[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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.''
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[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\
---------------------------------------------------------------------------
\7\ See Initiation Notice, 84 FR at 55917.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\10\ The importer certification is provided at Appendix III.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\12\ See Appendix II for the certification requirements and
Appendix III for the importer certification.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
\14\ See 19 CFR 351.303.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\15\ See 19 CFR 351.310(c).
\16\ Id.
---------------------------------------------------------------------------
Note that Commerce has temporarily modified certain of its
requirements for serving documents containing business proprietary
information, until further notice.\17\
---------------------------------------------------------------------------
\17\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
---------------------------------------------------------------------------
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