[Federal Register Volume 68, Number 230 (Monday, December 1, 2003)]
[Notices]
[Pages 67150-67152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29779]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


Export Trade Certificate of Review

ACTION: Notice of application.

-----------------------------------------------------------------------

SUMMARY: The Office of Export Trading Company Affairs (``OETCA''), 
International Trade Administration, U.S. Department of Commerce, has 
received an application for an Export Trade Certificate of Review. This 
notice summarizes the conduct for which certification is sought and 
requests comments relevant to whether the Certificate should be issued.

FOR FURTHER INFORMATION CONTACT: Jeffrey C. Anspacher, Director, Office 
of Export Trading Company Affairs, International Trade Administration, 
(202) 482-5131 (this is not a toll-free number) or e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Title III of the Export Trading Company Act 
of 1982 (15 U.S.C. 4001-21) authorizes the Secretary of Commerce to 
issue Export Trade Certificates of Review. An Export Trade Certificate 
of Review protects the holder and the members identified in the 
Certificate from state and federal government antitrust actions and 
from private treble damage antitrust actions

[[Page 67151]]

for the export conduct specified in the Certificate and carried out in 
compliance with its terms and conditions. Section 302(b)(1) of the 
Export Trading Company Act of 1982 and 15 CFR 325.6(a) require the 
Secretary to publish a notice in the Federal Register identifying the 
applicant and summarizing its proposed export conduct.

Request for Public Comments

    Interested parties may submit written comments relevant to the 
determination whether a Certificate should be issued. If the comments 
include any privileged or confidential business information, it must be 
clearly marked and a nonconfidential version of the comments 
(identified as such) should be included. Any comments not marked 
privileged or confidential business information will be deemed to be 
nonconfidential. An original and five (5) copies, plus two (2) copies 
of the nonconfidential version, should be submitted no later than 20 
days after the date of this notice to: Office of Export Trading Company 
Affairs, International Trade Administration, U.S. Department of 
Commerce, Room 1104H, Washington, DC 20230. Information submitted by 
any person is exempt from disclosure under the Freedom of Information 
Act (5 U.S.C. 552). However, nonconfidential versions of the comments 
will be made available to the applicant if necessary for determining 
whether or not to issue the Certificate. Comments should refer to this 
application as ``Export Trade Certificate of Review, application number 
03-00008.'' A summary of the application follows.

Summary of Application

    Applicant: California Pistachio Export Council, LLC (``CPEC''), 
5497 E. Olive Avenue, Fresno, California 93727.
    Contact: Carter Brown, Esquire, Consultant to the applicant, 
Telephone: (202) 543-4455.
    Application No.: 03-00008.
    Date Deemed Submitted: November 19, 2003. Expedited Review of the 
application has been requested.
    Members (in addition to applicant): A&P Growers Cooperative, Inc., 
Tulare, CA; Gold Coast Pistachios, Inc., Fresno, CA; Keenan Farms, 
Inc., Avenal, CA; Monarch Nut Company, Delano, CA; Nichols Pistachio, 
Hanford, CA; Primex Farms, LLC, Wasco, CA; and Setton Pistachio of 
Terra Bella, Inc., Terra Bella, CA.
    CPEC seeks a Certificate to cover the following specific Export 
Trade, Export Markets, and Export Trade Activities and Methods of 
Operation:

Export Trade

    1. Products: California in-shell and shelled pistachios, raw and 
roasted. Included within this definition are organically produced 
pistachios and flavored pistachios.
    2. Export Trade Facilitation Services (as they Relate to the Export 
of Products): All export trade-related facilitation services, including 
but not limited to: development of trade strategy; sales, marketing, 
and distribution; foreign market development; promotion; and all 
aspects of foreign sales transactions, including export brokerage, 
freight forwarding, transportation, insurance, billing, collection, 
trade documentation, and foreign exchange; customs, duties, and taxes; 
and inspection and quality control.

Export Markets

    The Export Markets include all parts of the world except the United 
States (the fifty states of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American 
Samoa, Guam, the Commonwealth of Northern Mariana Islands, and the 
Trust Territory of the Pacific Islands).

