Feds Advance India Tile Unfair-Trade Probe

WASHINGTON – New duties on ceramic tile from India took a big step forward last week as U.S. regulators voted to continue investigations on product dumping and unfair subsidies.

The U.S. International Trade Commission (USITC), in a 4-0 vote on May 31, found that the U.S. ceramic-tile industry is “materially injured by reason of imports of ceramic tile from India.”

The action came after the Coalition for Fair Trade in Ceramic Tile (CFTCT), a group of nine U.S. tile producers, alleged unfair-trade methods by Indian manufacturers and exporters in a petition to USITC in April.

The USITC vote doesn’t institute any duties immediately. The U.S. Commerce Department’s International Trade Administration (ITA) will conduct further investigation and developing possible preliminary duties regarding anti-dumping (selling product below market value) and countervailing (government subsidies).

If the Commerce investigation finds sufficient evidence, preliminary duties on countervailing should be announced by mid-July, and on antidumping by late September. Those release dates could be extended by 60 days if needed.

The USITC held a preliminary investigation on the allegation, along with a staff conference on May 10. Florida Tile President/COO Clark Cornelius, along with other CFTCT representatives from Portobello America, Florim, and Dal-Tile supported the petition; opponents testifying against the CFTCT allegations included Rup Shah, CEO of MSI, and Larry Bedrosian, CEO of Bedrosians.

“We thank our members for their input and information conveyed to the Commission, and thank also the importers that provided information for their heartfelt recitation of their views, albeit sometimes at odds with those of the manufacturers,” said Eric Astrachan, executive director of both the Tile Council of North America (TCNA) and the CFTCT.

“As the investigation moves forward, the Department of Commerce will continue its investigation of imports to better inform all parties of the extent of dumping and government subsidies taking place,” he said. “As allowed by international law, tariffs level the playing field by offsetting otherwise injurious practices.”

The CFTCT includes Crossville Inc., Dal-Tile Corp., Del Conca USA Inc., Wonder Porcelain, Landmark Ceramics – UST Inc., Florim USA, Florida Tile, Portobello America Manufacturing LLC, and StonePeak Ceramics Inc.