New Trade Case on Imports of Ceramic Tile Products from China
New U.S. antidumping (“AD”) and countervailing (“CVD”) duty investigations were filed on April 10, 2019 by the Coalition for Fair Trade in Ceramic Tile (“Petitioner”) against imports of ceramic tile and vanities from China.
The merchandise subject to these investigations consists of ceramic tile, articles that contain a mixture of minerals including clay (generally hydrous silicates of alumina or magnesium) that are treated to develop a fired bond. The subject merchandise includes ceramic flooring tile, wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, finishing tile, and the like. All ceramic tile is subject to the scope regardless of whether the tile is glazed or unglazed, regardless of size, 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. Ceramic tile is covered by the scope regardless of end use, size, thickness, and weight. For the avoidance of doubt, subject merchandise includes tiles pressed as very large single pieces, up to and exceeding 5’ X 15’. The full scope of the merchandise covered is set forth below.
The petition includes AD (less than fair value) allegations against China and CVD (unfair subsidy) allegations against China. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if the imports are injuring the U.S. industry. If the ITC finds injury, then the case will move to the DOC which will calculate the preliminary AD and CVD duty margins. The DOC’s preliminary determinations are currently scheduled for July 4, 2019 (CVD) and September 17, 2019 (AD), which are the dates when importers will be charged the calculated duties upon the products’ entry in the U.S. market.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, and you would like us to provide you with additional information as it becomes available, please let us know.
The following are key facts about this trade case:
Petitioner: The Coalition for Fair Trade in Ceramic Tile. The coalition is comprised of eight U.S. ceramic tile producers: American Wonder Porcelain, Florida Tile, Inc., Crossville, Inc., Florim USA, Dal-Tile Corporation, Landmark Ceramics, Del Conca USA, Inc., and StonePeak Ceramics.
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
Alleged AD and CVD margins: Petitioner has alleged the following AD margins:
- China – AD margins ranging from 178.22% to 428.58%, with an average margin of 303.4%.
- The petition has also alleged CVD margins for China above de minimis.
Merchandise covered by the scope of the case:
The merchandise covered by this investigation include ceramic tile, regardless of the percent water absorption, including porcelain tile (0.5% or less water absorption), vitreous tile (over 0.5% to 3% water absorption), semi-vitreous tile (over 3% to 7% water absorption), and non-vitreous tile (over 7% water absorption). Subject merchandise includes 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.
Subject merchandise also includes ceramic tile produced in China that undergoes minor processing in a third country prior to importation into the United States. Similarly, subject merchandise includes ceramic tile produced in China 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, 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 (“HTSUS”) under the following subheadings of heading 6907: 6907.21.10.05, 6907.21.10.11, 6907.21.10.51, 6907.21.20.00, 6907.21.30.00, 6907.21.40.00, 6907.21.90.11, 6907.21.90.51, 6907.22.10.05, 6907.22.10.11, 6907.22.10.51, 6907.22.20.00, 6907.22.30.00, 6907.22.40.00, 6907.22.90.11, 6907.22.90.51, 6907.23.10.05, 6907.23.10.11, 6907.23.10.51, 6907.23.20.00, 6907.23.30.00, 6907.23.40.00, 6907.23.90.11, 6907.23.90.51, 6907.30.10.05, 6907.30.10.11, 6907.30.10.51, 6907.30.20.00, 6907.30.30.00, 6907.30.40.00, 6907.30.90.11, 6907.30.90.51, 6907.40.10.05, 6907.40.10.11, 6907.40.10.51, 6907.40.20.00, 6907.40.30.00, 6907.40.40.00, 6907.40.90.11, and 6907.40.90.51. Subject merchandise may also enter under subheadings of headings 6914 and 6905: 6914.10.80.00, 6914.90.80.00, 6905.10.00.00, and 6905.90.00.50. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of these investigations is dispositive.
Excluded from the scope of these investigations, are ceramic bricks properly classified under HTSUS 6904.10.00.10 through 6904.90.00.00.
While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (firstname.lastname@example.org; 202-640-6680), Kevin Williams (email@example.com; 312-985-5907) or another member of Clark Hill's International Trade Business Unit.