[Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
[Notices]
[Pages 56618-56621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28092]



[[Page 56617]]


_______________________________________________________________________

Part III





Department of Commerce





_______________________________________________________________________



International Trade Administration



_______________________________________________________________________



Suspension of Antidumping Investigation: Fresh Tomatoes From Mexico; 
Notice

  Federal Register / Vol. 61, No. 213 / Friday, November 1, 1996 / 
Notices  

[[Page 56618]]



DEPARTMENT OF COMMERCE

International Trade Administration
[A-201-820]


Suspension of Antidumping Investigation: Fresh Tomatoes From 
Mexico

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) has suspended the 
antidumping investigation involving fresh tomatoes from Mexico. The 
basis for the suspension is an agreement between the Department and 
producers/exporters accounting for substantially all imports of fresh 
tomatoes from Mexico wherein each signatory producer/exporter has 
agreed to revise its prices to eliminate completely the injurious 
effects of exports of this merchandise to the United States.

EFFECTIVE DATE: November 1, 1996.

FOR FURTHER INFORMATION CONTACT: John Brinkmann or Judith Wey Rudman, 
Office of AD/CVD Enforcement II, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th & Constitution 
Avenue N.W., Washington, D.C. 20230; telephone (202) 482-5288 or (202) 
482-0192, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 18, 1996, the Department initiated an antidumping 
investigation under section 732 of the Tariff Act of 1930, (the Act), 
as amended, to determine whether imports of fresh tomatoes from Mexico 
are being or are likely to be sold in the United States at less than 
fair value (61 FR 18377, April 25, 1996). On May 16, 1996, the United 
States International Trade Commission (ITC) notified the Department of 
its affirmative preliminary injury determination. At the request of 
petitioners in this investigation, the Department postponed the 
preliminary determination until no later than October 7, 1996 (61 FR 
40607, August 5, 1996). On October 7, 1996, the Department further 
postponed the preliminary determination until no later than October 28, 
1996 (61 FR 53702, October 15, 1996).
    The Commerce Department and the Mexican tomato growers initialed a 
proposed agreement suspending this investigation on October 10, 1996. 
Interested parties were informed that the Department intended to 
finalize the agreement on October 28, 1996, and were invited to provide 
written comments on the agreement. The following interested parties 
filed comments with the Department on or before October 25, 1996: 
Desert Glory, Ltd.; petitioners; the Asociacion de Agricultura, Baja 
California, Mexico of San Diego, California; and the Fresh Produce 
Association of the Americas.
    On October 28, 1996, the Department preliminarily determined that 
imports of fresh tomatoes from Mexico are being sold at less than fair 
value in the United States (see, the Notice of Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination: Fresh Tomatoes from Mexico that is being published 
concurrently with this notice of suspension of the investigation).
    The Department and the signatory producers/exporters of fresh 
tomatoes from Mexico signed the final suspension agreement on October 
28, 1996.

Scope of Investigation

    The products covered by this investigation are all fresh or chilled 
tomatoes (fresh tomatoes) except for cocktail tomatoes and those 
tomatoes which are for processing. For purposes of this investigation, 
cocktail tomatoes are green-house grown tomatoes, generally larger than 
cherry tomatoes and smaller than roma or common round tomatoes, and are 
harvested and packaged on-the-vine for retail sale. For purposes of 
this investigation, processing is defined to include preserving by any 
commercial process, such as canning, dehydrating, drying or the 
addition of chemical substances, or converting the tomato product into 
juices, sauces or purees. Further, imports of fresh tomatoes for 
processing are accompanied by an ``Importer's Exempt Commodity Form'' 
(FV-6) (within the meaning of 7 C.F.R. sections 980.501(a)(2) and 
980.212(I)). Fresh tomatoes that are imported for cutting up, not 
further processed (e.g., tomatoes used in the preparation of fresh 
salsa or salad bars), and not accompanied by an FV-6 form are covered 
by the scope of this investigation.
    All commercially-grown tomatoes sold in the United States, both for 
the fresh market and for processing, are classified as Lycopersicon 
esculentum. Important commercial varieties of fresh tomatoes include 
common round, cherry, plum, and pear tomatoes, all of which, with the 
exception of cocktail tomatoes, are covered by this investigation.
    Tomatoes imported from Mexico covered by this investigation are 
classified under the following subheadings of the Harmonized Tariff 
Schedules of the United States (HTS), according to the season of 
importation: 0702.00.20, 0702.00.40, 0702.00.60, and 9906.07.01 through 
9906.07.09. Although the HTS numbers are provided for convenience and 
Customs purposes, our written description of the scope of this 
proceeding is dispositive.

