[Federal Register Volume 84, Number 247 (Thursday, December 26, 2019)]
[Notices]
[Pages 70937-70941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27815]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-583-856]
Certain Corrosion-Resistant Steel Products From Taiwan:
Affirmative Final Determination of Circumvention Inquiry on the
Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of certain corrosion-resistant steel products (CORE), completed in the
Socialist Republic of Vietnam (Vietnam) using carbon hot-rolled steel
(HRS) and/or cold-rolled steel (CRS) flat products manufactured in
Taiwan, are circumventing the antidumping duty (AD) order on CORE from
Taiwan.
DATES: Applicable December 26, 2019.
FOR FURTHER INFORMATION CONTACT: Shanah Lee or Peter Zukowski, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-6386 and (202) 482-0189,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 11, 2019, Commerce published the Preliminary Determination
\1\ of circumvention of the Taiwan CORE Order.\2\ A summary of events
that occurred since Commerce published the Preliminary Determination,
as well as a full discussion of the issues raised by parties for this
final determination, may be found in the IDM.\3\ The IDM is a public
document and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at https://
[[Page 70938]]
access.trade.gov, and it is available to all parties in the Central
Records Unit, Room B8024 of the main Commerce building. In addition, a
complete version of the IDM can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of
the IDM are identical in content.
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\1\ See Certain Corrosion-Resistant Steel Products from Taiwan:
Affirmative Preliminary Determination of Anti-Circumvention Inquiry
on the Antidumping Duty Order, 84 FR 32864 (July 10, 2019)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum.
\2\ See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016) (Taiwan CORE Order).
\3\ See Memorandum, ``Issues and Decision Memorandum for Anti-
Circumvention Inquiry on the Antidumping Duty Order on Certain
Corrosion-Resistant Steel Products from Taiwan,'' dated concurrently
with, and hereby adopted by, this notice (IDM).
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Scope of the Order
The products covered by this order are certain flat-rolled steel
products, either clad, plated, or coated with corrosion-resistant
metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-
based alloys, whether or not corrugated or painted, varnished,
laminated, or coated with plastics or other non-metallic substances in
addition to the metallic coating. For a complete description of the
scope of the order, see the IDM.
Scope of the Anti-Circumvention Inquiry
This anti-circumvention inquiry covers CORE completed in Vietnam
from HRS and/or CRS substrate manufactured in Taiwan and subsequently
exported from Vietnam to the United States (merchandise under
consideration). This final ruling applies to all shipments of
merchandise under consideration entered on or after the date of the
initiation of this inquiry. Importers and exporters of CORE produced in
Vietnam using: (1) HRS manufactured in Vietnam or third countries, (2)
CRS manufactured in Vietnam using HRS produced in Vietnam or third
countries, or (3) CRS manufactured in third countries, must certify
that the HRS and/or CRS processed into CORE in Vietnam did not
originate in Taiwan, as provided for in the certifications attached to
the Federal Register notice. Otherwise, their merchandise may be
subject to antidumping duties.
Methodology
Commerce is conducting this anti-circumvention inquiry in
accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act). Because Vietnam is a non-market economy, within the meaning
of section 771(18) of the Act,\4\ Commerce calculated the value of
certain processing and merchandise using factors of production and
market economy values, as discussed in section 773(c) of the Act. See
Preliminary Decision Memorandum for a full description of the
methodology. We have continued to apply this methodology for our final
determination.
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\4\ See, e.g., Certain Oil Country Tubular Goods from the
Socialist Republic of Vietnam: Preliminary Results of Antidumping
Duty Administrative Review, 81 FR 24797 (October 14, 2016) unchanged
in Certain Oil Country Tubular Goods from the Socialist Republic of
Vietnam: Final Results Antidumping Administrative Review; 2014-2015,
82 FR 18611 (April 20, 2017).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this inquiry are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached to this notice as Appendix I.
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the value of further
processing calculation, value of input purchases from Taiwan, and
pattern of trade analysis since the Preliminary Determination. These
changes are discussed in the IDM. See the ``Changes since the
Preliminary Determination'' section.
Final Affirmative Determination of Circumvention
We determine that exports to the United States of CORE produced in
Vietnam from HRS or CRS substrate manufactured in Taiwan are
circumventing the Taiwan CORE Order. We therefore find it appropriate
to determine that this merchandise falls within the Taiwan CORE Order,
and to instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of any entries of CORE from Vietnam produced using
HRS or CRS substrate manufactured in Taiwan.
