[Federal Register Volume 77, Number 171 (Tuesday, September 4, 2012)]
[Notices]
[Pages 53865-53867]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21735]


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DEPARTMENT OF COMMERCE

International Trade Administration

[Application No. 12-00004]


Export Trade Certificate of Review

ACTION: Notice of issuance of an Export Trade Certificate of Review to 
Colombia Poultry Export Quota, Inc. (``COLOM-PEQ)'') (Application 
12-00004).

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SUMMARY: On August 14, 2012, the U.S. Department of Commerce issued an 
Export Trade Certificate of Review to Colombia Poultry Export Quota, 
Inc. (``COLOM-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. 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 
Sec.  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 
Sec.  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 CFR 325.2(1)

    COLOM-PEQ's members under this certificate are the USA Poultry and 
Egg Export Council (USAPEEC) and Federacion Nacional de Avicultores, 
the Sector Representative Association (``sector gremial 
representativo'') for poultry in the Republic of Colombia.

Description of Certified Conduct

    COLOM-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

    COLOM-PEQ plans to export poultry products as described in the 
Agricultural Tariff Schedule of the Republic of Colombia, as appended 
to the TPA, and including the following Colombian HTS Codes: 
0207.1300.A--leg quarters [fresh or chilled] curators traseros [frescos 
o refrigerados]); 0207.1400A--leg quarters [frozen] (curators traseros 
[congelados]); 1602.3200.A--leg quarters, seasoned and frozen (curators 
traseros, sazonados y congelados).

Export Markets

    Poultry products for which awards will be made will be exported to 
the Republic of Colombia.

Export Trade Activities and Methods of Operation

    With respect to the conduct of Export Trade in the Export Markets, 
COLOM-PEQ may, subject to the terms and conditions set forth below, 
engage in the following Export Trade Activities and Methods of 
Operation:
    1. Purpose: COLOM-PEQ will manage on an open tender basis the 
tariff-rate quotas (TRQs) for poultry products granted by the Republic 
of Colombia to the United States under the terms of the TPA or any 
amended or successor agreement providing for Colombian TRQs for poultry 
from the United States of America.
    Specifically, the TRQs for poultry products are set forth at 
Paragraph 6 of Appendix I of the General Notes of Colombia, Annex 2.3 
to the TPA. COLOM PEQ also will provide for

[[Page 53866]]

distributions of the proceeds received from the tender process based on 
exports of poultry products (``the TRQ System'') to support the 
operation and administration of COLOM-PEQ and for the benefit of the 
poultry industry of the United States and the Republic of Colombia.
    2. Administrator. COLOM-PEQ shall contract with a neutral third 
party Administrator who shall bear responsibility for administering the 
TRQ System, subject to general supervision and oversight by the Board 
of Directors of COLOM-PEQ.
    3. Open Tender Process. COLOM-PEQ shall offer TRQ Certificates for 
duty-free shipments of chicken leg quarters to the Republic of Colombia 
solely and exclusively through an open tender process with certificates 
awarded to the highest bidders (``TRQ Certificates''). COLOM-PEQ shall 
hold tenders in accordance with tranches at least four times each year. 
The award of TRQ Certificates under the open tender process shall be 
determined solely and independently by the Administrator in accordance 
with Section I without any participation by the members of COLOM-PEQ or 
the COLOM-PEQ 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 Colombia. 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 days prior to the first day of the 
auction process and will specify a Bid Date. 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.
    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 products bid, in an amount stated in metric tons or 
fractions thereof; (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 
of 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 who 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 COLOM-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 COLOM-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 (A) above have been paid--
    (a) Fifty percent (50%) shall be distributed to fund market access, 
market promotion, educational, scientific and technical projects to 
benefit the United States poultry industry. COLOM-PEQ shall accept 
proposals for the funding of projects approved by resolution of the 
Board of Directors of USAPEEC.
    (b) Fifty percent (50%) shall be distributed by the Administrator 
to FENAVI to fund market access, market promotion, educational, 
capacity-building, competitiveness, scientific and technical projects 
to benefit the poultry industry of the Republic of Colombia. COLOM-PEQ 
shall accept proposals for the funding of projects approved by 
resolution of the Board of Directors of FENAVI.

[[Page 53867]]

    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 export documentation or other business sensitive 
information submitted in connection with application for COLOM-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 such information only to another neutral 
third party or authorized government official of the United States or 
of the Republic of Colombia 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)
    16. Annual Reports. COLOM-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 COLOM-PEQ TRQ System.

Terms and Conditions

    In engaging in Export Trade Activities and Methods of Operation,
    1. Except as authorized in Paragraph 15 of the Export Trade 
Activities and Methods of Operation, neither COLOM-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, capacity, inventories, domestic prices, domestic 
sales, or U.S. business plans, strategies, or methods, unless such 
information is already generally available to the trade or public.
    2. COLOM-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.
    3. COLOM-PEQ will ensure that the Administrator holds the auctions 
in accordance with tranches established in the relevant regulations of 
the Republic of Colombia, or in the absence of such, at least once by 
February 15 of each year. Failure to so hold auctions may result in 
revocation of the Certificate.

Definitions

    ``Neutral third party'', as used in this Certificate of Review, 
means a party not otherwise associated with COLOM-PEQ or any Member and 
who is not engaged in the production, sale, distribution or export of 
poultry or poultry products.
    ``TRQ System'', as used in this Certificate of Review, refers to 
distributions of the proceeds received from the tender process.

    Dated: August 28, 2012.
 Joseph E. Flynn,
Director, Office of Competition and Economic Analysis.
[FR Doc. 2012-21735 Filed 8-31-12; 8:45 am]
BILLING CODE 3510-DR-P