India Quartz Tariff Could Get Massive Increase
(Editor’s Note: This article was updated on July 8, 2022.)
WASHINGTON – A U.S. Commerce Department review of unfair-trade tariffs on quartz surfaces from India is recommending a stunning increase from less than 4% to more than 160% for most manufacturers.
The new duties proposed by the U.S. International Trade Administration (USITA) are an average of revised tariffs for two entities – Pokarna Engineered Stone Limited (PESL), which went to 0% from 0.33%, and a group of three Indian companies where the duties went from single digits to 323.12%.
The proposed 161.51% tariff would affect 51 Indian companies producing and/or exporting quartz surfaces to the United States. Until now, those companies pay an average of slightly more than 3%. (A list of those companies appears at the end of this article.)
The review of the India quartz-surface tariffs comes as part of a mandated annual process starting with the initial unfair-trade tariffs starting in June 2020. The U.S. International Trade Commission (USITC), a separate federal agency, imposed the tariffs as a result of a complaint filed by Cambria Company LLC.
The USITA, a division of the Commerce Department, published the notice in the July 8 edition of the Federal Register, the U.S. government’s official journal. The USITA directed that it would “preliminarily apply” the new rate on imports involving the 51 affected companies.
A 30-day period for affected companies to appeal the USITA’s review started with the Register publication. July 8 also marked the start of the 120-day period (ending Nov. 7) when the Commerce Department would issue a final version of the review and possibly make the revised tariffs permanent.
Until the final decision on the review, the higher rates will be collected as deposits, with the possibility of partial or full refunds if Commerce decides to reduce or eliminate the adjusted tariffs.
The extraordinary raise from the previous <4% tariff is a result of U.S. statutes concerning reviews. The process calls for examination of companies exporting particular goods to the United States; in this case, the USITA identified more than 50 firms. Instead of the lengthy and costly process to look closely at all the companies, the USITA opted (as provided under federal law) to limit the number of firms being examined.
Late last summer, the USITA solicited recommendations on companies to examine. Arizona Tile and M S International (MSI) advocated using the two largest (by value) quartz-surface concerns exporting to the United States: PESL (the makers of Quantra® surfaces) and the Antique Group, a combination of three companies. The Federation of Quartz Surface Industry of India, an industry group, concurred with the PESL/Antique selection.
PESL, meanwhile, argued that the USITA should look at eight to 10 of the largest companies, and Divyashakiti Granites Ltd. advised the number should be 15. Cambria indicated the USITA should select at least three companies, although federal statutes didn’t prohibit using just two.
The USITA selected PESL and the Antique Group in late September. The rest of the Indian quartz-surface companies were included in the review as “non-selected companies.”
Federal tariff statutes require that, if the examined companies are dumping products in the United States, the revised tariff would be the average margin of below-value sales. With this review, PESL showed an average dumping margin of 0 – yes, zero – and the Antique Group came in at 323.12%. This automatically led to a tariff rise to 161.56% (the average between PESL and the Antique Group) for all the other affected companies.
The Federal Register notice didn’t cite action on Indian quartz imports prior to today. However, a July 7 “draft notice” from the USITA to U.S. Customs and Border Protection would seem to indicate that the new tariff collection could also be in effect for the 51 companies with unliquidated (non-finalized) shipments from Dec. 13, 2019, to May 30, 2021 (with an exception for entries from June 10-18, 2021).
The Federal Register notice is available here: https://joom.ag/qFed
The USITA decision memorandum is here: https://joom.ag/TFed
The USITA calculation on the rates is here: https://joom.ag/nFed
The draft notice to U.S. Customs and Border Protection is here: https://joom.ag/YiCd
List of Companies Not Selected for Individual Examination
Alicante Surfaces Pvt., Ltd.
Antique Granito Shareholders Trust
Argil Ceramic Private Limited
ARO Granite Industries Limited
Asian Granito India Ltd
Baba Super Minerals Pvt. Ltd.
Camrola Quartz Limited
Chaitanya International Minerals LLP
Chariot International Pvt. Ltd.
Colors Of Rainbow
Creative Quartz LLP
Cuarzo
Divyashakti Granites Limited
Esprit Stones Pvt., Ltd.
Globalfair Technologies Pvt.
Glowstone Industries Private Limited
Gupta Marbles
Gyan Chand Lodha
Hi Elite Quartz LLP
Hilltop Stones Pvt., Ltd.
Inani Marbles and Industries Ltd.
International Stones India Private Limited
Jennex Granite Industries
Jessie Kan Granite Inc.
Keros Stone LLP
M.B. Granites Private Ltd.
Mahi Granites Private Limited.
Malbros Marbles & Granites Industries
Marudhar Rocks International Pvt. Ltd.
Mountmine Imp. & Exp. Pvt., Ltd.
P.M. Quartz Surfaces Pvt., Ltd.
Pacific Industries Limited
Pacific Quartz Surfaces LLP
Pangaea Stone International Private Ltd.
Paradigm Granite Pvt., Ltd.
Paradigm Stone India Private Limited
Pelican Quartz Stone
Quartzkraft LLP
Rocks Forever
Rose Marbles Ltd.
Safayar Ceramics Private Ltd.
Satya Exports
Southern Rocks and Minerals Private Limited
Stone Imp. & Exp. (India) Pvt., Ltd.
Stoneby India LLP
Sunex Stones Private Ltd.
Tab India Granites Pvt., Ltd.
Ultima International
Vishwas Ceramic
Vishwas Exp.
Yash Gems
