[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Notices]
[Pages 78039-78044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30396]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-845]
Sugar From Mexico: Suspension of Antidumping Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 19, 2014.
SUMMARY: The Department of Commerce (``the Department'') has suspended
the antidumping duty investigation on sugar from Mexico. The basis for
this action is an agreement between the Department and signatory
producers/exporters accounting for substantially all imports of sugar
from Mexico, wherein each signatory producer/exporter has agreed to
revise its prices to eliminate completely the injurious effects of
exports of the subject merchandise to the United States.
FOR FURTHER INFORMATION CONTACT: Sally Craig Gannon or Judith Wey
Rudman at (202) 482-0162 or (202) 482-0192, respectively; Bilateral
Agreements Unit, Office of Policy, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 14th
Street & Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On April 17, 2014, the Department initiated an antidumping duty
investigation under section 732 of the Tariff Act of 1930, as amended
(``the Act''), to determine whether imports of sugar from Mexico are
being, or are likely to be, sold in the United States at less than fair
value (``LTFV''). See Sugar from Mexico: Initiation of Antidumping Duty
Investigation, 79 FR 22795 (April 24, 2014). On October 24, 2014, the
Department preliminarily determined that sugar from Mexico is being, or
is likely to be, sold in the United States at LTFV, as provided in
section 733 of the Act, and postponed the final determination in this
investigation until no later than 135 days after the date of
publication of the preliminary determination in the Federal Register.
See Sugar from Mexico: Preliminary Determination of Sales at Less Than
Fair Value and Postponement of Final Determination, 79 FR 65189
(November 3, 2014) (``Preliminary Determination'').
On October 27, 2014, the Department and a representative of the
signatory producers/exporters initialed a proposed agreement to suspend
the antidumping investigation on sugar from Mexico. After initialing
the proposed agreement, consistent with 734(e)(1) of the Act, the
Department notified and consulted with the petitioners (i.e., the
American Sugar Coalition and its individual members: American Sugar
Cane League, American Sugar Refining, Inc., American Sugarbeet Growers
Association, Florida Sugar Cane League, Hawaiian Commercial and Sugar
Company, Rio Grande Valley Sugar Growers, Inc., Sugar Cane Growers
Cooperative of Florida, and United States Beet Sugar Association)
concerning its intention to suspend the antidumping investigation on
sugar from Mexico. The Department also notified the other parties to
the investigation and the International Trade Commission (``ITC'') of
the proposed agreement, consistent with 734(e)(1) of the Act. Also on
October 27, 2014, we invited interested parties to provide written
comments on the proposed suspension agreement by no later than the
close of business on November 10, 2014. See ``Memorandum to All
Interested Parties'' and ``Draft Agreement Suspending the Antidumping
Duty Investigation on Sugar from Mexico,'' dated October 27, 2014. On
October 30, 2014, the Department issued a memorandum titled ``Proposed
Scope Clarification'' and requested comments from interested parties.
On November 7, 2014, we extended the deadline to submit comments on the
draft suspension agreement and the proposed scope clarification until
November 18, 2014. See memorandum titled ``Sugar
[[Page 78040]]
from Mexico: Notice of Extension of Deadline to Submit Comments on
Draft Suspension Agreements and Scope Clarification,'' dated November
7, 2014. We received comments from numerous parties by the November 18,
2014, deadline.
The Department and a representative of the signatory producers/
exporters accounting for substantially all imports of sugar from Mexico
signed the suspension agreement on December 19, 2014. See Agreement
Suspending the Antidumping Duty Investigation on Sugar from Mexico,
signed on December 19, 2014 (``Suspension Agreement''), attached
hereto. Based on the scope comments received in this investigation, the
Department has revised the scope of this investigation, as provided in
the scope of the Suspension Agreement.
Scope of Agreement
See Section I, Product Coverage, of the Suspension Agreement.
