Final USITC Report on Chinese Quartz Imports June 2019 | Page 255

and design of the product, and the hardness, strength, smoothness, and porosity of the
product. The petitioner states that there is no real change to these characteristics or functions
during the fabrication process. 8 According to respondents, quartz slab is a raw material sold to
processors that then further fabricate the slab into a variety of different products. 9
Value
The petitioner states that, although fabrication does add some value to quartz surface
products by converting it into its final form for installation, this value is small compared to the
value created in the slab production process. 10 The petitioner also notes the distinction
between the value added during the fabrication process and the value added during the
installation process. 11 Respondents stated at the staff conference that the value added to slabs
of quartz surface products in the production of fabricated quartz surface products is 35-40
percent for the hospitality industry. 12 According to questionnaire data collected from domestic
firms that produce not fabricated slabs of quartz surface products, in 2017 the average unit
value for not fabricated slabs was $*** and the average unit value for fabricated quartz surface
products was $***.
Transformation processes
Not fabricated slabs of quartz surface products must be configured and cut to size in
order to transform into a fabricated product. Fabrication may also require edging the cut sides
8
Staff conference transcript, pp. 66-67 (Drake) and petitioner’s postconference brief, p. 5.
Bruskin, Mstone, StoneVic USA, Universal, Polarstone, Branite Tech Inc., and J.G. Edelen Co.’s
postconference brief, p. 3 and Reliance, Showcase, Absolute Stone, Universal Granite & Marble, Bedrock
Quartz, and Cosmos’ postconference brief, p. 10.
10
Petitioner’s postconference brief, p. 5.
11
Staff conference transcript, pp. 64-65.
12
Staff conference transcript, p. 110 (Murray).
9
D-11