[Federal Register Volume 85, Number 220 (Friday, November 13, 2020)]
[Notices]
[Pages 72624-72627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25159]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-022, C-570-023]


Certain Uncoated Paper From the People's Republic of China: 
Affirmative Preliminary Determinations of Circumvention of the 
Antidumping and Countervailing Duty Orders for Uncoated Paper Rolls

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that imports of certain uncoated paper rolls from the People's Republic 
of China (China) are circumventing the antidumping duty (AD) and 
countervailing duty (CVD) orders on certain uncoated paper from China. 
As a result, imports of certain uncoated paper rolls from China on or 
after October 10, 2019 from certain companies will be subject to 
suspension of liquidation. For all remaining companies, imports of 
certain uncoated paper rolls from China on or after November 6, 2020 
will be subject to suspension of liquidation. Commerce is also imposing 
a certification requirement. We invite interested parties to comment on 
these preliminary determinations.

DATES: Applicable November 13, 2020.

FOR FURTHER INFORMATION CONTACT: Emily Halle, 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) 482-0176.

SUPPLEMENTARY INFORMATION:

Background

    On October 10, 2019, Commerce initiated an anti-circumvention 
inquiry to determine whether imports of certain uncoated paper rolls, 
that are further processed into uncoated paper sheets in the United 
States,\1\ are circumventing the Orders on certain uncoated paper from 
China.\2\ Commerce issued questionnaires soliciting data on the 
quantity and value of exports of uncoated paper to various companies. 
We received responses to these questionnaires from all parties except 
two, Central National Asia Limited (CNAL) and Kingdecor (Zhejiang) Co., 
Ltd. (Kingdecor).
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    \1\ See Certain Uncoated Paper Products from Australia, Brazil, 
the People's Republic of China, and Indonesia: Initiation of Anti-
Circumvention Inquiry of Antidumping and Countervailing Duty Orders, 
84 FR 55915 (October 18, 2019) (Initiation Notice).
    \2\ See Certain Uncoated Paper from Australia, Brazil, 
Indonesia, the People's Republic of China, and Portugal: Amended 
Final Affirmative Antidumping Determinations for Brazil and 
Indonesia and Antidumping Duty Orders, 81 FR 11174 (March 3, 2016); 
see also Certain Uncoated Paper from Indonesia and the People's 
Republic of China: Amended Final Affirmative Countervailing Duty 
Determination and Countervailing Duty Order, 81 FR 11187 (March 3, 
2016) (collectively, Orders).
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    Subsequently, Commerce selected six companies and required them to 
respond to a full questionnaire relating to their export activity with 
respect to uncoated paper (mandatory respondents).\3\ We received no-
shipment responses from three of these companies, i.e., Asia Symbol,\4\ 
Gold Huasheng,\5\ and Marubeni,\6\ while the remaining three, i.e., 
Shandong Sun Paper Industry Joint Stock Co Ltd (Shandong Sun Paper), 
Sun Paper (Hong Kong) Co., Limited, (Sun Paper HK), and Sunpack Paper 
Products Company (Sunpack), did not respond. For a complete description 
of the events that followed the initiation of this inquiry, see the 
Preliminary Decision Memorandum.\7\
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    \3\ See Memorandum, ``Respondent Selection,'' dated May 18, 
2020.
    \4\ Asia Symbol includes the following companies: Greenpoint 
Global Trading (Macao) Commercial Offshore Ltd. (Greenpoint)/Asia 
Symbol (Guangdong) Paper Co., Ltd./Asia Symbol (Shandong) Pulp and 
Paper Co., Ltd.
    \5\ Gold Huasheng Paper Co., Ltd Inc. (Gold Huasheng) also 
includes its affiliated parties Gold East Paper Co., Ltd., Hainan 
Jinhai Pulp and Paper Company, and Ningbo Zhonghua Paper Co, Ltd.
    \6\ Marubeni (China) Corporation, Ltd. (Marubeni) also includes 
its affiliates Marubeni America Corporation and Marubeni (Shanghai) 
Corporation, Ltd.
    \7\ See Memorandum, ``Preliminary Decision Memorandum for Anti-
Circumvention Inquiry of the Antidumping and Countervailing Duty 
Orders on Certain Uncoated Paper from the People's Republic of 
China: Uncoated Paper Rolls,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Orders