Interested Party Comments

    Having analyzed all comments filed by interested parties, we 
continue to conclude that the Agreement meets the requirements of the 
statute. For a discussion of the Department's response to interested 
party comments, see the memorandum from Barbara R. Stafford to Robert 
S. LaRussa, Acting Assistant Secretary for Import Administration, dated 
October 28, 1996.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. In accordance with section 734(c) of the Act, we 
have determined that extraordinary circumstances are present in this 
case, as defined by section 734(c)(2)(A) of the Act. (See October 28, 
1996, Extraordinary Circumstances Memorandum to Robert S. LaRussa).
    The suspension agreement provides that: (1) The subject merchandise 
will be sold at or above the established reference price; and (2) 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) 
price for all less-than-fair-value entries of the producer/exporter 
examined during the course of the investigation. We have determined 
that this suspension agreement will: (1) Eliminate completely the 
injurious effect of exports to the United States of the subject 
merchandise; and (2) prevent the suppression or undercutting of price 
levels of domestic fresh tomatoes by imports of that merchandise from 
Mexico.
    We have also determined that the suspension agreement can be 
monitored effectively and is in the public interest, pursuant to 
section 734(d) of the Act. (See October 21, 1996, Public Interest 
Memorandum to Robert S. LaRussa). We find, therefore, that the criteria 
for suspension of the investigation pursuant to section 734(c) of the 
Act have been met. The terms and conditions of the suspension 
agreement, signed October 28, 1996, are set forth in Appendix I to this 
notice.

[[Page 56619]]

    The suspension of liquidation ordered in the preliminary 
affirmative determination in this case (published concurrently with 
this notice) shall continue in effect, subject to section 734(h)(3) of 
the Act. Section 734(f)(2)(B) of the Act provides that the Department 
may adjust the security required to reflect the effect of the 
Agreement. Pursuant to this provision, the Department has found that 
the Agreement eliminates completely the injurious effects of imports 
and, thus, the Department is adjusting the security required from 
signatories to zero. The security rates in effect for imports from non-
signatory growers remain as published in our preliminary determination.
    Notwithstanding the suspension agreement, the Department will 
continue the investigation if it receives such a request in accordance 
with section 734(g) of the Act within 20 days after the date of 
publication of this notice.
    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.

    Dated: October 28, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.

Appendix I.--Suspension Agreement Fresh, Tomatoes From Mexico

    Pursuant to section 734(c) of the Tariff Act of 1930, as amended 
(19 U.S.C. 1673c(c)) (``the Act''), and section 353.18 of the U.S. 
Department of Commerce (``the Department'') regulations (19 C.F.R. 
353.18), the Department and the signatory producers/exporters of 
fresh tomatoes from Mexico enter into this Suspension Agreement (the 
``Agreement''). On the basis of this Agreement, the Department shall 
suspend its antidumping duty investigation, the initiation of which 
was published on April 25, 1996 (61 FR 18377), with respect to fresh 
tomatoes from Mexico, subject to the terms and provisions set out 
below.

