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USITC Affirms Chinese Quartz Antidumping & Countervailing Duties, Not Retroactive

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USITC Affirms Chinese Quartz Antidumping & Countervailing Duties, Not Retroactive

Posted on 11 June 2019 by cradmin

Today, June 11, 2019, the United States International Trade Commission (USITC)  determined that the U.S. quartz surfacing industry was materially injured by reason of imports of quartz surface products from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and dumped on the U.S. market at less than fair value.

However, the USITC also made a negative finding concerning critical circumstances with regard to imports of these products from China.  As a result, imports of quartz surface products from China made prior to the initial finding will not be subject to retroactive antidumping or countervailing duties. This is a critical element, as numerous businesses could have been subject to millions in fees dating back 90 before a ruling was issued, which may have driving many businesses under.

Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative.

As a result of the USITC’s affirmative determinations, Commerce will issue final antidumping and countervailing duty orders on imports of this quartz surfacing from China on June 24. Importers of these products could be liable for antidumping duties of up to 265.81 to 333.69 percent and countervailing duties of up to 45.32 to 190.99 percent, which were the preliminary amounts. However, it is possible the final duty determinations by the Department of Commerce on June 24 may be lower than the preliminary duties.

These fees are in addition to the 25 percent tariffs put on Chinese quartz products by President Trump.

The Commission’s full public report Quartz Surface Products from China (Inv. Nos. 701-TA-606 and 731-TA-1416 (Final), USITC Publication 4913, June 2019) will be issued on or about July 18 and will be available on the USITC website at: https://www.usitc.gov/commission_publications_library. It will contain the views of the USITC and information developed during the investigations.

Importers should also be aware that some crushed glass surface products may now be included in the scope. Under a revised exclusion for such products, only those that meet each of the following criteria will not be subject to the duties: 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 these pieces are larger than one centimeter wide; and 4) the distance between any single glass piece and the closest separate glass piece does not exceed 3 in.

The full press release issued by the USITC regarding the affirmative Chinese quartz dumping and countervailing duties ruling can be found here.

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TCNA Supports Unfair Trade Petitions Against Chinese Ceramic Tile

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TCNA Supports Unfair Trade Petitions Against Chinese Ceramic Tile

Posted on 18 April 2019 by cradmin

It seems that U.S. tile manufacturers have taken a move out of the quartz producers’ playbook by filing their own petition for countervailing and anti-dumping duties against Chinese products. In this case the product is ceramic tile, which has been claimed to be dumped into the domestic market and subsidized by the government of China.

The Tile Council of North America (TCNA) has stepped up in support of the petition with a press release that includes a statement from the executive director, Eric Astrachan.

“America’s tile manufacturers are happy to compete against fairly traded imports.  We have been hammered, though, by a flood of unfairly traded imports from China.  Chinese tile producers benefit from extensive government subsidies and dump their tile into the United States at ridiculously low prices,” said Astrachan.  “Domestic manufacturers had no choice but to seek relief from the federal government from these unfairly traded imports.  The future of the U.S. industry and of our member companies’ thousands of employees and their families depends on it.”

On April 11, several of the largest producers of ceramic tile in the U.S. filed petitions for anti-dumping and countervailing duties. The anti-dumping petition was filed in hopes of the federal government issuing duties on imported Chinese ceramic tile to compensate for injurious losses incurred by domestic producers and suppliers.

The petition for countervailing duties, filed concurrently, seeks additional compensation because government subsidies allow tiles to be sold in the U.S. below market value. It is now up to the U.S. federal government to investigate whether or not the claims are true. Should the investigation turn up evidence of the petitions’ claims, preliminary duties will be imposed in only a few months. Final duties would then be imposed at the conclusion of the investigation, which lasts around 16 months.

TCNA is a trade association that represents producers of ceramic tile, tile installation products, raw materials and other tile-related products. The organization was first established in 1945 as the Tile Council of America (TCA) and converted to its current state in 2003 after expanding to Canada and Mexico.

