ADCVD Quartz Surface Products from China

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ADCVD Quartz Surface Products from China

ADCVD issues are a "priority trade" issue of U.S Customs.  As a consequence, importers should monitor these ADCVD proceedings and ensure that their imports are compliance.  ADCVD is complex and nuanced area of trade law.  Please feel free to contact us if you would like additional information, or wish to seek a scope determination for your product. 

Background on “Critical Circumstances”

The investigation on quartz surface products from China was opened in May 2018.

Commerce normally suspends liquidation and requires cash deposits of estimated AD duties beginning on the date it publishes its preliminary determination, however on November 20, 2018 “critical circumstances” were found causing duty deposits to apply retroactively (90 days prior to the preliminary decision of 11/23/2018) under the statutory authority of 19 U.S.C. 1673b(e)(2), and pursuant to the ADCVD regulations at 19 C.F.R. § 351.206(a).

CBP is responsible for issuing these bills for the retroactive cash deposits attributable to this critical circumstances period. In an importer in receipt of a demand for the ADCVD duty deposits does not tender the monies, then the import specialist is required to refer the matter to the Fines Penalties and Forfeitures (FP&F) division for the initiation of a liquidated damages case against the importer. Importers who receive liquidated damages cases would be well-advised to promptly contact a firm attorney.

Scope

In the September 21, preliminary determination the scope was described as follows:

The merchandise covered by the investigation is certain quartz surface products.[fn] Quartz surface products consist of slabs and other surfaces created from a mixture of materials that includes predominately silica (e.g., quartz, quartz powder, cristobalite) as well as a resin binder (e.g., an unsaturated polyester). The incorporation of other materials, including, but not limited to, pigments, cement, or other additives does not remove the merchandise from the scope of the investigation. However, the scope of the investigation only includes products where the silica content is greater than any other single material, by actual weight. Quartz surface products are typically sold as rectangular slabs with a total surface area of approximately 45 to 60 square feet and a nominal thickness of one, two, or three centimeters. However, the scope of this investigation includes surface products of all other sizes, thicknesses, and shapes. In addition to slabs, the scope of this investigation includes, but is not limited to, other surfaces such as countertops, backsplashes, vanity tops, bar tops, work tops, tabletops, flooring, wall facing, shower surrounds, fire place surrounds, mantels, and tiles. Certain quartz surface products are covered by the investigation whether polished or unpolished, cut or uncut, fabricated or not fabricated, cured or uncured, edged or not edged, finished or unfinished, thermoformed or not thermoformed, packaged or unpackaged, and regardless of the type of surface finish.

In addition, quartz surface products are covered by the investigation whether or not they are imported attached to, or in conjunction with, non-subject merchandise such as sinks, sink bowls, vanities, cabinets, and furniture. If quartz surface products are imported attached to, or in conjunction with, such non-subject merchandise, only the quartz surface product is covered by the scope.

Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise fabricated in a third country, including by cutting, polishing, curing, edging, thermoforming, attaching to, or packaging with another product, or any other finishing, packaging, or fabrication that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the quartz surface products.

The scope of the investigation does not cover quarried stone surface products, such as granite, marble, soapstone, or quartzite. Specifically excluded from the scope of the investigation are crushed glass surface products. Crushed glass surface products are surface products in which the crushed glass content is greater than any other single material, by actual weight.

The products subject to the scope are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheading: 6810.99.0010. Subject merchandise may also enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200, 6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010, 2506.20.0080. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.

 

Curated News on Quartz Surface Products from China

February 11, 2019: CBP: Message No: 9042301: Change in cash deposits: preliminary ADD determination: quartz from China (A-570-084).

February 6, 2019: ITC: Final Amended Schedule: Quartz.

January 30, 2019: CBP: Message No: 9030313: Termination of suspension of liquidation: CVD quartz from China (C-570-085).

November 26, 2018: CBP: Message No: 8330301: DOC preliminary determination: quartz from China (A-570-084; critical circumstances).

November 20, 2018: ITC Final Schedule: Quartz.

November 20, 2018: ITA: 83 FR 58540: Certain Quartz Surface Products from China: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination.

November 15, 2018: CBP: Message No: 8319305: DOC preliminary affirmative determination of critical circumstances: quartz from China (C-570-085).

November 15, 2018: ITA: 83 FR 57419: Quartz from China: Preliminary Affirmative Determination of Critical Circumstances, in part, in the Countervailing Duty Investigation.

September 21, 2018: ITA: 83 FR 47881: Certain Quartz Surface Products From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination

May 31, 2018: ITC: Preliminary determination: Quartz.

May 17, 2018: CBP: Initiation of ADD and CVD duty investigations of certain quartz surface products from China (A-570-084 and C-570-085).

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