Suspension of Investigation
The Department consulted with the Mexican sugar producers/exporters
and the petitioners and has considered the comments submitted by
interested parties with respect to the proposal to suspend the
antidumping investigation. In accordance with section 734(c) of the
Act, we have determined that extraordinary circumstances are present in
this case, as defined by section 734(c)(2)(A) of the Act. See the
memorandum titled ``Agreement Suspending the Antidumping Duty
Investigation on Mexican Sugar from Mexico: U.S. Import Coverage,
Existence of Extraordinary Circumstances, Public Interest, and
Effective Monitoring Assessments'' from Lynn Fischer Fox, Deputy
Assistant Secretary for Policy and Negotiations, to Paul Piquado,
Assistant Secretary for Enforcement and Compliance, dated December 19,
2014 (``statutory requirements memorandum'').
The Suspension Agreement provides, in accordance with 734(c)(1) of
the Act, that the subject merchandise will be sold at or above the
established reference price and, for each entry of each exporter, the
amount by which the estimated normal value exceeds the export price (or
constructed export price) will not exceed 15 percent of the weighted-
average amount by which the estimated normal value exceeded the export
price (or constructed export price) for all less-than-fair-value
entries of the producer/exporter examined during the course of the
investigation. We have determined that the Suspension Agreement will
eliminate completely the injurious effect of exports to the United
States of the subject merchandise and prevent the suppression or
undercutting of price levels of domestic sugar by imports of that
merchandise from Mexico, as required by section 734(c)(1) of the Act.
See the memorandum titled ``The Prevention of Price Suppression or
Undercutting of Price Levels by the Agreement Suspending the
Antidumping Duty Investigation on Sugar from Mexico'' from Lynn Fischer
Fox, Deputy Assistant Secretary for Policy and Negotiations, to Paul
Piquado, Assistant Secretary for Enforcement and Compliance.
We have also determined that the Suspension Agreement is in the
public interest and can be monitored effectively, as required under
section 734(d) of the Act. See statutory requirements memorandum.
For the reasons outlined above, we find that the Suspension
Agreement meets the criteria of section 734(c) and (d) of the Act.
The terms and conditions of this Suspension Agreement, signed
December 19, 2014, are set forth in the Suspension Agreement, which is
attached to this notice.
International Trade Commission
In accordance with section 734(f) of the Act, the Department has
notified the ITC of the Suspension Agreement.
Suspension of Liquidation
The suspension of liquidation ordered in the Preliminary
Determination, shall continue to be in effect, subject to section
734(h)(3) of the Act. Section 734(f)(2)(B) of the Act provides that the
Department may adjust the security required to reflect the effect of
the Suspension Agreement. The Department has found that the Suspension
Agreement eliminates completely the injurious effects of imports and,
thus, the Department is adjusting the security required from
signatories to zero. The security rates in effect for imports from any
non-signatory producers/exporters remain as published in the
Preliminary Determination. If there is no request for review of
suspension under section 734(h) of the Act, or if the ITC conducts a
review and finds that the injurious effect of imports of the subject
merchandise is eliminated completely by the Suspension Agreement, the
Department will terminate the suspension of liquidation of all entries
of sugar from Mexico, and refund any cash deposits collected on entries
of sugar from Mexico consistent with section 734(h)(3) of the Act.
Notwithstanding the Suspension Agreement, the Department will
continue the investigation if it receives such a request within 20 days
after the date of publication of this notice in the Federal Register,
in accordance with section 734(g) of the Act. Pursuant to Section X of
the Suspension Agreement, the Department will terminate the Suspension
Agreement in the event that signatories accounting for a significant
proportion of exports of sugar from Mexico request continuation of this
investigation, or the Government of Mexico requests continuation of the
countervailing duty investigation of sugar from Mexico, and will resume
the investigation.
