Tag Archive | "tariff"

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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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]om.

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