[Federal Register Volume 70, Number 233 (Tuesday, December 6, 2005)]
[Notices]
[Pages 72609-72611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-6872]


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DEPARTMENT OF COMMERCE

International Trade Administration


Export Trade Certificate of Review

ACTION: Notice of application.

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SUMMARY: Export Trading Company Affairs (``ETCA''), International Trade 
Administration, 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 Anspacher, Director, Export 
Trading Company Affairs, International Trade Administration, by 
telephone at (202) 482-5131 (this is not a toll free number) or E-mail 
at [email protected].



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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. A 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 for the export conduct specified in the Certificate and carried 
out in compliance with its terms and conditions. Section 302(b)(1) of 
the Act 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 copies, plus two 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, Department of Commerce, 
Room 7021H, Washington, DC 20230, or transmit by E-mail at 
[email protected]. 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 05-00002.'' A 
summary of the application follows.

Summary of the Application

    Applicant: California Tomato Export Group (``CTEG''), 230 
Thunderbird Drive, Aptos, California 95003; Contact: Rodger Wasson, 
Consultant; Telephone: (831) 254-5405.
    Application No.: 05-00002.
    Date Deemed Submitted: November 21, 2005.
    Members (in addition to applicant): CTEG is a newly formed export 
joint venture comprising the following members: Ingomar Packing 
Company, Los Banos, CA; Los Gatos Tomato Products, Huron, CA; and SK 
Foods, Lemoore, CA.
    CTEG seeks a Certificate to engage in the Export Trade Activities 
and Methods of Operation described below in the following Export Trade 
and Export Markets:

Export Trade

Products

    CTEG plans to export processed tomato products. Products that are 
included are tomato paste, diced tomatoes, canned foodservice tomatoes, 
canned retail tomatoes, and formulated glass retail products.

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 the Northern Mariana Islands, and the 
Trust Territory of the Pacific Islands).

Export Trade Activities and Methods of Operation

    CTEG seeks certification for the following activities and exchanges 
of information:
    CTEG and/or one or more of its Members may on behalf of and with 
the advice and assistance of its Members:

1. Export Promotion of Processed Tomatoes

    a. Research, develop and conduct promotion and public relations 
activities to develop demand for the exported products of the member 
companies;
    b. Seek export promotional funds jointly to combine efforts to 
promote the companies' exports aimed at expanding existing markets and 
creating new markets;
    c. Develop and disseminate industry news reports of interest to 
foreign buyers. Provide information collectively to prospective export 
buyers regarding items such as crop inventory and structure of the U.S. 
processed tomato industry; and
    d. Organize joint representation at world tomato conferences;

2. Investment

    Invest jointly in export infrastructure, activities, and 
operations, such as:
    a. Bill and collect from foreign buyers and provide collective 
accounting, tax, legal and consulting assistance and services;
    b. Write contracts for export payment terms;
    c. Organize and conduct joint representation at tomato industry 
conferences where foreign buyers are present;
    d. Develop and maintain a website/newsletter and marketing 
brochures with product and crop information for the benefit of foreign 
customers;
    e. Purchase/rent warehouse facilities to conduct export operations;
    f. Combine purchases of inputs for export operations;
    g. Negotiate and enter into agreements with providers of 
transportation services for the export of processed tomato products;
    h. Consolidate CTEG shipments to export markets;
    i. Administer phytosanitary protocols to qualify the processed 
tomato products for export markets;

3. Funding

    Apply for and utilize export assistance and incentive programs, as 
well as arrange financing through bank holding companies, governmental 
programs, and other arrangements;

4. Export Market Development

    a. Design and develop foreign marketing strategies for CTEG's 
export markets; and
    b. Design, develop, and market generic corporate and/or CTEG labels 
for export;

5. Export Sales Prices

    Establish export sale prices, minimum export sale prices, target 
export sales prices and/or minimum target export sale prices, and other 
terms of sale;

6. Joint Bidding

    Engage in joint bidding or other joint selling arrangements for 
export processed exported tomatoes and allocate export sales resulting 
from such arrangements;

