Certain Uncoated Paper From Brazil: Affirmative Preliminary Determination of Circumvention of the Antidumping Duty Order for Uncoated Paper Rolls, 7261-7264 [2021-01792]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 86, Number 16 (Wednesday, January 27, 2021)]
[Notices]
[Pages 7261-7264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01792]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-842]


Certain Uncoated Paper From Brazil: Affirmative Preliminary 
Determination of Circumvention of the Antidumping Duty Order for 
Uncoated Paper Rolls

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that imports of certain uncoated paper rolls from Brazil are 
circumventing the antidumping duty (AD) order on certain uncoated paper 
from Brazil. As a result, all imports of certain uncoated paper rolls 
from Brazil from Ahlstrom Brasil Ltd. (Ahlstrom) will be subject to 
suspension of liquidation on or after October 18, 2019. All remaining 
imports of certain uncoated paper rolls from Brazil will be subject to 
suspension of liquidation on or after the date of publication of this 
preliminary determination. Commerce is also imposing a certification 
requirement. We invite interested parties to comment on this 
preliminary determination.

DATES: Applicable January 27, 2021.

FOR FURTHER INFORMATION CONTACT: Jasun Moy, 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) 482-8194.

SUPPLEMENTARY INFORMATION:

Background

    On October 18, 2019, Commerce initiated an anti-circumvention 
inquiry to determine whether imports of certain uncoated paper rolls 
that are further processed into uncoated paper sheets in the United 
States \1\ are circumventing the Order on certain uncoated paper from 
Brazil.\2\ Commerce issued questionnaires soliciting data on the

[[Page 7262]]

quantity and value (Q&V) of exports of uncoated paper rolls to various 
companies. We received responses to these questionnaires from all 
parties except Ahlstrom. One company, Carvajal Pulpa y Papel S.A. 
(Carvajal), a Colombian producer of paper rolls, reported no shipments 
of uncoated paper rolls produced in Brazil to the United States.\3\
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    \1\ See Certain Uncoated Paper Products from Australia, Brazil, 
the People's Republic of China, and Indonesia: Initiation of Anti-
Circumvention Inquiry of Antidumping and Countervailing Duty Orders, 
84 FR 55915 (October 18, 2019) (Initiation Notice).
    \2\ See Certain Uncoated Paper from Australia, Brazil, 
Indonesia, the People's Republic of China, and Portugal: Amended 
Final Affirmative Antidumping Determinations for Brazil and 
Indonesia and Antidumping Duty Orders, 81 FR 11174 (March 3, 2016) 
(Order).
    \3\ In its Q&V questionnaire response, Carvajal reported that it 
exported rolls produced in Colombia through Brazil. See Carvajal's 
Letter, ``Anticircumvention Inquiry of the Antidumping Duty Orders 
on Uncoated Paper Sheets from Australia, Brazil, the People's 
Republic of China, and Indonesia, and the Countervailing Duty Orders 
on Uncoated Paper Sheets from the People's Republic of China and 
Indonesia: Quantity and Value Questionnaire,'' dated November 20, 
2019 (Carvajal Q&V Response).
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    Subsequently, Commerce selected two companies, International Paper 
do Brasil Ltda (IP)/International Paper Exportadora Ltda (IPEX) 
(collectively, IP),\4\ and Suzano S.A. (Suzano), and required them to 
respond to a full questionnaire relating to their export activity with 
respect to uncoated paper rolls.\5\ We received questionnaire and 
supplemental questionnaire responses from IP and Suzano, as well as 
responses from three U.S. companies. For a complete description of the 
events that followed the initiation of this inquiry, see the 
Preliminary Decision Memorandum.\6\
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    \4\ In the less-than-fair-value investigation, we determined 
that IP and IPEX constituted a single entity. Because no interested 
party submitted comments on this issue, and in the absence of any 
new information regarding this finding, Commerce is continuing to 
find that IP and IPEX are affiliated, pursuant to sections 
771(33)(E) and (F) of the Act and are a single entity, pursuant to 
19 CFR 351.401(f). See Certain Uncoated Paper from Brazil: 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, 80 FR 52029 (August 27, 2015), 
and accompanying Preliminary Decision Memorandum at ``Affiliation 
Determinations,'' unchanged in Certain Uncoated Paper from Brazil: 
Final Determination of Sales at Less Than Fair Value, 81 FR 3115 
(January 20, 2016).
    \5\ See Memorandum, ``Anti-Circumvention Inquiry of the 
Antidumping Duty Order on Certain Uncoated Paper from Brazil: 
Respondent Selection,'' dated May 18, 2020. IP and Suzano are herein 
after also referred to as the ``mandatory respondents'' or the 
``Brazilian producers and/or exporters.''
    \6\ See Memorandum, ``Preliminary Decision Memorandum for Anti-
Circumvention Inquiry of the Antidumping Duty Order on Certain 
Uncoated Paper from Brazil: Uncoated Paper Rolls,'' dated 
concurrently, and hereby adopted, with this notice (Preliminary 
Decision Memorandum).
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Scope of the Order