Continuation of Suspension of Liquidation
As stated above, Commerce has made an affirmative determination of
circumvention of the Taiwan CORE Order by exports to the United States
of CORE produced in Vietnam using Taiwan-origin HRS or CRS substrate.
This circumvention finding applies to CORE produced by any Vietnamese
company using Taiwan-origin HRS or CRS substrate. In accordance with 19
CFR 351.225(1)(3), Commerce will direct CBP to continue to suspend
liquidation and to require a cash deposit of estimated duties on
unliquidated entries of CORE produced in Vietnam using Taiwan-origin
HRS or CRS substrate that were entered, or withdrawn from warehouse,
for consumption on or after August 2, 2018, the date of initiation of
this anti-circumvention inquiry.
The suspension of liquidation and cash deposit instructions will
remain in effect until further notice. In order to prevent evasion, and
because the AD and countervailing duty (CVD) rates established in China
CORE Circumvention Determination \5\ are higher than the rates
established for CORE from Korea and Taiwan, and the rates established
for CORE from Korea are higher than the AD rate established for CORE
from Taiwan, Commerce will instruct CBP to suspend liquidation and
collect cash deposits in the following manner. In the situation where
no certification regarding the origin of the substrate is maintained
for an entry, and AD/CVD orders from three countries (China, Korea, or
Taiwan) potentially apply to that entry, Commerce will instruct CBP to
suspend the entry and collect cash deposits at the AD rate established
for the China-wide entity (199.43 percent) and the CVD rate established
for the China all-others rate (39.05 percent) pursuant to the China
Core Circumvention Determination.\6\ In the situation where a
certification is maintained for the AD/CVD orders on CORE from China
(stating that the merchandise was not produced from HRS and/or CRS from
China), but no other certification is maintained, Commerce intends to
instruct CBP to suspend the entry and collect cash deposits at the AD
and CVD all-others rates (i.e., 8.31 percent and 1.19 percent,
respectively) applicable to the AD/CVD orders on CORE from Korea.\7\ In
the situation where a certification is maintained for the AD order on
CORE from China (stating that the merchandise was not produced from HRS
and/or CRS from China), and for the AD order on CORE from Korea
(stating that the merchandise was not produced from HRS and/or CRS from
Korea), but no other certification is maintained, Commerce intends to
instruct CBP to suspend the entry and collect cash deposits at the AD
all-
[[Page 70939]]
others rate (i.e., 3.66 percent) applicable to the AD order on CORE
from Taiwan.
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\5\ See Certain Corrosion-Resistant Steel Products from the
People's Republic of China: Affirmative Final Determination of
Circumvention of the Antidumping Duty and Countervailing Duty
Orders, 83 FR 23895 (May 23, 2018) (China CORE Circumvention
Determination).
\6\ Id.
\7\ See Certain Corrosion-Resistant Steel Flat Products from
India, Italy, the People's Republic of China, the Republic of Korea,
and Taiwan: Amended Final Affirmative Antidumping Duty Determination
for India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July
25, 2016). The ``all-others rate'' was subsequently amended as the
result to litigation. See Certain Corrosion-Resistant Steel Products
from the Republic of Korea: Notice of Court Decision Not in Harmony
with Final Determination of Investigation and Notice of Amended
Final Results, 83 FR 39054 (August 8, 2018); see also Certain
Corrosion-Resistant Steel Products from India, Italy, Republic of
Korea, and the People's Republic of China: Countervailing Duty
Order, 81 FR 48387 (July 25, 2016) (collectively, Korea CORE
Orders).
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CORE produced in Vietnam from HRS or CRS substrate that is not of
Taiwan-origin is not subject to this inquiry. Therefore, cash deposits
are not required for such merchandise. However, CORE produced in
Vietnam from HRS and/or CRS from China is subject to the AD/CVD orders
on CORE from China, and CORE produced in Vietnam from HRS and/or CRS
from Korea is subject to the AD order on CORE from Korea. If an
importer imports CORE from Vietnam and claims that the CORE was
produced from non-Taiwanese HRS or CRS substrate, in order not to be
subject to cash deposit requirements, the importer and exporter are
required to meet the certification and documentation requirements
described in Appendix II. Exporters of CORE produced in Vietnam from
non-Taiwan-origin HRS or CRS substrate must prepare and maintain an
Exporter Certification and documentation supporting the Exporter
Certification (see Appendix IV). In addition, importers of such CORE
must prepare and maintain an Importer Certification (see Appendix III)
as well as documentation supporting the Importer Certification. In
addition to the Importer Certification, the importer must also maintain
a copy of the Exporter Certification (see Appendix IV) and relevant
supporting documentation from its exporter of CORE produced from non-
Taiwan-origin HRS or CRS substrate.
