[Federal Register Volume 85, Number 85 (Friday, May 1, 2020)]
[Notices]
[Pages 25391-25394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09407]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-889]


Certain Quartz Surface Products From India: Final Determination 
of Sales at Less Than Fair Value and Final Negative Determination of 
Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain 
quartz surface products from India are being, or are likely to be, sold 
in the United States at less than fair value (LTFV) during the period 
of investigation (POI) April 1, 2018 through March 31, 2019.

DATES: Applicable May 1, 2020.

FOR FURTHER INFORMATION CONTACT: Charles Doss, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4474.

SUPPLEMENTARY INFORMATION:

Background

    On December 13, 2019, Commerce published the Preliminary 
Determination in this investigation.\1\ A

[[Page 25392]]

summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\
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    \1\ Certain Quartz Surface Products from India: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Negative Determination of Critical Circumstances, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 84 FR 68123 (December 13, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Antidumping Duty Investigation of Certain 
Quartz Surface Products from India,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation

    The POI is April 1, 2018 through March 31, 2019.

Scope of the Investigation

    The products covered by this investigation are certain quartz 
surface products from India. For a full description of the scope of 
this investigation, see Appendix I of this notice.

Scope Comments

    On December 4, 2019, we issued a Preliminary Scope Memorandum.\3\ 
We received no scope case briefs from interested parties. Therefore, 
Commerce has made no changes to the scope of this investigation since 
the Preliminary Determination.
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    \3\ See Memorandum, ``Certain Quartz Surface Products from India 
and Turkey: Preliminary Scope Decision Memorandum,'' dated December 
4, 2019.
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Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum is 
attached to this notice as Appendix II. The Issues and Decision 
Memorandum is a public document and is available electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), Commerce verified the sales and cost data reported by 
mandatory respondents Pokarna Engineered Stone Limited (PESL) and the 
Antique Group \4\ for use in our final determination. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by the respondents.
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    \4\ The Antique Group is comprised of Antique Marbonite Private 
Limited, India (Antique Marbonite or AMPL) and its affiliates Shivam 
Enterprises (Shivam) and Prism Johnson Limited (Prism Johnson).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
PESL and the Antique Group since the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum.

Final Negative Determination of Critical Circumstances

    Commerce preliminarily determined that critical circumstances do 
not exist for the mandatory respondents, PESL and the Antique Group, or 
with respect to all other producers/exporters. No parties submitted 
comments regarding our negative preliminary critical circumstances 
determination and the factual basis for the preliminary negative 
finding remains unchanged for this final determination. Therefore, in 
accordance with sections 733(e)(1) and 735(a)(3) of the Act, and 19 CFR 
351.206, Commerce finds that critical circumstances do not exist for 
PESL, the Antique Group, or all other producers/exporters. For a full 
description of the methodology and results of Commerce's critical 
circumstances analysis, see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
individually investigated exporters and producers, excluding any 
margins that are zero or de minimis or any margins determined entirely 
under section 776 of the Act.
    In this investigation, Commerce calculated estimated weighted-
average dumping margins for PESL and Antique Group that are not zero, 
de minimis, or based entirely on facts otherwise available. Commerce 
calculated the all-others rate using a weighted average of the 
estimated weighted-average dumping margins calculated for the examined 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\5\
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    \5\ See, e.g., Ball Bearings and Parts Thereof from France, 
Germany, Italy, Japan, and the United Kingdom: Final Results of 
Antidumping Duty Administrative Reviews, Final Results of Changed-
Circumstances Review, and Revocation of an Order in Part, 75 FR 
53661, 53663 (September 1, 2010); see also Memorandum, ``Certain 
Quartz Surface Products from India: Calculation of All-Others' Rate 
in Final Determination,'' dated concurrently with this notice.
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Final Determination

    The estimated weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                       Estimated       Cash deposit rate
                                   weighted-average      (adjusted for
        Exporter/producer           dumping margin    subsidy offset(s))
                                       (percent)           (percent)
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Antique Marbonite Private                       5.15                3.58
 Limited, India; Shivam
 Enterprises (Shivam); and Prism
 Johnson Limited (Prism Johnson)
Pokarna Engineered Stone Limited                2.67                0.33
All Others......................                3.19                1.02
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of any 
public announcement or, if there is no public announcement, within five 
days of the date of the publication of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).

