[Federal Register Volume 73, Number 114 (Thursday, June 12, 2008)]
[Notices]
[Pages 33394-33396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13200]


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DEPARTMENT OF COMMERCE

International Trade Administration

[Application No. 08-00008]


Export Trade Certificate of Review

ACTION: Notice of Application for an Export Trade Certificate of Review 
from American Sugar Export Company LLC.

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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 (``Certificate''). 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].

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 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: Export Trading Company Affairs, 
International Trade Administration, U.S. Department of Commerce, Room 
7021-X H, Washington, DC 20230. Information submitted by any person is 
exempt from disclosure under the Freedom of Information Act (5 U.S.C. 
Sec.  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 08-00008.'' 
A summary of the application follows.

Summary of the Application

    Applicant: American Sugar Export Company LLC (``ASEC''), 1875 
Pennsylvania Avenue, NW., Washington, DC 20004.
    Contact: Robert C. Cassidy, Counsel to the Applicant, Telephone: 
(202) 863-7282.
    Application No.: 08-00008.
    Date Deemed Submitted: May 29, 2008.

[[Page 33395]]

    Members (in addition to applicant): Listed below.
    ASEC and its Members seek a Certificate to cover the following 
specific Export Trade, Export Markets, and Export Trade Activities and 
Methods of Operations.

Export Trade

Products

    U.S.-origin sugar and syrups meeting the following definitions: 
Harmonized Tariff Schedule of the United States (HTSUS) 1701, cane or 
beet sugar and chemically pure sucrose, in solid form; HTSUS 1806.10.43 
through HTSUS 1806.10.75, cane or beet sugar and chemically pure 
sucrose, in solid form: Containing 90 percent or more by dry weight of 
sugar; HTSUS 2106.90.42 through HTSUS 2106.90.46, food preparations not 
elsewhere specified or included: Syrups derived from cane or beet 
sugar, containing added coloring but not added flavoring matter.

