[Federal Register Volume 86, Number 107 (Monday, June 7, 2021)]
[Notices]
[Pages 30263-30266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11849]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-026, C-570-027]


Certain Corrosion-Resistant Steel Products From the People's 
Republic of China: Affirmative Final Determination of Circumvention 
Involving Malaysia

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of certain corrosion-resistant steel products (CORE), completed in 
Malaysia, using hot-rolled steel (HRS) and/or cold-rolled steel (CRS) 
flat products (substrate) manufactured in the People's Republic of 
China (China), are circumventing the antidumping duty (AD) and 
countervailing duty (CVD) orders on CORE from China.

DATES: Applicable June 7, 2021.

FOR FURTHER INFORMATION CONTACT: Joy Zhang, AD/CVD Operations, Office 
III, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-1168.

SUPPLEMENTARY INFORMATION:

Background

    On February 18, 2020, Commerce published the Preliminary 
Determination \1\ of circumvention of the China CORE Orders.\2\ A 
summary of events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\3\ The Issues and 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. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Certain Corrosion-Resistant Steel Products from the 
People's Republic of China: Affirmative Preliminary Determination of 
Circumvention Involving Malaysia, 85 FR 8823 (February 18, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Certain Corrosion-Resistant Steel Products from India, 
Italy, the People's Republic of China, the Republic of Korea and 
Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 
2016); see also Certain Corrosion-Resistant Steel Products from 
India, Italy, Republic of Korea and the People's Republic of China: 
Countervailing Duty Order, 81 FR 48387 (July 25, 2016) 
(collectively, China CORE Orders).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Anti-Circumvention Inquiries Involving Malaysia of the Antidumping 
and Countervailing Duty Orders on Certain Corrosion-Resistant Steel 
Products from the People's Republic of China,'' dated concurrently 
with, and hereby adopted by, this notice (Issues and Decision 
Memorandum).
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Scope of the Orders

    The products covered by these orders are certain flat-rolled steel 
products, either clad, plated, or coated with corrosion-resistant 
metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-
based alloys, whether or not corrugated or painted, varnished, 
laminated, or coated with plastics or other non-metallic substances in 
addition to the metallic coating. For a complete description of the 
scope of the orders, see the Issues and Decision Memorandum.

Scope of the Anti-Circumvention Inquiries

    These anti-circumvention inquiries cover CORE completed in Malaysia 
from HRS and/or CRS substrate input manufactured in China and 
subsequently exported to the United States (merchandise subject to 
these inquiries). This final ruling applies to all shipments of 
merchandise subject to these inquiries entered on or after the date of 
the initiation of these inquiries.\4\

[[Page 30264]]

Importers and exporters of CORE produced in Malaysia using: (1) HRS 
manufactured in Malaysia or other third countries, (2) CRS manufactured 
in Malaysia using HRS produced in Malaysia or other third countries, or 
(3) CRS manufactured in other third countries, must certify that the 
HRS and/or CRS processed into CORE in Malaysia did not originate in 
China, as provided for in the certifications attached to this Federal 
Register notice. Otherwise, their merchandise will be subject to AD and 
CVD requirements.
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    \4\ See Corrosion-Resistant Steel Products from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiries on the 
Antidumping Duty and Countervailing Duty Orders, 84 FR 43585 (August 
21, 2019) (Initiation Notice), and accompanying Memorandum, 
``Certain Corrosion-Resistant Steel Products from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiries on the 
Antidumping Duty and Countervailing Duty Orders,'' dated August 12, 
2019.
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Methodology

