Gray Portland Cement and Clinker from Mexico: Agreement Between the Office of the United States Trade Representative, The United States Department of Commerce and Secretaria de Economia of Mexico on Trade in Cement, 13082-13090 [E6-3531]
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Federal Register / Vol. 71, No. 49 / Tuesday, March 14, 2006 / Notices
covered in this review, a prior review,
or the less–than-fair–value (LTFV)
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the subject
merchandise; and (4) the cash deposit
rate for all other manufacturers or
exporters will continue to be the ‘‘all
others’’ rate of 0.98 percent, which is
the ‘‘all others’’ rate established in the
LTFV investigation, adjusted for the
export subsidy rate in the companion
countervailing duty investigation. These
cash deposit rates, when imposed, shall
remain in effect until publication of the
final results of the next administrative
review. See section 751(a)(2)(C) of the
Act.
Notification to Parties
This notice serves as a final reminder
to importers of their responsibility
under 19 CFR § 351.402(f)(2) to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries
during this review period. Failure to
comply with this requirement could
result in the Secretary’s presumption
that reimbursement of the antidumping
duties occurred and the concomitant
assessment of double antidumping
duties. This notice is also the only
reminder to parties subject to the
administrative protective order (‘‘APO’’)
of their responsibility concerning the
return or destruction of proprietary
information disclosed under APO in
accordance with 19 CFR § 351.305.
Timely written notification of the
return/destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and the terms of an
APO is a sanctionable violation.
The Department is publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: March 7, 2006.
David M. Spooner,
Assistant Secretary for Import
Administration.
A–201–802
Gray Portland Cement and Clinker
from Mexico: Agreement Between the
Office of the United States Trade
Representative, The United States
Department of Commerce and
Secretaria de Economia of Mexico on
Trade in Cement
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Office of the United
States Trade Representative (USTR) and
the United States Department of
Commerce (Commerce) have entered
into an agreement with the Secretaria de
Economia of Mexico pertaining to
imports of gray portland cement and
clinker from Mexico (Mexican Cement).
The Agreement Between the Office of
the United States Trade Representative
and the Department of Commerce of the
United States of America and the
Ministry of Economy of the United
Mexican States (Secretaria de Economia)
on Trade in Cement (Agreement)
provides for the settlement or
suspension of ongoing litigation before
North American Free Trade Agreement
(NAFTA) and World Trade Organization
(WTO) panels challenging various
antidumping duty determinations
involving Mexican Cement. In addition,
Commerce has agreed to compromise its
claims for duties with respect to entries
of Mexican Cement not currently in
litigation. Finally, the Agreement
creates a system whereby Mexican
Cement imports will be subject to
regional export limits, which will be
monitored by both Commerce and
Secretaria de Economia through export
license and import license systems. The
Agreement provides that, if Mexican
Cement producers successfully abide by
the terms of the Agreement for three
years, then the antidumping duty order
will be revoked with respect to those
producers.
AGENCY:
April 3, 2006.
FOR FURTHER INFORMATION CONTACT:
Comments and Responses
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International Trade Administration
EFFECTIVE DATE:
Appendix
1: Treatment of Sales with Negative Dumping
Margins
2: Error Related to the Calculation of Net U.S.
Price
[FR Doc. E6–3621 Filed 3–13–06; 8:45 am]
BILLING CODE 3510–DS–S
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DEPARTMENT OF COMMERCE
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Sally C. Gannon, Judith Wey Rudman,
or Jonathan Herzog (202) 482–0162,
(202) 482–0192, and (202) 482–4271
respectively, Bilateral Agreements Unit,
Office of Policy and Negotiations,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
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Scope of Investigation
For a complete description of the
subject merchandise of this Agreement,
see Section I.L of the Agreement.
