[Federal Register Volume 86, Number 16 (Wednesday, January 27, 2021)]
[Notices]
[Pages 7266-7269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01785]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-828, C-560-829]


Certain Uncoated Paper From Indonesia: 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 Indonesia are 
circumventing the antidumping duty (AD) and countervailing duty (CVD) 
orders on certain uncoated paper from Indonesia. As a result, all 
imports of certain uncoated paper rolls from Indonesia from certain 
non-responsive converters \1\ will be subject to suspension of 
liquidation on or after October 18, 2019. All remaining imports of 
certain uncoated paper rolls from Indonesia will be subject to 
suspension of liquidation on or after the date of publication of this 
preliminary determination. Commerce is also imposing a certification 
requirement. We invite interested parties to comment on these 
preliminary determinations.
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    \1\ The non-responsive converters are: Advanced Paper 
Enterprises, Inc.; Alliance Converting LLC; Case Paper Company Inc.; 
LinkMax Paper; Midwest Converting; Mohawk Fine Papers Inc.; and 
Northwoods Paper Converting (collectively, non-responsive 
converters). See Memorandum, ``Preliminary Decision Memorandum for 
the Anti-Circumvention Inquiries on the Antidumping and 
Countervailing Duty Orders on Certain Uncoated Paper from 
Indonesia,'' dated concurrently with this notice (Preliminary 
Decision Memorandum) at ``Use of Facts Available and Use of Facts 
Available with an Adverse Inference.''

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DATES: Applicable January 27, 2021.

FOR FURTHER INFORMATION CONTACT: Genevieve Coen, 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) 482-3251.

SUPPLEMENTARY INFORMATION:

Background

    On October 18, 2019, Commerce initiated anti-circumvention 
inquiries to determine whether imports of certain uncoated paper rolls 
that are further processed into uncoated paper sheets in the United 
States \2\ are circumventing the Orders \3\ on certain uncoated paper 
from Indonesia. Commerce issued questionnaires soliciting data on the 
quantity and value of exports of uncoated paper rolls to various 
companies. We received responses to these questionnaires from all 
parties except Midwest Converting and Mohawk Fine Papers Inc.
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    \2\ See Certain Uncoated Paper Products from Australia, Brazil, 
the People's Republic of China, and Indonesia: Initiation of Anti-
Circumvention Inquiry on the Antidumping and Countervailing Duty 
Orders, 84 FR 55915 (October 18, 2019) (Initiation Notice).
    \3\ 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 three Indonesian companies/company 
groups as mandatory respondents--APRIL Fine Paper Macao Offshore 
Limited/APRIL International Enterprise Pte. Ltd./A P Fine Paper Trading 
(Hong Kong) Limited/PT Anugrah Kertas Utama,/PT Riau Andalan Kertas 
(collectively, APRIL); Great Champ Trading Limited (Great Champ); and 
PT. Indah Kiat Pulp and Paper Tbk/PT. Pabrik Kertas Tjiwi Kimia Tbk/
Pindo Deli Pulp and Paper (collectively, APP Indonesian Mills)--and 
required them to respond to a full questionnaire relating to their 
export activity with respect to uncoated paper rolls.\4\ We 
additionally determined to examine merchandise imported by three U.S. 
companies and to obtain information related to their paper conversion 
operations from nine additional U.S. companies.\5\ We received full 
questionnaire, supplemental questionnaire, and conversion questionnaire 
responses, as applicable from six of these companies and a partial 
response from a seventh company, CellMark Paper, Inc. (CellMark). Five 
companies (i.e., Advanced Paper Enterprises, Inc.; Alliance Converting 
LLC; Case Paper Company Inc.; LinkMax; and Northwoods Paper Converting) 
failed to respond. For a complete description of the events that 
followed the initiation of these inquiries, see the Preliminary 
Decision Memorandum.
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    \4\ See Memorandum, ``Respondent Selection,'' dated May 18, 
2020. As discussed in that document, we have previously found the 
various APRIL and APP Indonesian Mills companies as single entities 
in prior segments of this proceeding. In the absence of comments 
from any interested parties and any contrary information, we 
continue to treat these parties as single entities in this segment.
    \5\ Id.
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Scope of the Orders

    The merchandise subject to the 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). For a full 
description of the scope, see the Preliminary Decision Memorandum.\6\
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    \6\ See Memorandum, ``Preliminary Decision Memorandum for Anti-
Circumvention Inquiry of the Antidumping Duty Order on Certain 
Uncoated Paper from Indonesia: Uncoated Paper Rolls,'' dated 
concurrently, and hereby adopted, with this notice (Preliminary 
Decision Memorandum).

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[[Page 7267]]

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 Indonesia 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 in the ``Scope'' of the Preliminary Decision 
Memorandum)), except as noted below. The uncoated paper rolls covered 
by these inquiries are able to be 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 Harmonized Tariff Schedule category 4802.55.\7\
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    \7\ See Initiation Notice, 84 FR at 55917.
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    Certain importers of subject-paper rolls that will not be converted 
into subject merchandise may certify that the subject-paper rolls will 
not be 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 AD/CVD 
duties.

