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

Published date11 June 2019
Citation84 FR 27081
Record Number2019-12285
SectionNotices
CourtInternational Trade Administration
Federal Register, Volume 84 Issue 112 (Tuesday, June 11, 2019)
[Federal Register Volume 84, Number 112 (Tuesday, June 11, 2019)]
                [Notices]
                [Pages 27081-27084]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-12285]
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                DEPARTMENT OF COMMERCE
                International Trade Administration
                [A-570-051, C-570-052]
                Certain Hardwood Plywood Products From the People's Republic of
                China: Preliminary Affirmative Determination of Circumvention of the
                Antidumping Duty and Countervailing Duty Orders
                AGENCY: Enforcement and Compliance, International Trade Administration,
                Department of Commerce.
                SUMMARY: The Department of Commerce (Commerce) preliminarily determines
                that certain hardwood plywood with face and back veneers of radiata
                and/or agathis pine that: (1) Has a Toxic Substances Control Act (TSCA)
                or California Air Resources Board (CARB) label certifying that it is
                compliant with TSCA/CARB requirements; and (2) is made with a resin,
                the majority of which is comprised of one or more of three product
                types--urea formaldehyde, polyvinyl acetate, and/or soy--(inquiry
                merchandise), exported from the People's Republic of China (China), is
                circumventing the antidumping (AD) and countervailing duty (CVD) orders
                on certain hardwood plywood products from China.
                DATES: Applicable June 11, 2019.
                FOR FURTHER INFORMATION CONTACT: Rachel Greenberg, or Hannah Falvey AD/
                CVD Operations, Office V, Enforcement and Compliance, International
                Trade Administration, U.S. Department of Commerce, 1401 Constitution
                Avenue NW, Washington, DC 20230; telephone: (202) 482-0652, or (202)
                482-4889 respectively.
                SUPPLEMENTARY INFORMATION:
                Background
                 On September 21, 2018, Commerce published in the Federal Register
                the notice of initiation of this anti-
                [[Page 27082]]
                circumvention inquiry.\1\ For a complete description of the events that
                followed the initiation of this inquiry, see the Preliminary Decision
                Memorandum.\2\ A list of topics included in the Preliminary Decision
                Memorandum is included at Appendix I to this notice. The Preliminary
                Decision Memorandum is a public document and is on file electronically
                via Enforcement and Compliance's Antidumping and Countervailing Duty
                Centralized Electronic Service System (ACCESS). ACCESS is available to
                registered users at https://access.trade.gov, and to all parties in the
                Central Records Unit, Room B8024 of the main Department of Commerce
                building. In addition, a complete version of the Preliminary Decision
                Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary
                Decision Memorandum are identical in content.
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                 \1\ See Certain Hardwood Plywood Products from the People's
                Republic of China: Initiation of Anti-Circumvention Inquiry on the
                Antidumping Duty and Countervailing Duty Orders, 83 FR 47883
                (September 21, 2018) (Initiation Notice).
                 \2\ See Memorandum, ``Preliminary Decision Memorandum for the
                Anti-Circumvention Inquiry on the Antidumping and Countervailing
                Duty Orders on Certain Hardwood Plywood Products from the People's
                Republic of China,'' dated concurrently with, and hereby adopted by,
                this notice (Preliminary Decision Memorandum).
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                Scope of the Orders
                 The products covered by the Orders are certain hardwood plywood
                products.\3\ For a complete description of the scope of the Orders, see
                the Preliminary Decision Memorandum.\4\
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                 \3\ See Certain Hardwood Plywood Products from the People's
                Republic of China: Amended Final Determination of Sales at Less Than
                Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018)
                and Certain Hardwood Plywood Products from the People's Republic of
                China: Countervailing Duty Order, 82 FR 513 (January 4, 2018)
                (collectively, Orders).
                 \4\ See Preliminary Decision Memorandum.
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                Scope of the Anti-Circumvention Inquiry
                 This anti-circumvention inquiry covers certain plywood products
                with face and back veneers of radiata and/or agathis pine that: (1)
                TSCA or CARB label certifying that it is compliant with TSCA/CARB
                requirements; and (2) is made with a resin, the majority of which is
                comprised of one or more of the following three product types: Urea
                formaldehyde, polyvinyl acetate, and/or soy exported from China. This
                preliminary ruling applies to all shipments of inquiry merchandise on
                or after the date of the initiation of this inquiry. Importers and
                exporters of plywood from China with both outer veneers made of a
                softwood species of wood (softwood plywood products), must certify that
                the softwood plywood products do not meet all three of the following
                criteria: (1) Have both outer veneers of radiata and/or agathis pine;
                (2) are made with a resin, the majority of which is comprised of urea
                formaldehyde, polyvinyl acetate, and/or soy; and (3) have a TSCA or
                CARB label certifying that they are compliant with TSCA/CARB
                requirements, as provided for in the certifications in the appendices
                to this Federal Register notice.
