81 FR 74395 - Lemon Juice From Argentina: Continuation of Suspension of Antidumping Investigation

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 207 (October 26, 2016)

Page Range74395-74401
FR Document2016-25947

The Department of Commerce (``the Department'') is continuing to suspend the antidumping duty investigation on lemon juice from Argentina. The basis for this action is an agreement between the Department and signatory producers/exporters accounting for substantially all imports of lemon juice from Argentina, 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.

Federal Register, Volume 81 Issue 207 (Wednesday, October 26, 2016)
[Federal Register Volume 81, Number 207 (Wednesday, October 26, 2016)]
[Notices]
[Pages 74395-74401]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-818]


Lemon Juice From Argentina: Continuation of Suspension of 
Antidumping Investigation

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

DATES: Effective Date: October 20, 2016.
SUMMARY: The Department of Commerce (``the Department'') is continuing 
to suspend the antidumping duty investigation on lemon juice from 
Argentina. The basis for this action is an agreement between the 
Department and signatory producers/exporters accounting for 
substantially all imports of lemon juice from Argentina, 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 Julie Santoboni 
at (202) 482-0162 or (202) 482-3063, 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 September 10, 2007, the Department entered into an agreement 
with S.A. San Miguel A.G.I.C.I. y F., (``San Miguel'') and Citrusvil, 
S.A., Argentine producers/exporters accounting for substantially all 
imports of lemon juice from Argentina. See Suspension of Antidumping 
Duty Investigation: Lemon Juice From Argentina, 72 FR 53991 (September 
21, 2007) (``2007 Agreement''). On September 17, 2009, Citromax 
S.A.C.I. acceded to the 2007 Agreement. On July 11, 2014, La Moraleja, 
S.A. and Cooperativa de Productores Citricolas de Tafi Viejo (``COTA'') 
acceded to the 2007 Agreement.
    On April 28, 2016, the Department notified the interested parties 
and the International Trade Commission (``ITC'') of the intent to 
suspend the investigation on Lemon Juice from Argentina pursuant to 
section 734(c) of the Tariff Act of 1930 (``the Act''). See April 28, 
2016, letters from Sally C. Gannon to Interested Parties and Catherine 
DeFillipo, re ``Lemon Juice from Argentina--Intent to Suspend 
Investigation Pursuant to Section 734(c) of the Act''. On September 23, 
2016, the Department and Argentine lemon juice growers/exporters 
accounting for substantially all lemon juice imported into the United 
States from Argentina initialed a proposed agreement pursuant to 
section 734(c) of the Act to suspend the antidumping investigation on 
lemon juice from Argentina. The Department released the proposed 
agreement and accompanying memorandum detailing the fulfillment of the 
statutory requirements to interested parties on September 23, 2016, and 
afforded them an opportunity to comment on the initialed agreement and 
the memorandum by September 30, 2016. See September 23, 2016, 
Memorandum from Sally C. Gannon to Interested Parties, re ``Agreement 
Suspending the Antidumping Duty Investigation on Lemon Juice from 
Argentina''. On September 26, 2016, in accordance with section 
734(e)(2)of the Act, the Department consulted with the successor-in-
interest to the petitioner, Ventura Coastal, LLC (``Ventura''),\1\ and 
explained how the agreement will be carried out and enforced and how 
the agreement will meet the requirements of sections 734(c) and (d) of 
the Act. See September 29, 2016, Memorandum from Julie H. Santoboni to 
The File re ``Telephone Call with Counsel for Ventura Coastal''.
---------------------------------------------------------------------------

    \1\ See Lemon Juice From Argentina: Final Results of the 
Expedited First Sunset Review of the Suspended Antidumping Duty 
Investigation, 77 FR 73021 (Dec. 7, 2012).
---------------------------------------------------------------------------