Administrative Protective Order Access
The Administrative Protective Order (``APO'') the Department
granted in the investigation segment of this proceeding remains in
place. While the investigation is suspended, parties subject to the APO
may retain, but may not use, information received under that APO. All
parties wishing access to business proprietary information submitted
during the administration of the Suspension Agreement must submit new
APO applications in accordance with the Department's regulations
currently in effect. See section 777(c)(1) of the Act; 19 CFR 351.103,
351.304, 351.305, and 351.306. An APO for the administration of the
Suspension Agreement will be placed on the record within five days of
the date of publication of this notice in the Federal Register.
We are issuing and publishing this notice in accordance with
section 734(f)(1)(A) of the Act and 19 CFR 351.208(g)(2).
Dated: December 19, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Agreement Suspending the Antidumping Duty Investigation on Sugar From
Mexico
Pursuant to the requirements of section 734(c) of the Tariff Act of
1930, as amended (the Act) (19 U.S.C. 1673c(c)) and 19 CFR 351.208, and
in satisfaction of the requirements of those provisions, the U.S.
Department of Commerce (the Department) and the signatory producers and
exporters of Sugar from Mexico (the Signatories) enter into this
agreement suspending the antidumping duty investigation of Sugar from
Mexico (Agreement), as follows:
I. Product Coverage
The product covered by this Agreement is raw and refined sugar of
all polarimeter readings derived from
[[Page 78041]]
sugar cane or sugar beets. The chemical sucrose gives sugar its
essential character. Sucrose is a nonreducing disaccharide composed of
glucose and fructose linked by a glycosidic bond via their anomeric
carbons. The molecular formula for sucrose is
C12H22O11; the International Union of
Pure and Applied Chemistry (IUPAC) International Chemical Identifier
(InChl) for sucrose is 1S/C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-
12(3-15)10(20)7(17)5(2-14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-
,10+,11-, 12+/m1/s1; the InChl Key for sucrose is CZMRCDWAGMRECN-
UGDNZRGBSA-N; the U.S. National Institutes of Health PubChem Compound
Identifier (CID) for sucrose is 5988; and the Chemical Abstracts
Service (CAS) Number of sucrose is 57-50-1.
Sugar described in the previous paragraph includes products of all
polarimeter readings described in various forms, such as raw sugar,
estandar or standard sugar, high polarity or semi-refined sugar,
special white sugar, refined sugar, brown sugar, edible molasses,
desugaring molasses, organic raw sugar, and organic refined sugar.
Other sugar products, such as powdered sugar, colored sugar, flavored
sugar, and liquids and syrups that contain 95 percent or more sugar by
dry weight are also within the scope of this Agreement.
The scope of the Agreement does not include (1) sugar imported
under the Refined Sugar Re-Export Programs of the U.S. Department of
Agriculture; \1\ (2) sugar products produced in Mexico that contain 95
percent or more sugar by dry weight that originated outside of Mexico;
(3) inedible molasses (other than inedible desugaring molasses noted
above); (4) beverages; (5) candy; (6) certain specialty sugars; and (7)
processed food products that contain sugar (e.g., cereals). Specialty
sugars excluded from the scope of this Agreement are limited to the
following: Caramelized slab sugar candy, pearl sugar, rock candy,
dragees for cooking and baking, fondant, golden syrup, and sugar
decorations.
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\1\ This exclusion applies to sugar imported under the Refined
Sugar Re-Export Program, the Sugar-Containing Products Re-Export
Program, and the Polyhydric Alcohol Program administered by the U.S.
Department of Agriculture.
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Merchandise covered by this Agreement is typically imported under
the following headings of the HTSUS: 1701.12.1000, 1701.12.5000,
1701.13.1000, 1701.13.5000, 1701.14.1000, 1701.14.5000, 1701.91.1000,
1701.91.3000, 1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010,
1701.99.5025, 1701.99.5050, and 1702.90.4000. The tariff classification
is provided for convenience and customs purposes; however, the written
description of the scope of this Agreement is dispositive.
