[Federal Register Volume 71, Number 27 (Thursday, February 9, 2006)]
[Notices]
[Pages 6753-6755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1791]


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

DEPARTMENT OF COMMERCE

International Trade Administration


Export Trade Certificate of Review

ACTION: Notice of issuance of an export trade certificate of review, 
application no. 05-00001.

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

SUMMARY: On January 30, 2006, The U.S. Department of Commerce issued an 
export trade certificate of Review to Central America Poultry Export 
Quota, Inc. (``CA-PEQ''). This notice summarizes the conduct for which 
certification has been granted.

FOR FURTHER INFORMATION CONTACT: Jeffrey C. Anspacher, Director, Export 
Trading Company Affairs, International Trade Administration, by 
telephone at (202) 482-5131 (this is not a toll-free number), or by 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. The regulations implementing 
Title III are found at 15 CFR Part 325 (2005).
    Export Trading Company Affairs (``ETCA'') is issuing this notice 
pursuant to 15 CFR 325.6(b), which requires the U.S. Department of 
Commerce to publish a summary of the certification in the Federal 
Register. Under section 305(a) of the Act and 15 CFR 325.11(a), any 
person aggrieved by the Secretary's determination may, within 30 days 
of the date of this notice, bring an action in any appropriate district 
court of the United States to set aside the determination on the ground 
that the determination is erroneous.

Description of Certified Conduct

Export Trade

    Chicken leg quarters, (or parts of chicken leg quarters, including 
legs or thighs), fresh, chilled or frozen, seasoned or unseasoned, 
marinated or not marinated, classifiable under HTS 0207.13.99, 
0207.14.99 and 1602.32.00.

Export Markets

    Chicken leg quarters for which awards will be made will be exported 
to El Salvador, Guatemala, Honduras and Nicaragua.

Export Trade Activities and Methods of Operation

    I. Purpose. CA-PEQ will manage on an open tender basis the tariff-
rate quotas (``TRQs'') for poultry products granted by El Salvador, 
Guatemala, Honduras, and Nicaragua to the United States under the terms 
of the United States--Dominican Republic--Central America Free Trade 
Agreement (``DR-CAFTA'') or any amended or successor agreement 
providing for Central American poultry TRQs for the United States of 
America. CA-PEQ also will provide for distributions of the proceeds 
received from the aforementioned tender process (``the TRQ System'') 
for the benefit of the poultry industries in El Salvador, Guatemala, 
Honduras, Nicaragua, and the United States.
    II. Implementation. A. Administrator. CA-PEQ shall contract with a 
neutral third party Administrator who is not engaged in the production, 
sale, distribution or export of poultry or poultry products and who 
shall bear responsibility for administering the TRQ System, subject to 
general supervision and oversight by the Board of Directors of CA-PEQ.
    B. Membership. CA-PEQ has been formed jointly by the USA Poultry 
and Egg Export Council (``USAPEEC'') on behalf of the U.S. poultry 
industry; by Asociaci[oacute]n Nacional de Avicultores de Guatemala 
(``ANAVI'') on behalf of the Guatemalan poultry industry; by 
Asociaci[oacute]n Nacional de Avicultores de El Salvador (``AVES'') on 
behalf of the Salvadoran poultry industry; and by Asociaci[oacute]n 
Nacional de Avicultores y Productores de Alimentos de Nicaragua 
(``ANAPA'') on behalf of the Nicaraguan poultry industry.
    C. Open Tender Process. CA-PEQ shall offer TRQ Certificates for 
duty-free shipments of chicken leg quarters to El Salvador, Guatemala, 
Honduras, and Nicaragua solely and exclusively through an open tender 
process with certificates awarded to the highest bidders (``TRQ 
Certificates''). CA-PEQ shall hold tenders in accordance with tranches 
established in the relevant regulations of El Salvador, Guatemala, 
Honduras or Nicaragua, or in the absence of such, at least three times 
each year. The award of TRQ Certificates under the open tender process 
shall be determined solely by

