82 FR 31945 - Sugar From Mexico: Amendment to the Agreement Suspending the Antidumping Duty Investigation
DEPARTMENT OF COMMERCE
International Trade Administration Federal Register Volume 82, Issue 131 (July 11, 2017)
International Trade Administration
Federal Register Volume 82, Issue 131 (July 11, 2017)
| Page Range | 31945-31947 | |
| FR Document | 2017-14282 |
[Federal Register Volume 82, Number 131 (Tuesday, July 11, 2017)] [Notices] [Pages 31945-31947] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14282] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [A-201-845] Sugar From Mexico: Amendment to the Agreement Suspending the Antidumping Duty Investigation AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Effective June 30, 2017. SUMMARY: The Department of Commerce (the Department) and a representative of the signatory sugar producers/exporters accounting for substantially all imports of sugar from Mexico have signed an amendment to the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico (AD Suspension Agreement). The amendment to the AD Suspension Agreement modified the definitions for sugar from Mexico, revises the reference prices for the applicable sugar from Mexico, and provides for enhanced monitoring and enforcement mechanisms. FOR FURTHER INFORMATION CONTACT: Sally Craig Gannon or David Cordell at (202) 482-0162 or (202) 482-0408, respectively; Bilateral Agreements Unit, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 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).\1\ 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.\2\ --------------------------------------------------------------------------- \1\ See Sugar from Mexico: Initiation of Antidumping Duty Investigation, 79 FR 22795 (April 24, 2014). \2\ See Sugar from Mexico: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 79 FR 65189 (November 3, 2014). --------------------------------------------------------------------------- The Department and a representative of the signatory producers/ exporters accounting for substantially all imports of sugar from Mexico signed the AD Suspension Agreement on December 19, 2014.\3\ --------------------------------------------------------------------------- \3\ See Sugar From Mexico: Suspension of Antidumping Investigation, 79 FR 78039 (December 29, 2014) (AD Suspension Agreement). --------------------------------------------------------------------------- On January 8, 2015, Imperial Sugar Company (Imperial) and AmCane Sugar LLC (AmCane) each notified the Department that they had petitioned the International Trade Commission (ITC) to conduct a review of the AD Suspension Agreement under section 734(h) of the Act, to determine whether the injurious effects of the imports of the subject merchandise are eliminated completely by the AD Suspension Agreement. On March 19, 2015, in a unanimous vote, the ITC found that the AD Suspension Agreement eliminated completely the injurious effects of imports of sugar from Mexico.\4\ As a result of the ITC's determination, the AD Suspension Agreement remained in effect, and on March 27, 2015, the Department, in accordance with section 734(h)(3) of the Act, instructed U.S. Customs and Border Protection (CBP) to terminate the suspension of liquidation of all entries of sugar from Mexico and refund all cash deposits. --------------------------------------------------------------------------- \4\ See Sugar from Mexico; Determinations, 80 FR 16426 (March 27, 2015). --------------------------------------------------------------------------- Notwithstanding issuance of the AD Suspension Agreement, pursuant to requests by domestic interested parties, the Department continued its investigation and made an affirmative final determination of sales at less than fair value.\5\ In its Final Determination, the Department calculated weighted-average dumping margins of 40.48 percent for Fondo de Empresas Expropiadas del Sector Azucarero (FEESA), 42.14 percent for Ingenio Tala S.A. de C.V. and certain affiliated sugar mills of Grupo Azucarero Mexico S.A. de C.V. (collectively, the GAM Group), and 40.74 percent for all other Mexican producers/exporters. The Department stated, in its Final Determination, that it would ``not instruct CBP to suspend liquidation or collect cash deposits calculated herein unless the AD Suspension Agreement is terminated and the Department issues an antidumping duty order,'' and, in that case, it would ``instruct CBP to suspend liquidation and require a cash deposit equal to the weighted- average amount by which normal value exceeds U.S. price,'' and adjusted for export subsidies.\6\ The ITC subsequently made an affirmative determination of material injury to an industry in the United States by reason of imports of sugar from Mexico.