II. Definitions
For purposes of the Agreement, the following definitions apply:
A. ``Anniversary Month'' means the month in which the Agreement
becomes effective.
B. ``Date of Export'' means the date on which the product is
exported from Mexico to the United States.
C. ``Effective Date'' means the date on which the Department and
the signatory producers/exporters sign the Agreement.
D. ``Interested Party'' means any person or entity that meets the
definitions provided in section 771(9) of the Act.
E. ``Mexico'' means the customs territory of the United Mexican
States and foreign trade zones located within the territory of Mexico.
F. ``Other Sugar'' means Sugar that does not meet the definition of
Refined Sugar under this Agreement.
G. ``Reference Price'' means the minimum price at which merchandise
subject to this Agreement can be sold in the United States.
H. ``Refined Sugar'' means Sugar with a polarity of 99.5 and above.
I. ``Sugar'' means the product described under Section I, ``Product
Coverage,'' of the Agreement.
J. ``Substantially all'' of the subject merchandise means exporters
and producers that have accounted for not less than 85 percent by value
or volume of the subject merchandise.
K. ``United States'' means the customs territory of the United
States of America (the 50 States, the District of Columbia and Puerto
Rico) and foreign trade zones located within the territory of the
United States.
L. ``USDA'' means the United States Department of Agriculture.
M. ``Violation'' means noncompliance with the terms of the
Agreement, whether through an act or omission, except for noncompliance
that is inconsequential or inadvertent, and does not materially
frustrate the purposes of the Agreement.
Any term or phrase not defined by this section shall be defined
using either a definition provided in the Act for that term or phrase,
or the plain meaning of that term, as appropriate.
III. Suspension of Investigation
As of the Effective Date, in accordance with section 734(c) of the
Act and 19 CFR 351.208, the Department will suspend its antidumping
duty investigation on Sugar from Mexico initiated on April 17, 2014.
See Sugar from Mexico: Initiation of Antidumping Duty Investigation, 79
FR 22795 (April 24, 2014).
IV. U.S. Import Coverage
In accordance with section 734(c)(1) of the Act, the Signatories
are the producers and exporters in Mexico which account for
substantially all of the subject merchandise imported into the United
States. The Department may at any time during the period of the
Agreement require additional producers/exporters in Mexico to accede to
the Agreement to ensure that not less than substantially all imports
into the United States are subject to this Agreement.
V. Statutory Conditions for the Agreement
In accordance with section 734(c)(2) of the Act, the Department has
determined that extraordinary circumstances are present in this
investigation because the suspension of the investigation will be more
beneficial to the domestic industry than the continuation of the
investigation and that the investigation is complex.
In accordance with section 734(d) of the Act, the Department
determines that the suspension of the investigation is in the public
interest and that effective monitoring of the Agreement by the United
States is practicable. Section 734(a)(2)(B) of the Act provides that
the public interest includes the availability of supplies of the
merchandise and the relative impact on the competitiveness of the
domestic industry producing the like merchandise, including any such
impact on employment and investment in that industry. Accordingly, if a
domestic producer requests an administrative review of the status of,
and compliance with, the Agreement, the Department will take these
factors into account in conducting that review. If the Department finds
that the Agreement is not working as intended in this regard, the
Department will explore all appropriate measures, including
renegotiation of the terms of the Agreement to resolve the problem or
measures under section 751(d)(1) of the Act.
VI. Price Undertaking
Each Signatory individually agrees that, to prevent price
suppression or undercutting, it will not sell in the United States, on
or after the Effective Date, Sugar at prices that are less than the
Reference Prices, established in Appendix I to the Agreement.
[[Page 78042]]
Each Signatory individually agrees that for each entry the amount
by which the estimated normal value exceeds the export price (or the
constructed export price) will not exceed 15 percent of the weighted
average amount by which the estimated normal value exceeded the export
price (or constructed export price) for all less-than-fair-value
entries of the producer/exporter examined during the course of the
investigation, in accordance with the Act and the Department's
regulations and procedures, including but not limited to the
calculation methodologies described in Appendix II of this Agreement.
