[Federal Register Volume 83, Number 143 (Wednesday, July 25, 2018)]
[Notices]
[Pages 35205-35208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15882]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-814]


Carbon Steel Butt-Weld Pipe Fittings From the People's Republic 
of China: Preliminary Affirmative Determination of Circumvention of the 
Antidumping Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that carbon steel butt-weld pipe fittings (butt-weld pipe fittings) 
exported from Malaysia, which were completed in Malaysia using finished 
or unfinished butt-weld pipe fittings sourced from the People's 
Republic of China (China), are circumventing the antidumping duty (AD) 
order on butt-weld pipe fittings from China.

DATES: Applicable July 25, 2018.

FOR FURTHER INFORMATION CONTACT: Jerry Huang or Susan Pulongbarit, 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) 482-4047 or (202) 
482-4031, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 6, 1992, Commerce issued the AD order on imports of butt-
weld pipe fittings from China.\1\ Additionally, on March 31, 1994, 
Commerce issued an affirmative final anti-circumvention determination 
finding that imports into the United States of pipe fittings that were 
finished in Thailand from unfinished pipe fittings produced in China 
constituted circumvention of the Order within the meaning of section 
781(b) of the Tariff Act of 1930, as amended (the Act).\2\ Commerce 
applied this finding of circumvention to all imports of butt-weld pipe 
fittings from Thailand, regardless of manufacturer/producer, unless 
accompanied by a certification stating that such pipe fittings have not 
been produced from unfinished pipe fittings sourced from China.\3\
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    \1\ See Antidumping Duty Order and Amendment to the Final 
Determination of Sales at Less Than Fair Value; Certain Carbon Steel 
Butt-Weld Pipe Fittings from the People's Republic of China, 57 FR 
29702 (July 6, 1992) (Order).
    \2\ See Certain Carbon Steel Butt-Weld Pipe Fittings from the 
People's Republic of China; Affirmative Final Determination of 
Circumvention of Antidumping Duty Order, 59 FR 15155 (March 31, 
1994).
    \3\ Id., at 15158-59.
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    On May 22, 2017, Tube Forgings of America, Inc., Mills Iron Works, 
Inc., and Hackney Ladish, Inc., (collectively, the domestic parties), 
alleged that imports of butt-weld pipe fittings which were completed in 
Malaysia using finished or unfinished butt-weld pipe fittings sourced 
from China are circumventing the Order.\4\ In their allegation, the 
domestic parties requested that Commerce initiate an anti-circumvention 
inquiry pursuant to section 781(b) of the Act, and 19 CFR 351.225(h), 
to determine whether imports of butt-weld pipe fittings sourced from 
unfinished or finished butt-weld pipe fittings from the PRC have 
undergone minor finishing processes, or were simply marked with 
``Malaysia'' as the country of origin, in Malaysia, before export to 
the United States constitutes circumvention of the Order. The domestic 
parties also requested that Commerce reach an affirmative determination 
of circumvention for all imports of butt-

[[Page 35206]]

weld pipe fittings from Malaysia, regardless of producer or exporter.
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    \4\ See Letter from the domestic parties to the Secretary of 
Commerce, ``Carbon Steel Butt-Weld Pipe Fittings from the People's 
Republic of China, A-570-814; Request for Circumvention Ruling 
Pursuant to Section 781(b) of the Tariff Act of 1930,'' dated May 
22, 2017.
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    On August 25, 2017, Commerce published in the Federal Register the 
notice of initiation of this anti-circumvention inquiry.\5\ For a 
complete description of the events that followed the initiation of this 
inquiry, see the Preliminary Decision Memorandum.\6\ A list of topics 
included in the Preliminary Decision Memorandum is included as 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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    \5\ See Carbon Steel Butt-Weld Pipe Fittings from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiry on the 
Antidumping Duty Order, 82 FR 40556 (August 25, 2017).
    \6\ See Memorandum, ``Preliminary Decision Memorandum for the 
Anti-Circumvention Inquiry on the Antidumping Duty Order on Certain 
Carbon Steel Butt-Weld Pipe Fittings 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 Order

    The products covered by the Order are carbon steel butt-weld pipe 
fittings. For a complete description of the scope of the Order, see the 
Preliminary Decision Memorandum.\7\
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    \7\ Id.
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Scope of the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers butt-weld pipe fittings 
exported from Malaysia to the United States, which were completed in 
Malaysia using finished or unfinished butt-weld pipe fittings sourced 
from China (inquiry merchandise). This preliminary ruling applies to 
all shipments of inquiry merchandise on or after the date of the 
initiation of this inquiry.

