China Ceramic Tile: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on ceramic tile from China (A-570-108/C-570-109). The CV duty investigation covers entries Jan. 1, 2018, through Dec. 31, 2018. The AD duty investigation covers entries Oct. 1, 2018, through March 31, 2019.
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized ceramic tile are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 28, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in July for CV duties and September for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the antidumping duty "China-wide rate," which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters will be available (here), and are due on or about June 7.
AD/CVD Respondent Selection
Commerce will base respondent selection in the CV duty investigation on BP import data. The agency sends quantity and value questionnaires to each potential respondent to the AD duty investigation, and will base respondent selection in these investigations on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Quantity and value questionnaires will be posted on the Commerce website. Responses are due May 20.
Scope of the AD/CVD Investigations
"The merchandise covered by this investigation is ceramic flooring tile, wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, flags, finishing tile, and the like (hereinafter ceramic tile). Ceramic tiles 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. All ceramic tile 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 [sq.] ft.)).
"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 investigation if performed in the country of manufacture of the in-scope product.
"Subject merchandise is currently classified in the Harmonized Tariff Schedule of the United States (HTS) under the following subheadings of heading 6907: 6907.21.1005, 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 HTS subheadings are provided for convenience and customs purposes only. The written description of the scope of this investigation is diapositive."
Comments on the scope of these investigations are due by May 20.
Investigations Timetable
| Event | CV Duty | AD Duty |
|---|---|---|
| Petitions filed | 04/10/19 | 04/10/19 |
| DOC initiation date | 04/30/19 | 04/30/19 |
| ITC prelim determinations* | 05/28/19 | 05/28/19 |
| DOC prelim determinations† | 07/05/19 | 09/17/19 |
| DOC final determinations† | 09/18/19 | 12/02/19 |
| ITC final determinations‡ | 11/04/19 | 01/16/20 |
| Issuance of orders+ | 11/12/20 | 01/23/20 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
The Commerce Department fact sheet on the initiation of these investigations is (here). See 1904150021 for a summary of the petition requesting these investigations.
(Federal Register 05/08/19)