\7\ --------------------------------------------------------------------------- \5\ See Sugar From Mexico: Continuation of Antidumping and Countervailing Duty Investigations, 80 FR 25278 (May 4, 2015); Sugar From Mexico: Final Determination of Sales at Less Than Fair Value, 80 FR 57341 (September 23, 2015) (Final Determination). \6\ Final Determination, 80 FR at 57342. \7\ See Sugar From Mexico, 80 FR 70833 (November 16, 2015) (Final ITC Determination). --------------------------------------------------------------------------- Since June 2016, the Department and representatives of the Mexican sugar producers/exporters have held consultations regarding the AD Suspension Agreement to address concerns raised by the domestic industry and ensure that the AD Suspension Agreement meets all of the statutory requirements for a suspension agreement, e.g., that suspension of the investigation is in the public interest, including the availability of supplies of sugar in the U.S. market, and that effective monitoring is practicable. On June 14, 2017, the Department and a representative for Mexican sugar producers/exporters initialed a draft amendment to the AD Suspension Agreement. We invited interested parties to provide written comments by June 21, 2017, and rebuttal comments by June 26, 2017.\8\ On June 17, 2017, the Department released draft memoranda explaining how the draft amended AD Suspension Agreement meets the requirements of section 734(c) of the Act and invited interested parties to provide written comments by no later than the close of business on June 23, 2017, with rebuttal comments due no later than the close of business on June 26, 2017.\9\ --------------------------------------------------------------------------- \8\ See Memorandum entitled ``Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico,'' dated June 14, 2017 and Memorandum entitled ``Placing Press Release on the Record of the Proceeding,'' dated June 30, 2017. \9\ See Memorandum from P. Lee Smith, Deputy Assistant Secretary for Policy and Negotiations, to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance, entitled ``Draft Amendment to the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico: U.S. Import Coverage, Existence of Extraordinary Circumstances, Public Interest, and Effective Monitoring Assessments,'' dated June 16, 2017; see also Memorandum from P. Lee Smith, Deputy Assistant Secretary for Policy and Negotiations, to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance, entitled ``Draft Amendment to the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico: The Prevention of Price Suppression or Undercutting of Price Levels by the Draft Amendment,'' dated June 16, 2017. --------------------------------------------------------------------------- [[Page 31946]] Scope of Agreement See Section I, Product Coverage, of the AD Suspension Agreement. Analysis of Comments Received We received comments on the draft amendment from the International Sugar Trade Coalition, the Australian Sugar Industry Alliance, CSC Sugar LLC (CSC), the Corn Refiners Association, the Organic Trade Association, Archer Daniels Midland Company, the American Sugar Coalition, Imperial Sugar Company, the Government of Canada, the Sugar Users Association (SUA), and the Governments of Barbados, Belize, Dominican Republic, Guyana, and Jamaica. We received rebuttal comments on the draft amendment from C[aacute]mara Nacional de Las Industrias Azucarera y Alcoholera (Mexican Sugar Chamber), the American Sugar Coalition, and Zucarmex, S.A. de C.V. and Zucrum Foods LLC. CSC also filed unsolicited rebuttal comments to the American Sugar Coalition's rebuttal comments. We received comments on the draft statutory memoranda from SUA. In reaching a final amendment to the AD Agreement, the Department has taken into account all comments and rebuttal comments submitted on the record of the suspension agreement proceeding and has made changes, where warranted, to the June 14, 2017 draft AD amendment based upon those comments. The Department expects to place its written analysis of the changes made and response to comments on the record of the suspension agreement proceeding no later than July 14, 2017. Amendment to AD Suspension Agreement The Department consulted with the Mexican sugar producers/exporters and the petitioners \10\ and has considered the comments submitted by interested parties with respect to the draft amendment to the AD Suspension Agreement. On June 30, 2017, after consideration of the interested party comments received, Wilbur L. Ross, Jr., Secretary of Commerce, U.S. Department of Commerce and Juan Cortina Gallardo, for Mexican Sugar Industry, a representative of sugar producers/exporters accounting for substantially all imports of sugar from Mexico, signed a finalized amendment to the AD Suspension Agreement. The amendment, as integrated with the AD Suspension Agreement, allows for exports of Mexican sugar to the United States in accordance with the collective terms therein. --------------------------------------------------------------------------- \10\ The petitioners are the American Sugar Coalition and its individual members: American Sugar Cane League, American Sugar Refining, Inc., American Sugarbeet Growers Association, Florida Sugar Cane League, Rio Grande Valley Sugar Growers, Inc., Sugar Cane Growers Cooperative of Florida, and United States Beet Sugar Association. --------------------------------------------------------------------------- In accordance with section 734(c) of the Act, we have determined