[Federal Register Volume 71, Number 44 (Tuesday, March 7, 2006)]
[Notices]
[Pages 11402-11404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3147]


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DEPARTMENT OF COMMERCE

International Trade Administration


Export Trade Certificate of Review

ACTION: Notice of Issuance of an Export Trade Certificate of Review, 
Application No. 05-00002.

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SUMMARY: On February 21, 2006, The U.S. Department of Commerce issued 
an Export Trade Certificate of Review to California Tomato Export Group 
(``CTEG''). This notice summarizes the conduct for which certification 
has been granted.

FOR FURTHER INFORMATION CONTACT: Jeffrey Anspacher, Director, Export 
Trading Company Affairs, International Trade Administration, by 
telephone at

[[Page 11403]]

(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. sections 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

1. Products
    Processed tomato products: Processed tomato products limited to 
tomato paste, diced tomatoes, canned food service tomatoes, canned 
retail tomatoes and formulated glass retail tomato products.
2. Export Trade Facilitation Services (As They Relate to the Export of 
Products)
    All export-related services, including, but not limited to, 
international market research, marketing, advertising, sales promotion, 
brokering, handling, transportation, common marking and identification, 
communication and processing of foreign orders to and for Members, 
financing, export licensing and other trade documentation, warehousing, 
shipping, legal assistance, foreign exchange and taking title to goods.

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

    1. With respect to Export Trade Activities, CTEG and/or one or more 
of its Members may on behalf of and with the advice and assistance of 
its Members:
    a. Engage in export promotion of Products through:
    i. Researching, developing and conducting promotion and public 
relations activities to develop demand for the exported Products of the 
Members;
    ii. Seeking export promotional funds to jointly promote the 
Members' exports of Products in existing and new markets;
    iii. Developing and disseminating industry news reports (based only 
on publicly available information) to foreign buyers and providing 
publicly available information collectively to prospective export 
buyers regarding items such as crop inventory and structure of the U.S. 
processed tomato industry; and
    iv. Organizing and conducting joint representation to buyers for 
export sales at tomato industry conferences;
    b. Invest jointly in export infrastructure, activities, and 
operations, such as:
    i. Bill and collect from foreign buyers and provide collective 
accounting, tax, legal and consulting assistance and services;
    ii. Write contracts for export payments;
    iii. Develop and maintain a Web site/newsletter and marketing 
brochures with publicly available product and crop information for the 
benefit of foreign customers;
    iv. Purchase/rent warehouse facilities to conduct export 
operations;
    v. Engage in minor product or packaging modification activities 
necessary to insure compatibility of Products with the requirements of 
foreign markets and/or design, develop, and market generic corporate 
labels and packaging materials for export Products;
    vi. Negotiate and enter into agreements with providers of 
transportation services for the export of Products;
    vii. Consolidate CTEG shipments to Export Markets; and
    viii. Administer phytosanitary protocols to qualify the Products 
for Export Markets;
    c. Apply for and utilize export assistance and incentive programs, 
as well as arrange export financing through bank holding companies, 
governmental programs, and other arrangements;
    d. Design and develop foreign marketing strategies for CTEG's 
Export Markets and design, develop and market generic corporate and/or 
CTEG labels for export;
    e. Establish export sales prices, minimum export sales prices, 
target export sales prices and/or minimum target export sales prices, 
and other terms of export sale in connection with actual or potential 
bona fide export opportunities;
    f. Engage in joint bidding or other joint selling arrangements for 
exported Products and allocate export sales resulting from such 
arrangements;
    g. Participate in negotiations and enter into agreements with 
foreign buyers (including governments and private persons) regarding:
    i. The quantities, time periods, prices and terms and conditions in 
connection with actual or potential bona fide export opportunities; and
    ii. Non-tariff trade barriers in the Export Markets;
    h. Refuse to quote prices for export Products, or to market or sell 
export Products, to or for any customer in the export Product market, 
or any countries or geographical areas in the Export Markets;
    i. Allocate geographic areas or countries in the Export Markets 
and/or customers in the Export Markets among Members of the CTEG;
    j. 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;
    k. Conduct meetings with Members of the Certificate and/or CTEG's 
manager and/or consultant present to engage in export trade activities 
and/or methods of operation herein described in paragraph 1, or 
exchange information described in paragraph 2 below;
    l. Enter into agreements with non-members, whether or not 
exclusive, to provide Export Trade Facilitation Services. Purchase 
Products 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
    m. Advise and cooperate with the United States and foreign 
governments in:
    i. Establishing procedures regulating the export of Products, and
    ii. Fulfilling the phytosanitary and/or funding requirements 
imposed by foreign governments for export of Products.
    2. CTEG may exchange the following information with and among its 
Members:
    a. Information about export sales and marketing efforts, selling 
strategies, and

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contract and spot pricing in the Export Markets;
    b. Information regarding Product demand in the Export Markets;
    c. Information about the customary terms of sales in Export 
Markets;
    d. Information about export prices and availability of competitor's 
Products for sale in the Export Markets;
    e. Specifications for Products by customers in the Export Markets;
    f. Information about terms, conditions, and specifications of 
contracts relating to actual or potential bona fide export 
opportunities in the Export Markets to be considered and/or bid on by 
CTEG and its Members;
    g. Information about the price, quality, source, and delivery dates 
of Products available for export by CTEG Members;
    h. Information about joint bidding and/or selling arrangements for 
Export Markets;
    i. Information about expenses specific to exporting to and within 
the Export Markets, sales, and distribution networks established by 
CTEG and/or its Members in the Export Markets;
    j. Information about export customer credit terms and credit 
history;
    k. Information about United States and foreign legislation and 
regulations, including federal marketing order programs, affecting 
sales to the Export Markets;
    l. Information about joint bidding or selling arrangements for the 
Export Markets and allocations of sales resulting from such 
arrangements among the Members;
    m. Information about the 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;
    n. Information about CTEG's and/or its Members' export operations, 
including without limitation, sales and distribution networks 
established by CTEG and/or its Members in the Export Markets, and prior 
export sales by Members (including export price information);
    o. Publicly available information regarding the industry-wide 
forecasted quantity of Products secured through contracts for upcoming 
seasons; and
    p. Relevant information about non-domestic 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.

Definition

    ``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.

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

    The Members are Ingomar Packing Company, Los Banos, California; Los 
Gatos Tomato Products, Huron, California; and SK Foods, Lemoore, 
California.

Protection Provided by Certificate

    This Certificate protects CTEG, its Members, and directors, 
officers, and employees acting on behalf of CTEG and its Members 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 CTEG and Members from 
engaging in conduct not specified in this Certificate, but such conduct 
is subject to the normal application of U.S. antitrust laws.

Disclaimer

    The issuance of this Certificate of Review to CTEG by the 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 CTEG or Members or (b) the legality of such business plans of 
CTEG or its 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: March 1, 2006.
Jeffrey Anspacher,
Director, Export Trading Company Affairs.
[FR Doc. E6-3147 Filed 3-6-06; 8:45 am]
BILLING CODE 3510-DR-P