Methodology

    Commerce made these preliminary findings 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 petitioners,\8\ respondents, and other interested parties. 
Further, because CellMark and the non-responsive converters did not 
cooperate by failing to respond to the best of their abilities to 
Commerce's requests for information, we have used adverse inferences, 
either in whole or in part, when selecting from among the facts 
otherwise available on the record for certain aspects of these 
preliminary determinations, pursuant to sections 776(a) and (b) of the 
Act.\9\
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    \8\ The petitioners are: Domtar Corporation; Packaging 
Corporation of America; North Pacific Paper Company; Finch Paper 
LLC; and the United Steel, Paper, and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union.
    \9\ See Preliminary Decision Memorandum at Section VII.
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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 Appendix I 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 imports from Indonesia of uncoated paper rolls that meet the 
description of inquiry merchandise above (i.e., subject-paper rolls) 
that are further processed in the United States into subject 
merchandise are circumventing the Orders.
    To administer these affirmative circumvention determinations, 
Commerce is requiring that importers of certain paper rolls from 
Indonesia that otherwise match the physical description of subject-
paper rolls and will not be 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 U.S. Customs 
and Border Protection (CBP) and/or Commerce upon request.\10\ Properly 
certified entries are not subject to AD/CVD duties under the Orders. 
Exemption from AD/CVD duties under the Orders is permitted only if the 
certification and documentation requirements specified in Appendices II 
and III are met.
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    \10\ The importer certification is provided at Appendix III.
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    Entries of subject-paper rolls purchased by the non-responsive 
converters (i.e., Advanced Paper Enterprises, Inc., Alliance Converting 
LLC, Case Paper Company Inc., LinkMax Paper, Midwest Converting, Mohawk 
Fine Papers Inc., and Northwoods Paper Converting) 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 imported or purchased by the non-responsive 
converters (i.e., Advanced Paper Enterprises, Inc.; Alliance Converting 
LLC; Case Paper Company Inc.; LinkMax Paper; Midwest Converting; Mohawk 
Fine Papers Inc.; and Northwoods Paper Converting), Commerce will 
instruct CBP to suspend liquidation of subject-paper rolls (as defined 
in the ``Merchandise Subject to the Anti-Circumvention Inquiries'' 
section above) from Indonesia that are entered, or withdrawn from 
warehouse, for consumption on or after October 18, 2019, the date of 
publication of the initiation of these anti-circumvention inquiries in 
the Federal Register.\11\ For all other entries of subject-paper rolls, 
Commerce will instruct CBP to suspend liquidation of the subject-paper 
rolls from Indonesia that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of these preliminary 
determinations.
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    \11\ See Preliminary Decision Memorandum at ``Use of Facts 
Available with an Adverse Inference''; 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-
76 (October 13, 1998).
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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, and 
that the purchaser and/or end user is not Advanced Paper Enterprises, 
Inc., Alliance Converting LLC, Case Paper Company Inc., LinkMax Paper, 
Midwest Converting, Mohawk Fine Papers Inc., or Northwoods Paper 
Converting.\12\ In that latter instance, no cash deposit rate will be 
required. Subject-paper rolls meeting the physical characteristics 
described above, which are imported and/or purchased by the non-
responsive converters (i.e., Advanced Paper Enterprises, Inc., Alliance 
Converting LLC, Case Paper Company Inc., LinkMax Paper, Midwest 
Converting, Mohawk Fine Papers Inc., and

[[Page 7268]]

Northwoods Paper Converting), are not eligible for certification.
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    \12\ 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 the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.\13\ Case and 
rebuttal briefs should be filed electronically via ACCESS.\14\
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    \13\ See 19 CFR 351.309(c)(2) and (d)(2).
    \14\ 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.\15\ 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.\16\
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    \15\ See 19 CFR 351.310(c).
    \16\ Id.
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    Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\17\
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    \17\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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Notification to the U.S. International Trade Commission (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/CVD Orders on 
uncoated paper from Indonesia. 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: January 19, 2021.
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 Indonesia 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 Indonesia are eligible 
for the certification process detailed below, with the exception 
that entries of subject-paper rolls imported and/or purchased by 
Advanced Paper Enterprises, Inc., Alliance Converting LLC, Case 
Paper Company Inc., LinkMax Paper, Midwest Converting, Mohawk Fine 
Papers Inc., or Northwoods Paper Converting, are ineligible for 
certification.
    For entries of subject-paper rolls from Indonesia entered, or 
withdrawn from warehouse, for consumption on or after the date these 
preliminary determinations were 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 of 
publication of these preliminary determinations in the Federal 
Register, through 14 days after the date of 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 
of these preliminary determinations 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 date of publication of these preliminary determinations 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 Indonesia that entered under the 
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

[[Page 7269]]

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 and 
confirm that it will not use this product to produce subject 
merchandise. The end user of the imported product is {COMPANY 
NAME{time}  located at {ADDRESS{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, and will not be sold to Advanced Paper 
Enterprises, Inc., Alliance Converting LLC, Case Paper Company Inc., 
LinkMax Paper, Midwest Converting, Mohawk Fine Papers Inc., or 
Northwoods Paper Converting. (Note: For certifications related to 
entries made on or after January 19, 2021, and through 14 days after 
the publication of the Preliminary Determinations, 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 Indonesia. 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 
Indonesia 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. 2021-01785 Filed 1-26-21; 8:45 am]
BILLING CODE 3510-DS-P