that extraordinary circumstances, as defined by section 734(c)(2)(A) of the Act, exist with respect to the amended AD Suspension Agreement. We have also determined that the amended AD 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. We have also determined that the amended AD Suspension Agreement is in the public interest and can be monitored effectively, as required under section 734(d) of the Act. For the reasons outlined above, we find that the amended AD Suspension Agreement meets the criteria of section 734(c) and (d) of the Act. The terms and conditions of the amendment to this AD Suspension Agreement, signed on June 30, 2017, are set forth in the Amendment to the AD Suspension Agreement, which is attached in Annex 1 to this notice. Administrative Protective Order Access The administrative protective order (APO) the Department granted in the suspension agreement segment of this proceeding remains in place and effective for the amended AD Suspension Agreement. All new parties requesting access to business proprietary information submitted during the administration of the amended AD Suspension Agreement, under the APO currently in effect, must submit an APO application in accordance with the Department's regulations currently in effect.\11\ --------------------------------------------------------------------------- \11\ See section 777(c)(1) of the Act; 19 CFR 351.103, 351.304, 351.305, and 351.306. --------------------------------------------------------------------------- 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: June 30, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. Annex 1: Amendment to Agreement Suspending the Antidumping Duty Investigation on Sugar From Mexico The Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico (Agreement) signed by the United States Department of Commerce (the Department) and the signatory producers and exporters of Sugar from Mexico (the Signatories) on December 19, 2014, is amended, as set forth below (Amendment). If a provision of the Agreement conflicts with a provision of this Amendment, the provision of the Amendment shall supersede the provision of the Agreement to the extent of the conflict. All other provisions of the Agreement and their applicability continue with full force. The Department and the Signatories hereby agree as follows: Section II (``Definitions'') is amended as follows: Section II.C is replaced with: ``Effective Date of the Agreement'' means the date on which the Department and the Signatories signed the Agreement. Additionally, the ``Effective Date of the Amendment'' means the date on which the Department issues its next calculation pursuant to Section V.B of the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico (CVD Agreement) and, as such, means that the Amendment applies to all contracts for Sugar from Mexico for the for the October 1, 2017 through September 30, 2018 Export Limit Period (as defined in the CVD Agreement), and to all contracts for Sugar from Mexico (regardless of Export Limit Period) exported from Mexico on or after October 1, 2017. Section II.F is replaced with: ``Other Sugar'' means a. Sugar at a polarity of less than 99.2, as produced and measured on a dry basis; b. Where such Sugar is Additional U.S. Needs Sugar, as defined in Section II.O, Sugar at a polarity of less than 99.5, as produced and measured on a dry basis; and, c. In the event that Section V.B.4.d of the CVD Agreement is exercised, Sugar at a polarity specified by USDA that is below 99.5, as produced and measured on a dry basis. Such Other Sugar must be exported to the United States loaded in bulk and freely flowing (i.e., not in a container, tote, bag or otherwise packaged) into the hold(s) of an ocean-going vessel. To be considered as Other Sugar, if Sugar leaves the Mexican mill in a container, tote, bag or other package (i.e., is not freely flowing), it must be emptied from the container, tote, bag or other package into the hold of the ocean-going vessel for exportation. All other exports of Sugar from Mexico that are not transported in bulk and freely flowing in the hold(s) of an ocean-going vessel will be considered to be Refined Sugar for purposes of the Reference Prices, regardless of the polarity of that Sugar. Section II.H is replaced with: [[Page 31947]] ``Refined Sugar'' means a. Sugar at a polarity of 99.2 and above, as produced and measured on a dry basis; b. Sugar considered to be Refined Sugar under Section II.F; c. Where such Sugar is Additional U.S. Needs Sugar as defined in Section II.U, Sugar at a polarity of 99.5 and above, as produced and measured on a dry basis; and d. In the event that Section V.B.4.d of the CVD Agreement is exercised, Sugar at a polarity specified by USDA that is 99.5 or above, as produced and measured on a dry basis. New Section II.N is added as follows: ``Intermediary Customer'' means trader, processor, or other reseller located outside of the United States who sells Sugar to an unaffiliated customer in the United States. New Section II.O is added as follows: ``Additional U.S. Needs Sugar'' means the quantity of Sugar allowed to be exported, over and above the Export