63 FR 43674, August 14, 1998
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-820]
Amendment to the Suspension Agreement on Fresh Tomatoes from
Mexico
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Amendment to the Suspension Agreement on Fresh
Tomatoes from Mexico.
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SUMMARY: The Department of Commerce and producers/exporters of fresh
tomatoes from Mexico signed an amendment to the Suspension Agreement on
Fresh Tomatoes from Mexico. The amendment establishes new reference
prices and provides for enhanced enforcement of the Suspension
Agreement.
EFFECTIVE DATE: August 21, 1998.
FOR FURTHER INFORMATION CONTACT: Gary Taverman at (202) 482-0161 or
Judith Wey Rudman at (202) 482-0192; Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, Washington, D.C. 20230.
SUPPLEMENTARY INFORMATION:
Background
On October 28, 1996, the Department of Commerce (``the
Department'') and the producers/exporters of fresh tomatoes from Mexico
signed the Suspension Agreement on Fresh Tomatoes from Mexico (``the
Agreement'') and, on November 1, 1996, the Agreement was published in
the Federal Register (61 FR 56618). Following consultations with
producers/exporters of fresh tomatoes from Mexico and with members of
the domestic industry, on August 6, 1998, the Department accepted an
amendment to the Agreement. The amendment establishes a second
reference price and the time periods during which each reference price
is applicable. In addition, the amendment establishes documentation
requirements as a condition of release of subject tomatoes beyond the
Customs port of entry and provides that the Department may notify
producer/exporter trade organizations composed of signatory parties of
any sales that may have been made at prices inconsistent with the
Agreement. Finally, the amendment makes other minor changes to the
Agreement to facilitate the Department's administration of the
Agreement. The text of the amendment is attached to this notice.
Additional producers/exporters have signed the Agreement as
amended. The additional signatories and the revisions provided for in
the amendment ensure that the Agreement continues to eliminate
completely the injurious effect of imports of tomatoes from Mexico, and
that the Agreement continues to be in the public interest.
Dated: August 7, 1998.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
Amendment to the Suspension Agreement on Fresh Tomatoes From Mexico
Consistent with the requirements of section 734(c) of the Tariff
Act of 1930, as amended, to eliminate completely the injurious effect
of exports to the United States and to prevent the suppression or
undercutting of price levels of domestic tomatoes, the Department of
Commerce (the Department) and signatory producers/exporters of subject
merchandise agree to amend the Suspension Agreement on Fresh Tomatoes
From Mexico (the Agreement) as indicated below. All other provisions of
the Agreement remain in force and apply to this Amendment.
1. In order to establish a second reference price which would be
applicable during the July 1 to October 22 time period and to revise
the reference price applicable at all other times of the year, the
parties amend the Agreement to add the following after the third
paragraph of Appendix A:
The Department and the signatory producers/exporters agree to
adjust the reference price applicable to imports into the United States
between July 1 and October 22 of any given year. The Department has
calculated a reference price for this period by calculating a ratio of
Mexican tomato import prices to domestic tomato prices. The ratio
consists of weighted-average prices for the United States and Mexico
based on data reported by the Agricultural Marketing Service. As
calculated pursuant to this methodology, the reference price for the
July 1 through October 22 period will be $0.172 per pound (equivalent
to $4.30 for a 25-pound box).
Effective October 23, 1998, the Department and the signatory
producers/exporters have agreed to adjust the reference price
applicable to imports into the United States between October 23 and
June 30 of any given year. The Department has calculated a reference
price for this period by calculating a ratio of Mexican tomato import
prices to domestic tomato prices.
[[Page 43675]]
The ratio consists of weighted-average prices for the United States and
Mexico based on data reported by the Agricultural Marketing Service. As
calculated pursuant to this methodology, the reference price for the
October 23 through June 30 period will be $0.2108 per pound (equivalent
to $5.27 for a 25-pound box).
