[Federal Register Volume 87, Number 203 (Friday, October 21, 2022)]
[Notices]
[Pages 64009-64013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22857]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-084, C-570-085]
Certain Quartz Surface Products From the People's Republic of
China: Final Scope Ruling on Malaysian Processed Quartz Slab and
Recission of the Circumvention Inquiry
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of quartz slab manufactured in the People's Republic of China
(China) and processed in Malaysia are covered by the scope of the
antidumping duty (AD) and countervailing duty (CVD) orders on certain
quartz surface products from China.
DATES: Applicable October 21, 2022.
FOR FURTHER INFORMATION CONTACT: Ajay Menon or Paul Gill, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0208 or (202) 482-5673,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 7, 2022, Commerce published a notice self-initiating
scope and circumvention inquiries to determine whether imports of
quartz surface products completed in Malaysia using inputs manufactured
in China are covered by the AD and CVD orders on certain quartz surface
products from China.\1\ For a complete description of the events that
followed the initiation, see the Final Scope Memorandum.\2\
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\1\ See Quartz Surface Products from the People's Republic of
China: Initiation of Scope and Circumvention Inquiries of the
Antidumping Duty and Countervailing Duty Orders, 87 FR 6844
(February 7, 2022) (Initiation Notice); see also Certain Quartz
Surface Products from the People's Republic of China: Antidumping
and Countervailing Duty Orders, 84 FR 33053 (July 11, 2019)
(Orders).
\2\ See Memorandum, ``Quartz Surface Products from the People's
Republic of China: Final Scope Ruling,'' dated concurrently with,
and hereby adopted by, this notice (Final Scope Memorandum).
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Scope of the Orders
The products covered by the Orders include certain quartz surface
products from China.\3\ Products subject to the Orders are currently
classified under the Harmonized Tariff Schedule of the United States
(HTSUS) item numbers 6810.99.0010. Subject merchandise may also enter
under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200,
6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 2506.10.0010,
2506.10.0050, 2506.20.0010, 2506.20.0080, and 7016.90.1050. Although
the HTSUS subheading are provided for convenience and U.S. Customs
purposes, the written description of the scope is dispositive.
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\3\ For a complete description of the scope of the Orders, see
the Final Scope Memorandum.
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Merchandise Subject to the Scope Inquiry
This scope inquiry covers imports of quartz surface products
processed in Malaysia using quartz slab manufactured in China.
Methodology and Final Scope Ruling
Commerce conducted this scope inquiry in accordance with 19 CFR
351.225(k)(1). Specifically, as discussed in the Final Scope
Memorandum, we find that, because the scope of the Orders explicitly
covers quartz slab manufactured in China and finished, packaged, or
otherwise fabricated in a third country, the Chinese quartz slab
processed in Malaysia subject to this scope inquiry is covered by the
scope of the Orders pursuant to 19 CFR 351.225(k)(1). A complete list
of the
[[Page 64010]]
issues discussed in the Final Scope Memorandum is contained in Appendix
I.
Adverse Facts Available
Because certain interested parties did not cooperate to the best of
their abilities in responding to Commerce's requests for information,
we are basing part of our final determination on the facts available,
with adverse inferences, pursuant to sections 776(a) and (b) of the
Tariff Act of 1930, as amended (the Act). Specifically, the following
companies did not respond to Commerce's requests for information in
this scope inquiry: Bada Industries SDN BHD (Bada Industries); Ever
Stone World SDN BHD (Ever Stone); Karina Stone; MSI Building Supply SDN
(MSI); Principal Safwa (M) SDN (Principal); Resstone Manufacturing
(Resstone); SCLM Services SDN BHD (SCLM); Unique Stone SDN BHD (Unique
Stone); and Universal Quartz. Therefore, in accordance with sections
776(a) and (b) of the Act, we find that these companies are exporting
to the United States certain quartz surface products processed in
Malaysia containing quartz slab manufactured China. Moreover, as
discussed further below, we deem these companies ineligible to
participate in the scope certification process, we are establishing as
part of this scope ruling. For a complete description of our AFA
determination, see the Final Scope Memorandum.\4\
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\4\ See Final Scope Memorandum at 3.