    Commerce is conducting these anti-circumvention inquiries in 
accordance with section 781(b) of the Tariff Act of 1930, as amended 
(the Act). Because China is a non-market economy, within the meaning of 
section 771(18) of the Act,\5\ Commerce calculated the value of 
Chinese-origin input costs using prices of factors of production and 
market economy values, as discussed in section 773(c) of the Act. 
Because certain interested parties did not cooperate to the best of 
their abilities in responding to Commerce's requests for information, 
we continue to base parts of our final determination on the facts 
available, with adverse inferences, pursuant to sections 776(a) and (b) 
of the Act.\6\ The Preliminary Decision Memorandum contains a full 
description of the methodology.\7\ We incorporate by reference this 
description of the methodology for our final determination.
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    \5\ See, e.g., Antidumping Duty Investigation of Certain 
Aluminum Foil from the People's Republic of China: Affirmative 
Preliminary Determination of Sales at Less-Than-Fair Value and 
Postponement of Final Determination, 82 FR 50858, 50861 (November 2, 
2017), and accompanying Preliminary Decision Memorandum at ``China's 
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, 83 FR 9282 (March 5, 2018).
    \6\ See Issues and Decision Memorandum.
    \7\ See Memorandum, ``Preliminary Decision Memorandum for the 
Anti-Circumvention Inquiries of the Antidumping Duty and 
Countervailing Duty Orders on Certain Corrosion-Resistant Steel 
Products from the People's Republic of China,'' dated February 7, 
2020 (Preliminary Decision Memorandum).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
these inquiries are addressed in the Issues and Decision Memorandum. A 
list of the issues raised is attached to this notice as Appendix I.
    Based on our analysis of the comments received from interested 
parties, we made no revisions to the Preliminary Determination with 
regard to our analysis under the anti-circumvention factors of section 
781(b) of the Act. We have made certain changes to the language in the 
certifications to provide guidance on who should complete the exporter 
certification, and to allow importers and exporters to clearly identify 
the parties involved in the sale(s) involving the export to the United 
States.

Final Affirmative Determination of Circumvention

    We determine that exports to the United States of CORE completed in 
Malaysia from HRS and/or CRS substrate manufactured in China are 
circumventing the China CORE Orders. We therefore find it appropriate 
to determine that merchandise subject to these inquiries should be 
considered to be within the scope of the China CORE Orders, and to 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of any entries of CORE completed in Malaysia using 
HRS and/or CRS substrate manufactured in China.

Continuation of Suspension of Liquidation

    As stated above, Commerce has made an affirmative determination of 
circumvention of the China CORE Orders by exports to the United States 
of CORE completed in Malaysia using Chinese-origin HRS and/or CRS 
substrate. In accordance with 19 CFR 351.225(1)(3), Commerce will 
direct CBP to continue to suspend liquidation and to require a cash 
deposit of estimated duties on unliquidated entries of CORE completed 
in Malaysia using Chinese-origin HRS and/or CRS substrate that were 
entered, or withdrawn from warehouse, for consumption on or after 
August 12, 2019, the date of initiation of these anti-circumvention 
inquiries. The suspension of liquidation and cash deposit instructions 
will remain in effect until further notice.
    CORE produced in Malaysia from HRS or CRS substrate that is not of 
Chinese-origin is not subject to these inquiries. However, imports of 
such merchandise are subject to certification requirements, and cash 
deposits may be required if the certification requirements are not 
satisfied. Additionally, CORE completed in Malaysia from HRS and/or CRS 
from Taiwan also has been found to be circumventing the AD order on 
CORE from Taiwan and such merchandise is subject to similar 
certification requirements.\8\ Accordingly, if an importer imports CORE 
produced in Malaysia and claims that the CORE was produced from non-
Chinese HRS or CRS substrate, in order not to be subject to AD and/or 
CVD requirements, the importer and exporter are required to meet the 
certification and documentation requirements described in Appendices 
II, III, and IV. The party that made the sale to the United States 
should fill out the exporter certification.
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    \8\ See Federal Register notice, ``Certain Corrosion Resistant 
Steel Products from Taiwan: Affirmative Final Determination of Anti-
Circumvention Inquiry on the Antidumping Duty Order,'' dated 
concurrently with this notice.
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    In the situation where no certification is provided for an entry, 
and AD/CVD orders on CORE from China or the AD order on CORE from 
Taiwan potentially apply to that entry, Commerce intends to instruct 
CBP to suspend liquidation of the entry and collect cash deposits at 
the rates applicable under the China CORE Orders (i.e., the AD rate 
established for the China-wide entity (199.43 percent) and the CVD rate 
established for all-other Chinese producers/exporters (39.05 
percent)).\9\ This is to prevent evasion, given that the rates 
applicable to the AD/CVD orders on CORE from China are higher than the 
all-others rate established by the AD order on CORE from Taiwan. In the 
situation where a certification is provided for the AD/CVD orders on 
CORE from China (stating that the merchandise was not produced from HRS 
and/or CRS from China), but no other certification is provided, then 
Commerce intends to instruct CBP to suspend the entry and collect cash 
deposits at the AD all-others rate applicable under the AD order on 
CORE from Taiwan (i.e., 3.66 percent).
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    \9\ See China CORE Orders.
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    Further, for this final determination, we continue to determine 
that the following companies are not eligible for the certification 
process: FIW Steel Sdn Bhd; Hsin Kuang Steel Co Ltd; Nippon EGalv Steel 
Sdn Bhd; NS BlueScope Malaysia Sdn Bhd; and YKGI/Yung Kong Galv. Ind/
Starshine Holdings Sdn Bhd/ASTEEL Sdn. Bhd. (YKGI Group) (collectively 
non-responsive companies).\10\ Accordingly, importers of CORE from 
Malaysia produced and/or exported by these ineligible companies are 
similarly ineligible for the certification process with regard to 
imports of CORE produced by, or sourced from, these companies. 
Additionally, exporters are not eligible to certify shipments of 
merchandise