[[Page 6754]]

the Administrator in accordance with Section I without any 
participation by the Board of Directors.
    D. Persons or Entities Eligible to Bid. Any person or entity 
incorporated or domiciled in the United States of America shall be 
eligible to bid in the open tender process.
    E. Notice. The Administrator shall publish notice (``Notice'') of 
each open tender process to be held to award TRQ Certificates in the 
Journal of Commerce and, at the discretion of the Administrator, in 
other publications of general circulation within the U.S. poultry 
industry. The Notice will invite independent bids and will specify (i) 
the total amount (in metric tons) that will be allocated pursuant to 
the applicable tender; (ii) the shipment period for which the TRQ 
Certificates will be valid; (iii) the date and time by which all bids 
must be received by the Administrator in order to be considered (the 
``Bid Date''); and (iv) a minimum bid amount per ton, as established by 
the Board of Directors, to ensure the costs of administering the 
auction are recovered. The Notice normally will be published not later 
than 30 business days prior to the first day of the shipment period and 
will specify a Bid Date that is at least 10 business days after the 
date of publication of the Notice. The Notice will specify the format 
for bid submissions. Bids must be received by the Administrator not 
later than 5:00 p.m. EST on the Bid Date.
    F. Contents of Bid. The bid shall be in a format established by the 
Administrator and shall state (i) the name, address, telephone and 
facsimile numbers, and email address of the bidder; (ii) the quantity 
of poultry bid, in an amount that is a multiple of 25 metric tons; 
(iii) the bid price in U.S. dollars per metric ton; and (iv) the total 
value of the bid. The bid form shall contain a provision, that must be 
signed by the bidder, agreeing that (i) any dispute that may arise 
relating to the bidding process or to the award to TRQ Certificates 
shall be settled by arbitration administered by the American 
Arbitration Association in accordance with its Commercial Arbitration 
Rules; and (ii) judgment on any award rendered by the arbitrator may be 
entered in any court having jurisdiction thereof.
    G. Performance Security. The bidder shall submit with each bid a 
performance bond, an irrevocable letter of credit drawn on a U.S. bank, 
cashier's check, wire transfer or equivalent security, in a form 
approved and for the benefit of an account designated by the 
Administrator, in the amount of $50,000 or the total value of the bid, 
whichever is less. The bidder shall forfeit such performance security 
if the bidder fails to pay for any TRQ Certificates awarded within five 
(5) business days. The bidder may chose to apply the performance 
security to the price of any successful bid, or to retain the 
performance security for a subsequent open tender process. Promptly 
after the close of the open tender process, the Administrator shall 
return any unused or non-forfeited security to the bidder.
    H. Confidentiality of Information. The Administrator shall treat 
all bids and their contents as confidential. The Administrator shall 
disclose any such information only to another neutral third party or 
authorized government official of the United States, El Salvador, 
Guatemala, Honduras or Nicaragua, signatories to the DR-CAFTA, and only 
where necessary to ensure the effective operation of the TRQ System or 
where required by law (including appropriate disclosure in connection 
with the arbitration of a dispute). However, after the issuance of all 
TRQ Certificates from an open tender process, the Administrator shall 
notify all bidders and shall disclose publicly (i) the total tonnage 
for which TRQ Certificates were awarded, and (ii) the lowest price per 
metric ton of all successful bids.
    I. Award of TRQ Certificates. The Administrator shall award TRQ 
Certificates for the available tonnage to the bidders who have 
submitted the highest price conforming bids. If two or more bidders 
have submitted bids with identical prices, the Administrator shall 
divide the remaining available tonnage in proportion to the quantities 
of their bids, and offer each TRQ Certificates in the resulting 
tonnages. If any bidder declines all or part of the tonnage offered, 
the Administrator shall offer that tonnage first to the other tying 
bidders, and then to the next highest bidder.
    J. Payment for TRQ Certificates. Promptly after being notified of a 
TRQ award and within the time specified in the Notice, the bidder shall 
pay the full amount of the bid, either by wire transfer or by certified 
check, to an account designated by the Administrator. If the bidder 
fails to make payment within five (5) days, the Administrator shall 
revoke the award and award the tonnage to the next highest bidder(s).
    K. Delivery of TRQ Certificates. The Administrator shall establish 
an account for each successful bidder in the amount of tonnage 
available for TRQ Certificates. Upon request, the Administrator will 
issue TRQ Certificates in the tonnage designated by the bidder, 
consistent with the balance in that account. The TRQ Certificate shall 
state the delivery period for which it is valid.
    L. Transferability. TRQ Certificates shall be freely transferable 
except that (i) any TRQ Certificate holder who intends to sell, 
transfer or assign any rights under that Certificate shall publish such 
intention on a Web site maintained by the Administrator at least three 
(3) business days prior to any sale, transfer or assignment; and (ii) 
any TRQ holder that sells, transfers or assigns its rights under a TRQ 
Certificate shall provide the Administrator with notice and a copy of 
the sale, transfer or assignment within three (3) business days.
    M. Deposit of Proceeds: The Administrator shall cause all proceeds 
of the open tender process to be deposited in an interest-bearing 
account in a financial institution approved by the CA-PEQ Board of 
Directors.
    N. Disposition of Proceeds. The proceeds of the open tender process 
shall be applied and distributed as follows:
    1. The Administrator shall pay from tender proceeds, as they become 
available, all operating expenses of CA-PEQ, including legal, 
accounting and administrative costs of establishing and operating the 
TRQ System, as authorized by the Board of Directors.
    2. Of the proceeds remaining at the end of each year of operations 
after all costs described in (1) above have been paid--
    (a) Fifty percent (50%) shall be distributed to fund export market 
development, educational, scientific and technical projects to benefit 
the United States poultry industry. CA-PEQ shall accept proposals for 
the funding of projects approved by the Board of Directors of USAPEEC. 
The Administrator shall disburse funds to those projects approved for 
funding by the CA-PEQ Board of Directors.
    (b) Fifty percent (50%) shall be distributed to fund market 
development, educational, scientific and technical projects to benefit 
the poultry industries of El Salvador, Guatemala, Honduras, and 
Nicaragua. CA-PEQ shall accept proposals for funding of projects 
approved by the Boards of Directors of ANAVI, AVES, and ANAPA, as the 
case may be. The Administrator shall disburse funds to those projects 
approved for funding by the CA-PEQ Board of Directors.
    O. Arbitration of Disputes. Any dispute, controversy or claim 
arising out of or relating to the TRQ System or the breach thereof 
shall be settled by arbitration administered by the