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Scope Certification Process
Evidence on the record indicates that the companies which have
fully participated in this scope inquiry have not used Chinese quartz
slab as an input in the production of Malaysian quartz surface
products. However, as noted above, certain companies failed to respond
to Commerce's requests for information. Therefore, pursuant to 19 CFR
351.228, Commerce is implementing a certification requirement for all
imports of quartz surface products from Malaysia. For further
discussion, see the Final Scope Memorandum.
We determine that the following companies are not eligible for the
scope certification process because, as noted above, they did not fully
participate in the proceeding: Bada Industries; Ever Stone; Karina
Stone; MSI; Principal; Resstone; SCLM; Unique Stone; and Universal
Quartz. However, these ineligible companies may request reconsideration
of their exclusion from the certification process in a future segment
of the proceeding (i.e., either through a changed circumstances review
or an administrative review).\5\
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\5\ See, e.g., Carbon Steel Butt-Weld Pipe Fittings from the
People's Republic of China: Final Affirmative Determination of
Circumvention of the Antidumping Duty Order, 84 FR 29164 (June 21,
2019), and accompanying Issues and Decision Memorandum, at 21-22;
see also Diamond Sawblades and Parts Thereof from the People's
Republic of China: Preliminary Affirmative Determination of
Circumvention, 84 FR 58130 (October 30, 2019), and accompanying
Preliminary Decision Memorandum, at 6, unchanged in Diamond
Sawblades and Parts Thereof from the People's Republic of China:
Final Determination of Anti-Circumvention Inquiry, 85 FR 9737
(February 20, 2020).
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Continuation of Suspension of Liquidation
As stated above, Commerce has found that imports of quartz surface
products processed in Malaysia using quartz slab manufactured in China
is merchandise covered by the scope of the Orders. As a result of this
determination, and consistent with 19 CFR 351.225(l)(3), we intend to
direct U.S. Customs and Border Protection (CBP) to continue to suspend
liquidation of Chinese quartz slab processed in Malaysia and to require
a cash deposit of estimated AD and CVD duties at the applicable rates
on unliquidated entries of merchandise subject to this inquiry that are
entered, or withdrawn from warehouse, for consumption on or after
November 4, 2021, the effective date of the Final Rule.\6\ These
suspension of liquidation and cash deposit requirements do not apply to
imports of quartz surface products from Malaysia which are not produced
from Chinese quartz slab, subject to the certification and
documentation requirements described in Appendices II, III, and IV.
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\6\ See Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300, 52377
(September 20, 2021) (Final Rule).
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Specifically, if an importer of quartz surface products from
Malaysia claims that the quartz surface products were not produced
using Chinese quartz slab, to not be subject to cash deposit
requirements the importer must meet the certification and documentation
requirements described in Appendix II. An exporter of quartz surface
products in Malaysia claiming its quartz surface products were not
produced using Chinese quartz slab must prepare and maintain an
Exporter Certification and documentation supporting the Exporter
Certification (see Appendix IV). In addition, importers of such quartz
surface products must prepare and maintain an Importer Certification
(see Appendix III) and documentation supporting the Importer
Certification. In addition to the Importer Certification, the importer
must also maintain a copy of the Exporter Certification (see Appendix
IV) and relevant supporting documentation from its exporter of quartz
surface products that do not contain Chinese-origin quartz slab.
If it is determined that the certification and/or documentation
requirements in a certification have not been met (e.g., where the
importer/exporter cannot support its claim that the imported
merchandise was produced from quartz slab that did not originate in
China) or companies are not eligible for the certification process,
Commerce will instruct CBP to suspend liquidation and require cash
deposits for such entries. For AD cash deposits, Commerce will instruct
CBP to require AD cash deposits equal to the China-wide rate, unless
the importer/exporter can support its claim that the quartz slab was
exported by a Chinese manufacturer with a company-specific separate
rate. In that instance, the cash deposit rate will be the rate of the
Chinese supplier of the quartz slab that has its own rate. For CVD cash
deposits, Commerce will instruct CBP to require CVD cash deposits equal
to the all-others rate, unless the importer/exporter can support its
claim that the quartz slab was produced and/or exported by a Chinese
manufacturer with a company-specific rate. In that instance, the cash
deposit rate will be the rate of the Chinese supplier of the quartz
slab that has its own rate. These suspension of liquidation and cash
deposit requirements will remain in effect until further notice.
