at their widest cross-section (glass pieces); and (4) the distance between any single glass piece and the closest separate glass piece does not exceed three inches."
Commerce is also adding subheading 7016.90.10 to the list of tariff provisions under which subject merchandise may enter. The scope amendment takes effect May 23, so any glass surface products entered before that date may still qualify for the exclusion as previously worded.
Critical Circumstances for All Chinese Companies, Cash Deposits Retroactive 90 Days
Commerce continued to find that all Chinese exporters of steel wheels from China increased their exports to the U.S. in the months before the preliminary determination. As a result, the agency will still direct CBP to retroactively suspend liquidation and require AD duty cash deposits for subject merchandise from all Chinese companies 90 days before the preliminary determination, i.e., Aug. 22, 2018.
Suspension of liquidation and CV duty cash deposit collection is in effect even earlier, i.e., as of June 23, 2018, as a result of Commerce's finding of critical circumstances in the CV duty investigation for all Chinese companies (including a new finding of critical circumstances for Foshan Yixin and the "all others" companies from the CV duty investigation).
Estimated AD Cash Deposit Rates
Commerce will instruct CBP to suspend liquidation for AD duty purposes and collect cash deposits for subject merchandise entered on or after Aug. 22, 2018, and set cash deposit rates as follows:
| Exporter | Producer | AD Rate | Cash Deposit* |
|---|---|---|---|
| Foshan Yixin Stone Co., Ltd. | Foshan Yixin Stone Co., Ltd. | 333.09% (from 341.29%) | 295.02% (from 314.1%) |
| Foshan Yixin Stone Co., Ltd. | QingYuan Yue Feng Decoration Material Co., Ltd | 333.09% (from 341.29%) | 295.02% (from 314.1%) |
| Suzhou Colorquartzstone New Material Co., Ltd., Shanghai Meiyang Stone Co., Ltd., CQ International Limited | Suzhou Colorquartzstone New Material Co., Ltd. and Shanghai Meiyang Stone Co., Ltd. | 265.81% (from 289.62%) | 255.27% (from 262.43%) |
| Average-Rate Companies (see Commerce's notice for a full list) | 297.4% (from 290.86%) | 259.33% (from 263.67%) | |
| China-wide Entity (now includes Guangzhou Hercules) | 336.69% (from 341.29%) | 326.15% (from 314.1%) |
*As adjusted for export subsidies found in the CV duty investigation. This AD duty rate will serve as the AD duty cash deposit rate if and when CV duties are back in effect after Commerce issues its CV duty order. For now, the column marked "AD Rate" is the cash deposit rate.
(The period of investigation is 10/01/17 - 03/31/18. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 1811190018 for a summary of the preliminary determination of this investigation.)
(Federal Register 05/23/19)