U.S. DEPARTMENT OF COMMERCE ANNOUNCES FINAL SCOPE INVESTIGATION

U.S. DEPARTMENT OF COMMERCE ANNOUNCES FINAL SCOPE INVESTIGATION

Minneapolis, MN, Oct. 20, 2022 (GLOBE NEWSWIRE) — The U.S. Secretary of Commerce has decided that U.S. imports of quartz floor merchandise manufactured in China and processed in Malaysia are coated by anti-dumping and countervailing duties (“AD/ CVD”) ) import orders from China.

In 2018, Malaysia exported non-quartz floor merchandise to the USA. The next yr, after the Division of Commerce issued AD/CVD orders on quartz floor merchandise from China, exports from Malaysia started to soar. By 2021, Malaysia’s exports had reached a staggering 16 million sq. ft. The accessible proof reveals that a big portion of those quartz floor merchandise had been manufactured in China and easily trans-shipped via Malaysia to evade cost of anti-dumping and countervailing duties.

“In 2018, U.S. quartz producers and their workers scored a victory when AD/CVD duties had been imposed on illegally dumped and backed quartz from China,” stated Marty Davis, President and CEO. in the direction of Cambria. “This motion opened the door to the launch and growth of quartz manufacturing vegetation in the USA; complete investments since then shall be over $800,000,000 in new US-based factories, with 1000’s of recent US-based jobs. However this Chinese language merchandise transhipped illegally via Malaysia places this funding and plenty of different future investments in jeopardy.

On February 7, 2022, the Division of Commerce itself initiated an investigation to find out whether or not the scope of the AD/CVD orders covers quartz floor merchandise initially manufactured in China however then re-exported from Malaysia. As a part of its investigation, the company despatched questionnaires to the 23 largest exporters of quartz floor merchandise in Malaysia. Eight of the businesses that acquired questionnaires didn’t reply to Commerce. As a part of its remaining scope willpower, the company decided that these non-compliant corporations had been exporting quartz floor merchandise processed in Malaysia to the USA utilizing China-made quartz slabs. . The Division of Commerce will now implement a certification requirement for all imports of quartz floor merchandise from Malaysia to handle transshipment and evasion points.

The certification course of will work as follows. If an importer of quartz floor merchandise from Malaysia claims that their quartz floor merchandise shouldn’t be topic to the cost of AD/CVD duties, the importer should meet sure certification and documentation necessities. First, an exporter of quartz floor merchandise in Malaysia who claims that their quartz floor merchandise weren’t made utilizing Chinese language quartz slabs should put together and preserve sure exporter certifications and supporting paperwork. As well as, importers of those quartz floor merchandise should put together and preserve separate importer certification and supporting documentation. Whether it is decided that the certification or documentation necessities haven’t been met, the importer should pay the suitable AD/CVD duties on the QSP from China. These rights at present quantity to greater than 300%.

Considerably, the next corporations usually are not eligible for the scope certification course of as a result of they didn’t absolutely take part within the process:

1.Bada Industries SDN BHD;

2. Ever Stone World SDN BHD;

3. Pierre Karina;

4.MSI Constructing Provide SDN;

5. Principal Safwa (M) SDN;

6. Restone stone making;

7. SCLM SDN BHD Providers;

8. Single Stone SDN BHD; and

9. Common Quartz.

“We had been shocked at how rapidly exports from Malaysia rushed to fill the void left by unlawful imports from China,” stated Arik Tendler, Cambria’s gross sales director. “We’ve lengthy believed that this Malaysian merchandise eludes present AD/CVD orders. We admire that the Division of Commerce has taken this essential step to make sure that orders are strictly enforced in order that Cambria and the whole US quartz manufacturing trade can compete on a stage taking part in discipline.

The Commerce Division’s scope investigation has already had a big impact on the US market clearance of Chinese language items that had been illegally transshipped via Malaysia to the US to evade cost of AD/CVD duties. After peaking at practically 1.6 million sq. ft in March 2022, the month after the launch of the scope investigation, U.S. imports from Malaysia fell to only 136,000 sq. ft within the month. from July 2022.

About Cambria

Cambria Firm LLC, headquartered in Le Sueur, MN, is the nation’s main producer of quartz floor merchandise. It’s an American household enterprise that employs over 2,000 folks in the USA.

        

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