Finally, for quartz surface products produced from Chinese-origin
quartz slab processed in Malaysia, Commerce has established third
country case numbers in the Automated Commercial Environment (ACE). For
quartz surface products exported from Malaysia that is merchandise
covered by the scope of the AD/CVD Orders on quartz surface products
from China, where the country-of-origin changes for CBP's reporting
purposes, importers should report such entries under the following
third country case numbers: A-557-084 and C-557-085. The importer,
producer, or exporter of quartz surface products in Malaysia using
Chinese-origin slab should file a request in Enforcement and
Compliance's electronic system, ACCESS, and on the record of the
applicable administrative review proceeding, asking Commerce to
establish a case number in the Automated Commercial Environment (ACE)
for China that is specific to the Chinese supplier of quartz slab. CBP
may also submit a request through the ACE AD/CVD Portal Inquiry System,
for
[[Page 64011]]
Commerce to establish company-specific third country case numbers for
China.
Rescission of the Circumvention Inquiry
Pursuant to 19 CFR 351.226(f)(6)(ii), Commerce may rescind a
circumvention inquiry where it has been determined that the merchandise
at issue in the circumvention inquiry is covered by the scope of the AD
or CVD order. Commerce in the Initiation Notice stated that it would
first determine if the merchandise at issue is covered by the scope of
the Orders before considering whether this merchandise is circumventing
the Orders.\7\ Because we have now determined that the scope of the
Orders covers imports of quartz surface products completed in Malaysia
using quartz slab manufactured in China, we are rescinding the
circumvention inquiry.
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\7\ See Initiation Notice, 87 FR at 6845.
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Notification Regarding Administrative Protective Order
This notice also serves as a reminder to parties subject to the
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
We are issuing and publishing this notice in accordance with
sections 781(a) and 777(i) of the Act, 19 CFR 351.225(f)(6), and 19 CFR
351.226(f)(6).
Dated: October 14, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Final Scope Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Scope Ruling
V. Establishment of the Scope Certification Process and Application
of Adverse Facts Available (AFA)
VI. Circumvention Inquiry Recission
VII. Analysis of Comments
Comment 1: Companies Eligible for the Certification Process
Comment 2: The Submission of Importer and Exporter
Certifications
VIII. Recommendation
Appendix II
Certification Eligibility and Requirements
A. Eligibility for the Certification
Importers and exporters of quartz surface products exported from
Malaysia using quartz slab other than that manufactured in the
People's Republic of China (China) are eligible for the
certification process detailed below, with the exception of certain
companies. The following companies are not eligible to participate
in the certification process: Bada Industries SDN BHD; Ever Stone
World SDN BHD; Karina Stone; MSI Building Supply SDN; Principal
Safwa (M) SDN; Resstone Manufacturing; SCLM Services SDN BHD; Unique
Stone SDN BHD; and Universal Quartz.
B. Certification Requirements for Importers and Exporters of Quartz
Surface Products Exported From Malaysia Using Quartz Slab Not
Manufactured in China
To import quartz surface products from Malaysia and declare them
as exempt from the scope of the Orders and hence free of AD/CVD
duties, the importer and the exporter must complete and maintain
certifications, along with proof of where the quartz slab was
manufactured. The importer, or the importer's agent, must upload
both the importer's certification and the exporter's certification
into the document imaging system (DIS) in the Automated Commercial
Environment (ACE). The importer is required to complete and maintain
the importer certification, attached as Appendix III, and retain all
supporting documentation (e.g., invoice, purchase order, production
records, etc.). Where the importer uses a broker to facilitate the
entry process, it should obtain and retain the entry summary number
from the broker. Although agents of the importer, such as brokers,
may upload the certification on behalf of the importer, they are not
permitted to make this certification on behalf of the importer.
The exporter is required to complete and maintain the exporter
certification, attached as Appendix IV, and is further required to
provide the importer a copy of that certification and all supporting
documentation (e.g., invoice, purchase order, production records,
etc.). The party that made the sale to the United States should fill
out the exporter certification.
For shipments and/or entries from November 4, 2021, through the
date of publication of this notice in the Federal Register,
importers and exporters should complete the required
certification(s) no later than 60 days after the publication of this
notice 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 before {insert day after the date of
publication of the final scope ruling in the Federal
Register{time} . This certification was completed on mm/dd/yyyy {add
date{time} , within 60 days of the Federal Register notice
publication of the final determination of scope inquiry.'' For such
entries/shipments, importers and exporters each have the option to
complete a blanket certification covering multiple entries/
shipments, individual certifications for each entry/shipment, or a
combination thereof. Entry summaries that were filed prior to the
publication of the Federal Register notice must be amended to
include these certifications to U.S. Customs and Border Protection
(CBP) by uploading them into the DIS in ACE.
