Ceramic Tile From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 20093-20098 [2019-09451]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 84, Number 89 (Wednesday, May 8, 2019)]
[Notices]
[Pages 20093-20098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09451]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-108]


Ceramic Tile From the People's Republic of China: Initiation of 
Less-Than-Fair-Value Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.


DATES: Applicable April 30, 2019.

FOR FURTHER INFORMATION CONTACT: Michael J. Heaney, Heather Lui, and 
William Thompson II, at (202) 482-4475, (202) 482-0016, and (202) 482-
7459, respectively, AD/CVD Operations, Office VI, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On April 10, 2019, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) petition concerning imports of 
ceramic tile from the People's Republic of China (China), filed in 
proper form on behalf of the Coalition for Fair Trade in Ceramic Tile 
(the petitioner).\1\ The

[[Page 20094]]

Petition was accompanied by a countervailing duty (CVD) petition 
concerning imports of ceramic tile from China.
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Ceramic Tile 
from the People's Republic of China,'' dated April 10, 2019 (the 
Petition); see also Memorandum, ``Decision Memorandum Concerning the 
Filing Date of the Petitions,'' dated April 16, 2019.
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    Between April 15 and April 24, 2019, Commerce requested 
supplemental information pertaining to certain aspects of the 
Petition.\2\ The petitioner filed responses to these requests between 
April 17 and April 25, 2019.\3\
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    \2\ See Commerce's Letters, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Imports of Ceramic Tile 
from the People's Republic of China: Supplemental Questions,'' dated 
April 15, 2019 (General Issues Supplemental Questionnaire); 
``Petition for the Imposition of Antidumping Duties on Imports of 
Ceramic Tile from the People's Republic of China: Supplemental 
Questions, U.S. Price & Normal Value,'' dated April 15, 2019 (AD 
Supplemental Questionnaire); see also Memoranda, ``Petitions for the 
Imposition of Antidumping and Countervailing Duties on Imports of 
Ceramic Tile from the People's Republic of China: Phone Call with 
Counsel to the Petitioner,'' dated April 16, 2019 (April 16, 2019 
Memorandum); ``Petitions for the Imposition of Antidumping and 
Countervailing Duties on Imports of Ceramic Tile from the People's 
Republic of China: Phone Call with Counsel to the Petitioner,'' 
dated April 19, 2019 (April 19, 2019 Memorandum); ``Petitions for 
the Imposition of Antidumping and Countervailing Duties on Imports 
of Ceramic Tile from the People's Republic of China: Phone Call with 
Counsel to the Petitioner,'' dated April 24, 2019 (April 24, 2019 
Memorandum).
    \3\ See the Petitioner's Letters, ``Antidumping and 
Countervailing Duty Investigation of Ceramic Tile from the People's 
Republic of China: FTCT's Response to the Department's Supplemental 
Questions on the Petition,'' dated April 17, 2019 (General Issues 
Supplement); ``Antidumping and Countervailing Duty Investigation of 
Ceramic Tile from the People's Republic of China: FTCT's Response to 
the Department's Supplemental Questions on the Petition,'' dated 
April 17, 2019 (AD Supplemental Response); ``Antidumping and 
Countervailing Duty Investigation of Ceramic Tile from the People's 
Republic of China: FTCT's Response to the Department's Second 
Supplemental Questions on General Issues of Petition pertaining to 
DOC Case Nos. A-570-108 & C-570-109,'' dated April 22, 2019 (Second 
General Issues Supplement); ``Antidumping and Countervailing Duty 
Investigation of Ceramic Tile from the People's Republic of China: 
FTCT's Response to the Department's Third Supplemental Questions on 
General Issues of Petition pertaining to DOC Case Nos. A-570-108 & 
C-570-109,'' dated April 25, 2019 (Third General Issues Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of ceramic tile 
from China are being, or are likely to be, sold in the United States at 
less than fair value (LTFV) within the meaning of section 731 of the 
Act, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing ceramic tile in the 
United States. Consistent with section 732(b)(1) of the Act, the 
Petition is accompanied by information reasonably available to the 
petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(E) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested AD investigation.\4\
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    \4\ See ``Antidumping Duty Investigation Initiation Checklist: 
Ceramic Tile from the People's Republic of China,'' (AD Initiation 
Checklist). This checklist is dated concurrently with, and hereby 
adopted by, this notice and on file electronically via Enforcement 
and Compliance's Antidumping and Countervailing Duty Centralized 
Electronic Services System (ACCESS). Access to documents filed via 
ACCESS is also available in the Central Records Unit, Room B8024 of 
the main Department of Commerce building.
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Period of Investigation