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

    To engage in Export Trade in the Export Markets, ASEC and its 
Members intend to undertake the following activities:
    1. With respect to the Export Markets, ASEC and/or one or more of 
its Members may:
    a. Engage in joint bidding or selling arrangements and allocate 
sales resulting from such arrangements among the Members; and
    b. By agreement, including agreement with Export Intermediaries:
    (i) Establish the prices at which Products will be sold;
    (ii) Establish standard terms of sale of Products;
    (iii) Establish standard quality grades for Products;
    (iv) Establish target prices for sales of Products by its Members, 
with each Member remaining free to deviate from such target prices in 
its sole discretion;
    (v) Subject to the limitations set forth below, establish the 
quantity of Products for sales in specific Export Markets;
    (vi) Allocate among the Members the Export Markets or customers in 
the Export Markets;
    (vii) Refuse to quote prices for, or to market or sell Products; 
and
    (viii) Engage in joint promotional activities aimed at developing 
existing or new Export Markets, such as advertising and trade shows;
    2. With respect to Export Markets, ASEC may communicate the same 
information to each Member and, in the event of an over commitment of 
Products from Members, may communicate with Members about reductions in 
commitments.
    3. ASEC and/or one or more of its Members may enter into agreements 
to act in certain Export Markets as the Members' exclusive or non-
exclusive Export Intermediary(ies) for the quantity of Products 
dedicated by Members for sale by ASEC or any Member(s) in such Export 
Markets. In any such agreement (i) ASEC or the Member(s) acting as an 
exclusive Export Intermediary may agree not to represent any other 
Supplier of Products with respect to such Export Markets and (ii) 
Members may agree that they will export the quantity of Products 
dedicated for sales in such Export Markets only through ASEC or the 
Member(s) acting as the exclusive Export Intermediary, and that they 
will not export independently any of the Products dedicated to ASEC, 
either directly or through any other Export Intermediary.
    4. ASEC and/or one or more of its Members may enter into exclusive 
and non-exclusive agreements appointing third parties as Export 
Intermediaries for the sale of Products in the Export Markets. Such 
agreements may contain the price, quantity, quality, terms of sales, 
territorial, and customer restrictions for the Export Markets contained 
in and subject to the restrictions of paragraph 1, above.
    5. The Members may refuse to deal with Export Intermediaries other 
than ASEC and its Members.
    6. ASEC and/or one or more of its Members may solicit individual 
non-Member Suppliers to sell Products and/or offer Export Trade 
Facilitation Services through the certified activities of ASEC and/or 
its Members; provided, however, that ASEC and/or one or more of its 
Members will make such solicitations or offers to non-Member Suppliers 
on a transaction-by-transaction basis only and then only when the 
Members have not independently committed to a total quantity of 
Products sufficient to cover such transaction and ASEC and/or the 
Member(s) does not pay non-Member domestic Suppliers more than the 
price to be received by ASEC and/or its Member(s) pursuant to the 
transaction, and provided further that ASEC and/or such Member(s) may 
exchange only such information with such non-Member Suppliers as is 
reasonably required by such transaction.
    7. With respect to the sale of Products to the Export Markets only, 
ASEC may compile for, collect from, and disseminate to its Members, and 
the Members may discuss among themselves, in meetings conducted by ASEC 
or independently via telephone and other modes of communication as they 
decide appropriate, information about the following subjects:
    a. Sales and marketing efforts, and activities and opportunities 
for sale of Products in Export Markets, including but not limited to 
selling strategies and pricing, projected demand for Products, standard 
or customary terms of sales in the Export Markets, prices and 
availability of Products from competitors, and specifications for 
Products by customers in the Export Markets;
    b. Export prices, Products quality and quantity, Products source, 
and delivery dates for Products in the Export Markets;
    c. Terms and conditions of contracts for sale in the Export Markets 
of Products by ASEC and its Members;
    d. Joint bidding or selling arrangements in the Export Markets, and 
the allocation of sales resulting from such arrangements among the 
Members;
    e. 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. U.S. and foreign legislation, regulations, and policies 
affecting export sales; and
    g. ASEC's and/or its Members' export operations, including without 
limitation, sales and distribution networks established by ASEC or its 
Members in the Export Markets, and prior export sales by Members 
(including export price information).
    8. ASEC and its Members may prescribe conditions for withdrawal of 
Members from and admission of Members to ASEC; provided, however, that 
each Member shall have the right to withdraw at any time without 
further liability to pay dues or assessments except to pay to the 
corporation any remaining amounts due under a written subscription 
signed by the Member agreeing to make such contribution.
    9. With respect to Products for sale in the Export Markets, ASEC 
may, for itself or on behalf of its Members, establish and implement a 
quality assurance

[[Page 33396]]

program for Products, including without limitation establishing, 
staffing, and operating a laboratory to conduct quality testing, 
promulgating quality standards or grades, inspecting Products samples, 
and publishing guidelines for and reports of the results of laboratory 
testing.
    10. Applicant may conduct meetings of its Members, including 
meetings via telephone and other modes of communication as they decide 
appropriate, to engage in the activities described in paragraphs one 
through nine, above.

Definitions

    ``Supplier'' means a person who produces, provides, or sells 
Products or Export Trade Facilitation Services.
    ``Export Intermediary'' means a person who acts as a distributor, 
representative, sales or marketing agent, or broker, or who performs 
similar functions, including providing or arranging for the provision 
of Export Trade Facilitation Services.
    ``Export Trade Facilitation Services'' are activities that assist 
the progress of exporting, such as professional services in the areas 
of government relations and assistance with state and federal programs; 
foreign trade and business protocol; consulting; market research and 
analysis; collection of information on trade opportunities; marketing; 
negotiations; joint ventures; shipping; export management; export 
licensing; advertising; documentation and services related to 
compliance with customs requirements; insurance and financing; trade 
show exhibitions; organizational development; management and labor 
strategies; transfer of technology; transportation services; and 
facilitating the formation of shippers' associations.