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Cambria Files to Include Crushed Glass in Chinese Quartz Import Duties

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Cambria Files to Include Crushed Glass in Chinese Quartz Import Duties

Posted on 06 March 2019 by CRadmin2

Last month, we reported in our blog about how Chinese quartz manufacturers are abandoning traditional production and instead are manufacturing new slabs made of crushed glass to skirt the countervailing and antidumping duties on quartz. Crushed glass countertops are distinctly excluded from these duties of up to 300 percent, but now Cambria, which filed the original countervailing and antidumping petition, says this new situation is not what they had intended.

In a new petition, filed February 14, Cambria requested that the U.S. Department of Commerce (DOC) extend the deadline for submitting “factual information regarding the need to clarify the scope” of the countervailing and antidumping investigation. Cambria is asking the DOC to include new “factual information… regarding quartz glass.”

The petition seeks to differentiate between crushed glass and the aforementioned term (quartz glass), which Cambria seems to have fabricated out of thin air. According to the February 14 petition, Cambria sought to exclude surfaces that are “made predominately of crushed glass and pieces of crushed glass [that are] visible on their surfaces.”

“Chinese producers have created a new ‘quartz glass’ product that appears indistinguishable from other quartz surface products,” and Cambria did not intend that such products be excluded from the scope of the DOC investigation.

American Quartz Worker Coalition Responds

Five days after Cambria’s new petition was filed, the American Quartz Worker Coalition responded with its own petition, calling for the DOC to reject the request to re-open the factual record in the case. According to this response, filed by representatives of Arizona Tile, Bedrosians Tile & Stone, MS International, Inc. and Piedrafina Marble, Inc., should be rejected for the following reasons:

  • Petitioner’s request for an amendment to the scope is untimely and should be rejected.
  • The record and the law do not support petitioner’s request for a scope amendment.
  • Permitting petitioner to amend the scope at this very late stage would negatively impact the department’s AD/CVD investigations.

ITC Approves Cambria Petition

Despite the efforts of the American Quartz Worker Coalition, the U.S. International Trade Commission (ITC) approved Cambria’s request to allow for new information to be admitted to the record on February 26.

According to the ITC, “if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information.”

“After Consideration, for the reasons stated in the petitioner’s submission and in accordance with the Initiation Notices, Commerce is accepting the petitioner’s February 14 submission.”

Parties and stakeholders are now allowed to “submit information to rebut, clarify or correct the new factual information contained in the petitioner’s February 14 submission.”

The deadline to submit comments relevant to this “new, factual information” is 5:00 p.m. EST on March 6, 2019.

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Manufacturers, Importers, Fabricators Take Up Sides Over Quartz Antidumping Duties

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Manufacturers, Importers, Fabricators Take Up Sides Over Quartz Antidumping Duties

Posted on 26 January 2019 by cradmin

The biggest news to hit the countertop fabrication industry in 2018 was the imposition of new antidumping duties on quartz produced in China, and now stakeholders with opposing views have taken up sides by lending support to one of two groups: the Italy-based World-Wide Agglomerated Stone Manufacturers Association (A.St.A.), and the domestic group of importers and fabricators known as the American Quartz Worker Coalition.

The first organization is closely tied to the antidumping duties on Chinese quartz because one of its leading members is Cambria, the company that filed the original petition on the behalf of all domestic engineered stone producers. Among the other 13 prominent members of A.St.A. are Caesarstone, Vicostone, Cosentino, Santamargherita, RMC, Quartzforms, LG Hausys, and TopZStone.

A.St.A. took its present form as an international “association of manufacturers of agglomerated stones” in 2015, and since that time, it has grown to become a prominent organization in the countertop industry and other construction-related industries.

In December, A.St.A released an official statement reaffirming the organization’s commitment to the countervailing and antidumping duties imposed on quartz imported to the U.S. from China. Currently, the preliminary countervailing duties are 34.38 percent for most Chinese quartz imports and 178.45 percent for quartz from two particular manufacturers. The antidumping duties, announced last November also range from 242 to 341 percent.

 “A.St.A. World-Wide reaffirms its firm support of free and fair trade according to A.St.A.’s first and second articles of its statutes.

In particular, A.St.A. World-Wide supports the preliminary measures adopted by the United States Department of Commerce and by the United States International Trade Commission (USITC), as part of their investigations, to impose duties on Chinese producers to protect fair trade in the industry.