For any unliquidated entries (and entries for which liquidation
has not become final) of quartz surface products exported from
Malaysia that entered as non-AD/CVD type (e.g., type 01) that were
shipped and/or entered, or withdrawn from warehouse, for consumption
in the United States after November 4, 2021, and that are ineligible
for certification or that do not meet the certification
requirements, importers should file a Post Summary Correction with
CBP, in accordance with CBP's regulations, regarding conversion of
such entries from non-AD/CVD type entries to AD/CVD type entries
(e.g., type 01 to type 03). Importers should report those AD/CVD
type entries of merchandise under the AD/CVD case numbers for the
Orders on quartz surface products, A-570-084/C-570-085 or A-557-084/
C-557-085. The importer must pay cash deposits on those entries
consistent with the regulations governing post summary corrections
that require payment of additional duties.
For shipments and/or entries suspended pursuant to the final
determination of this scope inquiry that were shipped and/or
entered, or withdrawn from warehouse, for consumption within 60 days
of the date of publication of the final scope determination in the
Federal Register, for which certifications are required, importers
and exporters should complete the required certification, as soon as
practicable but not later than 60 days after the publication of the
final determination in the Federal Register. Accordingly, where
appropriate, the relevant bullet in the certification should be
edited to reflect that the certification was completed within this
time frame. Specifically, exporters should complete the language in
Paragraph I in the Exporter Certification that reads: This
certification was completed on mm/dd/yyyy, within 60 days of the
date on which Commerce published its final scope finding in the
Federal Register.'' For such entries/shipments, importers and
exporters each have the option to complete a blanket certification
covering multiple entries/shipments, individual certifications for
each entry/shipment, or a combination thereof. The Exporter
Certifications should be maintained by both the importer and
exporter and should be provided to CBP or Commerce only upon request
by the respective agency. The exporter must provide the importer a
copy of the Exporter Certification within 60 days of the publication
of the final scope determination in the Federal Register.
For shipments and/or entries on or after 60 days from the
publication of the Federal Register notice for which certifications
are required, importers should complete the required certification
at, or prior to, the date
[[Page 64012]]
of entry summary and exporters should complete the required
certification and provide it to the importer at, or prior to, the
date of shipment.
The importer and exporter are also required to maintain
sufficient documentation supporting their certifications (e.g.,
invoice, purchase order, production records, etc.). The importer is
required to submit the certifications to U.S. CBP as part of the
entry process by uploading them into the DIS in ACE. Among other
requirements detailed below, importers are required to maintain
copies of certifications, as well as sufficient documentation
supporting the 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. Additionally, the claims made in the
certifications and any supporting documentation are subject to
verification by Commerce and/or CBP.
In the situation where no certification is provided for an entry
of quartz surface products, for AD cash deposits, Commerce will
instruct CBP to require AD cash deposits equal to the China-wide
rate, unless the importer/exporter can demonstrate the quartz slab
was exported by a Chinese manufacturer with a company-specific
separate rate. In that instance, the cash deposit rate will be the
rate of the Chinese exporter of the quartz slab that has its own
rate. For CVD cash deposits, Commerce will instruct CBP to require
CVD cash deposits equal to the all-others rate, unless the importer/
exporter can demonstrate that the quartz slab was produced and/or
exported by a Chinese manufacturer with a company-specific rate. In
that instance, the cash deposit rate will be the rate of the Chinese
supplier of the quartz slab that has its own rate.
Quartz surface products not produced from Chinese slab are not
subject to this inquiry and are not included within the scope of the
Orders as a result of this affirmative final scope determination.
Therefore, the suspension of liquidation and cash deposit
requirements do not apply to such merchandise subject to the
following certification requirements: An importer of quartz surface
product from Malaysia claiming that its quartz surface products were
produced from non-Chinese quartz slab must meet the certification
and documentation requirements described in Appendices III and IV.