[[Page 6755]]

American Arbitration Association in accordance with its Commercial 
Arbitration Rules, and judgment on the award rendered by the arbitrator 
may be entered in any court having jurisdiction thereof.
    P. Annual Reports. CA-PEQ shall publish an annual report including 
a statement of its operating expenses and data on the distribution of 
proceeds, as reflected in the audited financial statement of the CA-PEQ 
TRQ System.
    III. Cooperation with the U.S. Government and with the Governments 
of El Salvador, Guatemala, Honduras, and Nicaragua. CA-PEQ will provide 
whatever information or consultations may be useful in order to ensure 
effective consultations between the government of the United States of 
America and the governments of El Salvador, Guatemala, and Nicaragua 
concerning the implementation and operation of the TRQ System. In 
particular, while maintaining the confidentiality of information 
submitted by bidders and Members, CA-PEQ will provide its annual 
report, regular reports following each tender held, reports on 
distributions of tender proceeds, and any other information that might 
be requested by the U.S. Government. Directly or through the U.S. 
Government, CA-PEQ will endeavor to accommodate any information request 
from the governments of El Salvador, Guatemala, Honduras, and 
Nicaragua, while protecting confidential information; and will consult 
with officials of those governments as appropriate.
    IV. Miscellaneous Implementing Provisions. CA-PEQ and/or Members 
may (i) meet, discuss and provide for an administrative structure to 
implement the foregoing tariff-rate quota management system, assess its 
operations and discuss modifications as necessary to improve its 
workability; (ii) meet, exchange and discuss information regarding the 
structure and method for implementing the foregoing tariff-rate quota 
management system; (iii) meet, exchange and discuss the types of 
information needed regarding the bidding process and distribution of 
the bid proceeds, that are necessary for implementation of the system; 
(iv) meet, exchange and discuss information regarding U.S. and foreign 
government agreements, legislation and regulations affecting the tariff 
rate quota management system; and (v) otherwise meet, discuss and 
exchange information as necessary to implement the activities described 
above and take the necessary action to implement the foregoing tariff-
rate quota management system.