I. Product Coverage

    The merchandise subject to this Agreement is all fresh or 
chilled tomatoes (fresh tomatoes) which have Mexico as their origin, 
except for cocktail tomatoes and those tomatoes which are for 
processing. For purposes of this Agreement, cocktail tomatoes are 
green-house grown tomatoes, generally larger than cherry tomatoes 
and smaller than roma or common round tomatoes, and are harvested 
and packaged on-the-vine for retail sale. For purposes of this 
Agreement, processing is defined to include preserving by any 
commercial process, such as canning, dehydrating, drying or the 
addition of chemical substances, or converting the tomato product 
into juices, sauces or purees. Imports of fresh tomatoes for 
processing are accompanied by an ``Importer's Exempt Commodity 
Form'' (FV-6) (within the meaning of 7 CFR section 980.501(a)(2) and 
980.212(i)). Fresh tomatoes that are imported for cutting up, not 
further processed (e.g., tomatoes used in the preparation of fresh 
salsa or salad bars), and not accompanied by an FV-6 form are 
covered by this Agreement.

II

    Commercially-grown tomatoes, both for the fresh market and for 
processing, are classified as Lycopersicon esculentum. Important 
commercial varieties of fresh tomatoes include common round, cherry, 
plum, and pear tomatoes, all of which, with the exception of 
cocktail tomatoes, are covered by this Agreement.
    Tomatoes imported from Mexico covered by this Agreement are 
classified under the following subheadings of the Harmonized Tariff 
Schedules of the United States (HTS), according to the season of 
importation: 0702.00.20, 0702.00.40, 0702.00.60, and 9906.07.01 
through 9906.07.09. Although the HTS numbers are provided for 
convenience and Customs purposes, the written description of the 
scope of this Agreement is dispositive.

III. U.S. Import Coverage

    The signatory producers/exporters collectively are the producers 
and exporters in Mexico which, during the antidumping duty 
investigation of the merchandise subject to the Agreement, accounted 
for substantially all (not less than 85 percent) of the subject 
merchandise imported into the United States. The Department may at 
any time during the period of the Agreement require additional 
producers/exporters in Mexico to sign the Agreement in order to 
ensure that not less than substantially all imports into the United 
States are subject to the Agreement.

IV. Basis for the Agreement

    Each signatory producer/exporter individually agrees that, in 
order to prevent price suppression or undercutting, the producer/
exporter will not sell, on and after the effective date of the 
Agreement, merchandise subject to the Agreement at prices that are 
less than the reference price, in accordance with Appendix A to this 
Agreement.
    In order to satisfy the requirements of section 734(c)(1)(B) of 
the Act, each signatory producer/exporter of fresh tomatoes from 
Mexico, individually, agrees that for each entry the amount by which 
the estimated normal value exceeds the export price (or the 
constructed export price) will not exceed 15 percent of the weighted 
average amount by which the estimated normal value exceeded the 
export price (or the constructed export price) for all less-than-
fair-value entries of the producer/exporter examined during the 
course of the investigation, in accordance with the calculation 
methodologies described in Appendix B.

V. Monitoring of the Agreement

A. Import Monitoring

    1. The Department will monitor entries of fresh tomatoes from 
Mexico to ensure compliance with Section III of this Agreement.
    2. The Department will review publicly-available data and other 
official import data, including, as appropriate, records maintained 
by the U.S. Customs Service, to determine whether there have been 
imports that are inconsistent with the provisions of this Agreement. 
The Department also will coordinate with U.S. Customs in its 
collection and review of data in connection with the monitoring of 
box-specific average weights.

B. Compliance Monitoring

    1. The Department may require, and each signatory producer/
exporter 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 price. The Department may require that such documentation 
be provided, and be subject to verification, within 30 days of the 
sale.
    2. The Department may require, and each signatory producer/
exporter agrees to report, on computer tape in the prescribed format 
and using the prescribed method of data compilation, each sale of 
the merchandise subject to this Agreement, either directly or 
indirectly to unrelated purchasers in the United States, including 
each adjustment applicable to each sale, as specified by the 
Department.
    Each producer/exporter 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 conduct administrative reviews under 
section 751 of the Act, upon request or upon its own initiative, to 
ensure that exports of fresh tomatoes from Mexico are at prices 
consistent with the terms of this Agreement. The Department may 
perform verifications pursuant to administrative reviews conducted 
under section 751 of the Act.