2. In order to revise the time periods during which separate
summer/winter reference prices would be applicable and clarify that
consultations may be requested at any time after the first year of the
Agreement, the parties amend the first four sentences of section IV.G.
of the Agreement (``Operations Consultations'') to read as follows:
During the first anniversary month of this Agreement, the
Department will consult with the signatory producers/exporters
regarding the operation of the Agreement. Consultations may be
requested by any party to the Agreement following the first anniversary
of the Agreement. Consistent with the statutory requirement that the
Agreement prevent the suppression or undercutting of price levels of
domestic fresh tomatoes, the Department may revise the reference price
following consultations under this provision. In particular, the
Department expects to make downward or upward adjustments to the
reference price to take into account any significant changes within the
most recent time period equivalent to the period to which the adjusted
price would apply (July 1-October 22; October 23-June 30).
3. In order to vest the Department with sole authority to make
revisions to the weight chart used to apply the reference price to
particular box configurations, the parties amend the sixth paragraph
and first sentence of the seventh paragraph of Appendix A to read as
follows:
The reference price for each type of box shall be determined based
on the average weights stated in the chart attached as Amendment
Appendix A. This chart was based on the average weights used by U.S.
Customs at the port of Nogales, AZ for duty assessment purposes, as
revised effective February 8, 1997. For example, if the average weight
of a 3-layer, 6 x 6 box of tomatoes is stated as 30 pounds, the
reference price for that box will be equal to 30 times the per pound
reference price then in effect. If, based upon information that one or
more average weights on the chart are no longer accurate, the
Department determines to revise an average weight figure, the
Department will provide 15 days notice to signatory producers/exporters
(through the producer/exporter trade organizations party to this
Agreement) prior to such revised average weights becoming effective for
purposes of this Agreement. In making any revisions to the weight
chart, the Department will coordinate with the U.S. Customs Service to
obtain representative average weights of entries of fresh tomatoes from
Mexico.
In the event that a signatory producer/exporter intends to export
subject merchandise to the United States in a box for which there is no
average weight on the chart, the signatory producer/exporter shall
notify the Department in writing no later than 45 days prior to the
date of the first export of such boxes to the United States.
4. In order to establish the ``reference price declaration'' as a
condition of release of subject tomatoes beyond the Customs port of
entry and to provide for the inclusion of additional information in the
``reference price declaration,'' the parties amend section IV.C.1. of
the Agreement (``Shipping and Other Arrangements'') to read as follows:
On or after August 1, 1998, the United States shall require
presentation of a declaration from the signatory producer/exporter,
stating that the entry conforms with the requirement that the
merchandise has been or will be sold at or above the reference price,
as a condition of release into the United States of fresh tomatoes
subject to this Agreement. The declaration presented to the U.S.
Customs Service must be an original, dated, sequentially-numbered
document signed by the signatory and shall include the signatory
identification number, the brand label on the tomatoes, and the
identity of the U.S. receiver. Copies of the declaration must be
maintained by both the signatory and the U.S. importer to permit
verification by the Department. The United States will prohibit the
release into the United States of any fresh tomatoes produced by a
signatory not accompanied by such a declaration.
5. In order to improve the monitoring of compliance with the
Agreement by all parties, the parties amend the Agreement to add the
following sentence after the first sentence of section IV.E.1. of the
Agreement:
In addition, the Department may notify the potential inconsistency
to any producer/exporter trade organization composed of the signatory
parties to this Agreement.
6. Unless otherwise provided, the terms of this amendment must be
implemented not later than the fifteenth day following signature by the
producers/exporters and by the Department of Commerce.
The Parties agree that these amendments constitute an integral part
of the Agreement.
Dated: August 6, 1998.
