[Federal Register Volume 63, Number 157 (Friday, August 14, 1998)]
[Notices]
[Pages 43674-43676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21930]


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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.

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