    The merchandise subject to these Orders includes uncoated paper in 
sheet form; weighing at least 40 grams per square meter but not more 
than 150 grams per square meter; that either is a white paper with a GE 
brightness level of 85 or higher or is a colored paper; whether or not 
surface-decorated, printed (except as described below), embossed, 
perforated, or punched; irrespective of the smoothness of the surface; 
and irrespective of dimensions (Certain Uncoated Paper).
    Certain Uncoated Paper includes (a) uncoated free sheet paper that 
meets this scope definition; (b) uncoated ground wood paper produced 
from bleached chemi-thermo-mechanical pulp (BCTMP) that meets this 
scope definition; and (c) any other uncoated paper that meets this 
scope definition regardless of the type of pulp used to produce the 
paper.
    Specifically excluded from the scope of these Orders are (1) paper 
printed with final content of printed text or graphics and (2) lined 
paper products, typically school supplies, composed of paper that 
incorporates straight horizontal and/or vertical lines that would make 
the paper unsuitable for copying or printing purposes. For purposes of 
this scope definition, paper shall be considered ``printed with final 
content'' where at least one side of the sheet has printed text and/or 
graphics that cover at least five percent of the surface area of the 
entire sheet.
    On September 1, 2017, Commerce determined that imports of uncoated 
paper with a GE brightness of 83 +/- 1% (83 Bright paper), otherwise 
meeting the description of in-scope merchandise, constitute merchandise 
``altered in form or appearance in minor respects'' from in-scope 
merchandise that are subject to these Orders.\8\
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    \8\ See Certain Uncoated Paper from Australia, Brazil, the 
People's Republic of China, Indonesia, and Portugal: Affirmative 
Final Determination of Circumvention of the Antidumping and 
Countervailing Duty Orders, 82 FR 41610 (September 1, 2017).
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    Imports of the subject merchandise are provided for under 
Harmonized Tariff Schedule of the United States (HTSUS) categories 
4802.56.1000, 4802.56.2000, 4802.56.3000, 4802.56.4000, 4802.56.6000, 
4802.56.7020, 4802.56.7040, 4802.57.1000, 4802.57.2000, 4802.57.3000, 
and 4802.57.4000. Some imports of subject merchandise may also be 
classified under 4802.62.1000, 4802.62.2000, 4802.62.3000, 
4802.62.5000, 4802.62.6020, 4802.62.6040, 4802.69.1000, 4802.69.2000, 
4802.69.3000, 4811.90.8050 and 4811.90.9080. While HTSUS subheadings 
are provided for convenience and customs purposes, the written 
description of the scope is dispositive.

Merchandise Subject to the Anti-Circumvention Inquiries

    These anti-circumvention inquiries cover certain uncoated paper 
rolls that are commonly, but not exclusively, known as ``sheeter 
rolls,'' from China

[[Page 72625]]

that are further processed in the United States into individual sheets 
of uncoated paper that would be subject to the Orders (i.e., paper that 
weighs at least 40 grams per square meter but not more than 150 grams 
per square meter; and that either is a white paper with a GE brightness 
level of 83 +/-1% or higher or is a colored paper (as defined above)), 
except as noted below. The uncoated paper rolls covered by these 
inquiries are converted into sheets of uncoated paper using specialized 
cutting machinery prior to printing, and are typically, but not 
exclusively, between 52 and 103 inches wide and 50 inches in diameter. 
For clarity, we herein refer to ``subject-paper rolls'' when 
referencing the certain uncoated paper rolls that may be converted into 
subject merchandise. Subject-paper rolls are classified under HTSUS 
category 4802.55.\9\
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    \9\ See Initiation Notice, 84 FR at 55917.
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    Certain importers of the subject-paper rolls that are not converted 
into subject merchandise may certify that the rolls are not further 
processed into subject merchandise covered by the scope of the Orders. 
Failure to comply with the requisite certification requirement may 
result in the merchandise being found subject to antidumping and 
countervailing duties.

