• Effective Date: Dec 21, 2022
  • Cite as: 88 FR 57931 • Cite date: Aug 24, 2023
  • Category: None • Type: • Sub type: CIRC INQ-Circumvention Inquiry • Reference messages: 2355403 • Cases: A570112 C570113
1. On 08/24/2023, Commerce published a preliminary determination that certain collated steel staples (collated staples) from the People's Republic of China (China) that have been completed in and exported from the Socialist Republic of Vietnam (Vietnam) using steel wire band manufactured in China are circumventing the antidumping (AD) and countervailing duty (CVD) orders on collated staples from China (A-570-112; C-570-113). See 88 FR 57931. 2. Specifically, Commerce preliminarily determined that the products covered by the determination are covered by the scope of the orders based on the totality of the circumstances, including (i) the products imported into the United States from Vietnam are within the same class or kind of merchandise subject to the AD and CVD orders on collated staples from China; (ii) the inquiry merchandise is being completed and assembled, in part, from parts and components produced in China; (iii) the totality of the factors indicates the process of assembly or completion in Vietnam is minor or insignificant; (iv) the value of China-origin steel wire band is a significant portion of the total value of the merchandise made from China-origin steel wire band in Vietnam and exported to the United States, and (v) action is appropriate to prevent evasion of the orders on collated staples from China. 3. This preliminary circumvention determination is applicable on a country-wide basis, regardless of foreign producer, exporter, or importer. 4. Suspension of Liquidation 4a. Continue to suspend liquidation of entries of collated staples completed in and exported from Vietnam using steel wire band manufactured in China that are already subject to the suspension of liquidation under the AD and CVD orders on collated staples from China in accordance with message 2355403, dated 12/21/2022. 4b. For all entries of collated staples completed in and exported from Vietnam using Chinese-origin steel wire band not already subject to the suspension of liquidation, CBP shall suspend liquidation of shipments entered, or withdrawn from warehouse, for consumption on or after 12/21/2022 (date of publication of the initiation FR). CBP shall require, for such entries, a cash deposit at the applicable rate(s) in effect on the date of entry pursuant to the cash deposit hierarchy described in paragraph 4c of this message. 4c. As a result of this preliminary circumvention determination on collated staples completed in Vietnam using China-origin steel wire band (related to the AD and CVD orders, A-570-112/C-570-113), imports of collated staples from Vietnam are subject to certification requirements. For shipments of collated staples from Vietnam entered, or withdrawn from warehouse, for consumption on or after 12/21/2022, the following cash deposit hierarchy applies: 4c(i). The entry is subject to the cash deposit requirements established in the AD and CVD orders on collated staples from China (A-570-112/C-570-113) unless both the importer and the exporter have certified that the entered product was not produced from China-origin steel wire band. 4c(ii). If both the importer and the exporter have certified that the entered product was not produced from China-origin steel wire band, the entry is not subject to the cash deposit requirements established in the AD and CVD orders on collated staples from China (A-570-112/C-570-113). 4d. Entries of products covered by subparagraphs 4a and 4b should not be liquidated until specific liquidation instructions are issued. Any entries which are set for liquidation must be unset immediately. 4e. Commerce preliminarily determined that Meihotech Vietnam Inc. and Weifang Wenhe Pneumatic Tools Co., Ltd. are not eligible to participate in the certification program established by the preliminary affirmative circumvention determination. Accordingly, CBP should suspend liquidation and require a cash deposit at the AD/CVD rates established for collated staples from China (A-570-112/C-570-113) for entries of collated staples produced and/or exported by Meihotech Vietnam Inc. or Weifang Wenhe Pneumatic Tools Co., Ltd. 4f. For unliquidated entries (and entries for which liquidation has not become final) of merchandise entered as non-AD/CVD type entries (e.g., type 01) that were (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption on or after 12/21/2022, for which a conversion from non-AD/CVD to AD/CVD type is required, importers should file a Post Summary Correction with CBP (in accordance with CBP's regulations) using the appropriate third-country case numbers. Similarly, the importer should pay cash deposits on those entries consistent with the regulations governing post summary corrections that require payment of additional duties. 