[Federal Register Volume 65, Number 117 (Friday, June 16, 2000)]
[Notices]
[Pages 37759-37764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15312]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-811]


Suspension of Antidumping Duty Investigation: Solid Fertilizer 
Grade Ammonium Nitrate From the Russian Federation

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

SUMMARY: The Department of Commerce (``the Department'') has suspended 
the antidumping duty investigation involving solid fertilizer grade 
ammonium nitrate (``ammonium nitrate'') from the Russian Federation 
(``Russia''). The basis for this action is an agreement between the 
Department and the Ministry of Trade of the Russian Federation 
(``MOT'') accounting for substantially all imports of ammonium nitrate 
from Russia, wherein the MOT has agreed to restrict exports of ammonium 
nitrate from all Russian producers/exporters to the United States and 
to ensure that such exports are sold at or above the agreed reference 
price.

EFFECTIVE DATE: May 19, 2000.

FOR FURTHER INFORMATION CONTACT: Jean Kemp or Maria Dybczak at (202) 
482-4037 and (202) 482-5811, respectively, Antidumping and 
Countervailing Duty Enforcement Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 12, 1999, the Department initiated an antidumping duty 
investigation under section 732 of the Tariff Act of 1930 (``the 
Act''), as amended, to determine whether imports of ammonium nitrate 
from Russia are being, or are likely to be, sold in the United States 
at less than fair value. On September 3, 1999, the United States 
International Trade Commission (``ITC'') preliminarily determined that 
``there is a reasonable indication that an industry in the United 
States is materially injured by reason of imports from Russia of solid 
fertilizer grade ammonium nitrate'' (64 FR 50103, September 15, 1999). 
On January 7, 2000, the Department published its preliminary 
determination that ammonium nitrate is being, or is likely to be, sold 
in the United States at less than fair value (``LTFV''), as provided in 
section 733 of the Act (65 FR 1139).
    The Department and MOT initialed a proposed agreement suspending 
this investigation on April 20, 2000, at which time we invited 
interested parties to provide written comments on the agreement. We 
received comments from petitioner (the Committee for Fair Ammonium 
Nitrate Trade) and the Committee for a Competitive AN Market on May 10, 
2000. We have taken these comments into account in the final version of 
the suspension agreement.
    The Department and MOT signed the final suspension agreement on May 
19, 2000. Accordingly the Department has suspended the investigation 
pursuant to section 734(f) of the Act. Pursuant to section 734(g) of 
the Act, parties have 20 days from the date of publication of this 
notice to request a continuation of the investigation.

Scope of Investigation

    For a complete description of the scope of the investigation, see 
Agreement Suspending the Antidumping Investigation on Solid Fertilizer 
Grade Ammonium Nitrate from the Russian Federation, Appendix III, 
signed May 19, 2000, attached hereto.

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. Based on our review of these comments, we made no 
changes to the agreement. In accordance with section 734(l) of the Act, 
we have determined that the agreement will prevent the suppression or 
undercutting of price levels of domestic products by imports of the 
merchandise under investigation (see Memorandum to Troy H. Cribb from 
Joseph A. Spetrini, RE: The Prevention of Price Suppression or 
Undercutting of Price Levels in the Suspension Agreement On Solid 
Fertilizer Grade Ammonium Nitrate from the Russian Federation). 
Moreover, in accordance with section 734(d) of the Act, we have 
determined that the agreement is in the public interest, and that the 
agreement can be monitored effectively (see Memorandum to Troy H. Cribb 
from Jeffrey May, Re: Public Interest Assessment of the Agreement 
Suspending the Antidumping Duty Investigation of Solid Fertilizer Grade 
Ammonium Nitrate from the Russian Federation). We find, therefore, that 
the criteria for suspension of an investigation pursuant to sections 
734(d) and (l) of the Act have been met. The terms and conditions of 
this agreement, signed May 19, 2000, are set forth in Appendix I to 
this notice.
    Pursuant to section 734(f)(2)(A) of the Act, the suspension of 
liquidation of all entries of ammonium nitrate from Russia entered, or 
withdrawn from warehouse, for consumption, as directed in our notice of 
Preliminary Determination of Sales at Less than Fair Value: Solid 
Fertilizer Grade Ammonium Nitrate from the Russian Federation (65 FR 
1139 (January 7, 2000)), is hereby terminated.
    Any cash deposits on entries of ammonium nitrate from Russia 
pursuant to that suspension of liquidation shall be refunded and any 
bonds shall be released.

[[Page 37760]]

    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.

    Dated: June 5, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.