[[Page 30265]]

produced by the above-listed companies. Accordingly, CBP shall suspend 
the entry and collect cash deposits for entries of merchandise produced 
and/or exported by these non-responsive companies at the AD rate 
established for the China-wide entity (199.43 percent) and the CVD rate 
established for all other Chinese producers and/or exporters (39.05 
percent), pursuant to the China CORE Orders.
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    \10\ See Preliminary Determination, 85 FR at 8823, and 
accompanying Preliminary Decision Memorandum at 5 and 11.
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Notification Regarding Administrative Protective Order

    This notice will serve as the only reminder to all parties subject 
to administrative protective order (APO) of their responsibility 
concerning the destruction 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

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

    Dated: June 1, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Scope of the Anti-Circumvention Inquiries
V. Verification
VI. Use of Facts Available With an Adverse Inference
VII. Changes Since the Preliminary Determination
VIII. Statutory Framework
IX. Statutory Analysis
X. Discussion of the Issues
    Comment: Whether CSC Steel Sdn Bhd (CSCM) Should be Excluded 
From Any Remedies Imposed Under the Anti-Circumvention Inquiry
XI. Recommendation

Appendix II

Certification Requirements

    If an importer imports certain corrosion-resistant steel 
products (CORE) from Malaysia and claims that the CORE was not 
produced from hot-rolled steel and/or cold-rolled steel substrate 
(substrate) manufactured in the People's Republic of China (China), 
the importer is required to complete and maintain the importer 
certification attached hereto as 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.
    The exporter of such merchandise 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 party that made 
the sale to the United States should fill out the exporter 
certification.
    For any such certifications completed on the date of publication 
of this final determination through 20 days after the date of 
publication, exporters and importers should use the certifications 
attached to the Preliminary Determination. For any such 
certifications completed on or after 21 days after the date of 
publication of this final determination, exporters and importers 
should use the certifications contained below that have changed from 
the certifications issued with the Preliminary Determination.
    For entries on or after the date of publication of this notice 
in the Federal Register, for which certifications are required, 
importers should complete the required certification at or prior to 
the date of entry summary, and exporters should complete the 
required certification and provide it to the importer at or prior to 
the date of shipment. For all such entries made within the first 20 
days after publication of this notice, exporters and importers 
should use the certifications attached to the Preliminary 
Determination. For all entries made on or after 21 days after 
publication of this notice, exporters and importers should use the 
certifications contained below that have changed from the 
certifications issued with the Preliminary Determination.
    The importer and 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 U.S. Customs and Border Protection (CBP) 
as part of the entry process at this time. However, the importer and 
the exporter will be required to present the certifications and 
supporting documentation to Commerce and/or 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.
    In the situation where no certification is maintained for an 
entry, and AD/CVD orders on CORE from China or the AD order on CORE 
from Taiwan potentially apply to that entry, Commerce intends to 
instruct CBP to suspend the entry and collect cash deposits at the 
rate applicable under the China CORE Orders (i.e., the AD rate 
established for the China-wide entity (199.43 percent) and the CVD 
rate established for all-other Chinese producers/exporters (39.05 
percent)). In the situation where a certification is provided for 
the AD/CVD orders on CORE from China (stating that the merchandise 
was not produced from HRS and/or CRS from China), but no other 
certification is provided, then Commerce intends to instruct CBP to 
suspend the entry and collect cash deposits at the AD all-others 
rate applicable under the AD order on CORE from Taiwan (i.e., 
3.66%).