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

Suppliers of Products

    The Amalgamated Sugar Company, LLC, 3184 Elder Street, Boise, ID 
83705, Tel: (208)383-6500, Fax: (208)383-6688.
    American Crystal Sugar Company, 101 North Third Street, Moorhead, 
MN 56560, Tel: 218-236-4400, Fax: 218-236-4422.
    American Sugar Holdings, Inc. and American Sugar Refining, Inc. (a 
subsidiary of American Sugar Holdings, Inc.), 1 Federal Street, 
Yonkers, NY 10705, Tel: 914-963-2400, Fax: 914-476-4072.
    Imperial Sugar Company, One Imperial Square, 8016 Highway 90-A, 
Sugar Land, TX 77478, Tel: 281-491-9181.
    Michigan Sugar Company, 2600 South Euclid Avenue, Bay City, MI 
48706, Tel: 989-686-0161, Fax: 989-686-3269.
    Minn-Dak Farmers Cooperative, 7525 Red River Road, Wahpeton, ND 
58075, Tel: 701-642-8411, Fax: 701-671-1369.
    Sidney Sugars Incorporated, 101 North Third Street, Moorhead, MN 
56560, Tel: 218-236-4400, Fax: 218-236-4422.
    Southern Minnesota Beet Sugar Cooperative, P.O. Box 500, Renville, 
MN 56284, Tel: 320-329-8305, Fax: 320-329-3252.
    Spreckels Sugar Company, Inc., P.O. Box 500, Renville, MN 56284, 
Tel: 320-329-8305, Fax: 320-329-3252.
    United States Sugar Corporation, 111 Ponce de Leon Avenue, 
Clewiston, FL 33440, Tel: 863-983-8121, Fax: 863-983-9827.
    Western Sugar Cooperative, 7555 East Hampden Avenue, Suite 600, 
Denver, CO 80231, Tel: 303-813-3500, Fax: 303-832-4084.

Export Intermediaries For Products

    Domino Foods, Inc., 1 Federal Street, Yonkers, NY 10705-1079, Tel: 
914-709-8053.
    United Sugars Corporation, 7401 Metro Blvd., Suite 350, Edina, MN 
55439, Tel: 952-896-0131, Fax: 952-896-0400.
    ASEC has proposed that the following Terms and Conditions govern 
its proposed Export Trade Activities and Methods of Operation:

Terms and Conditions of Certificate

    1. In engaging in Export Trade Activities and Methods of 
Operations, except as provided in paragraph 7, above, neither ASEC nor 
its Members shall intentionally disclose, directly or indirectly, to 
each other or any other Supplier of Product any information about its 
or any Supplier's costs, production, capacity, inventories, domestic 
prices, domestic sales, domestic orders, terms of domestic marketing or 
sale, or U.S. business plans, strategies or methods, unless: (1) Such 
information is already generally available to the trade or public; or 
(2) such disclosure is a material part of the negotiations for an 
actual or potential bona fide sale or purchase of Product and the 
disclosure is limited to that prospective purchaser or seller.
    2. Participation by a Member in any Export Trade Activity or Method 
of Operation under the Certificate shall be entirely voluntary to that 
Member, subject to the provisions of paragraph 8, above, and subject to 
the honoring of contractual commitments for sales of Product in 
specific export transactions. A Member may withdraw from coverage under 
the Certificate at any time by giving written notice to ASEC, a copy of 
which ASEC shall promptly transmit to the Secretary of Commerce and the 
Attorney General.
    3. ASEC and its 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, or Methods of Operation 
of a person protected by this certificate of review continues to comply 
with the standards of Section 303(a) of the Act.

    Dated: June 6, 2008.
Jeffrey Anspacher,
Director, Export Trading Company Affairs.
[FR Doc. E8-13200 Filed 6-11-08; 8:45 am]
BILLING CODE 3510-DR-P