Appendix 1.--Agreement Suspending the Antidumping Investigation on 
Solid Fertilizer Grade Ammonium Nitrate From the Russian Federation

    For the purpose of encouraging free and fair trade in Solid 
Fertilizer Grade Ammonium Nitrate (``Ammonium Nitrate'') from the 
Russian Federation (``Russia''), establishing more normal market 
relations, and preventing the suppression or undercutting of price 
levels of the like product in the United States, the United States 
Department of Commerce (``DOC'') and the Ministry of Trade of the 
Russian Federation (``MOT'') enter into this suspension agreement 
(``the Agreement'').
    MOT will restrict exports of Ammonium Nitrate from all Russian 
producers and exporters to the United States, as provided below. 
DOC, pursuant to the U.S. antidumping law (see Appendix II), on the 
Effective Date of this Agreement, will suspend its antidumping 
investigation of Ammonium Nitrate from Russia and instruct the U.S. 
Customs Service (``Customs'') immediately to terminate the 
suspension of liquidation and release any cash deposit or bond 
posted for entries of Ammonium Nitrate covered by this Agreement.
    Accordingly, DOC and MOT agree as follows:

I. Definitions

    For purposes of this Agreement, the following definitions apply:
    A. ``Date of License'' shall be the date on which MOT issued the 
Export License.
    B. ``Date of Contract'' means the date on which price and 
quantity become firm, e.g., the date the contract is signed or the 
specification date if the price and quantity become firm on that 
date.
    C. ``Effective Date'' of this Agreement means May 19, 2000.
    D. ``Export License'' is the document issued by MOT that serves 
as both an export limit certificate and as a declaration of the 
country of origin.
    E. ``Ammonium Nitrate'' means the solid fertilizer grade 
ammonium nitrate from Russia described in Appendix III.
    F. ``Indirect Exports'' means exports of Ammonium Nitrate from 
Russia to the United States through one or more third countries, 
whether or not such exports are further processed, provided that the 
further processing does not result in a substantial transformation 
or a change in the country of origin.
    G. ``Party to the Proceeding'' means any producer, exporter, or 
importer of Ammonium Nitrate, union of workers engaged in the 
production of Ammonium Nitrate, association of such parties, or the 
government of any country from which such merchandise is exported, 
that actively participated in the antidumping investigation, through 
written submission of factual information or written argument, as 
described in more detail in Appendix II.
    H. ``Export Limit Period'' means one of the following periods:

Initial Export Limit Period---The Initial Export Limit Period shall 
begin on the Effective Date of the Agreement, and end on December 
31, 2000
Subsequent Export Limit Periods---The Subsequent Export Limit 
Periods shall consist of each subsequent one-year period, the first 
of which will begin the day after the Initial Export Limit Period 
ends and end one year later

    I. ``Reference Price'' means the minimum F.O.B. Russian port of 
export price calculated weekly by DOC for sales of Ammonium Nitrate 
for export to the United States, as described in Article III.
    J. ``Floor Price'' means the fixed price, as designated in 
Article III, below which the Reference Price may not fall.
    K. ``Current Market Price'' means the U.S. domestic price 
calculated weekly by DOC as described in Article III.
    L. ``United States'' means the customs territory of the United 
States of America (the 50 States, the District of Columbia and 
Puerto Rico) and foreign trade zones located within the territory of 
the United States.
    M. ``U.S. Purchaser'' means the first purchaser in the United 
States that is not affiliated with the Russian producer or exporter 
and all subsequent purchasers, from trading companies to consumers.
    N. ``Violation'' means noncompliance with the terms of this 
Agreement, whether through an act or omission, except for 
noncompliance that is inconsequential, inadvertent, or does not 
substantially frustrate the purposes of this Agreement.

II. Export Limits

    A. No Ammonium Nitrate covered by this Agreement, whether 
exported directly or indirectly from Russia, shall be entered into 
the United States unless, when cumulated with all prior entries of 
Ammonium Nitrate exported from Russia during the Export Limit Period 
in which that Ammonium Nitrate was exported, it does not exceed the 
export limits set forth below.
    1. The export limit for the Initial Export Limit Period (from 
the Effective Date of the Agreement to December 31, 2000) shall be 
49,962 metric tons of Ammonium Nitrate, for the portion of the year 
2000 remaining after the Effective Date of the Agreement.
    2. The export limit for each subsequent Export Limit Period 
shall be as follows:

January 1, 2001, to December 31, 2001--100,000 MT
January 1, 2002, to December 31, 2002--110,000 MT
January 1, 2003, to December 31, 2003--130,000 MT
January 1, 2004, to December 31, 2004 and any subsequent Export 
Limit Periods--150,000 MT

