Radio Stone Update

China Transshipping Case Settled; India's Tariff Dilemma

K. Schipper Season 6 Episode 8

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00:00 Brought to You By Quantra Quartz
00:23 Intro
00:33 China Quartz-Surface-Import Case Settled
03:09 A Word from Quantra Quartz
04:22 India Quartz Industry Seeks Government Aid
07:01 Coverings Goes Vegas in 2026
08:55 Coverings CID, Rock Stars Honors Seek Entries
12:01 Tariffs Push Cosentino, Caesarstone Prices Up
13:41 Michele Ballarin now Neolith Growth Officer
15:17 Outro
15:45 Brought to You By Quantra Quartz

Radio Stone Update is presented on the second and fourth Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.

00:23

Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.

00:33

A Dallas-based supplier of countertops and cabinets, along with its president, will pay more than $12 million to resolve a federal case involving alleged evasion of unfair-trade duties with quartz surfaces from China.

The U.S. Attorney’s office for the Northern District of Texas announced Aug. 18 that Allied Stone Inc., and its President, Jia “Jerry” Lim agreed to pay $12.4 million to resolve a 2021 civil action against them. The action claims they violated the federal False Claims Act.

Allied and Lim are alleged to have knowingly evaded or conspired to evade duties on Chinese quartz surface products imported between late Sept. 2018 and early Feb. 2023. The claims resolved by the settlement are allegations and there has been no determination of liability.

The settlement stems from a civil lawsuit filed in Nov. 2021 by former Allied employee Melinda Hemphill under the whistleblower provision of the False Claims Act. It allows private parties to file suit on behalf of the United States for false claims.

In announcing the settlement, it was revealed that Hemphill had alleged incomplete labeling of quartz-surface shipments that did not show product origins. It also revealed that Hemphill did not receive cooperation when she attempted to ascertain shipment details.

Although Hemphill worked for Allied from 2019 through mid-2020, she has more than two decades of experience in the construction industry, and one of her former employers alleged that Allied won bids on projects by selling quartz-surfaces for less than the competitor could buy the product.

The lawsuit cites details from two multi-family construction projects in the Dallas area in 2019 and 2020 where she attempted to track down information on crates of quartz-surface precut parts supplied by Allied.

As part of the resolution of the 2021 lawsuit, Hemphill will receive more than $2 million of the settlement proceeds. Among other things, the United States alleges that Allied Stone and Lim misrepresented the Chinese quartz surface products as other merchandise subject to lesser duties, such as marble or crystallized glass.

Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said of the case, “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by evading or conspiring with others to evade duties owed.”

04:22

Although a federal court has hung a big question mark over the legality of President Donald Trump’s tariffs, the quartz-surface industry of India is asking its government to help with financial restructuring.

The Federation of Quartz Surface Manufacturers of India – the FQSMI – is seeking a three-year moratorium on principal and interest payments, massive aid on interest rates and a large drop in India’s goods-and-services tax, among other things. The move was first reported by the “Deccan Herald” newspaper.

Govindaraju Krishna Rao, FQSMI founder and president, made the appeal to Prime Minister Narendra Modi just before the new 50% U.S. tariff on Indian goods went into effect during the last week in August.

“Without immediate government intervention, this promising industry risks collapse at a critical growth stage, potentially rendering thousands of jobs and billions in investment unviable,” Krishna Rao noted.

In the 2020s, India became the prime source of quartz surfaces for U.S. distributors, fabricators and end-user customers after the U.S. approved unfair-trade duties on Chinese products. Data compiled by Hard Surface Report show India supplying more than a quarter of the U.S. quartz-surface market. Vietnam is a distant second with a little more than 10% of the market.

Currently, 95% of India’s production is exported to the U.S., with a value of more than $700 million. The FQSMI noted that the investment in Indian quartz-surface facilities is now more than $570 million, with an additional $114 million in ongoing expansion. Banks hold more than $456 million in loans and financing for the industry.

Those loans are of particular concern to the FQSMI, which is seeking a three-year moratorium on loan-installment and term-loan-interest payments, along with the government providing funding to cut interest rates.

With the 50% tariff effectively bringing the quartz-surface industry in India to a halt, the FQSMI is also looking for government actions to lift domestic quartz-surface sales, plus a $57 million allocation to create new market proposals.

The 50% tariff is now subject to action by the U.S. Supreme Court, which will consider an appeal of a lower court ruling voiding President Trump’s authority to unilaterally impose tariffs. While the issue is before the court, the tariffs in question remain in place.

07:01

Coverings is heading West next year. The 2026 edition of the largest tile and natural stone trade fair and exposition in the United States will take place March 30-April 2 at the Las Vegas Convention Center in Las Vegas.
 
Next year’s event will feature exhibitors from 30 countries, and it’s expected the 1,000 exhibitors will introduce innovative tile and stone products to the world during the four-day event.

“Las Vegas is a city defined by bold, forward-thinking design and unforgettable experiences,” says Jamie Rich, Coverings’ managing director. “It’s the ideal backdrop to unite the global tile and stone community, showing innovative trends from around the world. “

Attendees include distributors, retailers, fabricators, contractors, specifiers, architectural and design professionals, builders and real estate developers. The show also attracts journalists, reporters, broadcasters, podcasters and bloggers who cover the industry.

