[Federal Register Volume 85, Number 105 (Monday, June 1, 2020)]
[Notices]
[Pages 33119-33121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11722]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-109]


Ceramic Tile From the People's Republic of China: Countervailing 
Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on ceramic tile from 
the People's Republic of China (China).

DATES: Applicable June 1, 2020.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, Moses Song, or John 
McGowan, AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
3813, (202) 482-7885, or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (Act), on February 28, 2020, Commerce published its affirmative 
final determination that countervailable subsidies are being provided 
to producers and exporters of ceramic tile from China.\1\ On May 21, 
2020, the ITC notified Commerce of its final determination that an 
industry in the United States is materially injured within the meaning 
of 705(b)(1)(A)(i) of the Act by reason of subsidized imports of 
subject merchandise from China.\2\
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    \1\ See Ceramic Tile from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, and Final Negative 
Critical Circumstances Determination, 85 FR 19440 (April 7, 2020) 
(Final Determination), and accompanying Issues and Decision 
Memorandum (IDM).
    \2\ See Letter to Jeffrey Kessler, Assistant Secretary of 
Commerce for Enforcement and Compliance, from David S. Johanson, 
Chairman of the U.S. International Trade Commission, dated May 21, 
2020.
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Scope of the Order

    The products covered by this order are ceramic tile from China. For 
a complete description of the scope of this order, see the appendix to 
this notice.

Countervailing Duty Order

    On May 21, 2020, in accordance with sections 705(b)(1)(A)(i) and 
705(d) of the Act, the ITC notified Commerce of its final determination 
in this investigation, in which it found that an industry in the United 
States is materially injured by

[[Page 33120]]

reason of subsidized imports of ceramic tile from China.\3\ Therefore, 
in accordance with section 705(c)(2) of the Act, Commerce is issuing 
this countervailing duty order. Because the ITC determined that imports 
of ceramic tile 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.
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    \3\ Id.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of ceramic tile from China, which are entered, or withdrawn 
from warehouse, for consumption on or after September 12, 2019, the 
date of publication of the Preliminary Determination,\4\ but will not 
include entries occurring after the expiration of the provisional 
measures period and before the publication of the ITC's final injury 
determination under section 705(b) of the Act, as further described 
below.
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    \4\ See Ceramic Tile from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Negative Critical Circumstances Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 48125 (September 12, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
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Suspension of Liquidation

    In accordance with section 706 of the Act, we will instruct CBP to 
reinstitute the suspension of liquidation of ceramic tile from China as 
described in the appendix to this notice, effective on the date of 
publication of the ITC's notice of final 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 rates below for the subject merchandise. On or 
after the date of publication of the ITC's final injury determination 
in the Federal Register, CBP must require, at the same time as 
importers would normally deposit estimated duties on this merchandise, 
a cash deposit equal to the rates noted below. The all-others rate 
applies to all producers or exporters not specifically listed below.
[GRAPHIC] [TIFF OMITTED] TN01JN20.032

Provisional Measures
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    \5\ As discussed in the PDM, Commerce found that Foshan Sanfi 
Imp & Exp Co., Ltd. to be crossed-owned with Guangdong Sanfi 
Ceramics Group Co., Ltd. See Preliminary Determination, 84 FR at 
48126, and PDM at 8-9 (unchanged in Final Determination, 85 FR at 
19442, and IDM at 4).
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    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigation, Commerce 
published the Preliminary Determination on September 12, 2019. As such, 
the four-month period beginning on the date of the publication of the 
Preliminary Determination ended on January 9, 2020. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination.
    Therefore, in accordance with section 703(d) of the Act, we 
instructed CBP to terminate the suspension of liquidation and to 
liquidate, without regard to countervailing duties, unliquidated 
entries of ceramic tile from China entered, or withdrawn from 
warehouse, for consumption, after January 9, 2020, the date on which 
the provisional measures expired, until and through the day preceding 
the date of publication of the ITC's final injury determination in the 
Federal Register. Suspension of liquidation will resume on the date of 
publication of the ITC's final determination in the Federal Register.

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to ceramic tile from China pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: May 26, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The merchandise covered by the order is ceramic flooring tile, 
wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, 
flags, finishing tile, and the like (hereinafter ceramic tile). 
Ceramic tiles are articles containing a mixture of minerals 
including clay (generally hydrous silicates of alumina or magnesium) 
that are fired so the raw materials are fused to produce a finished 
good that is less than 3.2 cm in actual thickness. All ceramic tile 
is subject to the scope regardless of end use, surface area, and 
weight, regardless of whether the tile is glazed or unglazed, 
regardless of the water absorption coefficient by weight, regardless 
of the extent of vitrification, and regardless of whether or not the 
tile is on a backing. Subject merchandise includes ceramic tile with 
decorative features that may in spots exceed 3.2 cm in thickness and 
includes ceramic tile ``slabs'' or ``panels'' (tiles that are larger 
than 1 meter\2\ (11 ft.\2\)).
    Subject merchandise includes ceramic tile that undergoes minor 
processing in a third country prior to importation into the United 
States. Similarly, subject merchandise includes ceramic tile 
produced that undergoes minor processing after importation into the 
United States. Such minor processing includes, but is not limited 
to, one or more of the following: beveling, cutting, trimming, 
staining, painting, polishing, finishing, additional firing, or any 
other processing that would otherwise not remove the merchandise 
from the scope of the order if performed in the country of 
manufacture of the in-scope product.
    Subject merchandise is currently classified in the Harmonized 
Tariff Schedule of the United States (HTSUS) under the following 
subheadings of heading 6907: 6907.21.1005, 6907.21.1011, 
6907.21.1051, 6907.21.2000,

[[Page 33121]]

6907.21.3000, 6907.21.4000, 6907.21.9011, 6907.21.9051, 
6907.22.1005, 6907.22.1011, 6907.22.1051, 6907.22.2000, 
6907.22.3000, 6907.22.4000, 6907.22.9011, 6907.22.9051, 
6907.23.1005, 6907.23.1011, 6907.23.1051, 6907.23.2000, 
6907.23.3000, 6907.23.4000, 6907.23.9011, 6907.23.9051, 
6907.30.1005, 6907.30.1011, 6907.30.1051, 6907.30.2000, 
6907.30.3000, 6907.30.4000, 6907.30.9011, 6907.30.9051, 
6907.40.1005, 6907.40.1011, 6907.40.1051, 6907.40.2000, 
6907.40.3000, 6907.40.4000, 6907.40.9011, and 6907.40.9051. Subject 
merchandise may also enter under subheadings of headings 6914 and 
6905: 6914.10.8000, 6914.90.8000, 6905.10.0000, and 6905.90.0050. 
The HTSUS subheadings are provided for convenience and customs 
purposes only. The written description of the scope of the order is 
dispositive.

[FR Doc. 2020-11722 Filed 5-28-20; 8:45 am]
 BILLING CODE 3510-DS-P