Composite Marble Tiles Not Ceramic, Importer Argues in Motion for Judgment

The Commerce Department's alleged unequal treatment of the parties in a scope ruling justifies judgment in favor of the importers, Elysium Tiles and Elysium Tile Florida argued in an Aug. 31 motion for judgment at the Court of International Trade. The case concerns a scope ruling issued with respect to the antidumping and countervailing duty orders on ceramic tiles from China. Elysium argues that Commerce improperly met with Florida Tile, a member of the AD/CVD petitioner Coalition of Fair Trade in Ceramic Tile (Elysium Tiles v. U.S., CIT # 23-00041).

The "exclusive" meeting with Florida Tile unfairly prejudiced the agency because information presented there couldn't have been addressed or rebutted by Elysium, the importer argued in its March 16 complaint. Commerce then compounded the misstep by failing to issue a summary of the meeting to Elysium (see 2303160033).

In addition to the alleged unfair treatment, Elysium also argues that Commerce improperly found the items to be within scope despite the "substantial operations" done to the raw materials. Elysium argued that the composite marble tile at issue is not within the scope language as written, saying that Commerce illegally "expanded the scope to incorporate marble articles within the Ceramic Tile order."

The operations performed were not minor processing operations and the marble component in the final product is both "functional" and more than "mere decoration." Therefore, the importer said, the finished composite marble tiles at issue are new and different articles of Commerce from the ceramic tile underlay with the essential character provided by the marble, which is the most valuable element.

Elysium noted the scope language, stating that "the product must be fired so the raw materials are fused to produce a finished good." The tiles at issue, they argued, are not fired, and that firing occurs only "at an early stage" on the component products. If all the raw materials in the tiles at issue were fired, they argued, "a finished good would not result and the finished good would be destroyed."

Elysium asked the court to remand the issue to Commerce with instructions to find that the tiles are outside the scope of the order and for Commerce to issue liquidation instructions to that effect.