[Federal Register Volume 84, Number 112 (Tuesday, June 11, 2019)]
[Notices]
[Pages 27081-27084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12285]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-051, C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Preliminary Affirmative Determination of Circumvention of the 
Antidumping Duty and Countervailing Duty Orders

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain hardwood plywood with face and back veneers of radiata 
and/or agathis pine that: (1) Has a Toxic Substances Control Act (TSCA) 
or California Air Resources Board (CARB) label certifying that it is 
compliant with TSCA/CARB requirements; and (2) is made with a resin, 
the majority of which is comprised of one or more of three product 
types--urea formaldehyde, polyvinyl acetate, and/or soy--(inquiry 
merchandise), exported from the People's Republic of China (China), is 
circumventing the antidumping (AD) and countervailing duty (CVD) orders 
on certain hardwood plywood products from China.

DATES: Applicable June 11, 2019.

FOR FURTHER INFORMATION CONTACT: Rachel Greenberg, or Hannah Falvey AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-0652, or (202) 
482-4889 respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 21, 2018, Commerce published in the Federal Register 
the notice of initiation of this anti-

[[Page 27082]]

circumvention inquiry.\1\ For a complete description of the events that 
followed the initiation of this inquiry, see the Preliminary Decision 
Memorandum.\2\ A list of topics included in the Preliminary Decision 
Memorandum is included at Appendix I to this notice. The Preliminary 
Decision Memorandum 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://access.trade.gov, and to all parties in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
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    \1\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiry on the 
Antidumping Duty and Countervailing Duty Orders, 83 FR 47883 
(September 21, 2018) (Initiation Notice).
    \2\ See Memorandum, ``Preliminary Decision Memorandum for the 
Anti-Circumvention Inquiry on the Antidumping and Countervailing 
Duty Orders on Certain Hardwood Plywood Products from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Orders

    The products covered by the Orders are certain hardwood plywood 
products.\3\ For a complete description of the scope of the Orders, see 
the Preliminary Decision Memorandum.\4\
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    \3\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Amended Final Determination of Sales at Less Than 
Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018) 
and Certain Hardwood Plywood Products from the People's Republic of 
China: Countervailing Duty Order, 82 FR 513 (January 4, 2018) 
(collectively, Orders).
    \4\ See Preliminary Decision Memorandum.
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Scope of the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers certain plywood products 
with face and back veneers of radiata and/or agathis pine that: (1) 
TSCA or CARB label certifying that it is compliant with TSCA/CARB 
requirements; and (2) is made with a resin, the majority of which is 
comprised of one or more of the following three product types: Urea 
formaldehyde, polyvinyl acetate, and/or soy exported from China. This 
preliminary ruling applies to all shipments of inquiry merchandise on 
or after the date of the initiation of this inquiry. Importers and 
exporters of plywood from China with both outer veneers made of a 
softwood species of wood (softwood plywood products), must certify that 
the softwood plywood products do not meet all three of the following 
criteria: (1) Have both outer veneers of radiata and/or agathis pine; 
(2) are made with a resin, the majority of which is comprised of urea 
formaldehyde, polyvinyl acetate, and/or soy; and (3) have a TSCA or 
CARB label certifying that they are compliant with TSCA/CARB 
requirements, as provided for in the certifications in the appendices 
to this Federal Register notice.

Methodology

    Commerce is conducting this anti-circumvention inquiry in 
accordance with section 781(d) of the Act. For a full description of 
the methodology underlying Commerce's preliminary determination, see 
the Preliminary Decision Memorandum.

Preliminary Finding

    As detailed in the Preliminary Decision Memorandum, we 
preliminarily determine that the inquiry merchandise exported from 
China is circumventing the Orders. As such, we preliminarily determine 
that it is appropriate to include this merchandise within the Orders 
and to instruct U.S. Customs and Border Protection (CBP) to suspend any 
entries of inquiry merchandise from China that entered the United 
States on or after the date of the initiation of this inquiry.

Suspension of Liquidation

    In accordance with 19 CFR 351.225(l)(2), Commerce will direct CBP 
to suspend liquidation and to require a cash deposit of estimated 
duties on unliquidated entries of inquiry merchandise that were 
entered, or withdrawn from warehouse, for consumption on or after 
September 18, 2018, the date of initiation of the anti-circumvention 
inquiry.
    The suspension of liquidation instructions will remain in effect 
until further notice. Commerce will instruct CBP to require AD cash 
deposits equal to the China-wide rate of 182.90 percent and CVD cash 
deposits equal to the rate established for the China all-others rate of 
22.98 percent, unless the importer/exporter can certify to CBP that the 
Chinese-origin inquiry merchandise was supplied by a Chinese 
manufacturer with a company-specific separate rate. In that instance, 
the cash deposit rate will be the rate of the Chinese inquiry 
merchandise manufacturer that has its own rate.\5\
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    \5\ See, e.g., Glycine from the People's Republic of China: 
Preliminary Partial Affirmative Determination of Circumvention of 
the Antidumping Duty Order and Initiation of Scope Inquiry, 77 FR 
21532, 21535 (April 10, 2012), unchanged in Glycine from the 
People's Republic of China: Final Partial Affirmative Determination 
of Circumvention of the Antidumping Duty Order, 77 FR 73426 
(December 10, 2012).
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Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in this anti-circumvention inquiry, unless the Secretary alters 
the time limit. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\6\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this anti-
circumvention inquiry are encouraged to submit with each argument: (1) 
A statement of the issue; (2) a brief summary of the argument; and (3) 
a table of authorities.
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    \6\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined.