    B. When Ammonium Nitrate is imported into the United States and 
is subsequently re-exported, or re-packaged and re-exported, or 
blended and re-exported, the amount re-exported shall be deducted 
from the amounts of exports that have been counted against the 
export limit for the Export Limit Period in which the re-export 
takes place. The deduction will be applied only after DOC has 
received, and has had the opportunity to verify, evidence 
demonstrating the original importation, any repackaging or blending, 
and subsequent exportation.
    C. Notwithstanding any other provision of this Agreement, except 
Articles II.D. (regarding combined export limit and carried over 
allowance) and IV.B. (pertaining to volumes licensed but not 
shipped), up to 15 percent of the export limit for any Export Limit 
Period may be carried over to the Subsequent Export Limit Period and 
up to 15 percent of the export limit for any Export Limit Period may 
be carried back to the last 60 days of the previous Export Limit 
Period. Any carried over or carried back allowance shall be counted 
against the export limit for the previous or subsequent Export Limit 
Period, respectively.
    D. Beginning with the first Subsequent Export Limit Period 
(January 1, 2001, to December 31, 2001), MOT will not issue Export 
Licenses authorizing the exportation to the United States of 
Ammonium Nitrate covered by this Agreement in either the first half 
(January through June) or the second half (July through December) of 
any Export Limit Period that exceeds 60 percent of the combined 
export limit volume for that Export Limit Period and the carried 
over volume from the previous Export Limit Period, as described in 
Article II.C.
    E. If DOC receives information indicating that Ammonium Nitrate 
from Russia may have entered the United States in excess of the 
export limits established in Article II.A or below the Reference 
Price as established in Article III, DOC shall notify MOT of those 
entries and provide to MOT all information concerning those entries 
that DOC is able to disclose consistent with U.S. law. MOT shall 
respond within 15 days. If the information continues to indicate 
that these entries were in excess of the export limits or below the 
Reference Price, DOC shall provide MOT an opportunity for prompt 
consultations, which shall be completed within 60 days after DOC's 
initial notification. Once the consultations have been completed, 
unless DOC concludes that the entries were not in excess of the 
export limits or below the Reference Price, DOC shall count against 
the export limit for either the current or subsequent Export Limit 
Period, as appropriate, 125 percent of the volume of the entries in 
excess of the export limits or below the Reference Price. When a 
Russian producer or exporter is found responsible for the entries in 
excess of the export limits or below the Reference Price, MOT shall 
deny that producer or exporter Export Licenses for six months 
following the last date of entry. When any other entity was involved 
with the entries in excess of the export limits or below the 
Reference Price, MOT shall, for one year after the last date of 
entry, deny Export Licenses for the distribution of any Ammonium 
Nitrate involving that entity. The provisions of this section do not 
supersede the provisions of Article IX of this Agreement if DOC 
determines that the entries were in excess of the export limits or 
below the Reference Price.

[[Page 37761]]

III. Reference Price

    A. The Reference Price will be based on a Current Market Price, 
adjusted to reflect a F.O.B. Russian port of export price. In 
addition, there will be a Floor Price below which the Reference 
Price shall not fall. The Reference Price will be determined on a 
weekly basis. MOT will ensure that Ammonium Nitrate covered by this 
Agreement will not be sold at a price below the Reference Price in 
effect on the Date of Contract.
    B. DOC will issue the first weekly Reference Price under this 
Agreement on the first Monday after signature of this Agreement, 
utilizing the calculation methodology in Article III.C below. This 
first Reference Price will be applicable to the week after which the 
Agreement is signed.
    C. On the first business day of each subsequent week, DOC will 
calculate the Reference Price which will be effective beginning on 
the next business day and remain in effect until the next Reference 
Price becomes effective. The Reference Price shall be the higher of: 
the Current Market Price set forth in section C.1 less the costs 
detailed in section C.2, and the Floor Price set forth in section 
C.3.
    1. The Current Market Price will be determined as follows:
    a. DOC will calculate an average of the weekly Fertilizer 
Markets' Midwest FOB price range and Green Markets' Mid Cornbelt FOB 
price range.
    b. DOC will calculate a simple average of the four most recent 
weekly averages derived in subsection 1.a, above. This four week 
average (converted from a short ton basis to a metric ton basis) 
will be the Current Market Price.
    c. After consultations between DOC and MOT, should they agree 
that the currently used sources for the valuation of the Current 
Market Price for Ammonium Nitrate are no longer appropriate, they 
may agree to select an alternative source. DOC will give parties at 
least 30 days notice before choosing another source(s) for the 
purposes of Current Market Price valuation.
    2. To express the Current Market Price on an F.O.B. Russian port 
of export basis, an amount for costs associated with delivering the 
merchandise from Russia to the United States shall be deducted from 
the Current Market Price calculated in section C.1. This amount will 
be $55 per metric ton. Except when section C.3 applies, the result 
of this calculation shall be the Reference Price. After 
consultations between DOC and MOT, should they agree that the amount 
for costs associated with delivering the merchandise from Russia to 
the United States are no longer appropriate, they may revise this 
amount. DOC will give parties at least 30 days notice prior to any 
change becoming effective.
    3. The Floor Price is the price below which Ammonium Nitrate 
subject to this Agreement may not be sold. The Floor Price will be 
$85 F.O.B. Russian Port. The Reference Price shall not be less than 
the Floor Price.
    D. Reference Prices are F.O.B. Russian port of export. If the 
sale for export is on terms other than F.O.B. Russian port of 
export, MOT shall ensure that the F.O.B. Russian port of export 
price is not lower than the Reference Price by adjusting the 
relevant costs to ensure compliance with the Reference Price 
requirements.