    On September 30, 2016, Ventura requested, and the Department 
granted, an extension of the deadline for submitting comments to 
October 3, 2016. See September 30, 2016, letter from Matthew T. 
McGrath, re: ``Agreement Suspending the Antidumping Duty Investigation 
on Lemon Juice from Argentina: Extension Request'' and September 30, 
2016, letter from Sally C. Gannon to Matthew T. McGrath, re ``Agreement 
Suspending the Antidumping Investigation on Lemon Juice from Argentina: 
Extension for Comments on Draft Agreement''. We received comments from 
COTA, San Miguel and Ventura. See October 3, 2016, letter from Gregory 
S. Menegaz re: ``Lemon Juice from Argentina COTA Comment Draft 
Suspension Agreement: Correction of Formal Name'' (``COTA comments''); 
October 3, 2016, letter from Gregory J. Spak re: ``Lemon Juice from 
Argentina Comments on Draft Suspension Agreement'' (``San Miguel 
comments''); and, September 30, 2016 (filed October 3, 2016), letter 
from Matthew T. McGrath re: ``Agreement Suspending the Antidumping Duty 
Investigation on Lemon Juice from Argentina: Comments on Proposed New 
Suspension Agreement''. On October 11, 2016, we received additional 
comments from Ventura. See October 10, 2016, letter from Matthew T. 
McGrath re: ``Agreement Suspending the Antidumping Duty Investigation 
on Lemon Juice from Argentina: Additional Comments on Proposed New 
Suspension Agreement'' (``Ventura additional comments'').
    The Department examined the comments and incorporated changes in 
the agreement text and statutory memorandum, where appropriate, to 
address those comments. Specifically, in its comments, in response to 
COTA's comments we revised the company's name to reflect the full legal 
name of the company, Cooperativa de Productores Citricolas de Tafi 
Viejo, Agricola, de Transformacion y Comercializacion Limitada, however 
we note that COTA also uses the name Cooperativa de Productores 
Citricolas de Tafi Viejo in the ordinary course of business. See COTA 
comments. In response to Ventura's comments, the definition of 
`reference price' was revised to clarify that the price applies to the 
price of exports to the United States. Section VII.A.3 of the 2016 
Suspension Agreement was revised to reflect that the quarterly 
Argentine customs data will reflect shipments, rather than sales data. 
In San Miguel's comments it requested that the Department expedite

[[Page 74396]]

the signature and entry into force of the new suspension agreement. In 
Ventura's additional comments it waived the remainder of the 30 day 
consultation period allotted under Section 734(e)(1) of the Act.
    On October 20, 2016, the Department signed a new suspension 
agreement (``2016 Suspension Agreement'') with substantially all 
growers/exporters of lemon juice from Argentina. The 2016 Suspension 
Agreement is attached to this notice of Continuation of Suspension of 
Antidumping Investigation. By agreement of the Department and each 
signatory producer/exporter, the 2007 Agreement shall cease to have 
force or effect as of the Effective Date of this Agreement.

Scope of Agreement

    See Section I, Product Coverage, of the 2016 Suspension Agreement.

Continuation of Suspension of Investigation

    The Department consulted with the Argentine lemon juice producers/
exporters and Ventura, the successor in interest to the petitioner, 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) and (d) 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 Argentine 
Lemon Juice from Argentina: Statutory Requirements'' from Lynn Fischer 
Fox, Deputy Assistant Secretary for Policy and Negotiations, to Ronald 
K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, dated October 20, 2016 (``Statutory Requirements 
Memorandum'').
    The 2016 Suspension Agreement provides, in accordance with 
734(c)(1) of the Act, that the subject merchandise will be sold for 
export to the United States 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 2016 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 lemon juice by imports of that merchandise from Argentina, 
as required by section 734(c)(1) of the Act. See Statutory Requirements 
Memorandum.
    We have also determined that the 2016 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 2016 Suspension 
Agreement meets the criteria of sections 734(c) and (d) of the Act.
    The terms and conditions of this 2016 Suspension Agreement, signed 
on October 20, 2016, are set forth in the 2016 Suspension Agreement, 
which is attached to this notice.