Limit calculated under Section V.B.3 of the amended CVD Agreement, to fill a need identified by USDA in the U.S. market for a particular type and quantity of Sugar, and offered to Mexico pursuant to Section V.B.4.c of the amended CVD Agreement. Section VII (``Monitoring of the Agreement'') is amended as follows: Section VII.B (``Compliance Monitoring'') is amended as follows: Section VII.B.4--an additional sentence as follows is added to the end of paragraph 4: The Department may verify polarity testing practices at any Mexican mill and request supporting documentation for polarity test results. Section VII.C (``Shipping and Other Arrangements'') is amended as follows: Section VII.C.4 is replaced with the following, with the sentence in italics being added to the language: 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. As part of the certification, each Signatory will submit a listing of the total quantity of Other Sugar and Refined Sugar that was exported during each quarter. 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. Section VII.C.5 is added as follows: 5. For each sale made by a Signatory to an Intermediary Customer, the Signatory shall incorporate into its sales contract with the Intermediary Customer the obligation that such customers will abide by the terms of the Agreement, including selling the Sugar from Mexico to the first downstream unaffiliated U.S. customer in accordance with the terms of the Agreement. Further, for each sale made by a Signatory to an Intermediary Customer, the Signatory shall incorporate into its sales contract with the Intermediary Customer a provision requiring the Intermediary Customer to provide the Department with all sales and other related information the Department requests. Further, Signatories and Intermediary Customers must retain evidence in their files to document that these contractual obligations were implemented. The Department retains its authority to request the Signatory and/or Intermediary Customer to provide such documentation, and the Department may verify such documentation. Where a Signatory does not have access to the documentation but has obligated the Intermediary Customer to provide it to the Department, the Department will request the Intermediary Customer to provide the documentation. Failure by a Signatory and/or Intermediary Customer to provide requested documentation may be considered a violation under Section VIII of the Agreement. Section VII.C.6 is added as follows: 6. Other Sugar may enter the Customs territory of the United States if the following conditions are met: Exporters of Other Sugar are required to ensure, through inclusion of obligations in their sales contracts or otherwise, that importers of record of such Other Sugar agree to ensure that Other Sugar is tested for polarity by a laboratory approved by U.S. Customs and Border Protection (CBP) upon entry into the United States, with samples drawn in accordance with CBP standards, and that the importers of record agree to report the polarity test results for each entry to the Department within 30 days of entry. Such polarity test reports must be filed on the official records of the Department for both this Agreement and the CVD Agreement. For clarity, sampling will be done in accordance with CBP standards (e.g., CBP Directive No. 3820-001B), or its successor directive as agreed by the Department and the Signatories, including the CBP requirement that the polarity level of an entry will be the average of the samples from that entry. The Department will request that CBP inform the importing public of the requirements for importation of Other Sugar set forth in this sub-section. Section VII.C.7 is added as follows: 7. Penalties for Non-Compliance with Section VII.C.6.a: a. Where the Department finds that exporters and importers of record of Other Sugar are not complying with Section VII.C.6.a, the Department may consider this a violation under Section VIII.D of the Agreement. b. If the Department finds that issues with meeting the polarity requirements of the Agreement as required by Sections II.F, II.H, VII.C.6 and Appendix I continue to arise, the Department can at any time terminate the Agreement under Section X.B. Apart from termination, the Department may take additional steps to ensure compliance with the terms of this Agreement, including action under Section VIII.B.4 of the CVD Agreement. Section VIII (``Violations of the Agreement'') is amended as follows: Section VIII.D is amended by adding new paragraphs 3 and 4, and moving paragraph 3 to paragraph 5: D.3 Failure by Signatories and Intermediary Customers to provide the required documentation specified in Section VII.C.5. D.4 Failure by Signatories and importers of record to comply with the requirements under Section VII.C.6. Appendix I is amended as follows: At Appendix I, the following will be changed: The FOB plant Reference Price for Refined Sugar is $0.2800 per pound commercial value (whether freely flowing or in totes weighing one (1) MT or greater as the sugar leaves the mill), as produced and measured on a dry basis. The FOB plant Reference Price for Other Sugar is $0.2300 per