IV. Implementation

    A. The United States shall require presentation of an original 
stamped Export License as a condition for entry into the United 
States of Ammonium Nitrate covered by this Agreement, except where 
there are multiple shipments under a single license. For multiple 
shipments at multiple ports or multiple entries at one port, the 
original license shall be presented with the first entry and the 
volume entered at that time will be noted on the original license. 
Customs will provide the importer with a certified copy for 
presentation to Customs with the importer's next entry under that 
license. Subsequent entries can be made from copies of the original 
which reflect all of the deductions made from the original license.
    B. Export Licenses must contain the quantity in metric tons, 
specifications (form (prilled, granular, or other solid form)), 
coatings, additives, density, contract (or sales order) date and 
contract (or sales order) number; unit price, and F.O.B. Russian 
port of export sales value. If necessary, additional information may 
be included on the Export License or, if necessary, a separate page 
attached to the Export License. DOC will deduct the quantity listed 
on each Export License from the export limit for the Export Limit 
Period in which the Date of License falls. However, if the bills of 
lading for all of the shipments under an Export License establish 
that the actual imports into the United States under that license 
were less than the total volume listed on the license, DOC will 
reflect the actual amount as having been deducted from the volume 
listed on the export license, but, notwithstanding the carry-over 
and carry-back limitations in Article II.C, will authorize MOT to 
issue a new Export License in the same or Subsequent Export 
Licensing Period authorizing additional exports equal in volume to 
the amount by which the volume on the Export License exceeded the 
actual shipment volume. Exports under such additional licenses will 
be counted against the Export Limit for the Export Limit Period 
containing the Date of License of the original shipment. Prior to 
issuing additional licenses for the amounts below the actual 
shipment volumes, MOT shall notify DOC of the Export License(s) 
numbers, the Date of License, and the volumes recorded of the 
original shipments, and provide DOC with no less than 30 days to 
confirm the additional licensed volume. The United States will 
prohibit the entry of any Ammonium Nitrate from Russia not 
accompanied by an original stamped Export License, except as 
provided in Article IV.A.\1\
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    \1\ The validity of an Export License will not be affected by a 
subsequent change of an HTS number.
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    C. MOT will ensure compliance with all of the provisions of this 
Agreement. In order to ensure such compliance, MOT will take at 
least the following measures:
    1. Ensure that no Ammonium Nitrate subject to this Agreement is 
exported from Russia for entry into the United States during any 
Export Limit Period that exceeds the export limit for that Export 
Limit Period or that is priced below the Reference Price in effect 
on the Date of Contract.
    2. Establish an export limit licensing and enforcement program 
for all direct and indirect exports of Ammonium Nitrate to the 
United States no later than August 1, 2000.
    3. Require that applications for Export Licenses be accompanied 
by a report containing all of the information listed in part A of 
Appendix I (Exports to the United States).
    4. Refuse to issue an Export License to any applicant that does 
not permit full verification and reporting under this Agreement of 
all of the information in the application.
    5. Issue Export Licenses sequentially, endorsed against the 
export limit for the relevant Export Limit Period, and reference any 
notice of export limit allocation results for the relevant Export 
Limit Period. Export Licenses shall be issued no later than 25 days 
after the Date of Contract. Export Licenses shall remain valid for 
entry into the United States for 35 days after the date of issuance 
(Date of License). DOC and MOT may agree to an extension of the 
validity of the Export License in extraordinary circumstances.
    6. Issue Export Licenses in the English language and, at the 
discretion of MOT, also in the Russian language.
    7. Collect all existing information from all Russian producers, 
exporters, brokers, if applicable, traders of Ammonium Nitrate, and 
their relevant affiliated parties, as well as relevant trading 
companies/resellers utilized by Russian producers, on the sale of 
Ammonium Nitrate, and report such information pursuant to Article VI 
of this Agreement.
    8. Permit full verification of all information related to the 
administration of this Agreement on an annual basis or more 
frequently, as DOC deems necessary, to ensure that MOT is in full 
compliance with this Agreement and that all Russian producers and 
exporters are in compliance with the requirements that MOT has 
placed upon them under this Agreement. This requirement applies to 
both Russian State documents and non-State documents, such as sales 
contracts. In the course of verification, DOC will examine documents 
that record the description of the products exported to the United 
States, including specifications (form, coatings, additives, and 
density). Such verifications will take place in association with 
scheduled consultations whenever possible.
    9. Ensure compliance with all procedures established in order to 
effectuate this Agreement by any official Russian institution, 
chamber, or other authorized Russian entity, and any Russian 
producer, exporter, broker, and trader of Ammonium Nitrate, their 
relevant affiliated parties, and any relevant trading company or 
reseller utilized by a Russian producer to make sales to the United 
States.
    10. Impose strict measures, such as prohibition from 
participation in the export limits allowed by the Agreement, in the 
event that any Russian entity does not comply in

[[Page 37762]]

full with the requirements established by MOT pursuant to this 
Agreement.

