More Duties and Tariffs

More Duties and Tariffs

1. New AD/CV Duties Possible on Ceramic Tile from China

A petition was filed on April 11, 2019, alleging that ceramic tiles from China is being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged average dumping margins are 178.22 percent to 428.58 percent.

This petition covers ceramic tiles regardless of the percent water absorption. The covered products include porcelain tile, vitreous tile, semi-vitreous tile, and non-vitreous tile, glazed and unglazed ceramic flooring and wall tile, countertop tile, paving tile, hearth tile, porcelain tile, mosaic cubes, finishing tile, and the like, whether or not the tile is on a backing. Imports of subject goods are classified under a number of subheadings in HTSUS headings 6905, 6907, and 6914.

Ceramic tiles produced in China that undergo processing in another country, including beveling, cutting, trimming, staining, painting, polishing, finishing, or other processing, before entering the United States are also covered.

Ceramic bricks properly classified under HTSUS 6904.10.00 through 6904.90.0000 are excluded from the scope of the petition.

The Department of Commerce and the International Trade Commission are still deciding whether or not to launch an investigation on the products mentioned in the petition. There are strict statutory deadlines associated with the investigation. If you are an importer, exporter, manufacturer of the covered products, or other concerned parties, you can contact us for more information.

2. Wooden Cabinets and Vanities from China

On March 6, 2019, a petition was filed by The American Kitchen Cabinet Alliance alleging that wooden cabinets and vanities from China are being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged average dumping margins are 175.50 percent to 259.99 percent.

The goods covered by this petition are cabinets and vanities made substantially of wood products, including solid wood and engineered wood products (including those made from wood particles, fibers, or other wooden materials such as plywood, strand board, block board, particle board, or fiberboard), or bamboo. Wooden cabinets and vanities with or without wood veneers; wood, paper, or other overlays; or laminates; with or without non-wood components or trim such as metal, marble, glass, plastic, or other resins; whether or not surface finished or unfinished; and whether or not assembled or completed are included.

The covered products serve the purpose and function of permanently affixed cabinetry typically found throughout the home, including kitchen and bath cabinetry, modular vanities, and pedestal vanities (which may or may not include a top composed of stone, plastic, or other material). Covered products can also be used in places other than in a home kitchen or bathroom, such as laundry room cabinets, home office, kitchen and bathroom in commercial buildings, apartments, hotels, assisted living or healthcare facilities, or other environments.

Covered products also include component parts of cabinets and vanities, including frames; boxes (which typically include a top, bottom, sides, back, base blockers, ends/end panels, stretcher rails, toe kicks, and/or shelves); doors; drawers and drawer components (which typically include sides, backs, bottoms, and faces); back panels and end panels; and desks, shelves, and tables attached to or incorporated in the subject goods.

Wooden cabinets and vanities and in-scope components that have been further processed in a third country (including one or more of the following: trimming, cutting, notching, punching, drilling, painting, staining, finishing, assembly, or any other processing) can also be subject to the antidumping and countervailing duties.

Imports of subject goods are normally classified under HTSUS 9403.40.9060 and 9403.60.8081, and the subject component parts may be entered under HTSUS 9403.90.7080.

Commerce has initiated the investigation.  There are strict statutory deadlines associated with the investigation. If you are an importer, exporter, manufacturer of the covered products, or other concerned parties you can contact us for more information.

3. Quartz Surface Products from China Subject of New AD/CV Petition

The petition for antidumping and countervailing duty investigation concerning quartz surface products was filed on April 17, 2018. On November 20, 2018, Commerce issued a preliminary determination concerning antidumping duties (case A-570-084). Commerce also preliminarily determined that critical circumstances existed with respect to QSP from China for CQ International, Foshan Yixin Stone Co., Ltd. (Yixin Stone), and Guangzhou Hercules Quartz Stone Co., Ltd. (Hercules Quartz), all other separate rate companies and the China-wide entity.

On November 15, 2018, Commerce issued the preliminary affirmative determination of critical circumstances in the countervailing duty investigation (case C-570-085). Commerce preliminarily found that critical circumstances existed with respect to Foshan Hero Stone and Fasa Industrial, but did not exist with respect to Foshan Yixin or all-other rates companies.

The combined ADCVD rate varies from 270 – 500%.

It is expected that within the next few weeks, Commerce will issue its final determination as to antidumping, countervailing and their respective critical circumstances.

If you are an importer, exporter, manufacturer of the covered products, or other concerned parties you can contact us  for more information.

4. Possible Retaliatory Duties On Products From The European Union

The Section 301 Tariffs (aka Trump Tariffs) do not only apply to Chinese origin goods, but E.U. goods are now threatened to be subject up to 100% tariff. This threat came from a prolonged discussion on aircraft subsidies.  

A preliminary list has been published. It includes about 317 different tariff lines: from products in the aerospace sector to handbags to swordfish steaks and to guava jam. An arbitrator from the WTO is set to make a decision on the amount of countermeasures the U.S. may impose against the EU.

USTR is inviting public comments on any aspect of the proposed retaliation, including (1) products that should be retained, removed, or added; (2) how high tariffs should be raised; (3) the aggregate level of trade to be covered by additional tariffs; and (4) whether higher tariffs might harm U.S. stakeholders, including small businesses and consumers. The important dates are:

The relevant dates are as follows:

  • May 6, 2019 – Due date for submission of requests to appear at the public hearing and summary of testimony
  • May 15, 2019 – Public hearing convened by the Section 301 Committee
  • May 28, 2019 – Due date for submission of written comments, including post-hearing rebuttal comments

If you have any questions or would like to make comments to the USTR, please contact us.

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