 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 
{ADRESS 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 
corrosion resistant steel products produced in Malaysia that entered 
under entry 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) 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 corrosion resistant steel products covered by 
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 corrosion resistant steel products 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) I have personal knowledge of the facts regarding the 
production of the corrosion resistant steel products identified 
below. ``Personal knowledge'' includes facts obtained from another 
party (e.g., correspondence received by the importer (or exporter) 
from the producer regarding the country of manufacture of the 
imported products).
    (F) The corrosion resistant steel products covered by this 
certification were not manufactured using hot-rolled steel and/or 
cold-rolled steel substrate produced in China.
    (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

[[Page 30266]]

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, upon 
request, to U.S. Customs and Border Protection (CBP) and/or the 
Department of Commerce (Commerce).
    (J) I understand that {NAME OF 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), and any supporting records provided 
by the exporter to the importer, 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.
    (K) I understand that {NAME OF IMPORTING COMPANY{time} is 
required, upon request, to provide a copy of the exporter's 
certification and any supporting records provided by the exporter to 
the importer, to CBP and/or Commerce.
    (L) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (M) 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 order on corrosion resistant 
steel products from China. 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 corrosion resistant steel 
products from Malaysia as not manufactured using hot-rolled steel 
and/or cold-rolled steel substrate from China.
    (N) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification.
    (O) This certification was completed at or prior to the date of 
entry summary.
    (P) 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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Signature

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NAME OF COMPANY OFFICIAL

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TITLE

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DATE

Appendix IV

Exporter Certification

    Special Instructions: The party that made the sale to the United 
States should fill out the exporter certification.
    I hereby certify that:
    (A) My name is {COMPANY OFFICIAL'S NAME{time}  and I am an 
official of {NAME OF COMPANY{time} , located at {ADDRESS{time} ;
    (B) I have direct personal knowledge of the facts regarding the 
production and exportation of the corrosion resistant steel products 
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 corrosion resistant steel products produced in Malaysia 
and covered by this certification were not manufactured using hot-
rolled steel and/or cold-rolled steel substrate produced in China.
    (D) This certification applies to the following sales to {NAME 
OF U.S. CUSTOMER{time} , located at {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 #:
Producer Name:
Producer's Address:
Producer's Invoice # to Foreign Seller: (If the foreign seller and 
the producer are the same party, put NA here.)

    (E) The corrosion resistant steel 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 {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, 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.
    (G) I understand that {NAME OF EXPORTING COMPANY{time}  must 
provide a copy of this Exporter Certification to the U.S. importer 
by the date of shipment;
    (H) 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).
    (I) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (J) I understand that failure to maintain the required 
certification, 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 
sales to which this certification applies are within the scope of 
the antidumping/countervailing duty order on corrosion resistant 
steel products from China. I understand that such 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 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates as determined by Commerce; and
    (iii) the revocation of {NAME OF EXPORTING COMPANY{time} 's 
privilege to certify future exports of corrosion resistant steel 
products from Malaysia as not manufactured using hot-rolled steel 
and/or cold-rolled steel substrate from China.
    (K) This certification was completed at or prior to the date of 
shipment.
    (L) 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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Signature

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NAME OF COMPANY OFFICIAL

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TITLE

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DATE

[FR Doc. 2021-11849 Filed 6-4-21; 8:45 am]
BILLING CODE 3510-DS-P