    Because the Petition was filed on April 10, 2019, the period of 
investigation (POI) is October 1, 2018, through March 31, 2019.\5\
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    \5\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation

    The merchandise covered by this investigation is ceramic tile from 
China. For a full description of the scope of this investigation, see 
the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we contacted the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate reflection of the products for which the 
domestic industry is seeking relief.\6\ As a result, the scope of the 
Petition was modified to clarify the description of the merchandise 
covered by the Petition. The description of the merchandise covered by 
this investigation, as described in the Appendix to this notice, 
reflects these clarifications.
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    \6\ See General Issues Supplemental Questionnaire; see also 
April 19, 2019 Memorandum; see also April 24, 2019 Memorandum.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\8\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on May 20, 2019, which is 20 calendar days from the signature date 
of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on May 30, 2019, which is 10 
calendar days from the initial comment deadline.\9\
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    \7\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \9\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must also be filed 
on the record of the concurrent CVD investigation.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
ACCESS.\10\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due. Documents 
exempted from the electronic submission requirements must be filed 
manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230, and stamped with the date 
and time of receipt by the applicable deadlines.
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    \10\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of ceramic tile to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant factors of 
production (FOPs) accurately, as well as to develop appropriate 
product-comparison criteria.

[[Page 20095]]

    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
comments must be filed by 5:00 p.m. ET on May 20, 2019, which is 20 
calendar days from the signature date of this notice.\11\ Any rebuttal 
comments must be filed by 5:00 p.m. ET on May 30, 2019. All comments 
and submissions to Commerce must be filed electronically via ACCESS, as 
explained above, on the record of this AD investigation.
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    \11\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\12\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\13\
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    \12\ See section 771(10) of the Act.
    \13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the Petition.\14\ Based on our analysis of the information submitted 
on the record, we have determined that ceramic tile, as defined in the 
scope, constitutes a single domestic like product, and we have analyzed 
industry support in terms of that domestic like product.\15\
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    \14\ See Volume I of the Petition, at 12-15 and Exhibit I-2-A; 
see also General Issues Supplement at 7; Second General Issues 
Supplement at 3-6 and Supplemental Exhibits I-31 and I-32.
    \15\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
AD Initiation Checklist at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Ceramic Tile from the People's Republic of China 
(Attachment II).
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided its 
own 2018 shipments of the domestic like product and compared this to 
the estimated total shipments of the domestic like product for the 
entire domestic industry.\16\ The petitioner estimated the production 
of the domestic like product for the entire domestic industry based on 
shipment data, because production data for the entire domestic industry 
are not available for 2018, and the petitioner has established that 
shipments are a reasonable proxy for data on production of ceramic 
tile.\17\ We relied on data provided by the petitioner for purposes of 
measuring industry support.\18\
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    \16\ See Volume I of the Petition at 2-5 and Exhibits I-1-A 
through I-1-F; see also General Issues Supplement at 8-11 and 
Supplemental Exhibits I-1-E, I-27, and I-28; and Second General 
Issues Supplement at 6 and Supplemental Exhibit I-1-E.
    \17\ Id.
    \18\ Id.; see also AD Initiation Checklist at Attachment II.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, the Second General Issues Supplement, and other information 
readily available to Commerce indicates that the petitioner has 
established industry support for the Petition.\19\ First, the Petition 
established support from domestic producers (or workers) accounting for 
more than 50 percent of the total production of the domestic like 
product and, as such, Commerce is not required to take further action 
in order to evaluate industry support (e.g., polling).\20\ Second, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(i) of the Act because the 
domestic producers (or workers) who support the Petition account for at 
least 25 percent of the total production of the domestic like 
product.\21\ Finally, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(ii) 
of the Act because the domestic producers (or workers) who support the 
Petition account for more than 50 percent of the production of the 
domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petition.\22\ 
Accordingly, Commerce determines that the Petition was filed on behalf 
of the domestic industry within the meaning of section 732(b)(1) of the 
Act.
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    \19\ See AD Initiation Checklist at Attachment II.
    \20\ See section 732(c)(4)(D) of the Act; see also China AD 
Initiation Checklist at Attachment II.
    \21\ See AD Initiation Checklist at Attachment II.
    \22\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\23\
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    \23\ See Volume I of the Petition at 22-23 and Exhibit I-9.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; adverse impact on the domestic industry's 
production, capacity utilization, U.S. shipments, employment variables, 
and financial