C. Shipping and Other Arrangements

    1. The producers/exporters shall include as part of the 
documentation presented to U.S. Customs for entry of merchandise 
into the United States a declaration that the entry conforms with 
the requirement that the merchandise has been or will be sold at or 
above the reference price.
    2. All reference prices will be expressed in U.S.$/lb. in 
accordance with Appendix A. Subject to paragraph 24 of Annex 703.2 
of the North American Free Trade Agreement, the quality of each 
entry of fresh tomatoes exported to the United States from Mexico 
will conform with any applicable U.S. Department of Agriculture 
minimum grade, size and/or quality import requirements in effect. 
Shipments that do not meet the requirements of this agreement will 
not be permitted entry into the United States.
    3. Producers/exporters agree not to circumvent the Agreement. 
Not later than 30 days after each quarter, each signatory producer/
exporter will submit a written statement to the Department 
certifying that all sales during the most recently completed quarter 
were at net prices (after rebates, backbilling, discounts for 
quality and other claims) at or above the reference price and were 
not part of or related to any act or

[[Page 56620]]

practice which would have the effect of hiding the real price of the 
fresh tomatoes being sold (e.g., a bundling arrangement, discounts/
free goods/financing package, swap, or other exchange). Each 
producer/exporter agrees to permit full verification of its 
certification as the Department deems necessary.

D. Rejection of Submissions

    The Department may reject any information submitted after the 
deadlines set forth in this Agreement or any information which it is 
unable to verify to its satisfaction. If information is not 
submitted in a complete and timely fashion or is not fully 
verifiable, the Department may calculate U.S. price based on facts 
otherwise available, as it determines appropriate, unless the 
Department determines that Section V applies.

E. Compliance Consultations

    1. When the Department identifies, through import or compliance 
monitoring or otherwise, that sales may have been made at prices 
inconsistent with Section III of this Agreement, the Department will 
notify each signatory producer/exporter which it believes is 
responsible as well as the producer/exporter trade organizations 
party to this Agreement. 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 III of this 
Agreement.
    2. During the consultation period, the Department will examine 
any information which it develops or which is submitted, including 
information requested by the Department under Section IV.A. and B. 
above.

F. Review

    If the Department is not satisfied at the conclusion of the 
consultation period that sales by such signatory producer/exporter 
are being made in compliance with this Agreement, the Department 
will conduct a review to determine whether this Agreement is being 
violated by such signatory producer/exporter. This provision does 
not limit or restrict the Department's authority to conduct an 
administrative review under section 751 of the Act and paragraph 
IV.B.3. of this Agreement.

G. Operations Consultations

    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 in any June or December 
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 semi-annual 
period relevant to the period under consideration (December-May; 
June-November). For example, the Department expects to make a 
downward adjustment to take into account a significant change in the 
relationship of domestic prices to import prices from that which 
existed during the base period (as referred to in Appendix A) and 
which is attributable to a decline in domestic prices. In evaluating 
the significance of any change, the Department will look both to the 
extent of the change and its duration. For example, a very high 
percentage change in the relationship may be significant even though 
it occurs over a brief time period.

VI. Violations of the Agreement

    If the Department determines that the Agreement is being or has 
been violated or no longer meets the requirements of section 734 (c) 
or (d) of the Act, the Department shall take action it determines 
appropriate under section 734(i) of the Act and the Department's 
regulations.