VII. Monitoring of the Agreement
A. Import Monitoring
1. The Department will monitor entries of Sugar from Mexico to
ensure compliance with section VI of this Agreement.
2. The Department will review publicly available data and other
official import data, including, as appropriate, records maintained by
U.S. Customs and Border Protection (CBP), to determine whether there
have been imports that are inconsistent with the provisions of this
Agreement. The Department also intends to consult with the USDA
regarding monthly information submitted by processors, refiners, and
importers of Sugar from Mexico.
3. The parties to this Agreement acknowledge that the Signatories
intend to establish a joint industry-Government-of-Mexico working group
(``Working Group'') that will regularly monitor and reconcile Mexican
export data and identify and address any inconsistencies or
irregularities. The Working Group will refer any alleged violations
(either those discovered during its monitoring exercises or those
reported by the Department) to the Government of Mexico (``GOM'') for
appropriate action. For further information, please see information
provided in the links provided at the Department's Web page, http://enforcement.trade.gov/agreements/index.html.
4. The Department will review, as appropriate, data it receives
from the Working Group and through any data exchange program between
U.S. and GOM agencies to determine whether there have been imports that
are inconsistent with the provisions of this Agreement.
B. Compliance Monitoring
1. The Department may require, and each Signatory agrees to provide
confirmation through documentation provided to the Department, that the
price received on any sale subject to this Agreement was not less than
the established Reference Prices. The Department may require that such
documentation be provided and be subject to verification.
2. The Department may require, and each Signatory agrees to report
in the prescribed format and using the prescribed method of data
compilation, each sale of Sugar, either directly or indirectly to
unrelated purchasers in the United States, including each adjustment
applicable to each sale, as specified by the Department. The
information to be reported may include, for example, F.O.B. sales
value, unit price, date of sale, sales order number(s), importer of
record, trading company, customer, customer relationship, destination,
as well as any other information deemed by the Department to be
relevant. Each Signatory agrees to permit review and on-site inspection
of all information deemed necessary by the Department to verify the
reported information.
3. The Department may initiate administrative reviews under section
751(a) of the Act in the month immediately following the Anniversary
Month, upon request or upon its own initiative, to ensure that exports
of Sugar from Mexico satisfy the requirements of sections 734(c)(1)(A)
and (B) of the Act. The Department may conduct administrative reviews
under sections 751(b) and (c), and 781 of the Act, as appropriate. The
Department may perform verifications pursuant to administrative reviews
conducted under section 751 of the Act.
4. At any time it deems appropriate, and without prior notice, the
Department will conduct verifications of persons or entities handling
Signatory merchandise to determine whether they are selling Signatory
merchandise in accordance with the terms of this Agreement. The
Department will also conduct verifications at locations and times it
deems appropriate to ensure compliance with the terms of this
Agreement.
C. Shipping and Other Arrangements
1. All Reference Prices will be expressed in U.S. Dollars ($) per
pound (lb.) by dry weight commercial value, in accordance with Appendix
I of this Agreement.
2. The parties to this Agreement acknowledge that under Mexican
regulations, Mexican Sugar producers and exporters exporting to the
United States will need to become Signatories to the Agreement.
Signatories will fully comply with all requirements of Mexican
regulations issued by the relevant Mexican authorities.
For further information please see information in the links
provided at the Department's Web page, http://enforcement.trade.gov/agreements/index.html.
3. Signatories agree not to take any action that would circumvent
or otherwise evade, or defeat the purpose of, this Agreement.
Signatories agree to undertake any measures that will help to prevent
circumvention.
