Federal Court Denies Quartz-Tariff Appeal
NEW YORK – A federal judge dismissed a challenge last week to a portion of the quartz-surface tariffs placed on U.S. imports from India.
Judge Leo M. Gordon of the Court of International Trade denied an action on Aug. 25 by Pokarna Engineered Stone Ltd. (PESL) concerning a probe by the U.S. Commerce Department before recommending the tariffs last year.
PESL argued that Commerce should’ve worked up a sales analysis of paid sample sales made in the United States, and then excluded that amount from general sales totals used in the tariff investigation.
Commerce used the data in its recommendation to the U.S. International Trade Commission (USITC) of unfair-trade tariffs on Indian quartz surfaces. The USITC subsequently imposed anti-dumping and countervailing (subsidy) tariffs last year.
In a preliminary “slip” opinion, Gordon noted that Commerce sees free samples as a direct selling expense and doesn’t count them as part of total sales. However, paid samples involve a transfer of ownership for money and are counted as sales in a Commerce inquiry.
Gordon also rejected PESL’s argument that Commerce must perform a bona-fide sales analysis, since there’s no mandate in federal law requiring the action.
“The court could find no merit in this claim,” Gordon wrote.
The issuance of the slip opinion allows PESL the option to move ahead on an appeal.
Gordon also ruled on Aug. 26 that any future decision on a related tariff appeal by M S International (MSI) would have no bearing on the Pokarna filing.
MSI claims that the original complaint against Indian quartz exports by Cambria Company LLC in 2019 didn’t have the required amount of support among U.S. producers, since it failed to include fabricators. The federal government, with Cambria as a co-defendant, is contesting MSI’s appeal.
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