In addition, A.St.A. World-Wide considers similar measures should be adopted in other jurisdictions like the European Union to guarantee competition in equal conditions for the industry’s and of the consumers’ benefit.”

According to the statement, the organization represents 14 producers from 10 countries and 15,000 direct employees.

Cosentino also released its own statement on the matter.

“Our company stands in support of fair and free trade,” said Eduardo Cosentino, CEO of Cosentino North America and EVP Global Sales for Cosentino Group. “We fully support fair and free trade and sincerely applaud all efforts that have led to this decision and important cause. We are grateful for the opportunity to compete fairly in the United States, and with this announcement, we look forward to the restoration of a level playing field in the market.”

On the opposite end of the spectrum is a newly formed organization, the American Quartz Worker Coalition. According to a press release published January 23 of this year, the group is opposed to the duties on Chinese quartz imports, seeing the duties as “an attempt by one company, Cambria LLC, to convince the U.S. government to impose trade restrictions on imported quartz, a move designed to inflate Cambria’s profits.”

The Coalition claims to represent more than 200 U.S. fabricators and 5,000 workers across the country and believes that the duties will reduce the supply of available quartz by 50 percent, limiting consumer choice and threatening “tens of thousands of quartz-related fabricating jobs.”

“The U.S. quartz industry is an American success story,” said Matt Huarte, owner and vice president of Arizona Tile. “The industry has generated significant job growth, healthy profits and exploding sales over the past decade. Unfortunately, this success story is threatened by Cambria’s trade petition, which is simply an attempt to fatten its already high profits to the detriment of other manufacturers in the U.S. quartz industry, as well as U.S. quartz consumers.

“There are two very distinct market segments for quartz countertops in the U.S. – the luxury market and the mass market – with little competition between them,” said Rupesh Shah, co-president of MS International. “Cambria already dominates the premium luxury market with high-priced specialty products and is highly profitable as a result. U.S. fabricators, who serve the mass market and account for over 50,000 manufacturing jobs throughout all 50 states, rely on these imports to provide consumers with affordable quartz countertop products.”

“Cambria is petitioning the U.S. Government to diminish the vital role of fabricators in our industry, claiming that they play such a small and insignificant role in the industry that they should be ignored,” said Marisa Bedrosian, co-owner of Bedrosian’s Tile and Stone. “Nothing could be further from the truth. U.S. quartz fabricators are major employers and investors in this industry and, most importantly, are responsible for more U.S. labor to create quartz countertops than Cambria. It is easy to recognize the immeasurable value of our fabricators given that quartz countertops must be fabricated and installed to amount to any worth to a consumer.”

“The ‘Legend of Cambria’ is that fabricators don’t matter, and that is why we have come together to form this Coalition,” continued Bedrosian. “We will tell the real story and ensure that the facts about the entire U.S. quartz industry are heard and considered by the ITC. Hard working U.S. fabricators and other workers in our industry should be allowed to continue providing consumers with unlimited choices in quartz countertops.”

A final decision on this matter by the USITC is scheduled for May 2019.

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Next Round of Duties and Tariffs Announced on Chinese Quartz

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Next Round of Duties and Tariffs Announced on Chinese Quartz

Posted on 28 November 2018 by cradmin

Published November 20, the department of commerce made a preliminary determination that certain quartz surface products from  China are being sold in the United States at less than fair value, or dumped, and preliminary duties range from a minimum of 242.1 percent  on Suzhou Colorquartzstone New Material Co., Ltd. and Shanhai Meiyang Stone Co. Ltd., CQ International Ltd. to a maximum of 341.29 percent for “China-Wide” entities.

Click Here to read the Federal Register Notice for the Anti-dumping duties.

The new tariff is the second such fee placed on Chinese quartz imports after Cambria, a Minnesota-based manufacturer, filed a petition in April.

Assuming they stand with preliminary numbers, the final duty for this segment of the tariffs could be imposed as early as May of 2019.

Furthermore, these anti-dumping duties will be retroactively levied against any quartz from China that arrived up to 90 days before the Register publication if they are unliquidated. That means products arriving as far back as August could be hit by these fees, depending on the sales cycle, which can run as long as 300 days after the goods are imported.