4. Not later than 30 days after the end of each quarter, each
Signatory will submit a written statement to the Department certifying
that all sales during the most recently completed quarter were at net
prices, after rebates, discounts, or other adjustments, at or above the
Reference Prices in effect and were not part of or related to any act
or practice which would have the effect of hiding the real price of the
Sugar being sold. Further, each Signatory will certify in this same
statement that all sales made during the relevant quarter were not part
of or related to any bundling arrangement, discounts/free goods/
financing package, swap or other exchange where such arrangement is
designed to circumvent the basis of the Agreement. Each Signatory that
did not export Sugar to the United States during any given quarter will
submit a written statement to the Department certifying that it made no
sales to the United States during the most recently completed quarter.
Each Signatory agrees to permit full verification of its certification
as the Department deems necessary. Failure to provide a quarterly
certification may be considered a violation of the Agreement.
D. Rejection of Submissions
The Department may reject: (1) Any information submitted after the
deadlines set forth in this Agreement; (2) any submission that does not
comply with the filing, format, translation, service, and certification
of documents requirements under 19 CFR 351.303; (3) submissions that do
not comply with the procedures for establishing business proprietary
treatment under 19 CFR 351.304; and (4) submissions that do not comply
with any other applicable regulations, as appropriate. If information
is not submitted in a complete and timely fashion or is not fully
verifiable, the Department may use facts otherwise available for the
basis of its decision, as it determines appropriate, consistent with
section 776 of the Act.
[[Page 78043]]
E. Consultations
1. Compliance Consultations
a. When the Department identifies, through import or compliance
monitoring or otherwise, that sales may have been made at prices
inconsistent with section VI of this Agreement, or that the sales are
otherwise in circumvention of this Agreement, the Department will
notify each Signatory which it believes is responsible or, if
applicable, notify the Signatory's representative. The Department will
consult with each such party for a period of up to 60 days to establish
a factual basis regarding sales that may be inconsistent with section
VI of this Agreement.
b. During the consultation period, the Department will examine any
information that it develops or which is submitted, including
information requested by the Department under any provision of this
Agreement.
c. If the Department is not satisfied at the conclusion of the
consultation period that sales by such Signatory are being made in
compliance with section VI of this Agreement, or that the sales are not
circumventing this Agreement, the Department may evaluate under section
351.209 of its regulations, or section 751 of the Act whether this
Agreement is being violated, as defined in section VIII of this
Agreement, by such Signatory.
If the Department concludes that sales by a Signatory have been
made at prices inconsistent with section VI of this Agreement, or that
sales are circumventing the Agreement, the Department shall take
action, as warranted. The provisions of this section do not supersede
the provisions of paragraphs VIII.A-VIII.C if the Department determines
that the entries were made at prices inconsistent with section VI of
this Agreement.
2. Operations Consultations
a. The Department will consult with the Signatories regarding the
operation of this Agreement. A party to the Agreement may request such
consultations, as necessary.
b. Notwithstanding the previous paragraph, the parties may agree to
revise the Reference Prices subject to consultations.
VIII. Violations of the Agreement
A. If the Department determines that there has been a violation of
the Agreement or that the Agreement no longer meets the requirements of
section 734(c) or (d) of the Act, the Department shall take action it
determines appropriate under section 734(i) of the Act and the
Department's regulations.
B. Pursuant to section 734(i) of the Act, the Department will refer
to CBP any violations of the Agreement that appear to be intentional.
Any person who intentionally commits a violation of the Agreement shall
be subject to a civil penalty assessed in the same amount, in the same
manner, and under the same procedures as the penalty imposed for a
fraudulent violation of section 592(a) of the Act. A fraudulent
violation of section 592(a) of the Act is punishable by a civil penalty
in an amount not to exceed the domestic value of the merchandise. For
purposes of the Agreement, the domestic value of the merchandise will
be deemed to be not less than the Reference Prices, as the Signatories
agree to not sell the subject merchandise at prices that are less than
the Reference Price and to ensure that sales of the subject merchandise
are made consistent with the terms of the Agreement.