Methodology

    Commerce made this preliminary finding of circumvention in 
accordance with section 781(a) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.225(g). We relied on information placed on the 
record by the petitioners.\10\ Further, because certain interested 
parties did not cooperate to the best of their abilities in responding 
to Commerce's requests for information, we have based our preliminary 
determinations on the facts available, with adverse inferences, 
pursuant to sections 776(a) and (b) of the Act, as necessary.\11\
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    \10\ The petitioners are Domtar Corporation, Packaging 
Corporation of America, North Pacific Paper Company, Finch Paper 
LLC, and United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union.
    \11\ See Preliminary Decision Memorandum at Section VII.B.
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    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. 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 http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content. A list of the topics discussed in the Preliminary Decision 
Memorandum is attached at the Appendix to this notice.

Affirmative Preliminary Determinations of Circumvention

    Based on our analysis, as detailed in the Preliminary Decision 
Memorandum, we preliminarily find, pursuant to section 781(a) of the 
Act, that all imports from China of uncoated paper rolls that meet the 
description of inquiry merchandise above (i.e., subject-paper rolls), 
regardless of producer, exporter, or importer, constitute further-
processed merchandise that is circumventing, and should be included 
within, the scope of the Orders.
    We also preliminarily determine that Asia Symbol, Gold Huasheng, 
and Marubeni did not export subject-paper rolls from China to the 
United States during the period of inquiry.\12\
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    \12\ The period for these inquiries examines the time period 
starting in the month the initiations of the underlying Orders was 
published, and ending four years later, i.e., February 1, 2015, 
through February 28, 2019.
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    To administer this affirmative circumvention determination, 
Commerce is requiring that importers of certain paper rolls from China 
that otherwise match the physical description of subject-paper rolls 
and that are not further processed into uncoated paper sheets subject 
to the Orders certify that the merchandise will not be further 
processed into subject uncoated paper sheets. Importers of such 
merchandise will be required to certify and maintain their 
certifications and supporting documentation to provide to CBP and/or 
Commerce upon request.\13\ Properly certified entries are not subject 
to antidumping or countervailing duties under the Orders. Exemption 
from antidumping and countervailing duties under the Orders is 
permitted only if the certification and documentation requirements 
specified in Appendix II and III are met.
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    \13\ The importer certification is provided at Appendix III.
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    Entries of subject-paper rolls produced and/or exported by the non-
responsive companies (i.e., CNAL, Kingdecor, Sunpack, Sun Paper HK, and 
Shandong Sun Paper) are not eligible for certification.

Suspension of Liquidation

    In accordance with 19 CFR 351.225(l)(2), for entries of subject-
paper rolls that were produced and/or exported by CNAL, Kingdecor, 
Shandong Sun Paper, Sun Paper HK, and Sunpack (collectively, the non-
responsive companies), Commerce will instruct U.S. Customs and Border 
Protection (CBP) to suspend liquidation of subject-paper rolls (as 
defined in the ``Merchandise Subject to the Anti-Circumvention 
Inquiry'' section above) from China that are entered, or withdrawn from 
warehouse, for consumption on or after October 10, 2019, the date of 
initiation of this anti-circumvention inquiry.\14\ For all other 
entries of subject-paper rolls, Commerce will instruct CBP to suspend 
liquidation of the subject-paper rolls from China that are entered, or 
withdrawn from warehouse, for consumption on or after the signature 
date of these preliminary determinations, November 6, 2020.\15\
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    \14\ See Preliminary Decision Memorandum at ``Use of Facts 
Available with an Adverse Inference'' section; see also Anti-
circumvention Inquiry of the Antidumping Duty Order on Certain Pasta 
from Italy: Affirmative Preliminary Determination of Circumvention 
of the Antidumping Duty Order, 63 FR 18364, 18366 (April 15, 1998), 
unchanged in Anti-Circumvention Inquiry of the Antidumping Duty 
Order on Certain Pasta from Italy: Affirmative Final Determination 
of Circumvention of the Antidumping Duty Order, 63 FR 54672, 54675-6 
(October 13, 1998).
    \15\ See Preliminary Decision Memorandum at ``Use of Facts 
Available with an Adverse Inference'' section.
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    CBP shall require cash deposits in accordance with those rates 
prevailing at the time of entry, unless the importer can certify to CBP 
that the subject-paper rolls will not be further processed into 
uncoated paper sheets subject to the Orders in the United States.\16\ 
In that latter instance, no cash deposit rate will be required. 
Subject-paper rolls meeting the physical characteristics described 
above, which are produced and/or exported by the non-responsive 
companies (i.e., CNAL, Kingdecor, Shandong Sun Paper, Sun Paper HK, and 
Sunpack), will not be eligible for certification.
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    \16\ See Appendix II for the certification requirements and 
Appendix III for the importer certification.
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Public Comment