These fees are in addition to preliminary countervailing duties that were also found to be warranted on September 21, with most Chinese quartz surfaces facing a 34.38 percent tariff, but a couple (namely Fasa Industrial Corp. Ltd. and Foshan Hero Stone Col. Ltd.) were pegged at a subsidy rate of 178.45 percent.

These countervailing duties must be affirmed by January 19.

Click Here to read the Federal Register Notice for the Countervailing Duties.

Additionally, the Trump administration initiated a 10 percent 301 Tariff against quartz surfacing (along with several other related products, machinery and equipment) which are set to rise to 25 percent on January 1, 2019.

So, if the anti-dumping duties, countervailing duties and tariffs all stand as preliminarily set, as early as May, the effective fee rate increases will range from a minimum of 301.48 percent to a maximum of more than 500 percent.

While no one is quite sure exactly how this will affect the American market for quartz surfacing, one research expert at Freedonia Research believes increased costs could very well curb the demand for the material. Other manufacturing companies have said they believe this could also lead to shortages in material.

Certainly demand is likely to increase for those companies manufacturing or importing quartz in countries other than China, although in the long run other lower labor cost markets, such as India or Vietnam, may have an opportunity to ramp up production and bring in lower-cost alternatives. However, it is likely to take awhile for capacity in those areas can be ramped up to meet demand.

Several fabricators we have spoken with have suggested that consumers, designers and architects may be driven to alternative products, such as granite, solid surface or emerging product categories, such as sintered compact surfaces.

Click here to read Cambria’s take on the latest duties on Chinese quartz imports.

Time will tell how this all plays out, but for now there are plenty of opinions ranging across the spectrum.

You may also be interested in these articles on the lead up to these duties/tariffs – preliminary article on Chinese quartz duties/tariffs; secondary article on Chinese quartz duties/tariffs; third article on Chinese quartz duties/tariffs.

We would love to hear your opinions and feedback on this subject. You can post in the comment section here or email us at [email protected].

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Caestarstone Falls Flat, Expects Growth in 2019

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Caestarstone Falls Flat, Expects Growth in 2019

Posted on 15 November 2018 by cradmin

Caestarstone just released the company’s financial statements for the third quarter of 2018, revealing that the period and the entire year has virtually fallen flat. However, Caesarstone is now looking to the future and expecting higher than average revenue, especially in the U.S. where Chinese quartz has been hit by antidumping duties.

Caesarstone’s revenue for the third quarter of 2018 was $147.7 million, which is a slide of 4.5 percent compared to last year. Using a constant currency scale, revenue was down by 1.9 percent, but remained stable in the U.S. with increases in Canada and Europe. Slower growth remained in Australia, Israel and the Rest of the World.

Gross margin also fell from 32.1 percent to 29.6 percent from the previous year, but this was expected because of the foreign exchange, increased complexity of products and “other manufacturing challenges,” logistics inefficiency and high raw materials costs. However, many of these factors were partially offset by the stellar manufacturing performance at the U.S. facility.

Along with revenue, operating expenses also fell from $38.7 million to $29.7 million, which is 20.3 percent of revenue.

Total operating income for the third quarter was $14 million, providing a margin of 9.5 percent. In the same quarter last year, operating income was only $11 million with a margin of 7.1 percent.

The dividend for stockholders in the third quarter was $0.15 per share.

“Our third quarter and year-to-date results do not reflect the significant potential of Caesarstone’s global market leading position and innovative product offering,” commented Yuval Dagim, CEO of Caesarstone. “We are taking steps to create a more seamless global operating model and bring the right talent to our organization at all levels. We are working to enhance our go-to-market approach by streamlining processes, time to market and decision-making processes. These factors, along with our deeper emphasis on health, safety and discipline, are critical to the ongoing evolution of our Company’s culture. Moving into 2019, we expect to better capitalize on market opportunities as we implement a steady stream of best practices and refine our strategy.”