C. In addition, the Department will examine the activities of
Signatories and any other party to a sale subject to the Agreement to
determine whether any activities conducted by any party aided or
abetted another party's violation of the Agreement. If any such parties
are found to have aided or abetted another party's violation of the
Agreement, they shall be subject to the same civil penalties described
in section VIII.B above. Signatories to this Agreement consent to
release of all information presented to or obtained by the Department
during the conduct of verifications with CBP and/or the USDA.
D. The following activities shall be considered violations of the
Agreement:
1. Sales that are at net prices (after rebates, back-billing,
discounts, and other claims) that are below the Reference Prices.
2. Any act or practice which would have the effect of hiding the
real price of the Sugar being sold.
3. Any other material violation or breach, as determined by the
Department.
IX. Disclosure and Comment
This section provides the terms for disclosure and comment
following consultations or during segments of the proceeding not
involving a review under section 751 of the Act.
A. The Department may make available to representatives of each
Interested Party, pursuant to and consistent with 19 CFR 351.304-
351.306, any business proprietary information submitted to and/or
collected by the Department pursuant to section VII of this Agreement,
as well as the results of the Department's analysis of that
information.
B. If the Department proposes to revise the Reference Price(s) as a
result of consultations under this Agreement, the Department will
disclose the preliminary Reference Price(s), including any calculation
methodology, not less than 30 days before the date on which the
price(s) would become final and effective.
C. Interested Parties shall file all communications and other
submissions made pursuant to section VII of the Agreement via the
Department's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS), which is available to registered users at
https://access.trade.gov and to all parties at the following address:
U.S. Department of Commerce,
Central Records Unit, Room 7046,
1401 Constitution Ave. NW.,
Washington, DC 20230
Such communications and submissions shall be filed consistent with the
requirements provided in 19 CFR 351.303.
X. Duration of the Agreement
A. This Agreement has no scheduled termination date. Termination of
the suspended investigation shall be considered in accordance with the
five-year review provisions of section 751(c) of the Act, and section
351.218 of the Department's regulations.
B. The Signatories or the Department may terminate this Agreement
at any time. Termination of the Agreement shall be effective no later
than 60 days after the date written notice of termination is provided
to the Department or the Signatories, respectively.
C. Upon termination, the Department shall follow the procedures
outlined in section 734(i)(1) of the Act.
D. The Department will terminate this Agreement in the event that
Signatories accounting for a significant proportion of exports of Sugar
from Mexico request continuation of the antidumping investigation of
Sugar from Mexico, or the GOM requests continuation of the
countervailing duty investigation of Sugar from Mexico.
XI. Other Provisions
A. Upon request, the Department will advise any Signatory of the
Department's methodology for calculating its export price (or
constructed export price) and normal value in accordance with the Act
and the Department's regulations and
[[Page 78044]]
procedures, including but not limited to, the calculation methodologies
described in Appendix II of this Agreement.
B. By entering into the Agreement, the Signatories do not admit
that exports of Sugar from Mexico are having or have had an injurious
effect on Sugar producers in the United States, have caused the
suppression or undercutting of prices, or have been sold at less than
fair value.
C. As of the Effective Date, the Department shall instruct CBP to
refund any cash deposits collected as a result of the antidumping duty
investigation on sugar from Mexico. The Department shall instruct CBP
to terminate the suspension of liquidation consistent with section
734(f)(2)(B) of the Act.
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Paul Piquado,
Assistant Secretary for Enforcement and Compliance,
U.S. Department of Commerce.
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Date
The following parties hereby certify that the producers and
exporters of Sugar from Mexico that are members of their organization,
and which have authorized the undersigned to sign this Agreement on
their behalf, agree to abide by all terms of the Agreement:
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Juan Cortina Gallardo,
President,
C[aacute]mara Nacional de Las Industrias Azucarera y Alcoholera.