                Methodology
                 Commerce is conducting this anti-circumvention inquiry in
                accordance with section 781(d) of the Act. For a full description of
                the methodology underlying Commerce's preliminary determination, see
                the Preliminary Decision Memorandum.
                Preliminary Finding
                 As detailed in the Preliminary Decision Memorandum, we
                preliminarily determine that the inquiry merchandise exported from
                China is circumventing the Orders. As such, we preliminarily determine
                that it is appropriate to include this merchandise within the Orders
                and to instruct U.S. Customs and Border Protection (CBP) to suspend any
                entries of inquiry merchandise from China that entered the United
                States on or after the date of the initiation of this inquiry.
                Suspension of Liquidation
                 In accordance with 19 CFR 351.225(l)(2), Commerce will direct CBP
                to suspend liquidation and to require a cash deposit of estimated
                duties on unliquidated entries of inquiry merchandise that were
                entered, or withdrawn from warehouse, for consumption on or after
                September 18, 2018, the date of initiation of the anti-circumvention
                inquiry.
                 The suspension of liquidation instructions will remain in effect
                until further notice. Commerce will instruct CBP to require AD cash
                deposits equal to the China-wide rate of 182.90 percent and CVD cash
                deposits equal to the rate established for the China all-others rate of
                22.98 percent, unless the importer/exporter can certify to CBP that the
                Chinese-origin inquiry merchandise was supplied by a Chinese
                manufacturer with a company-specific separate rate. In that instance,
                the cash deposit rate will be the rate of the Chinese inquiry
                merchandise manufacturer that has its own rate.\5\
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                 \5\ See, e.g., Glycine from the People's Republic of China:
                Preliminary Partial Affirmative Determination of Circumvention of
                the Antidumping Duty Order and Initiation of Scope Inquiry, 77 FR
                21532, 21535 (April 10, 2012), unchanged in Glycine from the
                People's Republic of China: Final Partial Affirmative Determination
                of Circumvention of the Antidumping Duty Order, 77 FR 73426
                (December 10, 2012).
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                Public Comment
                 Case briefs or other written comments may be submitted to the
                Assistant Secretary for Enforcement and Compliance no later than seven
                days after the date on which the last final verification report is
                issued in this anti-circumvention inquiry, unless the Secretary alters
                the time limit. Rebuttal briefs, limited to issues raised in case
                briefs, may be submitted no later than five days after the deadline
                date for case briefs.\6\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
                parties who submit case briefs or rebuttal briefs in this anti-
                circumvention inquiry are encouraged to submit with each argument: (1)
                A statement of the issue; (2) a brief summary of the argument; and (3)
                a table of authorities.
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                 \6\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
                filing requirements).
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                 Pursuant to 19 CFR 351.310(c), interested parties who wish to
                request a hearing, limited to issues raised in the case and rebuttal
                briefs, must submit a written request to the Assistant Secretary for
                Enforcement and Compliance, U.S. Department of Commerce, within 30 days
                after the date of publication of this notice. Requests should contain
                the party's name, address, and telephone number, the number of
                participants, whether any participant is a foreign national, and a list
                of the issues to be discussed. If a request for a hearing is made,
                Commerce intends to hold the hearing at the U.S. Department of
                Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
                and date to be determined.
                International Trade Commission Notification
                 Commerce, consistent with section 781(e) of the Act, has notified
                the International Trade Commission (ITC) of this preliminary
                determination to include the merchandise subject to this anti-
                circumvention inquiry within the Orders. Pursuant to section 781(e) of
                the Act, the ITC may request consultations concerning Commerce's
                proposed inclusion of the inquiry merchandise. If, after consultations,
                the ITC believes that a significant injury issue is presented by the
                proposed inclusion, it will have 60 days from the date of notification
                by Commerce to provide written advice.
                [[Page 27083]]
                Notification to Interested Parties
                 This determination is issued and published in accordance with
                section 781(d) of the Act and 19 CFR 351.225(j).
                 Dated: June 4, 2019.
                Jeffrey I. Kessler,
                Assistant Secretary for Enforcement and Compliance.