Export Trade Activities and Methods of Operation

    1. CPEC, on its own behalf or on behalf of all or less than all of 
its Members, through CPEC or through Export Intermediaries (to the 
extent provided in section 1.g) may:
    a. Export Sales Price. Establish sales price, minimum sales price, 
target sales price and/or minimum target sales price, and other terms 
of sale;
    b. Marketing and Distribution. Conduct marketing and distribution 
of Products;
    c. Promotion. Conduct joint promotion of Products;
    d. Quantities. Agree on quantities of Products to be sold, provided 
each Member shall be required to dedicate only such quantity or 
quantities as each such Member shall independently determine;
    e. Market and Customer Allocation.Allocate geographic areas or 
countries in the Export Markets and/or customers in the Export Markets 
among Members;
    f. Refusals to Deal. Refuse to quote prices for Products, or to 
market or sell Products, to or for any customers in the Export Markets, 
or any countries or geographical areas in the Export Markets;
    g. Exclusive and Nonexclusive Export Intermediaries. Enter into 
exclusive and nonexclusive agreements appointing one or more Export 
Intermediaries (as defined under ``Definitions'' paragraph 1) for the 
sale of Products with price, quantity, territorial and/or customer 
restrictions as provided in sections 1.a through 1.f, inclusive, above;
    h. Non-Member Activities. Purchase Products from non-Members to 
fulfill specific sales obligations, provided that CPEC and/or its 
Members shall make such purchases only on a transaction-by-transaction 
basis and when the Members are unable to supply, in a timely manner, 
the requisite Products at a price competitive under the circumstances. 
In no event shall a non-Member be included in any deliberations 
concerning any Export Trade Activities; and
    i. Transportation Activities. Negotiate favorable transportation 
rates (volume discounts) and consolidate shipments.
    2. CPEC and its Members may exchange and discuss the following 
information:
    a. Information about sales and marketing efforts for the Export 
Markets, activities and opportunities for sales of Products in the 
Export Markets, selling strategies for the Export Markets, sales for 
the Export Markets, contract and spot pricing in the Export Markets, 
projected demands in the Export Markets for Products, customary terms 
of sale in the Export Markets, prices and availability of Products from 
competitors for sale in the Export Markets, and specifications for 
Products by customers in the Export Markets; b. Information about the 
price, quality, quantity, source, and delivery dates of Products 
available from the Members to export;
    c. Information about terms and conditions of contracts for sale in 
the Export Markets to be considered and/or bid on by CPEC and its 
Members;
    d. Information about joint bidding or selling arrangements for the 
Export Markets and allocations of sales resulting from such 
arrangements among the Members;
    e. Information about expenses specific to exporting to and within 
the Export Markets, including without limitation, transportation, 
trans-or intermodal shipments, insurance, inland freight to port, port 
storage, commissions, export sales, documentation, financing, customs, 
duties, and taxes;
    f. Information about U.S. and foreign legislation and regulations, 
including federal marketing order programs, affecting sales for the 
Export Markets;
    g. Information about CPEC or its Members' export operations, 
including without limitation, sales and distribution networks 
established by

[[Page 67152]]

CPEC or its Members in the Export Markets, and prior export sales by 
Members (including export price information); and
    h. Information about export customer credit terms and credit 
history.
    3. CPEC and its Members may prescribe the following conditions for 
admission of Members to CPEC and termination of membership in CPEC:
    a. Membership shall be limited to Handlers as defined under 
``Definitions'' paragraph 3.
    b. Membership shall terminate on the occurrence of one or more of 
the following events:
    i. Withdrawal or resignation of a Member;
    ii. Expulsion approved by a majority of all Members;
    iii. Death or permanent disability of a Member who is an 
individual, or the dissolution of a Member other than an individual; 
and
    iv. The bankruptcy of a Member as provided in CPEC's Operating 
Agreement.
    c. Members may be added to the Certificate, if the action is
    i. Approved by a majority of the members, and
    ii. Approved by the Secretary of Commerce, with the concurrence of 
the Attorney General, pursuant to an appropriately filed application to 
amend the Certificate; and
    iii. Any new member must pay a pro-rata share of the start-up costs 
for the CPEC. This payment will be equally divided amongst the members 
who paid the initial start-up costs.
    4. CPEC and its Members may meet to engage in the activities 
described in paragraphs 1 through 3 above.

Definitions

    1. ``Export Intermediary'' means a person (including a Member) who 
acts as a distributor, sales representative, sales or marketing agent, 
or broker, or who performs similar functions, including providing, or 
arranging for the provision of Export Trade Facilitation Services.
    2. ``Handle'' means engage in: (a) receiving pistachios; (b) 
hulling and drying pistachios; and/or (c) further preparing pistachios 
by sorting, sizing, shelling, roasting, cleaning, salting, and/or 
packaging for marketing in or transporting to any and all markets in 
the course of interstate or foreign commerce; provided, however, that 
transportation within the Production Area between Handlers and from the 
orchard to the processing facility is not handling.
    3. ``Handler'' means a person who handles Pistachios grown in 
California.
    4. ``Member'' means a person who has membership in the CPEC Export 
Trade Certificate of Review, and who has been certified as a ``Member'' 
within the meaning of Sec.  325.2(1) of the Regulations (15 CFR 
325.2(1) (2003).
    5. ``Product'' means in-shell or shelled pistachios, roasted or raw 
produced in the Production Area.
    6. ``Production Area'' means the State of California.

    Dated: November 24, 2003.
Jeffrey C. Anspacher,
Director, Office of Export Trading Company Affairs.
[FR Doc. 03-29779 Filed 11-28-03; 8:45 am]
BILLING CODE 3510-DR-P