V. Anticircumvention

    A. MOT will take all necessary measures to prevent circumvention 
of this Agreement, including at least the following:
    1. Require that all Russian exporters of Ammonium Nitrate agree, 
as a condition of being permitted to export any Ammonium Nitrate, 
regardless of destination, not to engage in any of the following 
activities:
    a. Exporting to the United States Ammonium Nitrate subject to 
this Agreement that is not accompanied by an Export License issued 
pursuant to this Agreement.
    b. Transshipping Ammonium Nitrate that is subject to this 
Agreement to the United States through third countries unaccompanied 
by an Export License.
    c. Exchanging (``swapping'') Ammonium Nitrate subject to this 
Agreement for non-subject Ammonium Nitrate, so as to cause the non-
subject merchandise to be entered into the United States in place of 
the subject Ammonium Nitrate, thereby evading the export limits 
under this Agreement. ``Swaps'' include, but are not limited to:
    i. Ownership swaps--involve the exchange of ownership of 
Ammonium Nitrate without physical transfer. These may include 
exchange of ownership of Ammonium Nitrate in different countries, so 
that the parties obtain ownership of products located in different 
countries, or exchange of ownership of Ammonium Nitrate produced in 
different countries, so that the parties obtain ownership of 
products of different national origin.
    ii. Flag swaps--involve the exchange of indicia of national 
origin of Ammonium Nitrate, without any exchange of ownership.
    iii. Displacement Swaps--involve the sale or delivery of 
Ammonium Nitrate from Russia to an intermediary country (or 
countries) which, regardless of the sequence of events, results in 
the ultimate sale or delivery into the United States of displaced 
Ammonium Nitrate, where the Russian exporter knew or had reason to 
know that the export sale would have that result.
    2. Require that all Russian exporters of Ammonium Nitrate agree, 
as a condition of being permitted to export any Ammonium Nitrate, 
regardless of destination, to require all of their customers to 
agree, as part of the contract for sale:
    a. Not to engage in any of the activities listed in Article 
V.A.1 of this Agreement. This requirement does not apply to exports 
to the United States that are accompanied by a valid Export License.
    b. To include that same requirement in any subsequent contracts 
for the sale or transfer of such Ammonium Nitrate, and to report to 
MOT subsequent arrangements entered into for the sale, transfer 
exchange, or loan to the United States of Ammonium Nitrate covered 
by this Agreement.
    3. When MOT has received an allegation that circumvention has 
occurred, including an allegation from DOC, MOT shall promptly 
initiate an inquiry, normally complete the inquiry within 45 days 
and notify DOC of the results of the inquiry within 15 days after 
the conclusion of the inquiry.
    4. If MOT determines that a Russian entity has participated in a 
transaction circumventing this Agreement, MOT shall impose penalties 
upon such company including, but not limited to, denial of access to 
export certificates for Ammonium Nitrate under this Agreement.
    5. If MOT determines that a Russian entity has participated in 
the circumvention of this Agreement, MOT shall count against the 
export limit for the Export Limit Period in which the circumvention 
took place an amount of Ammonium Nitrate equivalent to the amount 
involved in such circumvention and shall immediately notify DOC of 
the amount deducted. If sufficient tonnage is not available in the 
current Export Limit Period, then the remaining amount shall be 
deducted from the subsequent Export Limit Period or Periods.
    6. If MOT determines that a company from a third country has 
circumvented the Agreement and DOC and MOT agree that no Russian 
entity participated in or had knowledge of such activities, then the 
Parties shall hold consultations for the purpose of sharing 
information regarding such circumvention and reaching mutual 
agreement on the appropriate measures to be taken to eliminate such 
circumvention. If the Parties are unable to reach mutual agreement 
within 45 days, then DOC may take appropriate measures, such as 
deducting the amount of Ammonium Nitrate involved in such 
circumvention from the export limit for the then-current Export 
Limit Period or a subsequent Period. Before taking such measures, 
DOC will notify MOT of the facts and reasons constituting the basis 
for DOC's intended action and will afford MOT 15 days in which to 
comment.
    B. DOC will direct the U.S. Customs Service to require all 
importers of Ammonium Nitrate into the United States, regardless of 
the stated country of origin of those imports, to submit a written 
statement, on the last day of every quarter, indicating that the 
importer is maintaining a list of all entries of such merchandise 
and certifying that the Ammonium Nitrate imported during that 
quarter was not obtained under any arrangement in circumvention of 
this Agreement. Where DOC has reason to believe that such a 
certification has been made falsely, DOC will refer the matter to 
the U.S. Customs Service or U.S. Department of Justice for further 
action.
    C. DOC will investigate any allegations of circumvention which 
are brought to its attention, both by asking MOT to investigate such 
allegations and by itself gathering relevant information. MOT will 
respond to requests from DOC for information relating to the 
allegations under Article VI.A.4. In distinguishing normal 
arrangements, swaps, or other exchanges in the Ammonium Nitrate 
market from arrangements, swaps, or other exchanges which would 
result in the circumvention of the export limits established by this 
Agreement, DOC will take the following factors into account:
    1. Existence of any verbal or written arrangement leading to 
circumvention of this Agreement;
    2. Existence and function of any subsidiaries or affiliates of 
the parties involved;
    3. Existence and function of any historical and traditional 
patterns of production and trade among the parties involved, and any 
deviation from such patterns;
    4. Existence of any payments unaccounted for by previous or 
subsequent deliveries, or any payments to one party for Ammonium 
Nitrate delivered or swapped by another party;
    5. Sequence and timing of the arrangements; and
    6. Any other information relevant to the transaction or 
circumstances.
    D. In the event that DOC determines that a Russian entity has 
participated in circumvention of this Agreement, DOC and MOT shall 
hold consultations for the purpose of sharing evidence regarding 
such circumvention and reaching mutual agreement on an appropriate 
resolution of the problem. If DOC and MOT are unable to reach mutual 
agreement within 60 days, DOC may take appropriate measures, such as 
deducting the amount of Ammonium Nitrate involved in such 
circumvention from the export limit for the current Export Limit 
Period (or, if necessary, the Subsequent Export Limit Period) or 
instructing the U.S. Customs Service to deny entry to any Russian 
Ammonium Nitrate sold by the entity found to be circumventing the 
Agreement. Before taking such measures, DOC will notify MOT of the 
basis for DOC's intended action and will afford MOT 30 days in which 
to comment. DOC will enter its determinations regarding 
circumvention into the record of the Agreement. MOT may request an 
extension of up to15 days for any of the deadlines mentioned in this 
Article.