                Appendix I
                List of Topics Discussed in the Preliminary Decision Memorandum
                I. Summary
                II. Background
                III. Scope of the Order
                IV. Scope of the Anti-Circumvention Inquiry
                V. Analytical Framework for Later-Developed Merchandise Anti-
                Circumvention Inquiry
                VI. Analysis
                VII. Additional Analysis
                VIII. Anti-Circumvention Determination
                IX. Certification Program
                X. Recommendation
                Appendix II
                 If an importer imports plywood from China with outer veneers
                both made of softwood plywood, and claims that its softwood plywood
                products produced in China do not meet all three of the following
                criteria: (1) Have both outer veneers of radiata and/or agathis
                pine; (2) are made with a resin, the majority of which is comprised
                of urea formaldehyde, polyvinyl acetate, and/or soy; and (3) have a
                Toxic Substances Control Act (TSCA) or California Air Resources
                Board (CARB) label certifying that they are compliant with TSCA/CARB
                requirements, then the importer is required to complete and maintain
                the importer certification attached hereto as Appendix III.
                 The importer and exporter are required to maintain the exporter
                certification attached hereto as Appendix IV. The importer
                certification must be completed, signed, and dated at the time of
                the entry of the plywood product. The exporter certification must be
                completed, signed, and dated at the time of shipment of the relevant
                entries. For shipments and/or entries on or after June 4, 2019, but
                before the publication of this notice in the Federal Register, for
                which certifications are required, importers and exporters should
                complete the required certification within 30 days of the
                publication of this notice in the Federal Register. The importer and
                Chinese exporter are also required to maintain sufficient
                documentation supporting their certifications. The importer will not
                be required to submit the certifications or supporting documentation
                to CBP as part of the entry process. However, the importer and the
                exporter will be required to present the certifications and
                supporting documentation to the Department of Commerce (Commerce)
                and/or U.S. Customs and Border Protection (CBP), as applicable, upon
                request by the respective agency. Additionally, the claims made in
                the certifications and any supporting documentation are subject to
                verification by Commerce and/or CBP. The importer and exporter are
                required to maintain the certifications and supporting documentation
                for the later of (1) a period of five years from the date of entry
                or (2) a period of three years after the conclusion of any
                litigation in United States courts regarding such entries. If it is
                determined that the certification and/or documentation requirements
                in a certification have not been met, Commerce intends to instruct
                CBP to suspend, under the China Plywood orders (A-570-051, C-570-
                052), all unliquidated entries for which these requirements were not
                met and require the importer to post applicable antidumping duty
                (AD) and countervailing duty (CVD) cash deposits equal to the rates
                as determined by Commerce. Entries suspended under A-570-051 and C-
                570-052 will be liquidated pursuant to applicable administrative
                reviews of the China orders or through the automatic liquidation
                process.
                Appendix II
                Importer Certification
                 I hereby certify that:
                 My name is {INSERT COMPANY OFFICIAL'S NAME{time} and I
                am an official of {IMPORTING COMPANY{time} ;
                 This certification pertains to {INSERT ENTRY NUMBER(S),
                ENTRY LINE NUMBER(S), AND PRODUCT CODE(S) REFERENCED ON ENTRY
                SUMMARY{time} ;
                 I have direct personal knowledge of the facts regarding
                the importation into the Customs territory of the United States of
                the plywood with both outer veneers made of a softwood species of
                wood (softwood plywood products) produced in the People's Republic
                of China (China) that entered under entry number(s) {INSERT ENTRY
                NUMBER(S){time} and are covered by this certification. ``Direct
                personal knowledge'' for purposes of this certification refers to
                facts in records maintained by the importing company in the normal
                course of its business. The importer should have ``direct personal
                knowledge'' of the importation of the product (e.g., the name of the
                exporter) in its records;
                 I have personal knowledge of the facts regarding the
                production of the imported softwood plywood products covered by this
                certification. ``Personal knowledge'' for purposes of this
                certification includes facts obtained from another party (e.g.,
                correspondence received by the importer (or exporter) from the
                producer regarding the materials used to produce the imported
                softwood plywood products);
                 The softwood plywood products produced in China that
                are covered by this certification are not subject to the orders on
                certain hardwood plywood products from China because they do not
                meet all three of the following criteria: (1) Have both outer
                veneers of radiata and/or agathis pine; (2) are made with a resin,
                the majority of which is comprised of urea formaldehyde, polyvinyl
                acetate, and/or soy; and (3) have a Toxic Substances Control Act
                (TSCA) or California Air Resources Board (CARB) label certifying
                that they are compliant with TSCA/CARB requirements;
                 I understand that {INSERT IMPORTING COMPANY NAME{time}
                is required to maintain a copy of this certification and sufficient
                documentation supporting this certification (i.e., documents
