China Quartz Surface Products: Commerce Issues CV Duty Final Determination

In this final determination, Commerce is imposing new retroactive suspension of liquidation for entries from some companies (i.e., Foshan Yixin and the "all others" companies) on or after June 23, 2018, as a result of its finding of critical circumstances. That means liquidation for all Chinese companies is now suspended back to that date for CV duty purposes.

Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due June 24. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.

Commerce also issued a final determination in its concurrent AD duty investigation on quartz surface products from China, setting AD rates ranging from 265.81% to 336.69% (see 1905220024). 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, Newly Retroactive for Foshan Yixin and 'All Others'

Commerce continued to find "critical circumstances" for Fasa Industrial and Hero Stone because they increased their exports to the U.S. in the months prior to the preliminary determination, and will still direct suspension of liquidation for their entries as of June 23, 2018. The agency also newly found critical circumstances for every other exporter of quartz surface products from China, Foshan Yixin (and its unaffiliated suppliers Foshan Nanhai and Qinguan Yuefeng) and the "all others" companies. As a result, Commerce will now also direct CBP to retroactively suspend liquidation and require CV duty cash deposits for subject merchandise from Foshan Yixin and the "all others" companies as of June 23, 2018.

CV Susp/Cash Deposit Through Jan. 18

For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from June 23, 2018, through Jan. 18, 2019.

CV Liq Reinstated and No CV Cash Deposit as of Jan. 19

Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after Jan. 19, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.

Suspension of liquidation currently remains in effect for AD duty purposes.

CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued

Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Chinese exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.

(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of Jan. 19 until the date an ITC final affirmative injury determination is published in the Federal Register.)

(The period of investigation is 01/01/17 - 12/31/17. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 1809200053 for a summary of the preliminary determination of this investigation.)

(Federal Register 05/23/19)