pound commercial value (whether freely flowing or in totes weighing one (1) MT or greater as the sugar leaves the mill), as produced and measured on a dry basis. In addition, the following clause will be added to Appendix I when referencing the Reference Prices. Mexican Signatory producers/exporters must ensure that the delivered sales price for all Sugar from Mexico exported to the United States must include all expenses, e.g., transportation, de- bagging, warehousing, handling, and packaging charges, in excess of the FOB plant Reference Price. As specified in Sections VII.B.1 and VII.B.2 of the Agreement, the Department has the authority to request sales information, and to verify such information, which demonstrates compliance with the Reference Prices and terms of the Agreement. Signed in Washington, DC, on June 30, 2017. For the U.S. Department of Commerce: Wilbur L. Ross, Jr., Secretary of Commerce, U.S. Department of Commerce The following party hereby certifies that the members of the Mexican sugar industry agree to abide by all terms of the Amendment to the Agreement: Juan Cortina Gallardo For Mexican Sugar Industry. [FR Doc. 2017-14282 Filed 7-10-17; 8:45 am] BILLING CODE 3510-DS-P
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Wilbur L. Ross, Jr., section 733 of the Act, and postponed would ‘‘not instruct CBP to suspend
Secretary of Commerce, U.S. Department of the final determination in this liquidation or collect cash deposits
Commerce. investigation until no later than 135 calculated herein unless the AD
For the Government of Mexico: days after the date of publication of the Suspension Agreement is terminated
Juan Carlos Baker Pineda, preliminary determination in the and the Department issues an
Subsecretario de Comercio Exterior, Federal Register.2 antidumping duty order,’’ and, in that
Secretarı́a de Economı́a. The Department and a representative case, it would ‘‘instruct CBP to suspend
[FR Doc. 2017–14283 Filed 7–10–17; 8:45 am]
of the signatory producers/exporters liquidation and require a cash deposit
accounting for substantially all imports equal to the weighted-average amount
BILLING CODE 3510–DS–P
of sugar from Mexico signed the AD by which normal value exceeds U.S.
Suspension Agreement on December 19, price,’’ and adjusted for export
DEPARTMENT OF COMMERCE 2014.3 subsidies.6 The ITC subsequently made
On January 8, 2015, Imperial Sugar an affirmative determination of material
International Trade Administration Company (Imperial) and AmCane Sugar injury to an industry in the United
LLC (AmCane) each notified the States by reason of imports of sugar
[A–201–845] Department that they had petitioned the from Mexico.7
International Trade Commission (ITC) to Since June 2016, the Department and
Sugar From Mexico: Amendment to the
conduct a review of the AD Suspension representatives of the Mexican sugar
Agreement Suspending the
Agreement under section 734(h) of the producers/exporters have held
Antidumping Duty Investigation
Act, to determine whether the injurious consultations regarding the AD
AGENCY: Enforcement and Compliance, effects of the imports of the subject Suspension Agreement to address
International Trade Administration, merchandise are eliminated completely concerns raised by the domestic
Department of Commerce. by the AD Suspension Agreement. On industry and ensure that the AD
DATES: Effective June 30, 2017. March 19, 2015, in a unanimous vote, Suspension Agreement meets all of the
SUMMARY: The Department of Commerce
the ITC found that the AD Suspension statutory requirements for a suspension
(the Department) and a representative of Agreement eliminated completely the agreement, e.g., that suspension of the
the signatory sugar producers/exporters injurious effects of imports of sugar investigation is in the public interest,
accounting for substantially all imports from Mexico.4 As a result of the ITC’s including the availability of supplies of
of sugar from Mexico have signed an determination, the AD Suspension sugar in the U.S. market, and that
amendment to the Agreement Agreement remained in effect, and on effective monitoring is practicable. On
Suspending the Antidumping Duty March 27, 2015, the Department, in June 14, 2017, the Department and a
Investigation on Sugar from Mexico (AD accordance with section 734(h)(3) of the representative for Mexican sugar
Suspension Agreement). The Act, instructed U.S. Customs and Border producers/exporters initialed a draft
amendment to the AD Suspension Protection (CBP) to terminate the amendment to the AD Suspension
Agreement modified the definitions for suspension of liquidation of all entries Agreement. We invited interested
sugar from Mexico, revises the reference of sugar from Mexico and refund all parties to provide written comments by
prices for the applicable sugar from cash deposits. June 21, 2017, and rebuttal comments
Notwithstanding issuance of the AD by June 26, 2017.8 On June 17, 2017, the
Mexico, and provides for enhanced
Suspension Agreement, pursuant to Department released draft memoranda
monitoring and enforcement
requests by domestic interested parties, explaining how the draft amended AD
mechanisms.