Key sponsors of the show are Ceramics of Italy/Confindustria Ceramica, Ceramic Tile Manufacturers Association of Spain/Tile of Spain, Tile Council of North America, National Tile Contractors Association, Ceramic Tile Distributors Association and International Product Assurance Laboratories.

Registration for Coverings 2026 will open in late October. Those interested in being notified when registration opens should go to www.coverings.com/mailing-list.

For more information on sponsoring or exhibiting at the show, go to Taffy Event Strategies, the show’s manager, at 571-313-5801 or info@coverings.com

08:55

In a related story, submissions for the 2026 Coverings Installation & Design (CID) Awards and nominations for the Coverings 2026 Rock Star program are now being accepted online, with winners to be announced at Coverings 2026 in Las Vegas.

The CID Awards recognize outstanding achievements in the design and installation of ceramic tile and natural stone across residential, institutional and commercial projects. Architects, designers, builders, contractors, installers, distributors, retailers, and other industry professionals may submit their projects through the CID project submittal portal by Dec. 1.

A group of leading experts in tile, stone, installation and design will review submissions and choose winners across 11 competitive categories in commercial and residential use of tile and stone, along with projects showing artistic merit.

The Artistic Design and Artistic Installation categories, first introduced this year, return in 2026 to spotlight creative, one-of-a-kind applications of tile and stone, including projects such as murals and mosaics, which are gaining prominence in the tile and stone world. These categories reflect Coverings’ commitment to recognizing a broader range of project types and encouraging diverse submissions from around the globe.

National and international entries are welcomed with up to three submissions accepted at no cost. Eligible projects must be completed between January 2024 and December 2025. Multiple entries across different categories are encouraged, provided each project meets the criteria specific to its category.

Winning projects will be recognized during Coverings 2026 at the CID Awards Ceremony & Reception on March 31, and featured across Coverings’ website, press materials and social channels. Award winners will also receive a one-night stay in Las Vegas or an equivalent gift card.

The Coverings Rock Stars Program honors emerging tile and stone professionals under the age of 35. The program, now in its 12th year, reinforces Coverings’ mission to advance the industry by celebrating rising talent and creating opportunities for networking, mentorship and professional development. Industry leaders are encouraged to submit nominations via the online Coverings Rock Stars nomination form by Dec. 1. Multiple nominations are accepted and encouraged.

The selected class of 2026 Rock Stars will be honored onsite at the Coverings Rock Star Awards Ceremony on March 30. The winners will be featured in an official press release and on the Coverings website and social media platforms. Each winner will also receive a $200 gift card and free pass to attend Coverings 2026.

Both the Rock Star Awards Ceremony and CID Awards Ceremony & Reception will be open to all attendees of Coverings 2026.

12:01

As consumers everywhere ponder what will happen next in light of President Trump’s tariffs and a recent federal court ruling against them that will send the matter to the U.S. Supreme Court, two of the industry’s quartz suppliers have announced price increases to their customers.

Caesarstone, in a letter dated Aug. 29, revealed that it will be adjusting its suggested retail prices effective Oct. 1. The adjustments will apply to all orders shipped on or after that date, regardless of the order date.

That follows a similar letter in July from Cosentino North America saying it would no longer absorb tariffs that went into effect in April on its Silestone® and Dekton® products. The letter suggests more changes may take place in the future.

“Now more than ever, we remain committed to transparency and will continue to assess the situation and adjust our tariff surcharge accordingly in response to future policy changes,” said Brandon Calvo, chief operating officer for Cosentino North America.

In its letter, Caesarstone advised customers it would increase the price on porcelain products by 15% and on quartz, mineral and advanced fusion surfaces by 11%.

“These changes reflect the external cost pressures created by federally mandated tariffs,” the letter states. “We recognize that these are challenging times for many of our partners and we share in the impact that market conditions are creating across the industry.”

Both companies urged their wholesale customers to contact their representatives for clarification or for additional information.

13:41

And, Neolith promotes Michele Ballarin to chief revenue growth officer (CRGO), effective immediately. Ballarin joined the sintered stone surfaces producer in October 2022 and recently served as executive vice president for the U.S. West Coast and for Latin American distribution.

As CRGO, Ballarin will be responsible for driving Neolith’s global revenue strategy and execution, leading cross-functional teams across sales, marketing, customer success and revenue operations. His mandate is to accelerate sustainable topline growth across all channels and regions.

Ballarin will report to Neolith Global CEO Walter Ceglia, who says that Ballarin has demonstrated outstanding leadership, strategic foresight and deep market insight since joining Neolith.

Said Ceglia, “We are confident Michele will play a pivotal role in driving Neolith’s next phase of expansion.”

Ballarin brings more than two decades of experience in the building materials and industrial manufacturing sectors to his new role. Prior to joining Neolith, he held senior leadership positions at Florim, as well as positions at Lapitec SpA and Breton SpA.

In his previous position at Neolith, he managed commercial and marketing budgets, built a team of area managers and business developers and oversaw distributor relationships with a focus on sustainable growth and operation efficiency.

15:17

Remember, our newsletter, Slab & Sheet, comes out on alternate Wednesdays at www.slabnsheet.com . For a transcript of this broadcast, go to www.radiostoneupdate.com. I’m K. Schipper for Radio Stone Update, and we’ll see you here again soon.