Terms and Conditions of Certificate

    1. Except as authorized in Paragraphs 2.H and 2.N of the Export 
Trade Activities and Methods of Operation, in engaging in Export Trade 
Activities and Methods of Operation, neither CA-PEQ, the Administrator, 
any Member, nor any neutral third party shall intentionally disclose, 
directly or indirectly, to any Member (including parent companies, 
subsidiaries, or other entities related to any Member) any information 
regarding any other Member's or bidder's costs, production, 
inventories, domestic prices, domestic sales, capacity to produce 
Products for domestic sale, domestic orders, terms of domestic 
marketing or sale, or U.S. business plans, strategies, or methods, 
unless such information is already generally available to the trade or 
public.
    2. CA-PEQ and Members will comply with requests made by the 
Secretary of Commerce on behalf of the Secretary or the Attorney 
General for information or documents relevant to conduct under the 
Certificate. The Secretary of Commerce will request such information or 
documents when either the Attorney General or the Secretary of Commerce 
believes that the information or documents are required to determine 
that the Export Trade, Export Trade Activities and Methods of Operation 
of a person protected by this Certificate of Review continue to comply 
with the standards of section 303(a) of the Act.

Definition

    Neutral third party, as used in this Certificate of Review, means a 
party not otherwise associated with CA-PEQ or any Member and who is not 
engaged in the production, distribution, or sale of chicken.

Members (Within the Meaning of Section 325.2(1) of the Regulations)

    Members (in addition to applicant): USA Poultry and Egg Export 
Council; Asociaci[oacute]n Nacional de Avicultores de Guatemala; 
Asociaci[oacute]n Nacional de Avicultores de El Salvador; and 
Asociaci[oacute]n Nacional de Avicultores y Productores de Alimentos de 
Nicaragua.

Protection Provided by Certificate

    This Certificate protects CA-PEQ; Members; and their directors, 
officers, and employees acting on their behalf from private treble 
damage actions and government criminal and civil suits under U.S. 
federal and state antitrust laws for the export conduct specified in 
the Certificate and carried out during its effective period in 
compliance with its terms and conditions.

Effective Period of Certificate

    This Certificate continues in effect from the effective date 
indicated below until it is relinquished, modified, or revoked as 
provided in the Act and the Regulations.

Other Conduct

    Nothing in this Certificate prohibits CA-PEQ and Members from 
engaging in conduct not specified in this Certificate, but such conduct 
is subject to the normal application of the antitrust laws.

Disclaimer

    The issuance of this Certificate of Review to CA-PEQ by the Deputy 
Secretary of Commerce with the concurrence of the Attorney General 
under the provisions of the Act does not constitute, explicitly or 
implicitly, an endorsement or opinion by the Secretary of Commerce or 
by the Attorney General concerning either (a) the viability or quality 
of the business plans of CA-PEQ or Members or (b) the legality of such 
business plans of CA-PEQ or Members under the laws of the United States 
(other than as provided in the Act) or under the laws of any foreign 
country.
    A copy of the certificate will be kept in the International Trade 
Administration's Freedom of Information Records Inspection Facility, 
Room 4100, U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230.

    Dated: February 2, 2006.
Jeffrey C. Anspacher,
Director, Export Trading Company Affairs.
[FR Doc. E6-1791 Filed 2-8-06; 8:45 am]
BILLING CODE 3510-DR-P