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Date
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Humberto Jasso Torres,
Director General,
C[aacute]mara Nacional de Las Industrias Azucarera y Alcoholera.
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Date
Appendix I--Suspension of Antidumping Investigation--Sugar From
Mexico--Reference Prices
Consistent with the requirements of section 734(c) of the Act,
to eliminate completely the injurious effect of exports to the
United States and to prevent the suppression or undercutting of
price levels of domestic sugar, the Reference Prices are as follows:
The FOB plant Reference Price for Refined Sugar is $0.2600 per
pound by dry weight commercial value.
The FOB plant Reference Price for all Other Sugar is $0.2225 per
pound by dry weight commercial value.
Appendix II--Suspension of Antidumping Investigation--Sugar From
Mexico--Analysis of Prices at Less Than Fair Value
A. Normal Value
The cost or price information reported to the Department that
will form the basis of the normal value (NV) calculations for
purposes of the Agreement must be comprehensive in nature and based
on a reliable accounting system (e.g., a system based on well-
established standards and can be tied either to the audited
financial statements or to the tax return filed with the Mexican
government).
1. Based on Sales Prices in the Comparison Market
When the Department bases normal value on sales prices, such
prices will be the prices at which the foreign like product is first
sold for consumption in the comparison market in the usual
commercial quantities and in the ordinary course of trade. Also, to
the extent practicable, the comparison shall be made at the same
level of trade as the export price (EP) or constructed export price
(CEP).
Calculation of NV:
Gross Unit Price
- Billing Adjustments
- Movement Expenses
- Discounts and Rebates
- Direct Selling Expenses
- Commissions
-H ome Market Packing Expenses
= Normal Value (NV)
2. Constructed Value
When normal value is based on constructed value, the Department
will compute constructed values (CVs), as appropriate, based on the
sum of each respondent's costs, plus amounts for selling, general
and administrative expenses (SG&A), U.S. packing costs, and profit.
The Department will collect this cost data in order to determine the
accurate per-unit CV.
Calculation of CV:
+ Direct Materials
+ Direct Labor
+ Factory overhead
= Cost of Manufacturing
+ Home Market SG&A*
= Cost of Production
+ U.S. Packing
+ Profit*
= Constructed Value (CV)
* SG&A and profit are based on home-market sales of the foreign
like product made in the ordinary course of trade. SG&A includes
financing but not movement expenses.
B. Export Price and Constructed Export Price
EP and CEP refer to the two types of calculated prices for
merchandise imported into the United States. Both EP and CEP are
based on the price at which the subject merchandise is first sold to
a person not affiliated with the foreign producer or exporter.
Calculation of EP:
Gross Unit Price
- Movement Expenses
- Discounts and Rebates
+/- Billing Adjustments
+ Packing Expenses
+ Rebated Import Duties
= Export Price (EP)
Calculation of CEP:
Gross Unit Price
- Movement Expenses
- Discounts and Rebates
+/- Billing Adjustments
- Direct Selling Expenses
- Indirect Selling Expenses that relate to commercial activity in
the United States
- The cost of any further manufacture or assembly incurred in the
United States
- CEP Profit
+ Rebated Import Duties
- Commissions
= Constructed Export Price (CEP)
C. Fair Comparisons
To ensure that a fair comparison with EP or CEP is made, the
Department will make adjustments to normal value. The Department
will adjust for physical differences between the merchandise sold in
the United States and the merchandise sold in the home market. For
EP sales, the Department will add in U.S. direct selling expenses,
U.S. commissions \2\ and packing expenses. For CEP sales, the
Department will subtract the amount of the CEP offset, if warranted,
and add in U.S. packing expenses.
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\2\ If there are not commissions in both markets, then the
Department will apply a commission offset.
[FR Doc. 2014-30396 Filed 12-24-14; 8:45 am]
BILLING CODE 3510-DS-P