Suspension of Liquidation

    Pursuant to section 734(f)(2)(A) of the Act, upon acceptance of the 
2007 Agreement the Department terminated the suspension of liquidation 
of all entries of lemon juice from Argentina. However, because the 2016 
Suspension Agreement is made pursuant to section 734(c) of the Act, the 
suspension of liquidation of all entries of lemon juice from Argentina 
is hereby resumed. See section 734(f)(2)(B) of the Act.
    Within 20 days after the publication of this notice in the Federal 
Register, certain interested parties may, by a petition filed with the 
ITC and with notice given to the Department, ask for a review of the 
2016 Suspension Agreement. See section 734(h)(1) of the Act. If no 
review is requested, the suspension of liquidation will be terminated 
at the close of the 20-day period. If a review is requested and the ITC 
determines that the injurious effects of imports of lemon juice from 
Argentina have been eliminated completely by the agreement, the 
suspension of liquidation will be terminated on the date that 
determination is published. If a review is requested and the ITC 
instead determines that the injurious effects of imports of lemon juice 
from Argentina have not been eliminated completely by the agreement, 
pursuant to section 734(h)(2) of the Act, then the investigation shall 
resume. If the investigation resumes, the suspension of liquidation 
shall continue as though the publication date of ITC's determination 
pursuant to section 734(h)(2) of the Act were the publication date of 
an affirmative preliminary determination pursuant to section 733(b) of 
the Act.
    The suspension of liquidation was ordered in the preliminary 
affirmative determination in this case published on April 26, 2007. See 
Lemon Juice from Argentina: Preliminary Determination of Sales at Less 
Than Fair Value and Preliminary Determination of Critical 
Circumstances, 72 FR 20820 (April 26, 2007) (``Preliminary 
Determination''). Section 734(f)(2)(B) of the Act provides that the 
Department may adjust the security required to reflect the effect of 
the 2016 Suspension Agreement. The Department has found that the 2016 
Suspension Agreement eliminates completely the injurious effects of the 
subject imports and, thus, the Department is adjusting the security 
required from signatories to zero. The security rates in effect for 
imports from non-signatories remain as published in the Preliminary 
Determination.

International Trade Commission

    In accordance with section 734(f) of the Act, the Department has 
notified the ITC of the 2016 Suspension Agreement.

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 2016 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 
2016 Suspension Agreement will be placed on the record within five days 
of the date of publication of this notice in the Federal Register. This 
notice also serves as a reminder to parties subject to the APO for the 
2007 Agreement of their responsibility concerning the return or 
destruction of proprietary information disclosed under APO in 
accordance with 19 CFR 351.305(a)(3). Timely written notification of 
the return or destruction of APO materials, or conversion to judicial 
protective order, is hereby requested. Failure to comply with the 
regulations and terms of an APO is a violation which is subject to 
sanction.
    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).


[[Page 74397]]


    Dated: October 20, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Attachment

AGREEMENT SUSPENDING THE ANTIDUMPING DUTY INVESTIGATION ON LEMON JUICE 
FROM ARGENTINA

    Pursuant to section 734(c) of the Tariff Act of 1930, as amended 
(the Act) and 19 C.F.R. Sec.  351.208 (the Regulations), and in 
satisfaction of the requirements of those provisions, the U.S. 
Department of Commerce (the Department) and the signatory producers and 
exporters of Lemon Juice from Argentina (the Signatories) have entered 
into this agreement suspending the antidumping duty investigation of 
Lemon Juice (defined below) from Argentina (Agreement). As of the 
Effective Date (defined below), this Agreement supersedes the 
suspension agreement entered into by the Department and Argentine 
producers and exporters on September 10, 2007.