Methodology

    Commerce is conducting this anti-circumvention inquiry in 
accordance with section 781(b) 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 butt-weld pipe fittings exported from 
Malaysia, which were completed in Malaysia using finished or unfinished 
butt-weld pipe fittings from China, or were simply marked with 
``Malaysia'' as the country of origin are circumventing the Order. As 
such, we preliminarily determine that it is appropriate to include this 
merchandise within the Order and to instruct U.S. Customs and Border 
Protection (CBP) to suspend any entries of butt-weld pipe fittings from 
Malaysia, which were completed in Malaysia using finished or unfinished 
butt-weld pipe fittings from China, or were simply marked with 
``Malaysia'' as the country of origin. We also preliminarily determine 
that Arah Dagang Sdn. Bhd. (Arah Dagang), Solidbend Fittings & Flanges 
Sdn. Bhd. (Solidbend), and Sumitomo Corporation Asia & Oceania Pte. 
Ltd. (Sumitomo) have not exported butt-weld pipe fittings which were 
completed in Malaysia using finished or unfinished butt-weld pipe 
fittings from China.

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 butt-weld pipe fittings completed or 
simply marked in Malaysia from Chinese-origin finished or unfinished 
butt-weld pipe fittings that were entered, or withdrawn from warehouse, 
for consumption on or after August 21, 2017, 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, unless the 
importer/exporter can certify to CBP that the Chinese-origin finished 
or unfinished butt-weld pipe fittings completed in Malaysia were 
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 butt-weld pipe fittings manufacturer that has its own rate.\8\
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    \8\ 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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    Butt-weld pipe fittings completed in Malaysia from finished and 
unfinished butt-weld pipe fittings that are not of Chinese-origin are 
not subject to this inquiry. Therefore, cash deposits are not required 
for such merchandise, subject to the following certification 
requirements.\9\ An importer of butt-weld pipe fittings from Malaysia 
claiming that its butt-weld pipe fittings were not completed from 
finished and unfinished Chinese butt-weld pipe fittings must meet the 
certification and documentation requirements described in Appendix II. 
Appendix II requires the importer to prepare and retain certifications 
and documents not only on its own behalf, but also get a certification 
from the exporter of this merchandise. Specifically, importers of such 
butt-weld pipe fittings must prepare and maintain an Importer 
Certification (see Appendix III) as well as documentation supporting 
the Importer Certification. Besides the Importer Certification, the 
importer must also maintain a copy of the appropriate Exporter 
Certification (see Appendix IV) and relevant supporting documentation 
from its exporter of butt-weld pipe fittings that were not completed 
using Chinese-origin finished and unfinished butt-weld pipe fittings. 
Importers must ensure that their exporters of butt-weld pipe fittings 
completed from finished and unfinished butt-weld pipe fittings of non-
Chinese origin must prepare and maintain an Exporter Certification and 
documentation supporting the Exporter Certification (see Appendix IV).
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    \9\ In light of our preliminary determination that Arah Dagang, 
Solidbend, and Sumitomo have not exported butt-weld pipe fittings 
which were completed or marked in Malaysia using finished or 
unfinished butt-weld pipe fittings from China, we will not instruct 
CBP to suspend liquidation of any unliquidated entries of non-
Chinese origin butt-weld pipe fittings, subject to their meeting the 
certification requirements.
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Verification

    As provided in 19 CFR 351.307, Commerce intends to verify 
information relied upon in making its final determination.

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

[[Page 35207]]

briefs.\10\ 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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    \10\ 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. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

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 Order. 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.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(b) of the Act and 19 CFR 351.225(f).

    Dated: July 18, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
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. Period of Inquiry
VI. Statutory Framework
VII. Use of Facts Available With an Adverse Inference
VIII. Anti-circumvention Determination
IX. Country-Wide Determination
X. Certification for Not Using Chinese-Origin Butt-Weld Pipe 
Fittings
XI. Recommendation