                maintained in the normal course of business, or documents obtained
                by the certifying party, for example, mill certificates, productions
                records, invoices, etc.) for the later of (1) a period of five years
                from the date of entry or (2) a period of three years after the
                conclusion of any litigation in the United States courts regarding
                such entries;
                 I understand that {INSERT IMPORTING COMPANY NAME{time}
                is required to provide this certification and supporting records,
                upon request, to U.S. Customs and Border Protection (CBP) and/or the
                Department of Commerce (Commerce);
                 I understand that {INSERT IMPORTING COMPANY NAME{time}
                is required to maintain a copy of the Exporter's Certification for
                the later of (1) a period of five years from the date of entry or
                (2) a period of three years after the conclusion of any litigation
                in United States courts regarding such entries;
                 I understand that {INSERT IMPORTING COMPANY NAME{time}
                is required to maintain and provide a copy of the Exporter's
                Certification and supporting records, upon request, to CBP and/or
                Commerce;
                 I understand that the claims made herein, and the
                substantiating documentation, are subject to verification by CBP
                and/or Commerce;
                 I understand that failure to maintain the required
                certification and/or failure to substantiate the claims made herein
                will result in:
                 [cir] Suspension of liquidation of all unliquidated entries (and
                entries for which liquidation has not become final) for which these
                requirements were not met, and
                 [cir] the requirement that the importer post applicable
                antidumping duty (AD) and/or countervailing duty (CVD) cash deposits
                (as appropriate) equal to the rates determined by Commerce;
                 I understand that agents of the importer, such as
                brokers, are not permitted to make this certification;
                 This certification was completed at the time of filing
                the entry summary for the relevant importation; and
                 I am aware that U.S. law (including, but not limited
                to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
                knowingly and willfully make material false statements to the U.S.
                government.
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                NAME OF COMPANY OFFICIAL
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                SIGNATURE
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                TITLE
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                DATE
                Appendix IV
                Exporter Certification
                 I hereby certify that:
                 My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}
                and I am an official of {INSERT NAME OF EXPORTING COMPANY{time} ;
                 I have direct personal knowledge of the facts regarding
                the production and exportation of the plywood with both outer
                veneers made of a softwood species of wood (softwood plywood
                products) identified below;
                [[Page 27084]]
                 The softwood plywood products produced in China that
                are covered by this certification are not subject to the orders on
                certain hardwood plywood products from China because they do not
                meet all three of the following criteria: (1) Have both outer
                veneers of radiata and/or agathis pine; (2) are made with a resin,
                the majority of which is comprised of urea formaldehyde, polyvinyl
                acetate, and/or soy; and (3) have a Toxic Substances Control Act
                (TSCA) or California Air Resources Board (CARB) label certifying
                that they are compliant with TSCA/CARB requirements;
                 I understand that {INSERT NAME OF EXPORTING
                COMPANY{time} is required to maintain a copy of this certification
                and sufficient documentation supporting this certification for the
                later of (1) a period of five years from the date of entry or (2) a
                period of three years after the conclusion of any litigation in the
                United States courts regarding such entries;
                 I understand that {INSERT NAME OF EXPORTING
                COMPANY{time} must provide this Exporter Certification to the U.S.
                importer at the time of shipment;
                 I understand that {INSERT NAME OF EXPORTING
                COMPANY{time} is required to provide a copy of this certification
                and supporting records, upon request, to U.S. Customs and Border
                Protection (CBP) and/or the Department of Commerce (Commerce);
                 I understand that the claims made herein, and the
                substantiating documentation are subject to verification by CBP and/
                or Commerce;
                 I understand that failure to maintain the required
                certification and/or failure to substantiate the claims made herein
                will result in:
                 [cir] Suspension of all unliquidated entries (and entries for
                which liquidation has not become final) for which these requirements
                were not met and
                 [cir] the requirement that the importer post applicable
                antidumping duty (AD) and countervailing duty (CVD) cash deposits
                equal to the rates as determined by Commerce;
                 This certification was completed at or prior to the
                time of shipment; and
                 I am aware that U.S. law (including, but not limited
                to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
                knowingly and willfully make material false statements to the U.S.
                government.
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                NAME OF COMPANY OFFICIAL
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                SIGNATURE
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                TITLE
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                DATE
                [FR Doc. 2019-12285 Filed 6-10-19; 8:45 am]
                 BILLING CODE 3510-DS-P
                

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