I. PRODUCT COVERAGE

    The product covered by this Agreement is lemon juice for further 
manufacture, with or without addition of preservatives, sugar, or other 
sweeteners, regardless of the GPL (grams per liter of citric acid) 
level of concentration, brix level, brix/acid ratio, pulp content, 
clarity, grade, horticulture method (e.g., organic or not), processed 
form (e.g., frozen or not-from-concentrate), FDA standard of identity, 
the size of the container in which packed, or the method of packing.
    Excluded from the scope are: (1) Lemon juice at any level of 
concentration packed in retail-sized containers ready for sale to 
consumers, typically at a level of concentration of 48 GPL; and (2) 
beverage products such as lemonade that typically contain 20% or less 
lemon juice as an ingredient.
    Lemon juice is classifiable under subheadings 2009.39.6020, 
2009.31.6020, 2009.31.4000, 2009.31.6040, and 2009.39.6040 of the 
Harmonized Tariff Schedule of the United States (HTSUS). While HTSUS 
subheadings are provided for convenience and customs purposes, our 
written description of the scope of this Agreement is dispositive.

II. DEFINITIONS

    For purposes of this Agreement, the following definitions apply:
    A. ``Anniversary Month'' means the month in which the Agreement 
becomes effective.
    B. ``Argentina'' means the customs territory of the Republic of 
Argentina and foreign trade zones located within the territory of 
Argentina.
    C. ``Date of Export'' means the date on which the product is 
exported from Argentina to the United States.
    D. ``Effective Date'' means the date on which the Department and 
the signatory producers/exporters sign the Agreement.
    E. ``Interested Party'' means any person or entity that meets the 
definitions provided in section 771(9) of the Act.
    F. ``Lemon Juice'' means the product described in Section I, 
``Product Coverage,'' of the Agreement.
    G. ``Reference Price'' means the minimum price at which merchandise 
subject to this Agreement can be sold to the United States.
    H. ``Substantially all'' of the subject merchandise means producers 
and exporters that have accounted for not less than 85 percent by value 
or volume of the subject merchandise.
    I. ``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.
    J. ``Violation'' means noncompliance with the terms of this 
Agreement, whether through an act or omission, except for noncompliance 
that is inconsequential or inadvertent, and does not substantially 
frustrate the purposes of this Agreement. Examples of a Violation 
include: 1) sales that are at net prices (after rebates, back-billing, 
discounts, and other claims) that are below the Reference Prices; 2) 
any act, practice or omission which would have the effect of hiding the 
real price of the Lemon Juice being sold; and 3) any other Violation or 
breach, as determined by the Department.
    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

    On September 10, 2007, the Department entered into an agreement 
with S.A. San Miguel A.G.I.C. y F. and Citrusvil, S.A., which suspended 
the antidumping duty investigation on Lemon Juice from Argentina. See 
Suspension of Antidumping Duty Investigation: Lemon Juice From 
Argentina, 72 FR 53991 (September 21, 2007) (2007 Agreement). On 
September 17, 2009, Citromax S.A.C.I. acceded to the 2007 Agreement. 
See Accession to the Agreement Suspending the Antidumping Duty 
Investigation on Lemon Juice From Argentina (September 17, 2009). On 
July 11, 2014, La Moraleja S.A. and Cooperativa de Productores 
Citricolas de Tafi Viejo acceded to the 2007 Agreement. See Accessions 
to the Agreement Suspending the Antidumping Duty Investigation on Lemon 
Juice From Argentina (July 11, 2014). In 2015, the Argentine 
signatories to the 2007 Agreement indicated a preference to enter into 
a suspension agreement pursuant to section 734(c) of the Act. Effective 
October 20, 2016, in accordance with section 734(c) of the Act and 19 
C.F.R. Sec.  351.208, this Agreement supersedes the 2007 Agreement. By 
agreement of the Department and the Signatories, the 2007 Agreement 
shall cease to have force or effect as of the Effective Date of this 
Agreement. On the basis of this Agreement, the Department shall 
continue to suspend its antidumping investigation with respect to Lemon 
Juice from Argentina, subject to the terms and provisions set forth 
herein.