5. Third-Country Case Numbers 5a. Commerce has established third-country case numbers A-552-112 and C-552-113 for collated staples exported from Vietnam that were produced using China-origin steel wire band. Company: All-Others Case Numbers: A-552-112-000 and C-552-113-000 6. Certification requirements 6a. Eligibility for Certification: Importers and exporters of collated staples from Vietnam are eligible for the certification process detailed below. 6a(i). Except for the companies listed in paragraph 6a(ii), importers and exporters of collated staples from Vietnam are eligible for the certification process detailed below and in the Preliminary Determination (88 FR 57931). 6a(ii). Meihotech Vietnam Inc. and Weifang Wenhe Pneumatic Tools Co., Ltd. are currently not eligible to participate in the certification program established for exports of collated staples from Vietnam. 6b. Certification Requirements for importers and exporters certifying that the merchandise is produced from non-China origin steel wire band: 6b(i). For entries of collated staples from Vietnam entered, or withdrawn from warehouse, for consumption on or after 12/21/2022 for which the importer claims that the collated staples were not produced from Chinese-origin steel wire band, the importer and exporter are required to meet the certification and documentation requirements detailed in the certifications below in order for no cash deposit to be required on such entries. 6b(ii). The exporter is further required to provide the importer a copy of the exporter certification and the importer is required to maintain a copy of the exporter certification. 6b(iii). The importer, or the importer's agent, must submit both the importer's certification and the exporter's certification to CBP as part of the entry process by uploading them into the document imaging system (DIS) in ACE. For entries made from 12/21/2022 through 09/07/2023, for which the importer, or the importer's agent, did not submit both the importer's certification and the exporter's certification to CBP as part of the entry process, the importer, or the importer's agent, must submit both the importer's certification and the exporter's certification to CBP. 6b(iv). The importer and third-country exporter are also required to maintain sufficient documentation (as indicated in the certifications) supporting their certifications. The importer and exporter are required to maintain the certifications and supporting documentation for the later of (1) the date that is five years after the latest entry date of the entries covered by the certification; or (2) the date that is three years after the conclusion of any litigation in United States courts regarding such entries. 6b(v). Although the importer will not be required to submit the supporting documentation to CBP as part of the entry process, the importer and the exporter will be required to present the supporting documentation to Commerce and/or CBP, as applicable, upon request by the respective agency. 6b(vi). Agents of the importer, such as brokers, are not permitted to make this certification. Where the importer uses a broker to facilitate the entry process, it should obtain the entry number and date of entry from the broker. 6b(vii). The exporter certification should be completed by the party selling the merchandise manufactured in Vietnam to the United States, which is not necessarily the producer of the product. 6b(viii). The claims made in the importer and exporter certifications and any supporting documentation are subject to verification by Commerce and/or CBP. 6c. Further, if CBP determines that the certification and/or documentation requirements identified have not been met (i.e., CBP determines the certification and/or documentation is deficient or otherwise unacceptable), for all entries of collated staples completed in and exported from Vietnam using steel wire band manufactured in China entered, or withdrawn from warehouse, for consumption on or after 12/21/2022, CBP shall suspend liquidation of all such entries as subject to the AD/CVD orders in accordance with the cash deposit hierarchy described at paragraph 4c of this message, and shall require the importer to post applicable AD/CVD cash deposits. Such suspended entries will be liquidated pursuant to applicable administrative reviews of the collated staples from China AD/CVD orders or through the automatic liquidation process. 6d. Certification Timing and Format Requirements 6d(i). For subject merchandise (1) entered, or withdrawn from warehouse, for consumption during the period 12/21/2022 through 09/07/2023 (14 days after the date of publication of preliminary FR), for which certifications are required, importers and exporters each have the option to complete a blanket certification covering multiple entries, individual certifications for each entry, or a combination thereof. Importer and Exporter certifications for these entries should be completed, signed, and dated no later than 10/8/2023 (within 45 days of the date of publication of the preliminary determination). 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 at or prior to the time of entry," could be edited as follows: "The shipments/products referenced herein entered before mm/dd/yyyy. 