For this final determination, we determine that the following
companies are not eligible for the certification process: 190 Steel
Pipe Co. Ltd.; Chinh Dai Steel Limited; Hoa Phat Steel Pipe; Perstima
Viet Nam; Prima Commodities Co.; Thong Nhat Flat Steel; Trung Nguyen
Steel Co.; Vietnam Germany Steel JSC; Vietnam Steel Corp.; Thai Nguyen
Iron and Steel Corp.; Vina Kyoei Steel Ltd.; and Vietnam Steel Pipe.
Accordingly, importers of CORE from Vietnam produced and/or exported by
these ineligible companies are similarly ineligible for the
certification process with regard to those imports. Additionally,
exporters are not eligible to certify shipments of merchandise produced
by the above-listed companies. Accordingly, Hoa Phat Group Joint Stock
Company and Hoa Phat Steel Sheet are not eligible to certify shipments
of CORE produced by Hoa Phat Steel Pipe.\8\
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\8\ See IDM at Comment 9.
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Notification Regarding Administrative Protective Orders
This notice will serve as the only reminder to all parties subject
to administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination is issued and published in accordance with
section 781(b) of the Act and 19 CFR 351.225(f).
Dated: December 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance .
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-Circumvention Inquiry
V. Changes Since the Preliminary Determination
VI. Statutory Framework
VII. Statutory Analysis
VIII. Discussion of the Issues
Comment 1: Whether Companies That Did Not Receive Commerce's
Quantity and Value (Q&V) Questionnaire Should Be Permitted to
Participate in the Certification Process
Comment 2: Whether Commerce Abused Its Discretion in Rejecting
the Q&V Questionnaire Responses of Certain Companies
Comment 3: Whether Commerce Lacks Statutory Authority to Apply
AFA Where Respondents Did Not Deprive Commerce of Information
Regarding Its Ability To Trace Inputs
Comment 4: Whether Commerce's Use of AFA Impermissibly Departs
Without Explanation from Its Decision in the China Anti-
Circumvention Inquiry
Comment 5: Whether Precluding Certain Importers and Exporters
from Participating in the Certification Process is Inappropriate and
Unfairly Punishes Importers
Comment 6: Whether Commerce Should Allow Additional Time for
Completing Certification for Pre-Preliminary Determination Entries
Comment 7: Whether a Country-Wide Determination is Justified
Comment 8: Whether Commerce's Interpretation of Section 781(b)
of the Act Applies to the CORE Production Process in Vietnam and
Expands the Scope of the Taiwan CORE Order
Comment 9: Whether Commerce Should Amend the Exporter
Certification Language to Prevent Funneling
Comment 10: Whether to Apply AFA to Certain Vietnamese Producers
that are Affiliated with Those that are Deemed Non-Responsive
Comment 11: Whether Commerce Should Preclude Companies that
Failed to Cooperate in Both the CORE from China and CORE from Taiwan
Inquiries from Participating in the Certification Regime
Comment 12: Whether to Apply the Highest of the Petition Rate or
Investigation Calculated Rate as the Cash Deposit Rate for Non-
Responsive Companies
Comment 13: Whether CSVC's Manufacturing Operations in Vietnam
Constitute Circumvention Under the Statutory Criteria Established in
Section 781(b)(2) of the Act
Comment 14: Whether Nam Kim Should Be Eligible for Certification
IX. Recommendation
Appendix II
Certification Requirements
If an importer imports certain corrosion-resistant steel
products (CORE) from the Socialist Republic of Vietnam (Vietnam) and
claims that the CORE was not produced from hot-rolled steel and/or
cold-rolled steel substrate (substrate) manufactured in Taiwan, the
importer is required to complete and maintain the importer
certification attached hereto as Appendix III and all supporting
documentation. Where the importer uses a broker to facilitate the
entry process, it should obtain the entry number from the broker.
Agents of the importer, such as brokers, however, are not permitted
to make this certification on behalf of the importer.
The exporter is required to complete and maintain the exporter
certification, attached as Appendix IV, and is further required to
provide the importer a copy of that certification and all supporting
documentation.
