U.S. Importer Hit with China Quartz Tariffs

WASHINGTON – A hard-surfaces importer’s attempt to avoid large unfair-trade duties on Chinese-made quartz products ran afoul of U.S. Customs and Border Production (CBP).

Oakland, Calif-based Vanguard Trading Company LLC will be paying 300%-plus duties on its Luccaire® surfaces and come under additional scrutiny with future shipments, according to a CBP affirmative determination in mid-June under the federal Enforce and Protect Act (EAPA).

The action came after a complaint filed last July with the CBP by LeSueur, Minn.-based Cambria Company LLC. It’s one of a number of EAPA investigations initiated through Cambria, with at least three more in process.

Unlike other EAPA investigations, however, the Vanguard investigation didn’t focus on alleged mislabling of product origin (or transshipping). Instead, the CBP looked closely at the material mix of the surfaces in question.

The Cambria complaint alleged that Luccaire surfaces were promoted as “artificial marble” manufactured in China under a patent-pending FriTech™ process. The FriTech method used a mix consisting mainly of fritted sand, a by-product of mining and iron/steel production, along with a small amount of quartz powder, polyester resin binder, pigments and other materials.

Promotional materials for the Luccaire surfaces identified the product as an “innovative surface” and positioned it in a separate category from quartz surfaces.

In its investigation, CBP confirmed that the fritted sand is noted to be 60% to 80% silica and, combined with the quartz powder and resin binder, produces a surface that meets the scope of the tariffs imposed on quartz surfaces made in China.

Vanguard will have to pay applicable antidumping/countervailing (AD/CVD) duties on all its imports of quartz surface products subject to the investigation, and also be closely watched by CBP with future shipments. Under preliminary actions taken last November, CBP had stopped the finalization of Vanguard imports under question and faced posting a cash deposit or bond to release it from port facilities.

Cambria has participated in other EAPA action concerning evasion of the China quartz-surfaces tariff. The federal statute allows companies affected by possible violations to investigate and submit evidence with an EAPA claim.

Other EAPA complaints filed by Cambria in the last year concerning Chinese-made quartz surfaces include:

• LTT International Trading Co. of Chino, Calif., last July for alleged transhipping through Taiwan;
• Superior Commercial Solutions LLC of North Salt Lake, Utah, in September for alleged transhipping through Vietnam;
• Vanity Art LLC of Woodland, Calif., in December and Legion Furniture Inc. of Sacramento, Calif., in March for alleged duty evasion when importing of furniture made in Vietnam using Chinese-made quartz-surface tops.