VI. Monitoring and Notifications

    A. MOT will collect and provide to DOC such information as is 
necessary and appropriate to monitor the implementation of, and 
compliance with, this Agreement, including the following:
    1. Thirty days following the allocation of export rights for any 
Export Limit Period, MOT shall notify DOC of each allocation 
recipient and the volume granted to each recipient. MOT also shall 
inform DOC of any changes in the volume allocated to individual 
quota recipients within 60 days of the date on which such changes 
become effective.
    2. MOT shall collect and provide to DOC information on exports 
to the United States in the format in Appendix I to this Agreement, 
and on the aggregate quantity and value of exports of Ammonium 
Nitrate to all other countries. This information will be subject to 
verification. This information will be based on semi-annual periods 
(January 1 through June 30 and July 1 through December 31) and will 
be provided no later than 90 days following the end of each half-
year period, beginning on September 30, 2000.
    3. If DOC has reason to suspect non-compliance with the 
Agreement, and after consultations with MOT, and subject to the 
provisions of Article VII.A, MOT shall also collect and provide to 
DOC, within 45 days of the request, transaction-specific data for 
sales of Ammonium Nitrate within the Russian home market or to any 
third country

[[Page 37763]]

or countries, in the format provided in Appendix I.
    4. Within 15 days of a request from DOC for information 
concerning alleged circumvention or other violation of this 
Agreement, MOT shall share with DOC all information received or 
collected by MOT regarding its inquiries, its analysis of such 
information, and the results of such inquiries.
    5. MOT will inform DOC of any violations of any provisions of 
this Agreement that come to its attention and of the measures taken 
with respect thereto.
    6. MOT and DOC recognize that the effective monitoring of this 
Agreement may require that MOT provide information additional to 
that identified above. Accordingly, after consulting with MOT, DOC 
may establish additional reporting requirements consistent with the 
U.S. antidumping law, as appropriate, during the course of this 
Agreement. MOT shall also collect and provide to DOC, within 45 days 
of the request, any such additional information requested by DOC.
    B. MOT may request an extension of up to 30 days of any deadline 
in this Article.
    C. DOC may disregard any information submitted after the 
deadlines set forth in this Article or any information which it is 
unable to verify to its satisfaction.
    D. DOC shall provide MOT with the following information relating 
to implementation and enforcement of this Agreement.
    1. Semi-annual reports indicating the volume of U.S. imports of 
Ammonium Nitrate subject to this Agreement, together with such 
additional information as is necessary and appropriate to monitor 
compliance with the export limits. Such reports and information 
shall be provided within 120 days after the end of the last semi-
annual period.
    2. Notice of any violations of any term of this Agreement.
    E. DOC will also monitor the following information relevant to 
this Agreement, and provide such information that is public to MOT 
upon request.
    1. Publicly available data as well as U.S. Customs entry 
summaries and other official import data from the U.S. Bureau of the 
Census, on a monthly basis, to determine whether there have been 
imports that are inconsistent with the provisions of this Agreement.
    2. U.S. Bureau of the Census computerized records, which include 
the quantity and value of each entry. Because these records do not 
provide other specific entry information, such as the identity of 
the producer/exporter which may be responsible for such sales, DOC 
may request the U.S. Customs Service to provide such information. 
DOC may request other additional documentation from the U.S. Customs 
Service.
    F. DOC may also request the U.S. Customs Service to direct ports 
of entry to forward an Antidumping Report of Importations for 
entries of Ammonium Nitrate during the period this Agreement is in 
effect.

VII. Disclosure and Comment

    A. DOC shall make available to representatives of each Party to 
the Proceeding, under appropriately-drawn administrative protective 
orders consistent with U.S. laws and regulations, business 
proprietary information submitted to DOC semi-annually or upon 
request pursuant to this Agreement, and in any administrative review 
of this Agreement.
    B. Not later than 45 days after the date of disclosure under 
Article VII.A, the Parties to the Proceeding may submit written 
comments to DOC, not to exceed 30 pages.
    C. At the end of each Export Limit Period, each Party to the 
Proceeding may request a hearing on issues raised during the 
preceding Export Limit Period. If such a hearing is requested, it 
will be conducted in accordance with U.S. laws and regulations.