7. Quantities

    Agree on quantities of processed tomatoes to be exported, provided 
each member shall be required to dedicate only such quantity or 
quantities as each such member shall independently determine;

8. Foreign Buyer Negotiations

    Participate in negotiations and enter into agreements with foreign 
buyers (including governments and private persons) regarding:
    a. The quantities, time periods, prices and terms and conditions in 
connection with actual or potential bona fide export opportunities; and
    b. Non-tariff trade barriers in the export markets;

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9. Refusals to Deal

    Refuse to quote prices for export products, or to market or sell 
export products, to or for any customer in the export processed tomato 
market, or any countries or geographical areas in the export markets;

10. Market and Customer Allocation

    Allocate geographic areas or countries in the export markets and/or 
customers in the export markets among members of the California Tomato 
Export Group;

11. Exclusive and Nonexclusive Export Intermediaries

    Enter into exclusive and nonexclusive agreements appointing one or 
more export intermediaries for the sale of export products with price, 
quantity, territorial and/or customer restrictions. ``Export 
Intermediary'' means a person who acts as a distributor, sales 
representative, sales or marketing agent, broker, or who performs 
similar functions including providing or arranging for the provision of 
export trade facilitation services;

12. Meetings

    Meet with members of the Certificate and manager of the Certificate 
present;

13. Non-Member Activities

    a. Enter into agreements with non-members, whether or not 
exclusive, to provide export trade facilitation services;
    b. Purchase tomatoes from non-members to fulfill specific export 
sales obligations, provided that CTEG 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 activities and operations; and

14. Government Liaison

    Advise and cooperate with the United States and foreign governments 
in:
    a. Establishing procedures regulating the export of processed 
tomato products, and
    b. Fulfilling the phytosanitary and/or funding requirements imposed 
by foreign governments for export of the processed tomato products.
    CTEG may exchange the following information with and among the 
Members as necessary to carry out export trade activities and methods 
of operation:
    1. Information about export sales and marketing efforts; selling 
strategies, contract and spot pricing in the export markets;
    2. Information regarding projected demand in the export markets;
    3. Information about the customary terms of sales in export 
markets;
    4. Information about export prices and availability of competitor's 
processed tomato products for sale in the export markets;
    5. Specifications for processed tomato products by customers in the 
export markets;
    6. Information about terms and conditions of contracts for sale in 
the export markets to be considered and/or bid on by CTEG and its 
members;
    7. Information about the price, quality, source, and delivery dates 
of processed tomato products available for export by CTEG members;
    8. Information about joint bidding and/or selling arrangements for 
export markets;
    9. Information regarding terms, conditions, and specifications of 
particular export contracts for sale or to be considered and/or bid on 
by the CTEG;
    10. Information about expenses specific to exporting to and within 
the export markets, sales and distribution networks established by CTEG 
or its members in export markets;
    11. Information about export customer credit terms and credit 
history;
    12. Information about United States and foreign legislation and 
regulations, including federal marketing order programs, affecting 
sales to the export markets;
    13. Information about joint bidding or selling arrangements for the 
export markets and allocations of sales resulting from such 
arrangements among the members;
    14. 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;
    15. Information about CTEG's or its members' export operations, 
including without limitation, sales and distribution networks 
established by CTEG or its members in the export markets, and prior 
export sales by members (including export price information);
    16. Information regarding the forecasted quantity of processed 
tomatoes secured through contracts by each member for upcoming seasons;
    17. Information regarding the potential available supply of 
processed tomato products available for export and not committed to 
domestic markets in upcoming seasons; and
    18. Information about global tomato crop supply, including planting 
intentions, growing conditions, weather, disease, transportation, 
consumer trends, health news, regulatory impacts and information that 
impacts on the availability, conditions and costs to foreign buyers.

    Dated: December 1, 2005.
Jeffrey Anspacher,
Director, Export Trading Company Affairs.
[FR Doc. E5-6872 Filed 12-5-05; 8:45 am]
BILLING CODE 3510-DR-P