Ceramic Tile Subject Of Anti-Dumping & Countervailing Duty Investigation


By Pacific Customs Brokers, Pacific Customs Brokers 2019-05-09

The United States International Trade Commission (USITC), is currently investigating ceramic tile manufactured in China for possible anti-dumping (AD) and countervailing duty (CVD) measures.

U.S. China Anti-Dumping & Countervailing Background

On April 10, 2019 the Coalition for Fair Trade in Ceramic Tile, submitted a petition to the Department of Commerce (DOC) alleging the Government of China is providing Countervailable subsidies to producers of ceramic tiles in China, which allows them to sell the goods into the United States at a price that our domestic industry can not compete. In addition to the allegations cited in the petition for countervailing, the petitioners also included a petition for anti-dumping duties. The DOC determined it was likely injury to domestic industry did exist and forwarded the case to the USITC for investigation.

Scope Of The Case

The scope of the case includes the following tile that is 3.2 cm or less:

  • Ceramic flooring tile
  • Wall tile
  • Paving tile
  • Hearth tile
  • Porcelain tile
  • Mosaic tile
  • Flags
  • Finishing tile, and the like.
  • Decorative tile that may in spots exceed 3.2 cm in thickness
  • Ceramic slabs or panels that are larger than 1 meter squared

Ceramic tiles are identified as 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 included in the scope regardless of end use, surface area, and weight, glazed or unglazed, water absorption coefficient by weight, or whether or not it is affixed to a backing.

Subject merchandise is currently classified in heading 6907, and may also enter under subheadings of headings 6914 & 6905.

Ceramic Bricks correctly classified under 6904.10.0010 through 6904.90.0000, are specifically excluded from the scope of the case.

How Will This Affect Your Imports

If the Commission finds that the allegations of countervailing and anti-dumping exist they will issue a preliminary decision and establish a rate for both AD and CVD. Once the preliminary case is established entries must be entered with payment of AD/CV duties. Paying of additional duty is only one aspect of the changes you will see on your entries.

Entering goods that are subject to AD/CVD, are considered high risk as it takes several years for the entries to finalize. The preliminary rate of AD/CVD paid at the time of entry could increase once the International Trade Commission completes their investigation, which would result in an increased duty bill that the Importer of Record (IOR) must pay. In order to protect themselves the surety company that secures your continuous bond will ask for 100% collateral, in the form of a Letter of Credit (LOC) or Cash Deposit, for bonds that cover entries subject to AD/CVD duties. The surety company will keep the collateral on file until the entries for bond cycle finalize.

What Are The Alleged Dumping Margins?

The alleged average dumping margins are between 178.22% to 428.58%.

Important Dates

April 10, 2019

DOC receives petitions from Coalition for Fair Trade in Ceramic Tile

May 28, 2019

USITC must reach a preliminary determination on whether AD/CVD exists

June 4, 2019

USITC must transmit their findings to the DOC

Your Best Course Of Action

Speak to a Trade Advisor today about alternative sourcing, valuation and tariff options that could result in a lower landed cost by contacting us at [email protected] today.


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