[Federal Register Volume 77, Number 137 (Tuesday, July 17, 2012)]
[Notices]
[Pages 41970-41972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17301]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[Application No. 12-00001]


Export Trade Certificate of Review

ACTION: Notice of issuance of an Export Trade Certificate of Review to 
Panama Poultry Export Quota, Inc. (``PAN-PEQ'') (Application 
12-00001).

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

SUMMARY: On June 25, 2012, the U.S. Department of Commerce issued an 
Export Trade Certificate of Review to Panama Poultry Export Quota, Inc. 
(``PAN-PEQ''). This notice summarizes the conduct for which 
certification has been granted.

FOR FURTHER INFORMATION CONTACT: Joseph E. Flynn, Director, Office of 
Competition and Economic Analysis, International Trade Administration, 
by telephone at (202) 482-5131 (this is not a toll-free number) or 
email 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 (2010). The U.S. 
Department of Commerce, International Trade Administration, Office of 
Competition and Economic Analysis (``OCEA'') is issuing this notice 
pursuant to 15 CFR 325.6(b), which requires the Secretary of Commerce 
to publish a summary of the issuance in the Federal Register. Under 
Section 305(a) of the Export Trading Company Act (15 U.S.C. 4012(b)(1)) 
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.

Members (Within the Meaning of 15 CF. 325.2(1))

    PAN-PEQ's members under this certificate are the USA Poultry and 
Egg Export Council (``USAPEEC'') on behalf of the U.S. poultry 
industry; and the Asociacion Nacional de Avicultores de Panama 
(``ANAVIP'') on behalf of the Panamanian poultry industry.

Description of Certified Conduct

    PAN-PEQ is certified to engage in the Export Trade Activities and 
Methods of Operation described below in the following Export Trade and 
Export Markets.

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 the Republic of Panama.

Export Trade Activities and Methods of Operation

    With respect to the conduct of Export Trade in the Export Markets, 
PAN-PEQ may, subject to the terms and conditions set forth below, 
engage in the following Export Trade Activities and Methods of 
Operation:
    1. Purpose: PAN-PEQ will manage on an open tender basis the tariff-
rate quotas (TRQs) for poultry products granted by the Republic of 
Panama to the United States under the terms of the United States-Panama 
Trade Promotion Agreement or any amended or successor agreement 
providing for Panamanian poultry TRQs for the United States of America. 
PAN-PEQ also will provide for distributions of the proceeds received 
from the tender process to support the operation and administration of 
PAN-PEQ and for the benefit of the poultry industries in the Republic 
of Panama and the United States.
    2. Administrator. PAN-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 PAN-PEQ.
    3. Open Tender Process. PAN-PEQ shall offer TRQ Certificates for 
duty-free shipments of chicken leg quarters to the Republic of Panama 
solely and exclusively through an open tender

[[Page 41971]]

process with certificates awarded to the highest bidders (``TRQ 
Certificates''). PAN-PEQ shall hold tenders in accordance with tranches 
established in the relevant regulations of the Republic of Panama, or 
in the absence of such, at least once each year. The award of TRQ 
Certificates under the open tender process shall be determined solely 
by the Administrator in accordance with Paragraphs 1 and 8 of the 
Export Trade Activities and Methods of Operation without any 
participation by the Board of Directors.
    4. Persons or Entities Eligible to Bid. Any person or entity 
incorporated or with a legal address in the United States of America 
shall be eligible to bid in the open tender process.
    5. 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 or in the Republic of Panama. 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; and (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 p.m. EST on the 
Bid Date.
    6. 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 metric tons or portions of 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.
    7. Performance Security. The bidder shall submit with each bid a 
performance bond, 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.
    8. 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.
    9. 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).
    10. 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.
    11. 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.
    12. 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 PAN-PEQ Board of 
Directors.
    13. Disposition of Proceeds. The proceeds of the open tender 
process shall be applied and distributed as follows:
    A. The Administrator shall pay from tender proceeds, as they become 
available, all operating expenses of PAN-PEQ, including legal, 
accounting and administrative costs of establishing and operating the 
TRQ System, as authorized by the Board of Directors.
    B. Of the proceeds remaining at the end of each year of operations 
after all costs described in (i) 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. PAN-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 PAN-PEQ Board of Directors.
    (b) Fifty percent (50%) shall be distributed to fund market 
development, educational, scientific and technical projects to benefit 
the poultry industry of the Republic of Panama. PAN-PEQ shall accept 
proposals for funding of projects approved by the Board of Directors of 
ANAVIP. The Administrator shall disburse funds to those projects 
approved for funding by the PAN-PEQ Board of Directors.
    14. Arbitration of Disputes. Any dispute, controversy or claim 
arising out of or relating to the TRQ System or the breach thereof, 
including inter alia, a Member's qualification for distribution, 
interpretation of documents, or of the distribution itself, shall be 
settled by arbitration administered by the 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.
    15. Confidential Information. The Administrator shall maintain as 
confidential all bids, their contents,

[[Page 41972]]

export documentation, or other business sensitive information submitted 
in connection with application for PAN-PEQ membership, bidding in the 
open tender process or requests for distribution of proceeds, where 
such documents or information has been marked ``Confidential'' by the 
person making the submission. The Administrator shall disclose any such 
information only to: (a) An external auditor retained for purposes of 
auditing auction results and proceeds; (b) an authorized neutral third 
party, or, (c) an authorized government official of the United States 
or of the Republic of Panama, and only as 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.
    16. Annual Reports. PAN-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 PAN-PEQ TRQ System.

Terms and Conditions

    In engaging in Export Trade Activities and Methods of Operation,
    1. ``PAN-PEQ'' will not intentionally disclose, directly or 
indirectly, to any Supplier any information about any other Supplier's 
costs, production, capacity, inventories, domestic prices, domestic 
sales, or U.S. business plans, strategies, or methods that is not 
already generally available to the trade or public.
    2. ``PAN-PEQ'' will ensure that the Administrator holds the 
auctions in accordance with tranches established in the relevant 
regulations of the Republic of Panama, or in the absence of such, at 
least once each year. Failure to so hold auctions may result in 
revocation of the Certificate.
    3. ``PAN-PEQ'' 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.

Definitions

    ``Neutral third party'', as used in this Certificate of Review, 
means (a) the Administrator; and (b) any other party that is not 
otherwise associated with PAN-PEQ or any Member and that is not engaged 
in the production, distribution, or sale of chicken leg quarters.
    ``TRQ System'', as used in this Certificate of Review, refers to 
the conduct of the tender for the product being exported (chicken leg 
quarters) under the tariff rate quota as agreed to in the United 
States-Panama Trade Promotion Agreement, and the distributions of the 
proceeds received from the tender process.

    Dated: July 11, 2012.
Joseph E. Flynn,
Director, Office of Competition and Economic Analysis.
[FR Doc. 2012-17301 Filed 7-16-12; 8:45 am]
BILLING CODE 3510-DR-P