SUPPLEMENTARY INFORMATION:

Background

In accordance with sections 705(d) and 735(d) of the Tariff Act of 1930, as amended (the Act), on May 23, 2019, Commerce published its affirmative final determination of sales at less-than-fair-value (LTFV) ^[1] and its affirmative final determination that countervailable subsidies are being provided to producers and exporters of quartz surface products from China.^[2]

On June 28, 2019, the ITC notified Commerce of its final affirmative determination that an industry in the United States is materially injured by reason of LTFV imports and subsidized imports of quartz surface products from China, within the meaning of section 705(b)(1)(A)(i) and 735(b)(1)(A)(i) of the Act.^[3] On July 5, 2019, the ITC published its final determination in the Federal Register .^[4] Further, the ITC determined that critical circumstances do not exist with respect to LTFV imports and subsidized imports of quartz surface products from China.^[5]

Scope of the Orders

The products covered by these orders are quartz surface products from China. For a complete description of the scope of the orders, see Appendix I to this notice.

AD Order

On June 28, 2019, in accordance with section 735(d) of the Act, the ITC notified Commerce of its final determination that an industry in the United States is materially injured within the meaning of section 735(b)(1)(A)(i) of the Act by reason of imports of quartz surface products from China that are sold in the United States at LTFV.^[6] Therefore, in accordance with section 735(c)(2) of the Act, we are issuing this AD order. Because the ITC determined that imports of quartz surface products from China are materially injuring a U.S. industry, unliquidated entries of such merchandise from China entered, or withdrawn from warehouse, for consumption are subject to the assessment of antidumping duties, as described below.

As a result of the ITC's final determination, in accordance with section 736(a)(1) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to assess, upon further instruction by Commerce, antidumping duties equal to the amount by which the normal value of the merchandise exceeds the export price or constructed export price of the subject merchandise, for all relevant entries of quartz surface products from China. Antidumping duties will be assessed on unliquidated entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption on or after November 20, 2018, the date of publication of the LTFV Preliminary ( printed page 33054) Determination, ^[7] but will not be assessed on entries occurring after the expiration of the provisional measures period and before publication of the ITC's final affirmative injury determination as further described below.

Suspension of Liquidation—AD

In accordance with section 736 of the Act, we will instruct CBP to reinstitute suspension of liquidation on all relevant entries of quartz surface products from China, effective on the date of publication of the ITC Final Determination in the Federal Register , and to assess, upon further instruction by Commerce pursuant to section 736(a)(1) of the Act, antidumping duties for each entry of the subject merchandise equal to the amount that normal value exceeds export price or constructed export price for the subject merchandise. These instructions suspending liquidation will remain in effect until further notice. For each producer and exporter combination, Commerce will also instruct CBP to require cash deposits for estimated antidumping duties equal to the cash deposit rates listed below.

Accordingly, effective on the date of publication of the ITC Final Determination, CBP will require, at the same time as an importer of record would normally deposit estimated duties on the subject merchandise, a cash deposit based on the rates listed below.^[8] As stated in the LTFV Final Determination, Commerce made certain adjustments for export subsidies from the CVD Final Determination to the estimated weighted-average dumping margin to determine each of the cash deposit rates.

Provisional Measures—AD

Section 733(d) of the Act states that suspension of liquidation instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months, except where exporters representing a significant proportion of exports of the subject merchandise request Commerce to extend that four-month period to no more than six months. At the request of Hercules and Hero Stone, exporters that account for a significant proportion of quartz surface products from China, we extended the four-month period to six months.^[10] Commerce published its LTFV Preliminary Determination on November 20, 2018. Therefore, the extended period, beginning on the date of publication of the LTFV Preliminary Determination, ended on May 18, 2019. Pursuant to section 737(b) of the Act, the collection of cash deposits at the rate listed above will begin on July 5, 2019, the date of publication of the ITC Final Determination.

Therefore, in accordance with section 733(d) of the Act, Commerce instructed CBP to terminate the suspension of liquidation and to liquidate, without regard to antidumping duties, unliquidated entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption after May 18, 2019, the date on which the provisional measures expired, through July 4, 2019, the day preceding the date of publication of the ITC Final Determinations in the Federal Register . Suspension of liquidation will resume on July 5, 2019, the date of publication of the ITC Final Determination in the Federal Register .

Critical Circumstances—AD

With regard to the ITC's negative critical circumstances determination on LTFV imports of quartz surface products from China, we will instruct CBP to lift suspension and to refund all cash deposits made to secure the payment of estimated antidumping duties with respect to entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption on or after August 22, 2018 ( i.e., 90 days prior to the date of publication of the LTFV Preliminary Determination), but before November 20, 2018 ( i.e., the date of publication of the LTFV Preliminary Determination).