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 at or prior to the time of shipment," could be edited as follows: "The shipments/products referenced herein shipped before mm/dd/yyyy. This certification was completed on mm/dd/yyyy, within 45 days of the Federal Register notice publication." Additionally, the exporter must provide the importer a copy of the exporter certification within 45 days of the date of publication of the Preliminary Determination. 6d(ii). For subject merchandise entered, or withdrawn from warehouse, for consumption on or after December 21, 2022, the following instructions apply: -- the importer certification must be completed, signed, and dated as specified in 7a.N and 7a.O; and -- the exporter certification must be completed, signed, dated as specified in 7b.K and 7b.L. 7. Certifications 7a. Importer Certification: IMPORTER CERTIFICATION I hereby certify that: A. My name is {IMPORTING COMPANY OFFICIAL'S NAME} and I am an official of {NAME OF IMPORTING COMPANY}, located at {ADDRESS OF IMPORTING COMPANY}. B. I have direct personal knowledge of the facts regarding the importation into the Customs territory of the United States of the certain collated steel staples (collated staples) from the People's Republic of China (China) completed in Vietnam that entered under the entry summary number(s), identified below, and are covered by this certification. "Direct personal knowledge" refers to the facts the certifying party is expected to have in its own records. For example, the importer should have direct personal knowledge of the exporter's and/or seller's identity and location. C. If the importer is acting on behalf of the first U.S. customer, include the following sentence as paragraph C of this certification: The collated staples covered by this certification were imported by {NAME OF IMPORTING COMPANY} on behalf of {NAME OF U.S. CUSTOMER}, located at {ADDRESS OF U.S. CUSTOMER}. If the importer is not acting on behalf of the first U.S. customer, include the following sentence as paragraph C of this certification: {NAME OF IMPORTING COMPANY} is not acting on behalf of the first U.S. customer. D. The collated staples covered by this certification were shipped to {NAME OF PARTY IN THE UNITED STATES TO WHOM THE MERCHANDISE WAS FIRST SHIPPED}, located at {U.S. ADDRESS TO WHICH MERCHANDISE WAS SHIPPED}. E. 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 inputs used to produce the imported products). F. The importer certifies that the collated staples produced in Vietnam that are covered by this certification were not manufactured using steel wire bands produced in China, regardless of whether sourced directly from a Chinese producer or from a downstream supplier. G. The collated staples covered by this certification are not covered by the antidumping duty or countervailing duty orders on collated staples from China. H. 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: I. I understand that {NAME OF IMPORTING COMPANY} 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, product specification sheets, production records, invoices, etc.) until the later of: (1) the date that is five years after the latest entry date of the entries covered by the certification; or (2) the date that is three years after the conclusion of any litigation in United States courts regarding such entries. J. I understand that {NAME OF IMPORTING COMPANY} is required to maintain a copy of the exporter's certification (attesting to information regarding the production and/or exportation of the imported merchandise identified above), and any supporting documentation provided to the importer by the exporter, until the later of: (1) the date that is five years after the latest entry date of the entries covered by the certification; or (2) the date that is three years after the conclusion of any litigation in United States courts regarding such entries. K. I understand that {NAME OF IMPORTING COMPANY} is required to provide U.S. Customs and Border Protection (CBP) and/or the U.S. Department of Commerce (Commerce) with the importer certification, and any supporting documentation, and a copy of the exporter's certification, and any supporting documentation provided to the importer by the exporter, upon the request of either agency. 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 supporting documentation, or failure to substantiate the claims made herein, or not allowing 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 entries of merchandise that is covered by the scope of the antidumping and countervailing duty orders on collated staples from China. I understand that such a finding will result in: (i) suspension of liquidation of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; (ii) the importer being required to post the antidumping duty and countervailing duty cash deposits determined by Commerce; and (iii) the importer no longer being allowed to participate in the certification process. N. I understand that agents of the importer, such as brokers, are not permitted to make this certification. O. This certification was completed and signed on, or prior to, the date of the entry summary if the entry date is more than 14 days after the date of publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register. If the entry date is on or before the 14th day after the date of publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register, this certification was completed and signed by no later than 45 days after publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register. P. I am aware that U.S. law (including, but not limited to, 18 U.S.C. section 1001) imposes criminal sanctions on individuals who knowingly and willfully make materially false statements to the U.S. government. Signature {NAME OF COMPANY OFFICIAL} {TITLE OF COMPANY OFFICIAL} {DATE} 7b. Exporter Certification 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} and I am an official of {NAME OF EXPORTING COMPANY}, located at {ADDRESS OF EXPORTING COMPANY}. B. I have direct personal knowledge of the facts regarding the production and exportation of the collated staples for which sales are identified below. "Direct personal knowledge" refers to facts the certifying party is expected to have in its own records. For example, an exporter should have direct personal knowledge of the producer's identity and location. C. The collated staples covered by this certification were shipped to {NAME OF PARTY IN THE UNITED STATES TO WHOM MERCHANDISE WAS FIRST SHIPPED}, located at {U.S. ADDRESS TO WHICH MERCHANDISE WAS SHIPPED}. D. The seller certifies that the collated staples produced in Vietnam that are covered by this certification were not manufactured using steel wire bands produced in China, regardless of whether sourced directly from a Chinese producer or from a downstream supplier. E. The collated staples covered by this certification are not covered by the antidumping duty or countervailing duty orders on collated staples from China. F. This certification applies to the following sales to {NAME OF U.S. CUSTOMER}, located at {ADDRESS OF U.S. CUSTOMER} (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 the Foreign Seller: (if the foreign seller and the producer are the same party, report "NA" here) G. I understand that {EXPORTING COMPANY} 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, product specification sheets, customer specification sheets, production records, invoices, etc.) until the later of: (1) the date that is five years after the latest entry date of the entries covered by the certification; or (2) the date that is three years after the conclusion of any litigation in United States courts regarding such entries. H. I understand that {EXPORTING COMPANY}is required to provide the U.S. importer with a copy of this certification and is required to provide U.S. Customs and Border Protection (CBP) and/or the U.S. Department of Commerce (Commerce) with this certification, and any supporting documents, upon the request of either agency. 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 supporting documentation, or failure to substantiate the claims made herein, or not allowing 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 sales of merchandise that is covered by the scope of the antidumping and countervailing duty orders on collated staples from China. I understand that such a finding will result in: (i) suspension of liquidation of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; (ii) the importer being required to post the antidumping and countervailing duty cash deposits determined by Commerce; and (iii) the seller/exporter no longer being allowed to participate in the certification process. K. I understand that agents of the seller/exporter, such as freight forwarding companies or brokers, are not permitted to make this certification. L. This certification was completed and signed, and a copy of the certification was provided to the importer, on, or prior to, the date of shipment if the shipment date is after the date of publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register. If the shipment date is on or before the date of publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register, this certification was completed and signed, and a copy of the certification was provided to the importer, by no later than 45 days after publication of the notice of Commerce's preliminary determination of circumvention in the Federal Register. M. I am aware that U.S. law (including, but not limited to, 18 U.S.C. section 1001) imposes criminal sanctions on individuals who knowingly and willfully make materially false statements to the U.S. government. Signature {NAME OF COMPANY OFFICIAL} {TITLE OF COMPANY OFFICIAL} {DATE} 8. In accordance with 19 CFR 351.226(l)(5), this instruction does not affect or otherwise limit CBP's independent authority to take any additional action with respect to the suspension of liquidation or related measures. 9. If there are any questions by the importing public regarding this message, please contact the Call Center for the Office of AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce at (202) 482-0984. CBP ports should submit their inquiries through authorized CBP channels only. (This message was generated by OVIII: JCM) 10. There are no restrictions on the release of this information. Alexander Amdur