As discussed in the Issues and Decisions Memorandum, for this
final determination, we are extending the period for completing
certifications for shipments and/or entries during the August 2,
2018 through July 18, 2019 period established in the Preliminary
Determination. Accordingly, for shipments and/or entries on or after
August 2, 2018 through July 18, 2019 for which certifications are
required, importers and exporters should complete the required
certification within 30 days of the publication of this final
determination notice in the Federal Register.
For companies that were not eligible to certify pursuant to the
Preliminary Determination, but are now eligible pursuant to the
final determination, we are also extending the period for completion
of their certifications for shipments and/or entries from August 2,
2018 through the date of Federal Register publication of the final
determination until 30 days after publication of this determination.
Accordingly, where appropriate, the relevant bullet in the
certification should be edited to reflect that the certification was
[[Page 70940]]
completed within the time frame specified above. For example, the
bullet in the importer certification that reads: ``This
certification was completed at or prior to the time of Entry,''
could be edited as follows: ``The imports referenced herein entered
before July 19, 2019. This certification was completed on mm/dd/
yyyy, within 30 days of the Federal Register notice publication of
the final determination of circumvention.'' Similarly, the bullet in
the exporter certification that reads, ``This certification was
completed at or prior to the time of shipment,'' could be edited as
follows: ``The shipments/products referenced herein shipped before
July 19, 2019. This certification was completed on mm/dd/yyyy,
within 30 days of the Federal Register notice publication of the
final determination of circumvention.'' For such entries/shipments,
importers and exporters each have the option to complete a blanket
certification covering multiple entries/shipments, individual
certifications for each entry/shipment, or a combination thereof.
For shipments and/or entries on or after the date of publication
of this notice in the Federal Register, for which certifications are
required, importers should complete the required certification at or
prior to the date of Entry and exporters should complete the
required certification and provide it to the importer at or prior to
the date of shipment.
For shipments and/or entries made on or after 10 days after the
date of publication of this final determination, exporters should
use the certification contained below that incorporates additional
information that was not in the preliminary determination
certification. Specifically, the certification now requires
identification of the producer of the merchandise being exported to
the United States. The importer and Vietnamese exporter are also
required to maintain sufficient documentation supporting their
certifications. The importer will not be required to submit the
certifications or supporting documentation to U.S. Customs and
Border Protection (CBP) as part of the entry process at this time.
However, the importer and the exporter will be required to present
the certifications and supporting documentation, to Commerce and/or
CBP, as applicable, upon request by the respective agency.
Additionally, the claims made in the certifications and any
supporting documentation are subject to verification by Commerce
and/or CBP. The importer and exporter are required to maintain the
certifications and supporting documentation for the later of (1) a
period of five years from the date of entry or (2) a period of three
years after the conclusion of any litigation in United States courts
regarding such entries.
In the situation where no certification is maintained for an
entry, and AD/CVD orders from three countries (China, Korea, or
Taiwan) potentially apply to that entry, Commerce intends to
instruct CBP to suspend the entry and collect cash deposits at the
CORE China Circumvention Final rates (i.e., the AD rate established
for the China-wide entity (199.43 percent) and the CVD rate
established for China all-others rate (39.05 percent)).\9\ In the
situation where a certification is maintained for the AD/CVD orders
on CORE from China (stating that the merchandise was not produced
from HRS and/or CRS from China), but no other certification is
maintained, then Commerce intends to instruct CBP to suspend the
entry and collect cash deposits at the AD and CVD all-others rates
(i.e., 8.31 percent and 1.19 percent, respectively) applicable to
the AD/CVD orders on CORE from Korea. In the situation where a
certification is maintained for the AD order on CORE from China
(stating that the merchandise was not produced from HRS and/or CRS
from China), and for the AD order on CORE from Korea (stating that
the merchandise was not produced from HRS and/or CRS from Korea),
but no other certification is maintained, Commerce intends to
instruct CBP to suspend the entry and collect cash deposits at the
AD all-others rate (i.e., 3.66 percent) applicable to the AD order
on CORE from Taiwan.
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\9\ See CORE China Circumvention Final, 83 FR at 23896.