Appendix II

Certification Requirements

    If an importer imports carbon steel butt-weld pipe fittings 
(butt-weld pipe fittings) from Malaysia and claims that the butt-
weld pipe fittings were completed in Malaysia using finished or 
unfinished butt-weld pipe fittings manufactured of non-Chinese 
origin, the importer is required to complete and maintain the 
importer certification, attached as Appendix III. The importer is 
further required to maintain a copy of the exporter certification, 
discussed below and attached as Appendix IV. The importer 
certification must be completed, signed, and dated by the time of 
filing of the entry summary for the relevant importation. Where the 
importer uses a broker to facilitate the entry process, it should 
obtain the entry number from the broker. Agents of the importer, 
such as brokers, however, 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. The exporter certification must be completed, signed, 
and dated by the time of shipment of the relevant entries. The 
exporter certification should be completed by the party selling the 
merchandise manufactured in Malaysia to the United States, which is 
not necessarily the producer of the product.
    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 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 antidumping duty (AD) order on butt-weld 
pipe fittings from the People's Republic of China, A-570-814, all 
unliquidated entries for which these requirements were not met and 
require the importer to post applicable AD cash deposits equal to 
the rates as determined by Commerce. Entries suspended under A-570-
814 will be liquidated pursuant to applicable administrative reviews 
of the China AD order or through the automatic liquidation process.
    For butt-weld pipe fittings completed in Malaysia from finished 
or unfinished butt-weld pipe fittings manufactured in China, 
Commerce has established the following third-country case number in 
the Automated Commercial Environment (ACE): A-557-994.
    For entries suspended pursuant to the preliminary determination 
of this anti-circumvention inquiry that were shipped and/or entered, 
or withdrawn from warehouse, for consumption during the period, 
August 21, 2017 (the date of initiation of this anti-circumvention 
inquiry) through the date of publication of the preliminary 
determination in the Federal Register, for which certifications are 
required, the importer and exporter certifications should be 
completed within 45 days of publication of the preliminary 
determination in the Federal Register. Accordingly, the relevant 
bullet in the certification should be edited to reflect that the 
certification was completed within this time frame. For example, the 
bullet in the importer certification that reads: ``This 
certification was completed by the time of filing the entry 
summary,'' could be edited as follows: ``The shipments/products 
referenced herein entered before the mm/dd/yyyy publication of the 
Preliminary Determination Federal Register notice. This 
certification was completed on mm/dd/yyyy, within 45 days of the 
Federal Register notice publication.'' Similarly, the bullet in the 
exporter certification that reads, ``This certification was 
completed by the time of shipment,'' could be edited as follows: 
``The shipments/products referenced herein shipped before the mm/dd/
yyyy publication of the Preliminary Determination Federal Register 
notice. This certification was completed on mm/dd/yyyy, within 45 
days of the Federal Register notice publication.'' For such entries, 
importers and exporters each have the option to complete a blanket 
certification covering multiple entries, individual certifications 
for each entry, or a combination thereof. The importer 
certifications, and copies of the exporter certifications, should be 
maintained by the importer and 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 45 days of the 
publication of the preliminary determination in the Federal 
Register.
    For unliquidated entries (and entries for which liquidation has 
not become final) of merchandise entered as type 01 entries that 
were shipped and/or entered, or withdrawn from warehouse, for 
consumption during the period, August 21, 2017 (the date of 
initiation of this anti-circumvention inquiry) through the date of 
publication of the preliminary determination in the Federal 
Register, for which certifications are required, importers should 
file a Post Summary Correction with CBP, in accordance with CBP's 
regulations, regarding conversion of such entries from type 01 to 
type 03 entries and report those type 03 entries using the third-
country case

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number, A-557-994. Similarly, the importer should pay cash deposits 
on those entries consistent with the regulations governing post 
summary corrections that require payment of additional duties.

Appendix III

Importer Certification

    I hereby certify that:
    <bullet> My name is {COMPANY OFFICIAL'S NAME{time}  and I am an 
official of {IMPORTING COMPANY{time} ;
    <bullet> I have direct personal knowledge of the facts regarding 
the importation into the Customs territory of the United States of 
the carbon steel butt-weld pipe fittings completed in Malaysia that 
entered under entry number(s) {INSERT ENTRY NUMBER(S){time}  and 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;
    <bullet> 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 source of the substrate used to produce 
the imported products);
    <bullet> The carbon steel butt-weld pipe fittings completed in 
Malaysia do not contain finished or unfinished butt-weld pipe 
fittings manufactured in the People's Republic of China;
    <bullet> I understand that {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, 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;
    <bullet> I understand that {IMPORTING COMPANY{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);
    <bullet> I understand that {IMPORTING COMPANY{time}  is required 
to maintain a copy of the exporter's certification, (attesting to 
the production and/or export of the imported merchandise identified 
above), 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;
    <bullet> I understand that {IMPORTING COMPANY{time} is required 
to maintain and provide a copy of the exporter's certification and 
supporting records, upon request, to CBP and/or Commerce;
    <bullet> I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce;
    <bullet> 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;
    <bullet> I understand that agents of the importer, such as 
brokers, are not permitted to make this certification;
    <bullet> This certification was completed by the time of filing 
the entry summary; and
    <bullet> 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

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TITLE

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Appendix IV

Exporter Certification

    I hereby certify that:
    <bullet> My name is {COMPANY OFFICIAL'S NAME HERE{time}  and I 
am an official of {NAME OF EXPORTING COMPANY{time} ;
    <bullet> I have direct personal knowledge of the facts regarding 
the production and exportation of the carbon steel butt-weld pipe 
fittings 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;
    <bullet> These carbon steel butt-weld pipe fittings completed in 
Malaysia do not contain finished or unfinished butt-weld pipe 
fittings manufactured in the People's Republic of China;
    <bullet> I understand that {NAME OF EXPORTING 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, 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;
    <bullet> I understand that {NAME OF EXPORTING COMPANY{time}  
must provide this Exporter Certification to the U.S. importer by the 
time of shipment. The shipments/products referenced herein shipped 
before the mm/dd/yyyy publication of the Preliminary Determination 
Federal Register notice. This certification was completed on DD/MM/
YY, within 45 days of the Federal Register notice publication;
    <bullet> I understand that {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);
    <bullet> I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce;
    <bullet> 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/or countervailing duty (CVD) cash deposits 
(as appropriate) equal to the rates as determined by Commerce;
    <bullet> This certification was completed at or prior to the 
time of shipment; and
    <bullet> 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

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TITLE

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DATE

[FR Doc. 2018-15882 Filed 7-24-18; 8:45 am]
 BILLING CODE 3510-DS-P