[[Page 20096]]

performance; underselling and price depression or suppression; lost 
sales and revenues; negative impact on the domestic industry's return 
on investments; the cancellation or postponement of expansion projects 
for U.S. production facilities; reduced spending on research and 
development; and an increase in end-of-year production inventories.\24\ 
We have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, causation, as well as 
negligibility, and we have determined that these allegations are 
properly supported by adequate evidence, and meet the statutory 
requirements for initiation.\25\
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    \24\ See Volume I of the Petition at 17-50 and Exhibits I-6, I-8 
through I-22 and I-24 through I-26; see also General Issues 
Supplement at 11 and Exhibit I-29.
    \25\ See AD Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Ceramic Tile 
from the People's Republic of China (Attachment III).
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at LTFV 
upon which Commerce based its decision to initiate an AD investigation 
on imports of ceramic tile from China. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the AD Initiation Checklist.

Export Price

    The petitioner based the U.S. price on export price (EP) using 
average unit values (AUVs) of publicly available import data.\26\ Where 
applicable, the petitioner made deductions from U.S. price for foreign 
inland freight and foreign brokerage and handling charges.\27\
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    \26\ See AD Initiation Checklist.
    \27\ Id.
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Normal Value

    With respect to China, Commerce considers China to be a non-market 
economy (NME) country.\28\ In accordance with section 771(18)(C)(i) of 
the Act, any determination that a foreign country is an NME country 
shall remain in effect until revoked by Commerce. Therefore, we 
continue to treat China as an NME country for purposes of the 
initiation of this investigation. Accordingly, NV in China is 
appropriately based on FOPs valued in a surrogate market economy 
country, in accordance with section 773(c) of the Act.\29\
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    \28\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less-Than-Fair-
Value, 83 FR 9282 (March 5, 2018).
    \29\ See AD Initiation Checklist.
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    The petitioner contends that Mexico is an appropriate surrogate 
country for China because it is a market economy country that is at a 
level of economic development comparable to that of China, it is a 
significant producer of comparable merchandise, and public information 
from Mexico is available to value all material input factors.\30\ Based 
on the information provided by the petitioner, we determine that it is 
appropriate to use Mexico as a surrogate country for initiation 
purposes.
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    \30\ See Volume II of the Petition at 2-4.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by the 
Chinese producers/exporters was not reasonably available, the 
petitioner relied on the production experience for one of the members 
of the petitioning coalition as a surrogate to estimate the Chinese 
manufacturers' FOPs.\31\ The petitioner valued the estimated FOPs using 
surrogate values from Mexico and used the average POI exchange rate to 
convert the data to U.S. dollars.\32\ The petitioner calculated factory 
overhead, selling, general and administrative expenses, and profit 
based on the experience of a Mexican producer of ceramic tile.\33\
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    \31\ See AD Initiation Checklist.
    \32\ Id.
    \33\ Id.
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Fair Value Comparisons

    Based on the data provided in the Petition, there is reason to 
believe that imports of ceramic tile from China are being, or are 
likely to be, sold in the United States at LTFV. Based on comparisons 
of EP to NV in accordance with sections 772 and 773 of the Act, the 
estimated dumping margin for ceramic tile from China range from 127.33 
to 356.02 percent.\34\
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    \34\ Id.
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Initiation of LTFV Investigation

    Based upon the examination of the Petition on ceramic tile from 
China, we find that the Petition meets the requirements of section 732 
of the Act. Therefore, we are initiating an AD investigation to 
determine whether imports of ceramic tile from China are being, or are 
likely to be, sold in the United States at LTFV. In accordance with 
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 140 
days after the date of this initiation.