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Appendix III
Importer Certification
I hereby certify that:
My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}
and I am an official of {INSERT NAME OF IMPORTING COMPANY{time} ;
I have direct personal knowledge of the facts regarding
the importation into the Customs territory of the United States of
the corrosion-resistant steel products produced in Vietnam that
entered under entry number(s) {INSERT ENTRY NUMBER(S){time} and are
covered by this certification. ``Direct personal knowledge'' refers
to facts the certifying party is expected to have in its own
records. For example, the importer should have ``direct personal
knowledge'' of the importation of the product (e.g., the name of the
exporter) in its records;
I have personal knowledge of the facts regarding the
production of the imported products covered by this certification.
``Personal knowledge'' includes facts obtained from another party,
(e.g., correspondence received by the importer (or exporter) from
the producer regarding the source of the input used to produce the
imported products);
These corrosion-resistant steel products produced in
Vietnam do not contain hot-rolled steel and/or cold-rolled steel
substrate produced in Taiwan:
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain a copy of this certification
and sufficient documentation supporting this certification (i.e.,
documents maintained in the normal course of business, or documents
obtained by the certifying party, for example, mill certificates,
productions records, invoices, etc.) for the later of (1) a period
of five years from the date of entry or (2) a period of three years
after the conclusion of any litigation in the United States courts
regarding such entries;
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to provide this certification and
supporting records, upon request, to U.S. Customs and Border
Protection (CBP) and/or the Department of Commerce (Commerce);
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain a copy of the exporter's
certification for the later of (1) a period of five years from the
date of entry or (2) a period of three years after the conclusion of
any litigation in United States courts regarding such entries;
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain and provide a copy of the
exporter's certification and supporting records, upon request, to
CBP and/or Commerce;
I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce;
I understand that failure to maintain the required
certification and/or failure to substantiate the claims made herein
will result in:
[cir] Suspension of liquidation of all unliquidated entries (and
entries for which liquidation has not become final) for which these
requirements were not met and
[cir] the requirement that the importer post applicable
antidumping duty (AD) cash deposits equal to the rates as determined
by Commerce;
I understand that agents of the importer, such as
brokers, are not permitted to make this certification;
This certification was completed at or prior to the
time of Entry; and
I am aware that U.S. law (including, but not limited
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
knowingly and willfully make materially false statements to the U.S.
government.
Signature
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Name of Company Official
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Title
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Date
Appendix IV
Exporter Certification
I hereby certify that:
My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}
and I am an official of {INSERT NAME OF EXPORTING COMPANY{time} ;
I have direct personal knowledge of the facts regarding
the production and exportation of the corrosion-resistant steel
products that were sold to the United States under invoice number(s)
INSERT INVOICE NUMBER(S). ``Direct personal knowledge'' refers to
facts the certifying party is expected to have in its own books and
records. For example, an exporter should have ``direct personal
knowledge'' of the producer's identity and location.
The {MERCHANDISE{time} covered this certification was
produced by {NAME OF PRODUCING COMPANY{time} , located at {ADDRESS
OF PRODUCING COMPANY{time} ; for each additional company, repeat:
{NAME OF PRODUCING COMPANY{time} , located at {ADDRESS OF PRODUCING
COMPANY{time} .
[[Page 70941]]
These corrosion-resistant steel products produced in
Vietnam do not contain hot-rolled steel and/or cold-rolled steel
substrate produced in Taiwan:
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} is required to maintain a copy of this certification
and sufficient documentation supporting this certification (i.e.,
documents maintained in the normal course of business, or documents
obtained by the certifying party, for example, mill certificates,
productions records, invoices, etc.) for the later of (1) a period
of five years from the date of entry or (2) a period of three years
after the conclusion of any litigation in the United States courts
regarding such entries;
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} must provide this Exporter Certification to the U.S.
importer by the time of shipment;
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} is required to provide a copy of this certification
and supporting records, upon request, to U.S. Customs and Border
Protection (CBP) and/or the Department of Commerce (Commerce);
I understand that the claims made herein, and the
substantiating documentation are subject to verification by CBP and/
or Commerce;
I understand that failure to maintain the required
certification and/or failure to substantiate the claims made herein
will result in:
[cir] Suspension of all unliquidated entries (and entries for
which liquidation has not become final) for which these requirements
were not met and
[cir] the requirement that the importer post applicable
antidumping duty (AD) cash deposits equal to the rates as determined
by Commerce;
This certification was completed at or prior to the
time of shipment;
I am aware that U.S. law (including, but not limited
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
knowingly and willfully make materially false statements to the U.S.
government.
Signature
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Name of Company Official
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Title
[FR Doc. 2019-27815 Filed 12-23-19; 8:45 am]
BILLING CODE 3510-DS-P