    The merchandise subject to this Order includes uncoated paper in 
sheet form; weighing at least 40 grams per square meter but not more 
than 150 grams per square meter; that either is a white paper with a GE 
brightness level of 85 or higher or is a colored paper; whether or not 
surface-decorated, printed (except as described below), embossed, 
perforated, or punched; irrespective of the smoothness of the surface; 
and irrespective of dimensions (Certain Uncoated Paper). For a full 
description of the scope, see the Preliminary Decision Memorandum.

Merchandise Subject to the Anti-Circumvention Inquiries

    This anti-circumvention inquiry covers certain uncoated paper rolls 
that are commonly, but not exclusively, known as ``sheeter rolls,'' 
from Brazil that are further processed in the United States into 
individual sheets of uncoated paper that would be subject to the Order 
(i.e., paper that weighs at least 40 grams per square meter but not 
more than 150 grams per square meter; and that either is a white paper 
with a GE brightness level of 83 +/-1% or higher or is a colored paper 
(as defined in the ``Scope'' section of the Preliminary Decision 
Memorandum), except as noted below. The uncoated paper rolls covered by 
this inquiry are able to be converted into sheets of uncoated paper 
using specialized cutting machinery prior to printing, and are 
typically, but not exclusively, between 52 and 103 inches wide and 50 
inches in diameter. For clarity, we herein refer to ``subject-paper 
rolls'' when referencing the certain uncoated paper rolls that may be 
converted into subject merchandise. Subject-paper rolls are classified 
under HTSUS category 4802.55.\7\
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    \7\ See Initiation Notice, 84 FR at 55917.
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    Certain importers of the subject-paper rolls that will not be 
converted into subject merchandise may certify that the rolls will not 
be further processed into subject merchandise covered by the scope of 
the Order. Failure to comply with the requisite certification 
requirement may result in the merchandise being found subject to AD 
duties.

Methodology

    Commerce made this preliminary finding of circumvention in 
accordance with section 781(a) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.225(g). We relied on information placed on the 
record by the petitioners; \8\ by IP and Suzano; and by Colonial Press 
International, Inc., Company B, and Perez Trading Company 
(collectively, U.S. companies). Further, because Ahlstrom did not 
cooperate by failing to respond to the best of its ability to 
Commerce's requests for information, we have used adverse inferences 
when selecting from among the facts otherwise available on the record 
for certain aspects of this preliminary determination, pursuant to 
sections 776(a) and (b) of the Act.
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    \8\ The petitioners are Domtar Corporation, Packaging 
Corporation of America, North Pacific Paper Company, Finch Paper 
LLC, and United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial and Service Workers International Union.
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    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content. A list of the topics discussed in the Preliminary Decision 
Memorandum is attached at Appendix I to this notice.