“We delivered better than expected third quarter gross margin and Adjusted EBITDA despite lower than expected revenue. Third quarter revenues were mainly impacted by currency headwinds and challenging market conditions, which we expect to continue into the fourth quarter,” added Ophir Yakovian, CFO of Caesarstone. “While we are encouraged by the long-term benefit of recent preliminary tariffs on U.S. imports of quartz countertops from China, we are cautious on the near-term impact of the tariff given a surge in 2018 pre-buy activity that may keep U.S. inventory levels temporarily elevated, along with the undetermined effect on supply outside the U.S. Therefore, we are moderating our expectations for the full year 2018 and focusing on a range of improvements to better position our Company for success in 2019.”


Caesarstone expects 2018 revenue to fall in the range of $572 million to $578 million and states that this is because of an adverse foreign exchange market, soft market conditions and a more competitive environment.

Although the antidumping duties on Chinese quartz just began, Caesarstone expects a sizable long-term benefit for the company.

“We are encouraged by the long-term benefit of recent tariffs on U.S. imports of quartz countertops from China,” Yakovian said. “We anticipate a positive impact on our U.S. results in coming years.”

“In the near term, we are cautious, given there has been a surge in 2018 pre-buy activity ahead of the tariff,” Yakovian added. “That pre-buy will likely keep U.S. inventory levels elevated for the near term. Beyond that, we are watching closely to assess the collateral impact to International markets as Chinese producers seek to ship their product to other developed markets.”

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USDOC Responds Affirmatively in Quartz Countervailing Investigation

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USDOC Responds Affirmatively in Quartz Countervailing Investigation

Posted on 18 September 2018 by cradmin

The U.S. Department of Commerce (DOC) announced that Chinese quartz surfaces should be subject to countervailing duties (CVD), and those duties range from 34.38 percent to 178.45 percent.

Last April, Cambria filed an initial petition for countervailing and antidumping duties on quartz surfaces, finished and unfinished, imported from China. The laws concerning CVD are transparent, semi-judicial and internationally recognized, and they help U.S. businesses to seek relief from the effects of unfairly subsidized imports. This provides a level playing field on which businesses can fairly compete in the marketplace.

The preliminary CVD rate is set at 34.38 percent for most importers, including Foshan Yixin Stone Co. Ltd., but run as high as 178.45 percent for importers such as Foshan Hero Stone Co. Ltd. U.S. customs officials have been instructed to collect cash deposits from quartz exporters in China based on these rates.

The quartz surfaces the CVD covers include slabs that are primarily made of silica in a resin binder with other admixtures, such as pigment and cement. However, the silica content must be greater than any other single material by weight with no regard as to the size and dimensions of the slab. In other words, duties will be levied on all quartz products, even if they do not fit the specifications of standard slabs.

The CVD does not only cover unfinished slabs but also finished, packaged or pre-fabricated slabs that have been cut, polished, cured, edged, thermoformed or attached to another product. Quarried stone and crushed-glass surfaces where glass is the primary material are not affected by the CVD.

The next step in this process is for the DOC to make a final determination, which is scheduled for January 28, 2019. If this decision is also affirmative, it moves to the hands of the U.S. International Trade Commission (ITC) for a final injury determination. If the final decision by the DOC is negative or the injury determination by the ITC is negative, the investigation will immediately end with no CVD order being issued.

At this moment, it appears that imported quartz slabs will face duties, which will raise the wholesale and retail prices. For more information, visit the DOC website or download the DOC Fact Sheet.

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USITC Continues Investigating Quartz Antidumping Claim

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USITC Continues Investigating Quartz Antidumping Claim

Posted on 15 June 2018 by CRadmin2

In April, Cambria, the largest U.S. Manufacturer of quartz surfaces, filed a claim that China had violated antidumping laws, suggesting that strict duties be imposed on imported quartz slabs and fabricated countertops. The U.S. International Trade Commission (USITC) was compelled by law to consider whether this claim had merit by the end of the month.

On May 31, the USITC took a vote and “determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of quartz surface products from China that are allegedly subsidized and sold in the United States at less than fair value.”

This means that the U.S. Department of Commerce (DOC) will continue to investigate Cambria’s claim and will make a preliminary countervailing determination on or around July 11, 2018. Pending this proceeding, an antidumping determination is scheduled to be made around September 24, 2018.