International Trade Commission Notification

    Commerce, consistent with section 781(e) of the Act, has notified 
the International Trade Commission (ITC) of this preliminary 
determination to include the merchandise subject to this anti-
circumvention inquiry within the Orders. Pursuant to section 781(e) of 
the Act, the ITC may request consultations concerning Commerce's 
proposed inclusion of the inquiry merchandise. If, after consultations, 
the ITC believes that a significant injury issue is presented by the 
proposed inclusion, it will have 60 days from the date of notification 
by Commerce to provide written advice.

[[Page 27083]]

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(d) of the Act and 19 CFR 351.225(j).

    Dated: June 4, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-Circumvention Inquiry
V. Analytical Framework for Later-Developed Merchandise Anti-
Circumvention Inquiry
VI. Analysis
VII. Additional Analysis
VIII. Anti-Circumvention Determination
IX. Certification Program
X. Recommendation

Appendix II

    If an importer imports plywood from China with outer veneers 
both made of softwood plywood, and claims that its softwood plywood 
products produced in China do not meet all three of the following 
criteria: (1) Have both outer veneers of radiata and/or agathis 
pine; (2) are made with a resin, the majority of which is comprised 
of urea formaldehyde, polyvinyl acetate, and/or soy; and (3) have a 
Toxic Substances Control Act (TSCA) or California Air Resources 
Board (CARB) label certifying that they are compliant with TSCA/CARB 
requirements, then the importer is required to complete and maintain 
the importer certification attached hereto as Appendix III.
    The importer and exporter are required to maintain the exporter 
certification attached hereto as Appendix IV. The importer 
certification must be completed, signed, and dated at the time of 
the entry of the plywood product. The exporter certification must be 
completed, signed, and dated at the time of shipment of the relevant 
entries. For shipments and/or entries on or after June 4, 2019, but 
before the publication of this notice in the Federal Register, for 
which certifications are required, importers and exporters should 
complete the required certification within 30 days of the 
publication of this notice in the Federal Register. The importer and 
Chinese 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 CBP as part of the entry process. However, the importer and the 
exporter will be required to present the certifications and 
supporting documentation to the Department of Commerce (Commerce) 
and/or U.S. Customs and Border Protection (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. If it is 
determined that the certification and/or documentation requirements 
in a certification have not been met, Commerce intends to instruct 
CBP to suspend, under the China Plywood orders (A-570-051, C-570-
052), all unliquidated entries for which these requirements were not 
met and require the importer to post applicable antidumping duty 
(AD) and countervailing duty (CVD) cash deposits equal to the rates 
as determined by Commerce. Entries suspended under A-570-051 and C-
570-052 will be liquidated pursuant to applicable administrative 
reviews of the China orders or through the automatic liquidation 
process.

Appendix II

Importer Certification

    I hereby certify that:
     My name is {INSERT COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {IMPORTING COMPANY{time} ;
     This certification pertains to {INSERT ENTRY NUMBER(S), 
ENTRY LINE NUMBER(S), AND PRODUCT CODE(S) REFERENCED ON ENTRY 
SUMMARY{time} ;
     I have direct personal knowledge of the facts regarding 
the importation into the Customs territory of the United States of 
the plywood with both outer veneers made of a softwood species of 
wood (softwood plywood products) produced in the People's Republic 
of China (China) that entered under entry number(s) {INSERT ENTRY 
NUMBER(S){time}  and are covered by this certification. ``Direct 
personal knowledge'' for purposes of this certification refers to 
facts in records maintained by the importing company in the normal 
course of its business. 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 softwood plywood products covered by this 
certification. ``Personal knowledge'' for purposes of this 
certification includes facts obtained from another party (e.g., 
correspondence received by the importer (or exporter) from the 
producer regarding the materials used to produce the imported 
softwood plywood products);
     The softwood plywood products produced in China that 
are covered by this certification are not subject to the orders on 
certain hardwood plywood products from China because they do not 
meet all three of the following criteria: (1) Have both outer 
veneers of radiata and/or agathis pine; (2) are made with a resin, 
the majority of which is comprised of urea formaldehyde, polyvinyl 
acetate, and/or soy; and (3) have a Toxic Substances Control Act 
(TSCA) or California Air Resources Board (CARB) label certifying 
that they are compliant with TSCA/CARB requirements;
     I understand that {INSERT IMPORTING COMPANY NAME{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 IMPORTING COMPANY NAME{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 IMPORTING COMPANY NAME{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 IMPORTING COMPANY NAME{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) and/or countervailing duty (CVD) cash deposits 
(as appropriate) equal to the rates 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 the time of filing 
the entry summary for the relevant importation; 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 material false statements to the U.S. 
government.

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NAME OF COMPANY OFFICIAL

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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 plywood with both outer 
veneers made of a softwood species of wood (softwood plywood 
products) identified below;

[[Page 27084]]

     The softwood plywood products produced in China that 
are covered by this certification are not subject to the orders on 
certain hardwood plywood products from China because they do not 
meet all three of the following criteria: (1) Have both outer 
veneers of radiata and/or agathis pine; (2) are made with a resin, 
the majority of which is comprised of urea formaldehyde, polyvinyl 
acetate, and/or soy; and (3) have a Toxic Substances Control Act 
(TSCA) or California Air Resources Board (CARB) label certifying 
that they are compliant with TSCA/CARB requirements;
     I understand that {INSERT NAME OF EXPORTING 
COMPANY{time}  is required to maintain a copy of this certification 
and sufficient documentation supporting this 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 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 at 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) and countervailing duty (CVD) cash deposits 
equal to the rates as determined by Commerce;
     This certification was completed at or prior to the 
time of shipment; 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 material false statements to the U.S. 
government.
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NAME OF COMPANY OFFICIAL

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[FR Doc. 2019-12285 Filed 6-10-19; 8:45 am]
 BILLING CODE 3510-DS-P