Affirmative Preliminary Determination of Circumvention

    Based on our analysis, as detailed in the Preliminary Decision 
Memorandum, we preliminarily find, pursuant to section 781(a) of the 
Act, that imports from Brazil of uncoated paper rolls that meet the 
description of inquiry merchandise above (i.e., subject-paper rolls) 
that are further processed in the United States into subject 
merchandise are circumventing the Order.
    We also preliminarily determine that Carvajal and IP did not export 
subject-paper rolls from Brazil to the United States during the period 
of inquiry.\9\
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    \9\ The period for this inquiry examines the time period 
starting in the month the initiation of the underlying Order was 
published, and ending four years later, i.e., February 1, 2015, 
through February 28, 2019. For Carvajal, see Carvajal Q&V Response. 
For IP, see Memorandum, ``Business Proprietary Memorandum for 
International Paper do Brasil Ltda and International Paper 
Exportadora Ltda,'' dated concurrently with this memorandum.
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    To administer this affirmative circumvention determination, 
Commerce is requiring that importers of certain paper rolls from Brazil 
that otherwise match the physical description of subject-paper rolls 
and will not be further processed into uncoated paper sheets subject to 
the Order certify that the merchandise will not be further processed 
into subject uncoated paper sheets. Importers of such merchandise will 
be required to certify and maintain their certifications and supporting 
documentation to

[[Page 7263]]

provide to U.S. Customs and Border Protection (CBP) and/or Commerce 
upon request.\10\ Properly certified entries are not subject to AD 
duties under the Order. Exemption from AD duties under the Order is 
permitted only if the certification and documentation requirements 
specified in Appendices II and III are met.
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    \10\ The importer certification is provided at Appendix III.
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    Entries of subject-paper rolls produced and/or exported by Ahlstrom 
are not eligible for certification.

Suspension of Liquidation

    In accordance with 19 CFR 351.225(l)(2), for entries of subject-
paper rolls that were produced and/or exported by Ahlstrom (i.e., the 
non-responsive company), Commerce will instruct CBP to suspend 
liquidation of subject-paper rolls (as defined in the ``Merchandise 
Subject to the Anti-Circumvention Inquiry'' section above) from Brazil 
that are entered, or withdrawn from warehouse, for consumption on or 
after October 18, 2019, the date of publication of the initiation of 
this anti-circumvention inquiry in the Federal Register.\11\ For all 
other entries of subject-paper rolls, Commerce will instruct CBP to 
suspend liquidation of the subject-paper rolls from Brazil that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of this preliminary determination.\12\
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    \11\ See Preliminary Decision Memorandum at ``Use of Facts 
Available with an Adverse Inference''; see also Anti-circumvention 
Inquiry of the Antidumping Duty Order on Certain Pasta from Italy: 
Affirmative Preliminary Determination of Circumvention of the 
Antidumping Duty Order, 63 FR 18364, 18366 (April 15, 1998), 
unchanged in Anti-Circumvention Inquiry of the Antidumping Duty 
Order on Certain Pasta from Italy: Affirmative Final Determination 
of Circumvention of the Antidumping Duty Order, 63 FR 54672, 54675-6 
(October 13, 1998).
    \12\ See Preliminary Decision Memorandum at ``Use of Facts 
Available with an Adverse Inference.''.
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    CBP shall require cash deposits in accordance with those rates 
prevailing at the time of entry, unless the importer can certify to CBP 
that the subject-paper rolls will not be further processed into 
uncoated paper sheets subject to the Order in the United States.\13\ In 
that latter instance, no cash deposit will be required. Subject-paper 
rolls meeting the physical characteristics described above, which are 
produced and/or exported by Ahlstrom, are not eligible for 
certification.
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    \13\ See Appendix II for the certification requirements and 
Appendix III for the importer certification.
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Public Comment

