The Department of Commerce announced the self-initiation of new inquiries into possible circumvention of the antidumping duty (AD) and countervailing duty (CVD) orders on quartz surface products from China.
Commerce will examine whether quartz surface products or quartz surface product inputs from China are exported to Malaysia for minor processing and then exported to the United States.
Under U.S. law, Commerce may conduct a scope or circumvention inquiry when evidence suggests that merchandise subject to an existing AD/CVD order is completed or assembled in third countries from parts and components imported from the country subject to the order. 
Typically, circumvention and scope inquiries are initiated in response to allegations filed by the domestic industry. However, Commerce’s regulations provide that these inquiries may be self-initiated when Commerce determines from available information that an inquiry is warranted.
This is the fourth-ever set of self-initiated inquiries based on Commerce’s own research and monitoring of trade patterns, but it is the first set of self-initiated inquiries to be undertaken under the modified AD/CVD regulations, which became effective November 4, 2021. The new regulations provide standalone rules governing circumvention inquiries and determinations as well as updated rules regarding the procedures and standards for scope inquiries and rulings.
Under the new regulations, Commerce will conduct the scope inquiry as a preliminary step. As part of the scope inquiry, Commerce will direct U.S. Customs and Border Protection (CBP) to continue the suspension of liquidation of entries of products subject to the scope inquiry that were already subject to the suspension of liquidation (if any), and to apply the cash deposit rate that would be applicable if the product were determined to be covered by the scope of the order.
Parties have been invited to submit one set of comments and factual information addressing the self-initiation of the scope inquiry. If the scope inquiry results in an affirmative finding, Commerce may rescind the circumvention inquiry. If the scope inquiry does not result in an affirmative finding, Commerce will pursue the circumvention inquiry. ■