WASHINGTON, DC — The U.S. Commerce Dept. will initiate antidumping and countervailing duty investigations into charges that Chinese imports of ceramic and porcelain tile are subsidized by the Chinese government and sold in the U.S. at less than fair market value.
Commerce Dept. officials last month announced their preliminary decision in the trade case, weeks after the U.S. International Trade Commission (ITC) determined that there is a reasonable indication that U.S. suppliers are materially injured (or threatened) by reason of the imports.
The antidumping and countervailing duty investigations were initiated by trade officials based on an unfair-trade petition filed in April by the “Coalition for Fair Trade in Ceramic Tile,” a U.S. manufacturing alliance that includes American Wonder Porcelain, Florida Tile, Crossville, Florim USA, Dal-Tile Corp., Landmark Ceramics, Del Conca USA and StonePeak Ceramics.
The eight-member coalition, which claims the imports are causing injury and damage to the domestic ceramic tile manufacturing industry, is pushing trade officials to impose unfair-trade penalties on Chinese imports of ceramic and porcelain tiles, as well as mosaics and decorative tiles commonly used for countertops, flooring, walls and other kitchen/bath applications.
The unfair-trade case, mirroring similar cases in other kitchen/bath product sectors – including cabinets and vanities – has led to sharp divisions between industry alliances who have lined up on opposite sides of the issue.
For example, in response to the Coalition for Fair Trade in Ceramic Tile petition, a coalition called the Ceramic Tile Alliance – a broad-based organization of North American importers, distributors, retailers and design professionals – announced it was strongly opposed to the potential duties, charging that, if imposed, they would jeopardize the long-term health and growth of the entire ceramic tile industry, benefitting domestic ceramic tile manufacturers at the expense of ceramic tile distributors, retailers, installers and design professionals.
Foreign companies that price their products in the U.S. market below “normal” market value are subject to antidumping duties. Companies that receive subsidies from foreign governments are subject to countervailing duties aimed at countering the subsidies.
For both duties to be imposed, trade officials must determine not only that dumping and/or Chinese-government subsidies are occurring, as charged, but also that there is material injury due to the imports. Importers are liable for any duties imposed.
According to the Commerce Dept., imports of ceramic tile from China were valued at an estimated $483.1 million in 2018. There are 45 government-subsidized programs alleged in the China countervailing duty probe, including lending, tax and grant programs, the Commerce Dept. said.
A preliminary antidumping duty determination is expected in late September, Commerce Dept. officials said.
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