“Dumped and subsidized Chinese imports are harming American workers, American businesses and American manufacturing,” stated Marty Davis, President and CEO of Cambria.  “We are encouraged by the actions taken thus far by both the Department of Commerce and the ITC to stop this unfair trading and restore a level playing field where we can compete fairly in a free-market economy.  The unfairly traded Chinese imports have disrupted healthy competition and threaten to gravely injure the quartz surfaces product industry at all levels of trade in the U.S.”

The Freedonia Group, a prominent industrial research company that publishes a comprehensive countertop industry outlook, also weighed in on the matter. According to the firm, China accounts for nearly half of the total quartz used in the U.S., and since 2012, imports have surged in response to growth in the engineered stone market. This has caused a slide in the market share from the leading producers, such as Cambria, Cosentino and Caesarstone.

“If antidumping and countervailing duties are imposed as expected, this will have an immediate impact on average slab prices, said Michael Hurley, an analyst for the Freedonia Group.” Hurley went on to explain that imports from China will rise in price, and the demand will increase for quartz slabs produced at with raw materials that are more expensive, which will raise average price levels.

In addition, higher material costs will make countertops made from competitive materials more attractive.

“This will slow engineered stone countertop market growth in area terms to some degree,” predicted Hurley. However, he quickly added that engineered stone will remain the fastest-growing countertop material through at least 2022.

Others believe that the Chinese will find loopholes should duties be imposed, and inexpensive quartz will continue to be available with little, if any, disruption. The jury is still out on what will actually happen should duties be imposed on Chinese quartz, but we here at CountertopResource.com will be watching this story closely and keeping you updated every step of the way.

The full report of the initial USITC investigation will be available to the public as soon as June 29 on the USITC website.

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Duties Potentially Levied Against Chinese ‘Drawn’ Stainless Steel Sinks

Posted on 07 August 2012 by cradmin

The U.S. Commerce Department issued a second preliminary anti-dumping decision in late 2012 in response to Chinese stainless steel drawn sinks. The determination was that Chinese manufacturers sold drawn stainless steel sinks in the United States at prices significantly below fair value, in violation of U.S.law and international trade rules. Prices were 54 to 77 percent below fair value. In response to this ruling, Chinese companies are required to pay cash deposits ranging from 50 to 76 percent of the customs value  on drawn stainless steel sinks imported into the United States.

In a preliminary finding in late July by the U.S. Commerce Department. Information regarding the ruling released on July 31, finds that drawn stainless steel sinks imported from China have been subsidized to the tune of 2.12 to 13.94 percent and countervailing duties will be imposed.

The ruling is the result of petitions filed in 2012 by Elkay Manufacturing Co. Oak Brook, Ill., that sought protection under anti-dumping laws, which allege sinks were produced and sold below value because of Chinese government subsidies.

U.S. Customs and Border Protection will now require cash deposits on imported sinks at ports of entry. The rates correspond to subsidies given to Chinese producers and exporters.

Guangdong Yingao Kitchen Utensils Co. Ltd. of Foshan City faces a 2.15 percent duty penalty. And sinks from Zhongshan Superte Kitchenware Co. Ltd. of Zhongshan City (including those exported by Foshan Zhaosuhn Trade Co. Ltd.) face a 13.94 percent additional duty.  All other Chinese producers will be hit with a 8.08 percent countervailing duty.

The merchandise covered by this investigation is drawn stainless steel sinks from China. Drawn stainless steel sinks are stainless steel sinks with single or multiple drawn bowls and a smooth basin with seamless, smooth, and rounded corners, including both drop-in and undermount configurations.

Specifically excluded from the scope of this investigation are stainless steel sinks with fabricated bowls. Fabricated bowls do not have seamless corners, but rather are made by notching and bending the stainless steel, and then welding and finishing the vertical corners to form the bowls. Stainless steel sinks with fabricated bowls may sometimes be referred to as “zero radius” or “near zero radius” sinks.

Final determinations set for October. If the inquries show material injury to domestic sink producers, additional countervailing duties will be levied, likely in November.

Download the official Department of Commerce Fact Sheet Here

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