VII. Other Provisions

    A. In entering into this Agreement, the signatory producers/
exporters do not admit that any exports of fresh tomatoes from 
Mexico have an injurious effect on fresh tomato producers in the 
United States or have been sold at less than fair value. The 
signatory producers/exporters also do not admit that green-house, 
cherry or any other particular type of tomatoes are properly 
considered to be within the scope of the underlying investigation.
    B. The signatory producers/exporters may withdraw from this 
Agreement upon 60 days written notice to the Department.
    C. Upon request, the Department will advise any signatory 
producer/exporter on the Department's methodology for calculating 
its export price (or constructed export price) and normal value 
which, for purposes of this Agreement, are described in Appendix B. 
Further, the Department reserves the right to modify its methodology 
in calculating export price (or constructed export price) and normal 
value.

VIII. Disclosure and Comment

    A. If the Department proposes to revise the reference price 
under paragraph IV.G., not later than three months prior to the 
first day of each semi-annual period, the Department will disclose 
the results and the methodology of the Department's calculation of 
the preliminary reference price established for that upcoming semi-
annual period.
    B. Not later than 7 days after the date of disclosure under 
paragraph VII.A., the parties to the proceeding may submit written 
comments to the Department, not to exceed 15 pages. After reviewing 
these submissions, the Department will provide the final reference 
price for the upcoming semi-annual period, normally within 30 days 
after the date of disclosure under paragraph VII.A.
    C. The Department may make available to representatives of each 
interested party to the proceeding, under appropriately drawn 
administrative protective orders, any business proprietary 
information submitted to the Department pursuant to Section IV. of 
this Agreement, as well as the results of the Department's analysis 
of that information.

IX. Termination

    Absent affirmative determinations under the five-year review 
provisions of sections 751 and 752 of the Act, the Department 
expects to terminate this Agreement and the underlying investigation 
no later than November 1, 2001.

X. Effective Date

    The effective date of the Agreement is the date on which it is 
published in the Federal Register.

    For Members of Confederacion de Asociaciones Agricolas del 
Estado (C.A.A.D.E.S.) and Confederacion Nacional de Productores de 
Hortalizas (C.N.P.H.)

    Dated: October 28, 1996.
Luis Cardenas F.,
Confederacion de Asociaciones Agricolas del Estado (C.A.A.D.E.S.) 
'''''''''''''
    Dated: October 28, 1996.
Basilio Gatzionis T.,
Confederacion Nacional de Productores de Hortalizas (C.N.P.H.)
    For U.S. Department of Commerce.

    Dated: October 28, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.

Appendix A.--Fresh Tomatoes From Mexico, Suspension Agreement

    The following is the methodology the Department will use when 
calculating the reference price for the purposes of this Agreement.
    The reference price for the initial period (effective date of 
Agreement through September 30, 1997) will be calculated as follows:
    The Department will determine the lowest average monthly price 
for fresh tomatoes from Mexico in the United States during each year 
in the base period (calendar years 1992-1994). The Department will 
average these three figures to calculate one figure which will serve 
as the reference price for the initial period of the Agreement. As 
calculated pursuant to this methodology, the reference price for the 
initial period is $5.17 for a 25 pound box ($0.2068/lb.).
    The reference price from the initial period will remain in 
effect unless modified in accordance with the provisions of 
paragraph IV.G.
    The term ``reference price'' refers to the price F.O.B. Nogales/
San Diego/Laredo from the first handler (importer/broker) to an 
unrelated purchaser. Any movement expenses beyond the three Customs 
district points of entry listed above must be added to the reference 
price and must reflect the actual price of transportation in an arms 
length transaction. Where imports are sold through affiliated 
parties, the transfer price from the importer/broker (located at the 
point of entry) to an affiliate must be at or above the reference 
price and any subsequent sale to an unaffiliated party must reflect 
mark-ups usual for the company during the period prior to this 
Agreement or normal within the industry if the relationship did not 
exist prior to this Agreement.