the Department continued its Suspension Agreement meets the
FOR FURTHER INFORMATION CONTACT: investigation and made an affirmative requirements of section 734(c) of the Act
Sally Craig Gannon or David Cordell at final determination of sales at less than and invited interested parties to provide
(202) 482–0162 or (202) 482–0408, fair value.5 In its Final Determination, written comments by no later than the
respectively; Bilateral Agreements Unit, the Department calculated weighted- close of business on June 23, 2017, with
Office of Policy, Enforcement and average dumping margins of 40.48 rebuttal comments due no later than the
Compliance, International Trade percent for Fondo de Empresas close of business on June 26, 2017.9
Administration, U.S. Department of Expropiadas del Sector Azucarero
Commerce, 1401 Constitution Avenue (FEESA), 42.14 percent for Ingenio Tala 6 Final Determination, 80 FR at 57342.
NW., Washington, DC 20230. S.A. de C.V. and certain affiliated sugar 7 See Sugar From Mexico, 80 FR 70833
(November 16, 2015) (Final ITC Determination).
SUPPLEMENTARY INFORMATION: mills of Grupo Azucarero Mexico S.A. 8 See Memorandum entitled ‘‘Agreement
de C.V. (collectively, the GAM Group), Suspending the Antidumping Duty Investigation on
Background
and 40.74 percent for all other Mexican Sugar from Mexico,’’ dated June 14, 2017 and
On April 17, 2014, the Department producers/exporters. The Department Memorandum entitled ‘‘Placing Press Release on
initiated an antidumping duty stated, in its Final Determination, that it the Record of the Proceeding,’’ dated June 30, 2017.
9 See Memorandum from P. Lee Smith, Deputy
investigation under section 732 of the
Assistant Secretary for Policy and Negotiations, to
Tariff Act of 1930, as amended (the Act), 2 See Sugar from Mexico: Preliminary
Ronald K. Lorentzen, Acting Assistant Secretary for
to determine whether imports of sugar Determination of Sales at Less Than Fair Value and Enforcement and Compliance, entitled ‘‘Draft
Postponement of Final Determination, 79 FR 65189
from Mexico are being, or are likely to (November 3, 2014).