VIII. Consultations

    A. If, in response to a request by MOT at any time, DOC 
determines that the designated Floor Price and/or the calculated 
Reference Price under Article III prevents Russian producers from 
participating in the U.S. market, MOT and DOC will promptly enter 
into consultations in order to review the market situation and the 
appropriateness of the Floor Price and/or the Reference Price 
levels.
    B. MOT and DOC shall hold consultations concerning the 
implementation, operation (including the calculation of Reference 
Prices) and enforcement of this Agreement each year during the 
anniversary month of this Agreement.
    C. Additional consultations on any aspect of this Agreement 
shall be held as soon as possible, but no later than 30 days, after 
a request by either MOT or DOC.
    D. If DOC receives information indicating that there has been a 
violation of this Agreement, DOC shall promptly request special 
consultations with MOT. Such consultations shall begin no later than 
21 days after the day of DOC's request, and must be completed within 
40 days after commencement. After completion of the consultations, 
DOC will provide MOT 20 days within which to provide comments.
    E. Two years after the effective date of this Agreement, DOC and 
MOT shall enter into additional consultations to review the extent 
to which this Agreement is accomplishing the purposes set forth in 
the preamble and make any revisions consistent with U.S. law that 
are appropriate in light of their mutual conclusions.

IX. Violations

    A. DOC will investigate any information relating to 
circumvention or other violations of this Agreement which is brought 
to its attention, both by asking MOT to investigate such allegations 
and by itself gathering relevant information. Prior to making a 
determination that a violation has occurred, DOC will engage in 
consultations with MOT, pursuant to Articles V.D or VIII.D. of this 
Agreement.
    B. DOC will determine whether a violation has occurred within 30 
days after the date for submission of comments by MOT upon the 
allegation under Article VIII.D.
    C. If DOC determines that this Agreement is being or has been 
violated, DOC will take such action as it determines is appropriate 
under U.S. law and regulations.

X. Duration

    A. This Agreement will remain in force until the underlying 
antidumping proceeding is terminated in accordance with U.S. 
antidumping law.
    B. DOC will, upon receiving a proper request made by MOT, 
conduct an administrative review of this Agreement under U.S. laws 
and regulations.
    C. MOT or DOC may terminate this Agreement at any time upon 
written notice to the other party. Termination shall be effective 60 
days after such notice is given. Upon termination of this Agreement, 
the provisions of U.S. antidumping law and regulations shall apply.

XI. Other Provisions

    A. DOC finds that this Agreement is in the public interest, that 
effective monitoring of this Agreement by the United States is 
practicable, and that this Agreement will prevent the suppression or 
undercutting of price levels of United States domestic Ammonium 
Nitrate products by imports of the Ammonium Nitrate subject to this 
Agreement.
    B. DOC does not consider any of the obligations concerning 
exports of Ammonium Nitrate to the United States undertaken by MOT 
pursuant to this Agreement relevant to the question of whether firms 
in the underlying investigation would be entitled to separate rates, 
should the investigation be resumed for any reason.
    C. The English and Russian language versions of this Agreement 
shall be authentic, with the English version being controlling for 
purposes of interpreting and implementing the terms and conditions 
of this Agreement.
    D. All provisions of this Agreement, including the provisions of 
the Preamble, shall have equal force.
    E. For all purposes hereunder, the signatory Parties shall be 
represented by, and all communications and notices shall be given 
and addressed to:
    DOC: Assistant Secretary for Import Administration, U.S. 
Department of Commerce, International Trade Administration, 
Washington, DC 20230.
    MOT: Department for State Regulation of External Economic 
Activities, Ministry of Trade of the Russian Federation, 18/1 
Ovchinnikovskaya naberezhnaya, Moscow, 1 13324, Russia.
    Signed on this 19th day of May, 2000.

For DOC

----------------------------------------------------------------------
Robert S. LaRussa, Acting Under Secretary for International Trade

For MOT

----------------------------------------------------------------------
Yuri V. Akhremenko, Trade Representative of the Russian Federation 
to the United States, Minister-Counselor Commercial

Appendix I

    In accordance with the established format, MOT shall collect and 
provide to DOC all information necessary to ensure compliance with 
this Agreement. This information will be provided to DOC on a semi-
annual basis.
    MOT will collect and maintain data on exports to the United 
States on a continuous

[[Page 37764]]

basis. Sales data for the home market, and data for exports to 
countries other than the United States, will be reported upon 
request.
    MOT will provide a narrative explanation to substantiate all 
data collected in accordance with the following formats:

A. Exports to the United States

    MOT will provide all Export Licenses issued to Russian entities, 
which shall contain the following information with the exception 
that information requested in item #9, date of entry, item #10, 
importer of record, item #16, final destination, and item #17, 
other, may be omitted if unknown to MOT and the licensee.
    1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and or entry.
    2. Description of Merchandise: Include the 10 digit HTS 
category, and the specifications of merchandise.
    3. Quantity: Indicate in metric tons.
    4. F.O.B. Sales Value: Indicate value and currency used.
    5. Unit Price: Indicate unit price per metric ton and currency 
used.
    6. Date of Contract: The date all essential terms of the order 
(i.e, price and quantity) become fixed.
    7. Sales Order Number(s): Indicate the number(s) relating to 
each sale and/or entry.
    8. Date of License: Date the Export License/Temporary Document 
is Issued.
    9. Date of Entry: Date the merchandise entered the United States 
or the date book transfer took place.
    10. Importer of Record: Name and address.
    11. Trading Company: Name and address of trading company 
involved in sale.
    12. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
    13. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated to the Russian exporter.
    14. Allocation to Exporter: Indicate the total amount of quota 
allocated to the individual exporter during the Relevant Period.
    15. Allocation Remaining: Indicate the remaining export limit 
allocation available to the individual exporter during the export 
limit period.
    16. Final Destination: The complete name and address of the U.S. 
purchaser.
    17. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination/U.S. purchaser.

B. Exports Other Than to the United States

    Pursuant to Article VI.A, MOT will provide country-specific 
volume and value information for exports of Ammonium Nitrate to 
third countries, upon request, regardless of whether MOT licenses 
exports of Ammonium Nitrate to such country(ies). The following 
information shall be provided except that information requested in 
item #6, date of entry, #7, importer of record, and item #10, other, 
may be omitted if unknown to MOT and the Russian licensee.
    1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and/or entry, if any.
    2. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
    3. Date of Contract: The date all essential terms of the order 
(i.e., price and quantity) become fixed.
    4. Sales Order Number(s): Indicate the number(s) relating to 
each sale and/or entry.
    5. Date of License: Date Export License/ Temporary Document is 
issued, if any.
    6. Date of Entry: Date the merchandise entered the third country 
or the date a book transfer took place.
    7. Importer of Record: Name and address.
    8. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
    9. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
    10. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination.

C. Home Market Sales

    Pursuant to Article VII.A, the MOT will provide home market 
volume and value information for sales of Ammonium Nitrate, upon 
request. The following information shall be provided with the 
exception of item #6, other, if unknown to MOT and the Russian 
producer/exporter.
    1. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
    2. Date of Contract: The date all essential terms of order 
(i.e., price and quantity) become fixed.
    3. Sales Order Number(s): Indicate the number(s) relating to 
each sale and/or entry.
    4. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
    5. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
    6. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination.

Appendix II

    Section 734 (1) of the Tariff Act of 1930 as amended, provides, 
in part, as follows:
    (1) SPECIAL RULE FOR NON-MARKET ECONOMY COUNTRIES.
    (I) In General.--The administering authority may suspend an 
investigation under this subtitle upon acceptance of an agreement 
with a non-market economy country to restrict the volume of imports 
into the United States of the merchandise under investigation only 
if the administering authority determines that
    (A)--such agreement satisfies the requirements of subsection 
(d), and
    (B)--will prevent the suppression or undercutting of price 
levels of domestic products by imports of the merchandise under 
investigation.
    (2) Failure of Agreements--If the administering authority 
determines that the agreement accepted under this subsection no 
longer prevents the suppression or undercutting of domestic prices 
of merchandise manufactured in the United States, the provisions of 
subsection (I) shall apply.
    Section 771(9) of the Tariff Act of 1930, as amended, provides 
in part, as follows:
    (9) Interested Party---The term ``interested party'' means--
    (A) a foreign manufacturer, producer, or exporter, or the United 
States importer, of subject merchandise under this title or a trade 
or business association a majority of the members of which are 
producers, exporters, or importers of such merchandise,
    (B) the government of a country in which such merchandise is 
produced or manufactured or from which such merchandise is exported,
    (C) a manufacturer, producer, or wholesaler in the United States 
of a domestic like product,
    (D) a certified union or recognized union or group of workers 
which is representative of an industry engaged in the manufacture, 
production, or wholesale in the United States of a domestic like 
product,
    (E) a trade or business association a majority of whose members 
manufacture, produce, or wholesale a domestic like product in the 
United States,
    (F) an association, a majority of whose members is composed of 
interested parties described in subparagraph (C), (D), or (E) with 
respect to a domestic like product.
* * * * *

Appendix III

    For purposes of this Agreement, Ammonium Nitrate is defined as 
the following:
    Solid, fertilizer grade ammonium nitrate products, whether 
prilled, granular or in other solid form, with or without additives 
or coating, and with a bulk density equal to or greater than 53 
pounds per cubic foot. Specifically excluded from this scope is 
solid ammonium nitrate with a bulk density less than 53 pounds per 
cubic foot (commonly referred to as industrial or explosive grade 
ammonium nitrate).
    The merchandise subject to this investigation is classified in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') at 
subheading 3102.30.00.00. Although the HTSUS subheadings are 
provided for convenience and Customs purposes, the written 
description of the merchandise under investigation is dispositive.

[FR Doc. 00-15312 Filed 6-15-00; 8:45 am]
BILLING CODE 3510-DS-U