For U.S. Department of Commerce.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
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Date
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For Agrovica ABC:
Alejandro Canelos:......................................... 6/30/98
For Conrado Gonzalez Sandaval Y Copropiedad:
Conrado Gonzalez:.......................................... 7/23/98
For Rancho Santa Rosa:
Daniel Gonzalez:........................................... 7/8/98
For members of the Confederacion de Asociaciones Agricolas
del Estado (CAADES):
Diego Ley:................................................. 6/30/98
For Rancho Camino Real S. de R.L. de C.V.:
Diego Rojas Guevara:....................................... 7/30/98
For Vizcaino Agricola S.A. de C.V.:
Ernesto Echavarria......................................... 6/30/98
For Rancho Seco:
Felipe Ruiz Esparza A...................................... 7/30/98
For Rancho Santa Lucia:
Fernando A. Aragon......................................... 7/9/98
For DBA Dos Amigos:
Fortino Heredia Villegas................................... 7/4/98
For Productora Agricola Industrial del Noroeste, S.A.:
Francisco J. Conejo C...................................... 7/29/98
On behalf of: Antonio Rodriguez, Benjamin Rodriguez,
Carlos Rodriguez, Victor Rodriguez
For S.P.R. Campesinos de Lopez Rayon San Vicente de R.I.:
Genaro Urquidez Ruiz....................................... 7/8/98
For Soc. de Prod. Rural de R.L. Maciel Romero, S.P.R. de
R.L.:
Gerardo Maciel............................................. 7/8/98
For Everardo Ramon Olmos Asencio
Gilberto Olmos............................................. 7/10/98
For Agricola Yory:
Hernan Galvez.............................................. 6/30/98
For Rancho Nuevo Produce S.A. de C.V.:
Hugo Belerra............................................... 7/30/98
For DBA, Punta Colonet, San Telmo S. de P.R. de R.I.:
Jose Martinez Lozano....................................... 7/4/98
For Maria Trinidad Mesta Gonzalez:
Manuel Ybarguen............................................ 7/29/98
For Rancho San Marcos:
Marcos Marron.............................................. 8/4/98
For Members of the Confederacion Nacional de Productores de
Hortalizas (C.N.P.H.):
Mario Robles............................................... 6/30/98
For Rancho San Miguel:
Miguel A. Garcia A......................................... 7/8/98
For Sociedad Agricola Bella Vista:
Ramon Silva................................................ 7/31/98
For Agricola La Campana:
[[Page 43676]]
Ricardo Castaneda.......................................... 7/28/98
For Agrovida, S. de R.L. de C.V.:
Roberto Rojas Guevara...................................... 7/30/98
For Agricola San Simon S.A. de C.V.:
Francisco J. Conejo C......................................
On behalf of: Victor Rodriguez 7/29/98
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Amendment Appendix A
Chart of Average Weights Suspension Agreement on Fresh Tomatoes from Mexico
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July 1-October 22 October 23-June 30
Type Layers Size Avg kg Avg lb $.172/lb Reference $.2108/lb Reference
Weight Weight* Price Price
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Tomato (cherry)..................... ....................... 12 Baskets............. 6.32 13.93 $2.40 $2.94
Tomato (cherry)..................... Bulk................... Bulk................... 8.13 17.92 3.08 3.78
Tomato (roma)....................... Bulk................... UC 82**................ 11.69 25.77 4.43 5.43
Tomato.............................. 2...................... 4 x 4.................. 10.78 23.77 4.09 5.01
Tomato.............................. 2...................... 4 x 5.................. 10.81 23.83 4.10 5.02
Tomato.............................. 2...................... 5 x 5.................. 10.43 22.99 3.96 4.85
Tomato.............................. 2...................... 5 x 6.................. 9.71 21.41 3.68 4.51
Tomato.............................. 3...................... 6 x 6.................. 13.33 29.39 5.05 6.19
Tomato.............................. 3...................... 6 x 7.................. 12.92 28.48 4.90 6.00
Tomato.............................. Bulk................... LRG 25 lbs............. 12.15 26.79 4.61 5.65
Tomato (20/Box)..................... Bulk................... Sml. Ctn............... 5.57 12.28 2.11 2.59
Tomato (1 Layer).................... 1...................... Long Box............... 7.41 16.34 2.81 3.44
Tomato (Green) 20#.................. Bulk................... Small.................. 8.16 17.99 3.09 3.79
Tomato.............................. 1...................... 4 x 5.................. 5.12 11.29 1.94 2.38
Tomato.............................. 1...................... 5 x 5.................. 4.99 11.00 1.89 2.32
Tomato (30/Box)..................... 1...................... Clusters............... 4.70 10.36 1.78 2.18
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*Conversion factor from kg to lb based on 1 kg=2.20462 lbs
**Also applicable to 4/7 bushel cartons.
[FR Doc. 98-21930 Filed 8-13-98; 8:45 am]
BILLING CODE 3510-OS-P
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