IV. U.S. IMPORT COVERAGE

    In accordance with section 734(c)(1) of the Act, the Signatories 
are the producers and exporters in Argentina 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 and exporters in Argentina to 
sign 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

    The Department has determined that the statutory conditions for 
suspension of the investigation have been met. In accordance with 
section 734(c) of the Act, the Department determines that extraordinary 
circumstances are present because suspension of the investigation will 
be more beneficial to the domestic industry than continuation of the 
investigation and the investigation is complex within the meaning of 
section 734(c)(2)(B); that the Agreement constitutes an agreement to 
revise prices from exporters of the subject merchandise who account for 
substantially all of the imports of subject merchandise into the United 
States; that the Agreement will eliminate completely the injurious 
effect of exports to the United States of subject merchandise; that the 
suppression or undercutting of price levels of domestic products by 
imports of subject merchandise will be prevented; and that

[[Page 74398]]

for each entry of each exporter 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 the constructed 
export price) for all less-than-fair-value entries of the exporter 
examined during the course of the investigation. In accordance with 
section 734(d) of the Act, the Department also determines that it is 
satisfied that suspension of the investigation is in the public 
interest and effective monitoring of the Agreement is practicable.

VI. PRICE UNDERTAKING

    Each Signatory individually agrees that, to prevent price 
suppression or undercutting, it will not sell for export to the United 
States, on or after the Effective Date, Lemon Juice at prices that are 
less than the Reference Prices established in Appendix 1.
    Each Signatory individually agrees that for each entry of Lemon 
Juice subject to this Agreement, 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 the constructed 
export price) for all less-than-fair-value entries of the producer/
exporter examined during 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 Lemon Juice from 
Argentina 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.
    3. Not later than thirty days after the end of each quarter, the 
Signatories, collectively, will submit Argentine customs data for the 
most recently completed quarter. These data will include the quantity 
and value of shipments for all exporters of Lemon Juice during the most 
recently completed quarter.

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 Lemon Juice, 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 Lemon Juice from Argentina 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 may 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 may 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. $/Gallon in 
accordance with Appendix I of this Agreement. All reference prices are 
F.O.B. Buenos Aires, Argentina.
    2. 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.
    3. Not later than thirty 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, back billing, discounts for quality and other 
claims) 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 Lemon Juice 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, end-of-year 
rebates, swap, or other exchange where such arrangement is designed to 
circumvent the basis of the Agreement. Each Signatory will also include 
the quantity and value of sales, by product type, and, separately, of 
shipments, by product type, during the most recently completed quarter. 
Each Signatory that did not export Lemon Juice 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 C.F.R. Sec.  351.303; (3) 
submissions that do not comply with the procedures for establishing 
business proprietary treatment under 19 C.F.R. Sec.  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 74399]]

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 may 
be 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.
    d. These compliance consultation provisions do not limit the 
Department's ability to make an immediate determination under 
351.209(b) of its regulations when it determines that a signatory has 
violated the suspension agreement.
    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. See, e.g., 351.209 of the Department's 
regulations. The provisions of this section do not supersede the 
provisions of paragraphs VIII.A-VIII.C if the Department determines 
that the sales 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

    A. If the Department determines that a Violation of the Agreement 
has occurred or that the Agreement no longer meets the requirements of 
section 734(c) or (d) of the Act, the Department shall take whatever 
action it deems appropriate under section 734(i) of the Act and the 
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. 
See also 19 C.F.R. Sec.  351.209(b)(4). 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 quantity multiplied by the Reference Price, 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 investigations involving CBP.

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 C.F.R.Sec. Sec.  
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 or other sections 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 B8024
1401 Constitution Ave., NW
Washington, DC 20230

    Such communications and submissions shall be filed consistent with 
the requirements provided in 19 C.F.R. Sec.  351.303.

X. 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 procedures, including but not 
limited to, the calculation methodologies described in Appendix II of 
this Agreement.
    B. By entering into this Agreement, the Signatories do not admit 
that any sales of Lemon Juice have been made at less than fair value or 
that imports of Lemon Juice from Argentina have caused injury to the 
producers of Lemon Juice in the United States.