Respondent Selection

    The petitioner named 197 producers/exporters of ceramic tile in 
China.\35\ After considering our resources, Commerce has determined 
that we do not have sufficient administrative resources to issue 
quantity and value (Q&V) questionnaires to all 197 identified producers 
and exporters. Therefore, Commerce has determined to limit the number 
of Q&V questionnaires it will send out to exporters and producers 
identified in U.S. Customs and Border Protection (CBP) data for U.S. 
imports of ceramic tile during the POI under the appropriate Harmonized 
Tariff Schedule of the United States numbers listed in the ``Scope of 
the Investigation,'' in the Appendix. Accordingly, Commerce will send 
Q&V questionnaires to the largest producers and exporters that are 
identified in the CBP data for which there is address information on 
the record.
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    \35\ See Volume I of the Petition at Exhibit I-5.
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    On April 30, 2019, Commerce released CBP data under Administrative 
Protection Order (APO) to all parties with access to information 
protected by APO and indicated that interested parties wishing to 
comment on the CBP data must do so within three business days of the 
publication date of the notice of initiation of this investigation.\36\ 
We further stated that we will not accept rebuttal comments.
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    \36\ See Memorandum, ``Ceramic Tile from China: U.S. Customs and 
Border Protection Data for Respondent Selection Purposes,'' dated 
April 30, 2019.
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    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on the Enforcement and Compliance website at https://www.trade.gov/enforcement/news.asp. In accordance with our standard 
practice for respondent selection in AD cases involving NME countries, 
we intend to base respondent selection on the responses to the Q&V 
questionnaire that we receive.

[[Page 20097]]

    Producers/exporters of ceramic tile from China that do not receive 
Q&V questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain a copy from the Enforcement & Compliance 
website. The Q&V response must be submitted by the relevant China 
exporters/producers no later than 5:00 p.m. ET on May 20, 2019. All Q&V 
responses must be filed electronically via ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\37\ 
The specific requirements for submitting a separate-rate application in 
the China investigation are outlined in detail in the application 
itself, which is available on Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice.\38\ Exporters and producers who submit a separate-rate 
application and have been selected as mandatory respondents will be 
eligible for consideration for separate-rate status only if they 
respond to all parts of Commerce's AD questionnaire as mandatory 
respondents. Commerce requires that companies from China submit a 
response to both the Q&V questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Companies not filing a timely 
Q&V response will not receive separate-rate consideration.
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    \37\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \38\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\39\
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    \39\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to China via ACCESS. To the extent practicable, we will 
attempt to provide a copy of the public version of the Petition to each 
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of ceramic tile from China are materially 
injuring, or threatening material injury to, a U.S. industry.\40\ A 
negative ITC determination will result in the investigation being 
terminated.\41\ Otherwise, this investigation will proceed according to 
statutory and regulatory time limits.
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    \40\ See section 733(a)(2) of the Act.
    \41\ See section 733(a)(1) of the Act.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \42\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\43\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Interested parties should review the 
regulations prior to submitting factual information in this 
investigation.
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    \42\ See 19 CFR 351.301(b).
    \43\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\44\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\45\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \44\ See section 782(b) of the Act.
    \45\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.

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[[Page 20098]]

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of these procedures (e.g., the filing of 
letters of appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: April 30, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The merchandise covered by this investigation 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 investigation 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, 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 this investigation is dispositive.

[FR Doc. 2019-09451 Filed 5-7-19; 8:45 am]
BILLING CODE 3510-DS-P