[[Page 25393]]

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue the 
suspension of liquidation of all appropriate entries of certain quartz 
surface products, as described in Appendix I of this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
December 13, 2019, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register. Further, 
Commerce will instruct CBP to require a cash deposit equal to the 
estimated amount by which the normal value exceeds the U.S. price as 
shown above.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of export 
subsidies countervailed in a companion countervailing duty (CVD) 
proceeding, when CVD provisional measures are in effect. In this case, 
we have made an affirmative determination for countervailable export 
subsidies for certain respondents, and, thus, we have offset the 
estimated weighted-average dumping margin by the appropriate CVD rate. 
Any such adjusted rates may be found in the table above. However, 
suspension of liquidation for provisional measures in the companion CVD 
case has been discontinued; therefore, we are not instructing CBP to 
collect cash deposits based upon the adjusted estimated weighted-
average dumping margin for those subsidies at this time.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, we will instruct 
CBP to require a cash deposit equal to the estimated amount by which 
the normal value exceeds the U.S. price as follows: (1) The cash 
deposit rates for the respondents listed above will be equal to the 
respondent-specific estimated weighted-average dumping margin 
determined in this final determination; (2) if the exporter is not a 
respondent identified above but the producer is, then the cash deposit 
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; and (3) the cash deposit rate for all other producers and 
exporters will be equal to the all others estimated weighted-average 
dumping margin. These suspension of liquidation instructions will 
remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports, or sales (or the 
likelihood of sales) for importation of certain quartz surface products 
no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated, and all cash deposits will be 
refunded. If the ITC determines that material injury or threat of 
material injury does exist, Commerce will issue an antidumping duty 
order directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise, entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a violation subject to sanction.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act and 19 CFR 
351.210(c).

    Dated: April 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is certain quartz 
surface products. 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, 
glass powder) 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 investigation. However, the scope 
of the investigation 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 investigation includes surface products of all other 
sizes, thicknesses, and shapes. In addition to slabs, the scope of 
the investigation includes, but is not limited to, other surfaces 
such as countertops, backsplashes, vanity tops, bar tops, work tops, 
tabletops, flooring, wall facing, shower surrounds, fireplace 
surrounds, mantels, and tiles. Certain quartz surface products are 
covered by the investigation 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 
investigation 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 investigation if performed in the country of manufacture of the 
quartz surface products. The scope of the investigation does not 
cover quarried stone surface products, such as granite, marble, 
soapstone, or quartzite. Specifically excluded from the scope of the 
investigation 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 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 1 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,

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2506.10.0010, 2506.10.0050, 2506.20.0010, 2506.20.0080, and 
7016.90.1050. The HTSUS subheadings set forth above are provided for 
convenience and U.S. Customs purposes only. The written description 
of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Final Negative Determination of Critical Circumstances
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Whether to Apply Adverse Inference Regarding PESL's 
Date of Sale Reporting
    Comment 2: Whether to Cap PESL's Freight, Insurance and Packing 
Revenue
    Comment 3: Treatment of PESL's Warranty Expenses
    Comment 4: Whether to Exclude PESL's Paid U.S. Sample Sales
    Comment 5: Whether to Rely on Antique Group's Profit Rate and 
Selling Expenses to Calculate Constructed Value (CV) for PESL
    Comment 6: Whether to Adjust PESL's General and Administrative 
(G&A) Expense Ratio
    Comment 7: Whether to Allocate the Costs of PESL's Non-prime 
Products to Prime Products
    Comment 8: Treatment of Antique Group's Reported Credit Expenses
    Comment 9: Treatment of Antique Group's Reported Quality 
Discounts
    Comment 10: Whether the Arms-Length Test Was Appropriately 
Applied with Respect to Antique Group's Collapsed Affiliate
    Comment 11: Ministerial Error Regarding Application of Antique 
Group's Reported Billing Adjustments
    Comment 12: Whether the Initiation of the Investigation was 
Contrary to Law
VIII. Recommendation

[FR Doc. 2020-09407 Filed 4-30-20; 8:45 am]
BILLING CODE 3510-DS-P