CVD Order

On June 28, 2019, in accordance with section 705(d) of the Act, the ITC notified Commerce of its final determination that an industry in the United States is materially injured within the meaning of section 705(b)(1)(A)(i) of the Act by reason of subsidized imports of quartz surface products from China.^[11] Therefore, in accordance with section 705(c)(2) of the Act, we are issuing this CVD order. Because the ITC determined that imports of quartz surface products from China are materially injuring a U.S. industry, unliquidated entries of such merchandise from China entered, or withdrawn from warehouse, for consumption are subject to the assessment of countervailing duties, as described below.

As a result of the ITC's final determination, in accordance with section 706(a)(1) of the Act, Commerce will direct CBP to assess, upon further instruction by Commerce, ( printed page 33055) countervailing duties on all relevant entries of quartz surface products from China. Countervailing duties will be assessed on unliquidated entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption on or after September 21, 2018, the date of publication of the CVD Preliminary Determination,^[12] but will not be assessed on entries occurring after the expiration of the provisional measures period and before publication of the ITC's final affirmative injury determination as further described below.

Suspension of Liquidation—CVD

In accordance with section 706 of the Act, we will instruct CBP to reinstitute suspension of liquidation on all relevant entries of quartz surface products from China, effective on the date of publication of the ITC's notice of final affirmative injury determination in the Federal Register , and to assess, upon further instruction by Commerce, pursuant to section 706(a)(1) of the Act, countervailing duties for each entry of the subject merchandise in an amount based on the net countervailable subsidy rate for the subject merchandise. These instructions suspending liquidation will remain in effect until further notice. Commerce will also instruct CBP to require cash deposits equal to the amounts as indicated below. Accordingly, effective on the date of publication of the ITC's final affirmative injury determination, CBP will require, at the same time as importers would normally deposit estimated duties on the subject merchandise, a cash deposit for each entry of subject merchandise equal to the subsidy rates listed below.^[13] The all-others rate applies to all producers or exporters not specifically listed below, as appropriate.

Provisional Measures—CVD

Section 703(d) of the Act states that suspension of liquidation instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months. Commerce published its CVD Preliminary Determination on September 21, 2018. Therefore, the provisional measures period, beginning on the date of publication of the CVD Preliminary Determination, ended on January 18, 2019. Pursuant to section 707(b) of the Act, the collection of cash deposits at the rate listed above will begin on the date of publication of the ITC's final injury determination.

Therefore, in accordance with section 703(d) of the Act, Commerce instructed CBP to terminate the suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption after January 18, 2019, the date on which the provisional measures expired, through the day preceding the date of publication of the ITC's final injury determinations in the Federal Register . Suspension of liquidation will resume on the date of publication of the ITC's final determination in the Federal Register .

Critical Circumstances—CVD

With regard to the ITC's negative critical circumstances determination on imports of quartz surface products from China, we will instruct CBP to lift suspension and to refund any cash deposits made to secure the payment of estimated countervailing duties with respect to entries of quartz surface products from China entered, or withdrawn from warehouse, for consumption on or after June 23, 2018 ( i.e., 90 days prior to the date of publication of the CVD Preliminary Determination), but before September 21, 2018 ( i.e., the date of publication of the CVD Preliminary Determination).

Notifications to Interested Parties

This notice constitutes the AD and CVD orders with respect to quartz surface products from China pursuant to sections 706(a) and 736(a) of the Act. Interested parties can find a list of orders currently in effect at http://enforcement.trade.gov/​stats/​iastats1.html.

These orders are published in accordance with sections 706(a) and 736(a) of the Act and 19 CFR 351.211(b).

Appendix I

Scope of the Orders

The scope of the orders covers certain quartz surface products.^[15] 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 orders. However, the scope of the orders 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 the orders includes surface products of all other sizes, thicknesses, and shapes. In addition to slabs, the scope of the orders 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 orders 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 orders 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 orders if performed in the country of manufacture of the quartz surface products.

The scope of the orders does not cover quarried stone surface products, such as granite, marble, soapstone, or quartzite. Specifically excluded from the scope of the orders are crushed glass surface products. Crushed glass surface products must meet each of the following criteria to qualify for this exclusion: (1) The crushed glass content is greater than any other single material, by ( printed page 33056) actual weight; (2) there are pieces of crushed glass visible across the surface of the product; (3) at least some of the individual pieces of crushed glass that are visible across the surface are larger than one centimeter wide as measured at their widest cross-section (glass pieces); and (4) the distance between any single glass piece and the closest separate glass piece does not exceed three inches.

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, and 7016.90.10. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope of the orders is dispositive.

Appendix II

84 FR 33053