    Interested parties may submit case briefs to Commerce no later than 
30 days after the date of publication of this notice. Rebuttal briefs, 
limited to issues raised in the case briefs, may be filed no later than 
seven days after the time limit for filing case briefs. Parties who 
submit case briefs or rebuttal briefs in this proceeding are encouraged 
to submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.\14\ Case and 
rebuttal briefs should be filed electronically via ACCESS.\15\
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    \14\ See 19 CFR 351.309(c)(2) and (d)(2).
    \15\ See 19 CFR 351.303.
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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.\16\ Requests should 
contain the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.\17\
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    \16\ See 19 CFR 351.310(c).
    \17\ Id.
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    Note that Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\18\
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    \18\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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Notification to the U.S. International Trade Commission (ITC)

    Consistent with section 781(e) of the Act, Commerce is notifying 
the ITC of this affirmative preliminary determination to include the 
merchandise subject to this inquiry within the AD Order on uncoated 
paper from Brazil. Pursuant to section 781(e) of the Act, the ITC may 
request consultations concerning Commerce's proposed inclusion in the 
Order of the inquiry merchandise. These consultations must be concluded 
within 15 days after the date of the request. If, after consultations, 
the ITC believes that a significant injury issue is presented by the 
proposed inclusion, it will have 60 days to provide written advice to 
Commerce.

Notification to Interested Parties

    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.225(g).

    Dated: January 19, 2021.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Anti-Circumvention Inquiry
V. Period of Anti-Circumvention Inquiry
VI. Statutory Framework
VII. Use of Facts Available With An Adverse Inference
VIII. Anti-Circumvention Analysis
IX. Country-Wide Determination
X. Certification Requirement
XI. Recommendation

Appendix II--Certification Requirements

    If an importer imports subject-paper rolls from Brazil and 
claims that the subject-paper rolls will not be further processed 
into uncoated paper sheets covered by the Order, the importer is 
required to complete and maintain the importer certification 
attached hereto at Appendix III and all supporting documentation. 
Where the importer uses a broker to facilitate the entry process, it 
should obtain the entry summary number from the broker. Agents of 
the importer, such as brokers, however, are not permitted to make 
this certification on behalf of the importer.
    All importers of subject-paper rolls from Brazil are eligible 
for the certification process detailed below, with the exception 
that entries of subject-paper rolls produced and/or exported by 
Ahlstrom Brasil Ltd. are ineligible for certification.
    For entries of subject-paper rolls from Brazil entered, or 
withdrawn from warehouse, for consumption on or after the date this 
preliminary determination was signed for which the importer claims 
that the rolls will not be further processed into uncoated paper 
subject to the orders, the importer is required to meet the 
certification and documentation requirements detailed in the 
certifications in order for no suspension of liquidation and no cash 
deposit to be required for such entries. Among other requirements 
detailed below, importers are required to maintain a copy of any 
certifications, as well as sufficient documentation supporting the 
certification (i.e., documents maintained in the normal course of 
business, or documents obtained by the certifying party, for 
example, mill certificates, production records, invoices, etc.) for 
the later of: (1) A period of five years from the date of entry; or 
(2) a period of three years after the conclusion of any litigation 
in the United States courts regarding such entries.

[[Page 7264]]

    For all such shipments and/or entries on or after the date of 
publication of this preliminary determination in the Federal 
Register, through 14 days after the date of publication of this 
preliminary determination in the Federal Register, for which 
certifications are required, importers should complete the required 
certifications no later than 14 days after the date of publication 
of this preliminary 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 the time frame specified above. For example, the 
bullet in the importer certification that reads: ``This 
certification was completed at or prior to the time of Entry 
Summary,'' could be edited as follows: ``The imports referenced 
herein entered on {insert date{time} . This certification was 
completed on mm/dd/yyyy, within 14 days of the date of publication 
of the Federal Register notice of the preliminary determination of 
circumvention.''
    For all shipments and/or entries made later than the 14th day 
after the date of publication of this preliminary determination in 
the Federal Register for which certifications are required, 
importers should complete the required certification at or prior to 
the date of Entry Summary.