[[Page 56621]]

    The reference price for each type of box shall be determined 
based on the average weights used by U.S. Customs at the port of 
Nogales, AZ for duty assessment purposes, with the initial weights 
being those in use as of December 8, 1995. For example, if U.S. 
Customs determines that the average weight of a 3-layer, 6X6 box of 
tomatoes is 30 pounds, the reference price for that box will be 
equal to 30/25 times the reference price then in effect. If, either 
on its own or through consultations with the Department, U.S. 
Customs 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 the event that a signatory producer/exporter intends to 
export subject merchandise to the United States in a box for which 
U.S. Customs has not assigned an average weight, 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. The notification shall include a complete 
description of the size of the box, and the intended packing form 
(i.e., 4X4, 5X5, loose pack, etc.). The Department shall allow any 
interested party to submit written comments, not to exceed 10 pages, 
on the appropriate average weight for the box within 7 days after 
the filing of the written notification by the signatory producer/
exporter, and the Department shall inform the signatory producer/
exporter of the average weight for the box no later than 30 days 
after filing of the written notification by the signatory producer/
exporter.

Appendix B.--Fresh Tomatoes From Mexico, Suspension Agreement

Normal Value

    The cost or price information reported to the Department that 
will form the basis of the normal value (NV) calculations for 
purposes of the Agreement must be comprehensive in nature and based 
on a reliable accounting system (e.g., a system based on well-
established standards and can be tied either to the audited 
financial statements or to the tax return filed with the Mexican 
government).

Sales Price

    When we base 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 or constructed export price.

Constructed Value

    When normal value is based on constructed value, we will compute 
growing season specific constructed values (CVs) based on the sum of 
each respondent's growing costs for each type of tomato, plus 
amounts for selling, general and administrative expenses, U.S. 
packing costs and profit. We will collect this cost data for an 
entire growing season in order to accurately determine the per unit 
CV of that growing season.

Export Price and Constructed Export Price

    Export price (EP) and constructed export price (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.

Fair Comparisons

    To ensure that a fair comparison with NV is made, the Department 
will make adjustments to the price to the first unaffiliated 
customer in calculating the export price or constructed export 
price. For both EP and CEP the Department will add packing costs, if 
not already included in the price, rebated import duties, and, if 
applicable, certain countervailing duties. For both EP and CEP, the 
Department will deduct transportation costs, and export taxes or 
duties. In calculating CEP, the Department will make additional 
deductions for commissions, direct selling expenses incurred in 
selling the merchandise under investigation in the United States, 
the cost of any further manufacture or assembly performed in the 
United States, and a portion of profit. In addition, the Department 
will deduct indirect selling expenses that relate to commercial 
activity in the United States.

Normal Value

Calculation of CV

Direct Materials                                                        
+Direct Labor                                                           
+Factory overhead                                                       
---------------------------------------------                           
=Cost of Manufacturing                                                  
+Home Market SG & A *                                                   
---------------------------------------------                           
=Cost of Production                                                     
+Profit *                                                               
---------------------------------------------                           
=Constructed Value (CV)                                                 
                                                                        
* SG & A and profit are based on home market sales of a foreign like    
  product made in the ordinary course of trade.                         

Calculation of Comparison Price:

    The calculation of normal value will vary depending on whether 
the comparison is price-to-EP or price-to-CEP.

Export Price (EP) and Constructed Export Price (CEP)

Calculation of EP

Gross Unit Price                                                        
-Movement Expenses                                                      
-Discounts and Rebates                                                  
---------------------------------------------                           
=Export Price (EP)                                                      
                                                                        

Calculation of CEP

Gross Unit Price                                                        
-Movement Expenses                                                      
-Discounts and Rebates                                                  
-Direct Selling Expenses                                                
-Indirect Selling Expenses that relate to commercial activity in the    
 U.S.                                                                   
-The cost of any further manufacture or assembly incurred in the U.S.   
-CEP Profit                                                             
------------------------------------------------------------------------
=Constructed Export Price (CEP)                                         
                                                                        

[FR Doc. 96-28092 Filed 10-31-96; 8:45 am]
BILLING CODE 3510-DS-P