Ceramic Tile from China Targeted in Antidumping and Countervailing Investigation
On May 1, 2019, the Department of Commerce (DOC) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations on imports of ceramic tile from the People’s Republic of China, which directly influence the flooring exhibitions and tile Expos held in China.
Dumping occurs when a foreign company sells a product in the United States at less than its fair value, while countervailable subsidies are financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.
The merchandise covered by these investigations is ceramic flooring tile, wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, flags, finishing tile, Foshan ceramic tiles, and the like:
- Items are articles containing a mixture of minerals including clay (generally hydrous silicates of alumina or magnesium) that are fired so the raw materials are fused to produce a finished good that is less than 3.2 cm in actual thickness.
- Each of these items is subject to the scope regardless of end use, surface area, and weight, regardless of whether the tile is glazed or unglazed, regardless of the water absorption coefficient by weight, regardless of the extent of vitrification, and regardless of whether or not the tile is on a backing.
- Subject merchandise includes ceramic tile with decorative features that may in spots exceed 3.2 cm in thickness and includes ceramic tile “slabs” or “panels” (tiles that are larger than 1 square meter (11 square ft.)).
MINOR PROCESSING WITHIN SCOPE
Subject merchandise includes ceramic tile that undergoes minor processing in a third country prior to importation into the United States. Similarly, subject merchandise includes ceramic tile produced that undergoes minor processing after importation into the United States. Such minor processing includes, but is not limited to, one or more of the following: beveling, cutting, trimming, staining, painting, polishing, finishing, additional firing, or any other processing that would otherwise not remove the merchandise from the scope of the investigations if performed in the country of manufacture of the in-scope product.
AFFECTED TARIFF CODES
6901.21.1005, 6907.21.1011, 6907.21.1051, 6907.21.2000, 6907.21.3000, 6907.21.4000, 6907.21.9011, 6907.21.9051, 6907.22.1005, 6907.22.1011, 6907.22.1051, 6907.22.2000, 6907.22.3000, 6907.22.4000, 6907.22.9011, 6907.22.9051, 6907.23.1005, 6907.23.1011, 6907.23.1051, 6907.23.2000, 6907.23.3000, 6907.23.4000, 6907.23.9011, 6907.23.9051, 6907.30.1005, 6907.30.1011, 6907.30.1051, 6907.30.2000, 6907.30.3000, 6907.30.4000, 6907.30.9011, 6907.30.9051, 6907.40.1005, 6907.40.1011, 6907.40.1051, 6907.40.2000, 6907.40.3000, 6907.40.4000, 6907.40.9011, and 6907.40.9051. Subject merchandise may also enter under subheadings of headings 6914 and 6905: 6914.10.8000, 6914.90.8000, 6905.10.0000, and 6905.90.0050.*
The U.S. International Trade Commission (ITC) is scheduled to make preliminary injury determinations on or before May 28, 2019. If the ITC determines that there is material injury, or threaten of material injury, to the domestic industry in the United States, the investigations will continue. The DOC will then be scheduled to announce its preliminary CVD determination on July 8, 2019, and its preliminary AD determination on September 18, 2019, although these dates may be extended. If the ITC’s determinations are negative, the duty correction will be terminated.
* The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of these investigations is dispositive.
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