Appendix III--Importer Certification

    I hereby certify that:
    (A) My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS OF IMPORTING COMPANY{time} .
    (B) I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of 
subject-paper rolls produced in Brazil that entered under entry 
summary number(s), identified below, and which are covered by this 
certification. Subject-paper rolls are defined as certain uncoated 
paper rolls commonly, but not exclusively, known as ``sheeter 
rolls,'' (rolls with paper that weigh at least 40 grams per square 
meter but not more than 150 grams per square meter; and paper that 
either is a white paper with a GE brightness level of 83 +/-1% or 
higher or is a colored paper) that may be converted into subject 
merchandise. The uncoated paper rolls are typically, but not 
exclusively, between 52 and 103 inches wide and 50 inches in 
diameter. Subject-paper rolls are classified under HTSUS category 
4802.55. ``Direct personal knowledge'' refers to facts the 
certifying party is expected to have in its own records. For 
example, the importer should have direct personal knowledge of the 
importation of the product (e.g., the name of the exporter) in its 
records.
    (C) If the importer is acting on behalf of the first U.S. 
customer, complete this paragraph, if not put ``NA'' at the end of 
this paragraph: The imported subject-paper rolls covered by this 
certification were imported by {NAME OF IMPORTING COMPANY{time}  on 
behalf of {NAME OF U.S. CUSTOMER{time} , located at {ADDRESS OF U.S. 
CUSTOMER{time} .
    (D) The imported subject-paper rolls covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
FIRST SHIPPED IN THE UNITED STATES{time} , located at {ADDRESS OF 
SHIPMENT{time} .
    (E) Select appropriate statement below:

    __ I have direct personal knowledge of the facts regarding the 
end-use of the imported product because my company is the end-user 
of the imported product covered by this certification and I certify 
that the imported subject-paper rolls will not be used to produce 
subject merchandise. ``Direct personal knowledge'' includes 
information contained within my company's books and records.
    __ I have personal knowledge of the facts regarding the end-use 
of the imported product because my company is not the end-user of 
the imported product covered by this certification. However, I have 
been able to contact the end-user of the imported product and 
confirm that it will not use this product to produce subject 
merchandise. The end-user of the imported product is {COMPANY 
NAME{time}  located at {ADDRESS{time} . ``Personal knowledge'' 
includes facts obtained from another party (e.g., correspondence 
received by the importer from the end-user of the product).
    (F) The imported subject-paper rolls covered by this 
certification will not be further processed into uncoated paper 
sheets in the United States. (NOTE: For certifications related to 
entries made on or after the date of publication of the Preliminary 
Determination, and through 14 days after the date of publication of 
the Preliminary Determination, the importer should replace ``will 
not be further processed'' with ``were not further processed'' in 
the certification, as necessary).
    (G) This certification applies to the following entries (repeat 
this block as many times as necessary):

Entry Summary #:
Entry Summary Line Item #:
Foreign Seller:
Foreign Seller's Address:
Foreign Seller's Invoice #:
Foreign Seller's Invoice Line Item #:
Producer:
Producer's Address:

    (H) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of: (1) A period of five 
years from the date of entry; or (2) a period of three years after 
the conclusion of any litigation in the United States courts 
regarding such entries.
    (I) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to provide this certification and supporting records to 
U.S. Customs and Border Protection (CBP) and/or the Department of 
Commerce (Commerce), upon request by the respective agency.
    (J) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (K) I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
entries to which this certification applies are within the scope of 
the antidumping duty order on certain uncoated paper from Brazil. 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 cash deposits (as appropriate) equal to the rates 
determined by Commerce; and
    (iii) the revocation of {NAME OF IMPORTING COMPANY{time} 's 
privilege to certify future imports of subject-paper rolls from 
Brazil as not being imported for purposes of further processing into 
the United States into uncoated paper sheets.
    (L) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    (M) This certification was completed at or prior to the date of 
entry summary.
    (N) I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make material false statements to the U.S. government.

Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE{time} 

[FR Doc. 2021-01792 Filed 1-26-21; 8:45 am]
BILLING CODE 3510-DS-P