Amendment to the Agreement Suspending the
be, sold in the United States at less than Antidumping Duty Investigation on Sugar from
3 See Sugar From Mexico: Suspension of
Mexico: U.S. Import Coverage, Existence of
fair value (LTFV).1 On October 24, 2014, Antidumping Investigation, 79 FR 78039 (December Extraordinary Circumstances, Public Interest, and
mstockstill on DSK30JT082PROD with NOTICES
the Department preliminarily 29, 2014) (AD Suspension Agreement). Effective Monitoring Assessments,’’ dated June 16,
4 See Sugar from Mexico; Determinations, 80 FR
determined that sugar from Mexico is 2017; see also Memorandum from P. Lee Smith,
16426 (March 27, 2015). Deputy Assistant Secretary for Policy and
being, or is likely to be, sold in the 5 See Sugar From Mexico: Continuation of Negotiations, to Ronald K. Lorentzen, Acting
United States at LTFV, as provided in Antidumping and Countervailing Duty Assistant Secretary for Enforcement and
Investigations, 80 FR 25278 (May 4, 2015); Sugar Compliance, entitled ‘‘Draft Amendment to the
1 See Sugar from Mexico: Initiation of From Mexico: Final Determination of Sales at Less Agreement Suspending the Antidumping Duty
Antidumping Duty Investigation, 79 FR 22795 Than Fair Value, 80 FR 57341 (September 23, 2015) Investigation on Sugar from Mexico: The Prevention
(April 24, 2014). (Final Determination). Continued
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‘‘Refined Sugar’’ means Section VII.C.5 is added as follows: Agreement as required by Sections II.F, II.H,
a. Sugar at a polarity of 99.2 and above, as 5. For each sale made by a Signatory to an VII.C.6 and Appendix I continue to arise, the
produced and measured on a dry basis; Intermediary Customer, the Signatory shall Department can at any time terminate the
b. Sugar considered to be Refined Sugar incorporate into its sales contract with the Agreement under Section X.B. Apart from
under Section II.F; Intermediary Customer the obligation that termination, the Department may take
c. Where such Sugar is Additional U.S. such customers will abide by the terms of the
Agreement, including selling the Sugar from additional steps to ensure compliance with
Needs Sugar as defined in Section II.U, Sugar
at a polarity of 99.5 and above, as produced Mexico to the first downstream unaffiliated the terms of this Agreement, including action
and measured on a dry basis; and U.S. customer in accordance with the terms under Section VIII.B.4 of the CVD
d. In the event that Section V.B.4.d of the of the Agreement. Further, for each sale made Agreement.
CVD Agreement is exercised, Sugar at a by a Signatory to an Intermediary Customer, Section VIII (‘‘Violations of the
polarity specified by USDA that is 99.5 or the Signatory shall incorporate into its sales Agreement’’) is amended as follows:
above, as produced and measured on a dry contract with the Intermediary Customer a Section VIII.D is amended by adding new
basis. provision requiring the Intermediary paragraphs 3 and 4, and moving paragraph 3
New Section II.N is added as follows: Customer to provide the Department with all
to paragraph 5:
‘‘Intermediary Customer’’ means trader, sales and other related information the
processor, or other reseller located outside of Department requests. D.3 Failure by Signatories and Intermediary
the United States who sells Sugar to an Further, Signatories and Intermediary Customers to provide the required
unaffiliated customer in the United States. Customers must retain evidence in their files documentation specified in Section
New Section II.O is added as follows: to document that these contractual VII.C.5.
‘‘Additional U.S. Needs Sugar’’ means the obligations were implemented. The D.4 Failure by Signatories and importers of
quantity of Sugar allowed to be exported, Department retains its authority to request record to comply with the requirements
over and above the Export Limit calculated the Signatory and/or Intermediary Customer
under Section VII.C.6.
under Section V.B.3 of the amended CVD to provide such documentation, and the
Department may verify such documentation. Appendix I is amended as follows:
Agreement, to fill a need identified by USDA
in the U.S. market for a particular type and Where a Signatory does not have access to At Appendix I, the following will be
quantity of Sugar, and offered to Mexico the documentation but has obligated the changed:
pursuant to Section V.B.4.c of the amended Intermediary Customer to provide it to the The FOB plant Reference Price for Refined
CVD Agreement. Department, the Department will request the Sugar is $0.2800 per pound commercial
Section VII (‘‘Monitoring of the Intermediary Customer to provide the value (whether freely flowing or in totes
Agreement’’) is amended as follows: documentation. Failure by a Signatory and/
weighing one (1) MT or greater as the sugar
or Intermediary Customer to provide
Section VII.B (‘‘Compliance Monitoring’’) leaves the mill), as produced and measured
requested documentation may be considered
is amended as follows: on a dry basis.
a violation under Section VIII of the
Section VII.B.4—an additional sentence as The FOB plant Reference Price for Other
Agreement.
follows is added to the end of paragraph 4: Sugar is $0.2300 per pound commercial
Section VII.C.6 is added as follows:
The Department may verify polarity testing 6. Other Sugar may enter the Customs value (whether freely flowing or in totes
practices at any Mexican mill and request territory of the United States if the following
supporting documentation for polarity test weighing one (1) MT or greater as the sugar
conditions are met: leaves the mill), as produced and measured
results. Exporters of Other Sugar are required to
Section VII.C (‘‘Shipping and Other on a dry basis.