XI. DURATION

    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. An individual Signatory may withdraw from this Agreement at any 
time. The Signatory's withdrawal shall be effective no later than 60 
days after the date written notice of withdrawal is provided to the 
Department.
    C. The Signatories, collectively, 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

[[Page 74400]]

Department or the Signatories, respectively.
    D. Upon termination, the Department shall follow the procedures 
outlined in section 734(i)(1) of the Act. See also 19 C.F.R. Sec.  
351.209.

For U.S. Department of Commerce:

-----------------------------------------------------------------------
Ronald K. Lorentzen
Acting Assistant Secretary Enforcement and Compliance
U.S. Department of Commerce

-----------------------------------------------------------------------
Date

For the Argentine Exporters:

Jessica Lynd
Counsel for Argenti Lemon S.A.; F.G.F. Trapani S.R.; Latin Lemon 
S.R.L.; Ledesma S.A.A.I.; and S.A. San Miguel A.G.I.C.I. y F.

-----------------------------------------------------------------------
Date
-----------------------------------------------------------------------
Judith Lynn Holdsworth
Counsel for Citrusvil S.A.; Cooperativa de Productores Citricolas de 
Tafi Viejo, Agricola, de Transformacion y Comercializacion Limitada; 
and La Moraleja S.A.

-----------------------------------------------------------------------
Date
-----------------------------------------------------------------------
Kierstan Carlson
Counsel for Citromax S.A.C.I.

-----------------------------------------------------------------------
Date

Appendix I--Agreement Suspending the Antidumping Duty Investigation on 
Lemon Juice from Argentina: 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 lemon juice, the reference prices are as 
follows:

----------------------------------------------------------------------------------------------------------------
                                    Reference price U.S. dollars per gallon (FOB Buenos Aires, Argentina) \1\
----------------------------------------------------------------------------------------------------------------
                                 Characteristics      Frozen          Frozen          Frozen          Frozen
                                    of frozen      concentrated    concentrated    concentrated    concentrated
       Lemon juice type           concentrated     juice at 400    juice at 200    juice at 300    juice at 500
                                      juice             GPL             GPL             GPL             GPL
----------------------------------------------------------------------------------------------------------------
                                Conversion        ..............         200/400         300/400         500/400
                                 Factors.
Clear.........................  Less than 0.5%             13.27            6.64            9.95           16.58
                                 pulp.
Cloudy........................  0.5% pulp or               12.48            6.24            9.36           15.60
                                 greater.
----------------------------------------------------------------------------------------------------------------

Appendix II--Agreement Suspending the Antidumping Duty Investigation on 
Lemon Juice From Argentina: 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 that can be tied either to the audited 
financial statements or to the tax return filed with the Argentinian 
government).
---------------------------------------------------------------------------

    \1\ The reference prices specified above are for all sales of 
Lemon Juice at the specified GPL, regardless of horticultural method 
(i.e., whether organic or not).
    Additional conversion factors and product types may be added to 
the Agreement. Signatories may request that the Department add a new 
conversion factor or product type by filing a written public request 
on the official record of the Agreement. Within ten days of the 
filing of the request, interested parties may comment on the 
requested additional conversion factor or product types, including 
the appropriate reference price that should apply to a new product 
type. The Department will consider such requests for new conversion 
factors or product types and issue a determination in a timely 
manner. Additional conversion factors or product types would apply 
to sales by all Signatories going forward.
    The Reference Prices will remain in effect until changed. In 
accordance with section VII.E.2.b of the Agreement, the Reference 
Prices may be revised. No revision will be considered before October 
1, 2017.
---------------------------------------------------------------------------

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
    -Home 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

[[Page 74401]]

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.
---------------------------------------------------------------------------

    \2\ If there are not commissions in both markets, then the 
Department will apply a commission offset. See, e.g., 19 C.F.R. 
Sec.  351.410(e).

[FR Doc. 2016-25947 Filed 10-25-16; 8:45 am]
BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ContactSally Craig Gannon or Julie Santoboni at (202) 482-0162 or (202) 482-3063, 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.
FR Citation81 FR 74395 

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