    Interested parties may submit case briefs to Commerce no later than 
30 days after the date of publication of this notice. Rebuttal briefs, 
limited to issues raised in the case briefs, may be filed no later than 
seven days after the time limit for filing case briefs. Parties who 
submit case briefs or rebuttal briefs in this proceeding are encouraged 
to submit with each argument: (1) A statement of

[[Page 72626]]

the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\17\ Case and rebuttal briefs should be filed 
electronically via ACCESS.\18\
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    \17\ See 19 CFR 351.309(c)(2) and (d)(2).
    \18\ See 19 CFR 351.303.
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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.\19\ 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 a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.\20\
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    \19\ See 19 CFR 351.310(c).
    \20\ Id.
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Notification to the ITC

    Consistent with section 781(e) of the Act, Commerce is notifying 
the ITC of these affirmative preliminary determinations to include the 
merchandise subject to these inquiries within the AD and CVD orders on 
uncoated paper from China. Pursuant to section 781(e) of the Act, the 
ITC may request consultations concerning Commerce's proposed inclusion 
in the Orders of the inquiry merchandise. These consultations must be 
concluded within 15 days after the date of the request. If, after 
consultations, the ITC believes that a significant injury issue is 
presented by the proposed inclusion, it will have 60 days to provide 
written advice to Commerce.

Notification to Interested Parties

    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.225(g).

    Dated: November 6, 2020.
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 Orders
IV. Merchandise Subject to the Anti-Circumvention Inquiries
V. Period of Anti-Circumvention Inquiries
VI. Statutory Framework
VII. Use of Facts Available with An Adverse Inference
VIII. Anti-Circumvention Analysis
IX. Country-Wide Determination
X. Certification Requirement
XI. Recommendation

Appendix II--Certification Requirements

    If an importer imports subject-paper rolls from China and claims 
that the subject-paper rolls will not be further processed into 
uncoated paper sheets covered by the Orders, the importer is 
required to complete and maintain the importer certification 
attached hereto at Appendix III and all supporting documentation. 
Where the importer uses a broker to facilitate the entry process, it 
should obtain the entry summary number from the broker. Agents of 
the importer, such as brokers, however, are not permitted to make 
this certification on behalf of the importer.
    All importers of subject-paper rolls from China are eligible for 
the certification process detailed below. However, entries of 
subject-paper rolls produced and/or exported by Central National 
Asia Limited, Kingdecor (Zhejiang) Co., Ltd., Shandong Sun Paper 
Industry Joint Stock Co Ltd, Sun Paper (Hong Kong) Co., Limited, and 
Sunpack Paper Products Company, are ineligible for certification.
    For entries of subject-paper rolls from China entered, or 
withdrawn from warehouse, for consumption on or after the date this 
preliminary determination was signed for which the importer claims 
that the rolls will not be further processed into uncoated paper 
subject to the orders, the importer is required to meet the 
certification and documentation requirements detailed in the 
certifications in order for no suspension of liquidation and no cash 
deposit to be required for such entries. Among other requirements 
detailed below, importers are required to maintain a copy of any 
certifications, as well as sufficient documentation supporting the 
certification (i.e., documents maintained in the normal course of 
business, or documents obtained by the certifying party, for 
example, mill certificates, production 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.
    For all such shipments and/or entries on or after the date these 
preliminary determinations were signed, through 14 days after the 
publication of these preliminary determinations in the Federal 
Register, for which certifications are required, importers should 
complete the required certifications no later than 14 days after the 
date of publication in the Federal Register.
    Accordingly, where appropriate, the relevant bullet in the 
certification should be edited to reflect that the certification was 
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 
Summary,'' could be edited as follows: ``The imports referenced 
herein entered on {insert date{time} . This certification was 
completed on mm/dd/yyyy, within 14 days of the publication date of 
the Federal Register notice of the preliminary determinations of 
circumvention.''
    For all shipments and/or entries made later than the 14th day 
after the publication in the Federal Register for which 
certifications are required, importers should complete the required 
certification at or prior to the date of Entry Summary.