Appendix III
Importer Certification
I hereby certify that:
(A) My name is {INSERT COMPANY OFFICIAL'S NAME{time} and I am
an official of {INSERT 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 the
quartz surface products exported from Malaysia that entered under
entry summary number(s), identified below, and which are covered by
this certification. ``Direct personal knowledge'' refers to facts
the certifying party is expected to have in its own records. For
example, the importer should have ``direct personal knowledge'' of
the importation of the product (e.g., the name of the exporter) in
its records.
(C) I have personal knowledge of the facts regarding the
production of the imported products covered by this certification.
``Personal knowledge'' includes facts obtained from another party,
(e.g., correspondence received by the importer (or exporter) from
the producer regarding the country of the quartz slab used to
produce the imported products);
(D) The quartz surface products exported from Malaysia do not
contain quartz slab manufactured in China, regardless of whether
sourced directly from a Chinese producer or from a downstream
supplier;
(E) 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 #:
Country of origin for QSP slab:
Name of slab producer:
Address of slab producer:
(F) I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce;
(G) I understand that failure to maintain the required
certification and supporting documentation, 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 (AD)/countervailing duty
(CVD) orders on quartz surface products from China. I understand
that such a 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 AD and
CVD cash deposits (as appropriate) equal to the rates determined by
Commerce;
(iii.) the revocation of {NAME OF IMPORTING COMPANY{time} 's
privilege to certify future imports of quartz surface products from
Malaysia as not manufactured using quartz slab from China.
(H) I understand that agents of the importer, such as brokers,
are not permitted to make this certification;
(I) This certification was completed by the time of filing the
entry summary; and
(J) I am aware that U.S. law (including, but not limited to, 18
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly
and willfully make materially false statements to the U.S.
government.
Signature
{NAME OF COMPANY{time}
{OFFICIAL TITLE{time}
{DATE{time}
Appendix IV
Exporter Certification
I hereby certify that:
(A) My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time} and I
am an official of {INSERT NAME OF EXPORTING COMPANY{time} , located
at {ADRESS OF EXPORTING COMPANY{time} .
(B) I have direct personal knowledge of the facts regarding the
production and exportation into the Customs territory of the United
States of the quartz surface products exported from Malaysia
identified below. ``Direct personal knowledge'' refers to facts the
certifying party is expected to have in its own books and records.
For example, an exporter should have ``direct personal knowledge''
of the producer's identity and location.
(C) The quartz surface products exported to the United States
from Malaysia do not contain quartz slab manufactured in China,
regardless of whether sourced directly from a Chinese producer or
from a downstream supplier.
(D) This certification applies to the following sales to {NAME
OF U.S. CUSTOMER{time} , located {ADDRESS OF U.S. CUSTOMER{time}
(repeat this block as many times as necessary):
Foreign Seller's Invoice # to U.S. Customer:
Foreign Seller's Invoice to U.S. Customer Line item #:
Country of origin for QSP slab:
Name of slab producer:
Address of slab producer:
Producer's Invoice # to Foreign Seller: (If the foreign seller and
the producer are the same party, put NA here.)
(E) The quartz surface products covered by this certification
were shipped to {NAME OF U.S. PARTY TO WHOM MERCHANDISE WAS
SHIPPED{time} , located at {U.S. ADDRESS TO WHICH MERCHANDISE WAS
SHIPPED{time} .
(F) I understand that {INSERT NAME OF EXPORTING COMPANY{time}
must provide this Exporter Certification to the U.S. importer by the
time of shipment.
(G) I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce;
(H) I understand that failure to maintain the required
certification and supporting documentation, 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 (AD)/countervailing duty
(CVD) orders on quartz surface products from China. I understand
that such a finding will result in:
(i.) suspension of all unliquidated entries (and entries for
which liquidation has not become final) for which these requirements
were not met; and
(ii.) the requirement that the importer post applicable AD and
CVD cash deposits (as appropriate) equal to the rates as determined
by Commerce;
(iii.) the revocation of {NAME OF IMPORTING COMPANY{time} 's
privilege to
[[Page 64013]]
certify future imports of quartz surface products from Malaysia as
not manufactured using quartz slab from China.
(I) This certification was completed at or prior to the date of
shipment.
(J) I am aware that U.S. law (including, but not limited to, 18
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly
and willfully make materially false statements to the U.S.
government.
Signature
{NAME OF COMPANY{time}
{OFFICIAL TITLE{time}
{DATE{time}
[FR Doc. 2022-22857 Filed 10-20-22; 8:45 am]
BILLING CODE 3510-DS-P