ensure, through inclusion of obligations in
Arrangements’’) is amended as follows: In addition, the following clause will be
their sales contracts or otherwise, that
Section VII.C.4 is replaced with the importers of record of such Other Sugar agree added to Appendix I when referencing the
following, with the sentence in italics being to ensure that Other Sugar is tested for Reference Prices.
added to the language: polarity by a laboratory approved by U.S. Mexican Signatory producers/exporters
4. Not later than 30 days after the end of Customs and Border Protection (CBP) upon must ensure that the delivered sales price for
each quarter, each Signatory will submit a entry into the United States, with samples all Sugar from Mexico exported to the United
written statement to the Department drawn in accordance with CBP standards, States must include all expenses, e.g.,
certifying that all sales during the most and that the importers of record agree to transportation, de-bagging, warehousing,
recently completed quarter were at net report the polarity test results for each entry
prices, after rebates, discounts, or other handling, and packaging charges, in excess of
to the Department within 30 days of entry. the FOB plant Reference Price. As specified
adjustments, at or above the Reference Prices Such polarity test reports must be filed on
in effect and were not part of or related to in Sections VII.B.1 and VII.B.2 of the
the official records of the Department for
any act or practice which would have the both this Agreement and the CVD Agreement. Agreement, the Department has the authority
effect of hiding the real price of the Sugar For clarity, sampling will be done in to request sales information, and to verify
being sold. Further, each Signatory will accordance with CBP standards (e.g., CBP such information, which demonstrates
certify in this same statement that all sales Directive No. 3820–001B), or its successor compliance with the Reference Prices and
made during the relevant quarter were not directive as agreed by the Department and terms of the Agreement.
part of or related to any bundling the Signatories, including the CBP Signed in Washington, DC, on June 30,
arrangement, discounts/free goods/financing requirement that the polarity level of an entry
package, swap or other exchange where such 2017.
will be the average of the samples from that
arrangement is designed to circumvent the entry. For the U.S. Department of Commerce:
basis of the Agreement. As part of the The Department will request that CBP Wilbur L. Ross, Jr.,
certification, each Signatory will submit a inform the importing public of the Secretary of Commerce, U.S. Department of
listing of the total quantity of Other Sugar requirements for importation of Other Sugar
and Refined Sugar that was exported during Commerce
set forth in this sub-section.
each quarter. Section VII.C.7 is added as follows: The following party hereby certifies that
Each Signatory that did not export Sugar to 7. Penalties for Non-Compliance with the members of the Mexican sugar industry
the United States during any given quarter Section VII.C.6.a: agree to abide by all terms of the Amendment
mstockstill on DSK30JT082PROD with NOTICES
will submit a written statement to the a. Where the Department finds that to the Agreement:
Department certifying that it made no sales exporters and importers of record of Other Juan Cortina Gallardo
to the United States during the most recently Sugar are not complying with Section
completed quarter. Each Signatory agrees to VII.C.6.a, the Department may consider this For Mexican Sugar Industry.
permit full verification of its certification as a violation under Section VIII.D of the [FR Doc. 2017–14282 Filed 7–10–17; 8:45 am]
the Department deems necessary. Failure to Agreement.
BILLING CODE 3510–DS–P
provide a quarterly certification may be b. If the Department finds that issues with
considered a violation of the Agreement. meeting the polarity requirements of the
VerDate Sep<11>2014 18:01 Jul 10, 2017 Jkt 241001 PO 00000 Frm 00015 Fmt 4703 Sfmt 9990 E:\FR\FM\11JYN1.SGM 11JYN1](https://thefederalregister.org/doc/82_FR_32076/page/3.svg)
Document Created: 2018-11-14 10:21:49
Document Modified: 2018-11-14 10:21:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Dates | Effective June 30, 2017. | |
| Contact | Sally Craig Gannon or David Cordell at (202) 482-0162 or (202) 482-0408, respectively; Bilateral Agreements Unit, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. | |
| FR Citation | 82 FR 31945 |
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