Appendix III--Importer Certification

    I hereby certify that:
    (A) My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS OF IMPORTING COMPANY{time} .
    (B) I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of 
subject-paper rolls produced in the People's Republic of China 
(China) that entered under entry summary number(s), identified 
below, and which are covered by this certification. Subject-paper 
rolls are defined as certain uncoated paper rolls commonly, but not 
exclusively, known as ``sheeter rolls,'' (rolls with paper that 
weigh at least 40 grams per square meter but not more than 150 grams 
per square meter; and paper that either is a white paper with a GE 
brightness level of 83 +/-1% or higher or is a colored paper) that 
may be converted into subject merchandise. The uncoated paper rolls 
are typically, but not exclusively, between 52 and 103 inches wide 
and 50 inches in diameter. Subject-paper rolls are classified under 
HTSUS category 4802.55. ``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.
    (C) If the importer is acting on behalf of the first U.S. 
customer, complete this paragraph, if not put ``NA'' at the end of 
this paragraph: The imported subject-paper rolls covered by this 
certification were imported by {NAME OF IMPORTING COMPANY{time}  on 
behalf of {NAME OF U.S. CUSTOMER{time} , located at {ADDRESS OF U.S. 
CUSTOMER{time} .
    (D) The imported subject-paper rolls covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
FIRST SHIPPED IN THE UNITED STATES{time} , located at {ADDRESS OF 
SHIPMENT{time} .
    (E) Select appropriate statement below:
    __I have direct personal knowledge of the facts regarding the 
end-use of the imported product because my company is the end-user 
of the imported product covered by this certification and I certify 
that the imported subject-paper rolls will not be used to produce 
subject merchandise. ``Direct personal knowledge'' includes 
information contained within my company's books and records.
    __I have personal knowledge of the facts regarding the end-use 
of the imported product because my company is not the end-user of 
the imported product covered by this certification. However, I have 
been able to contact the end-user of the imported product

[[Page 72627]]

and confirm that it will not use this product to produce subject 
merchandise. The end-user of the imported product is {COMPANY 
NAME{time} . ``Personal knowledge'' includes facts obtained from 
another party (e.g., correspondence received by the importer from 
the end-user of the product).
    (F) The imported subject-paper rolls covered by this 
certification will not be further processed into uncoated paper 
sheets in the United States. (Note: For certifications related to 
entries made on or after November 6, 2020, and through 14 days after 
the publication of the Preliminary Determination, the importer 
should replace ``will not be further processed'' with ``were not 
further processed'' in the certification, as necessary).
    (G) This certification applies to the following entries (repeat 
this block as many times as necessary):
    Entry Summary #:
    Entry Summary Line Item #:
    Foreign Seller:
    Foreign Seller's Address:
    Foreign Seller's Invoice #:
    Foreign Seller's Invoice Line Item #:
    Producer:
    Producer's Address:
    (H) I understand that {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, production 
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) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to provide this certification and supporting records to 
U.S. Customs and Border Protection (CBP) and/or the Department of 
Commerce (Commerce), upon request by the respective agency.
    (J) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (K) I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
entries to which this certification applies are within the scope of 
the antidumping/countervailing duty orders on certain uncoated paper 
from China. I understand that such finding will result in:
    (i) suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met;
    (ii) the requirement that the importer post applicable 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates determined by Commerce; and
    (iii) the revocation of {NAME OF IMPORTING COMPANY{time} 's 
privilege to certify future imports of subject-paper rolls from 
China as not being imported for purposes of further processing into 
the United States into uncoated paper sheets.
    (L) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    (M) This certification was completed at or prior to the date of 
entry summary.
    (N) 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.
Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE{time} 

[FR Doc. 2020-25159 Filed 11-12-20; 8:45 am]
BILLING CODE 3510-DS-P