Background
On October 23, 1989, Commerce
initiated an antidumping duty
investigation of Mexican Cement. See
Initiation of Antidumping Duty
Investigation; Gray Portland Cement
and Clinker from Mexico, 54 FR 43190
(October 23, 1989). On August 30, 1990,
pursuant to the Final Determination of
Sales at Less Than Fair Value; Gray
Portland Cement and Clinker from
Mexico, 55 FR 29244 (July 18, 1990),
Commerce issued an antidumping duty
order (Order) applicable to shipments of
Mexican Cement. See Antidumping
Duty Order: Gray Portland Cement and
Clinker from Mexico, 55 FR 35443
(August 30, 1990). Since the issuance of
the Order, Commerce has conducted
fourteen administrative reviews,
initiated a fifteenth administrative
review, completed a five-year Sunset
Review of the Order, and initiated a
second Sunset Review. Several of these
proceedings have been challenged
before NAFTA and WTO panels: Gray
Portland Cement and Clinker from
Mexico: Notice of Final Results of
Antidumping Duty Administrative
Review, 63 FR 12764 (March 16, 1998)
(6th Review), Gray Portland Cement and
Clinker from Mexico: Notice of Final
Results of Antidumping Duty
Administrative Review, 65 FR 13943
(March 15, 2000) (8th Review), Gray
Portland Cement and Clinker from
Mexico: Notice of Final Results of
Antidumping Duty Administrative
Review, 66 FR 14889 (March 14, 2001)
(9th Review), Gray Portland Cement and
Clinker from Mexico: Notice of Final
Results of Antidumping Duty
Administrative Review, 67 FR 12518
(March 19, 2002) (10th Review), Gray
Portland Cement and Clinker from
Mexico: Notice of Final Results of
Antidumping Duty Administrative
Review, 68 FR 1816 (January 14, 2003)
(11th Review), Gray Portland Cement
and Clinker from Mexico: Notice of
Final Results of Antidumping Duty
Administrative Review, 68 FR 54203
(September 16, 2003) (12th Review), and
Gray Portland Cement and Clinker from
Mexico: Notice of Final Results of
Antidumping Duty Administrative
Review, 69 FR 77987 (December 29,
2004) (13th Review), Gray Portland
Cement and Clinker from Mexico:
Notice of Final Results of Antidumping
Duty Administrative Review, 71 FR 2909
(January 18, 2006) (14th Review), and
Commerce’s final determination in Gray
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Portland Cement and Cement Clinker
from Mexico; Final Results of Full
Sunset Review, 65 FR 41049 (July 3,
2000) (2000 Sunset Review).
Furthermore, certain International Trade
Commission (ITC) determinations
involving Mexican Cement have been
challenged before NAFTA panels as
well.
On March 6, 2006, USTR, Commerce,
and Secretaria de Economia entered into
the Agreement. Under its terms, the
Agreement settles or suspends the
NAFTA litigation of the 6th Review, 8th
Review, 9th Review, 10th Review, 11th
Review, 12th Review, 13th Review, 14th
Review, 2000 Sunset Review, and two
challenges involving the ITC. A
challenge before the WTO is suspended
as well. In addition, the parties
requesting the 15th administrative
review of Mexican Cement, initiated on
September 28, 2005 (see 70 FR 56331
(September 28, 2005)), have requested
rescission of that review. See Gray
Portland Cement and Clinker From
Mexico: Rescission of Antidumping
Duty Administrative Review and
Compromise of Outstanding Claims
(Publication Pending). Commerce has
compromised claims to antidumping
duties for entries of Mexican Cement
covered by both that review period, as
well as entries of subject merchandise
that entered the United States from
August 1, 2005 through April 2, 2006.
Furthermore, the Agreement provides a
system whereby, for three years,
Mexican exporters of subject
merchandise will be subject to specific
sub–regional export limits and will be
required to obtain, prior to entry, an
export license issued by the
Government of Mexico. Importers of
Mexican Cement will be required to
apply for an import license number
issued by Commerce. Both a copy of the
export license and the import license
number must be provided to U.S.
Customs and Border Protection when
the importer files Customs Form 7501.
As a result of the litigation settlement,
a new assessment rate will be applied to
all entries of Mexican Cement from
Cementos Mexicanos de Mexico, S.A. de
C.V. (CEMEX), and GCC Cemento, S.A.
de C.V. (and its predecessor–in-interest,
Cementos de Chihuahua, S.A. de C.V.)
(GCCC), covered by the various NAFTA
challenges. Furthermore, a new cash
deposit rate of $3.00 per metric ton has
been established for all entries from
CEMEX and GCCC after the effective
date of the Agreement as a result of the
settlement of the 14th review. See Gray
Portland Cement and Clinker from
Mexico: Notice of Amended Final
Results of Antidumping Duty
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Administrative Reviews (Publication
Pending).
The duration of the Agreement is
three years. If all of the terms of the
Agreement are complied with by the
interested parties, the Agreement will
expire on March 31, 2009, and
Commerce will revoke the Order. For
further details, please see the
Agreement, attached.
Dated: March 6, 2006.
David M. Spooner,
Assistant Secretary for Import
Administration.
AGREEMENT BETWEEN THE OFFICE
OF THE UNITED STATES TRADE
REPRESENTATIVE AND THE
DEPARTMENT OF COMMERCE OF
THE UNITED STATES OF AMERICA
AND THE MINISTRY OF ECONOMY
OF THE UNITED MEXICAN STATES
(SECRETARIA DE ECONOMIA) ON
TRADE IN CEMENT
The Office of the United States Trade
Representative (‘‘USTR’’) and the
Department of Commerce (‘‘DOC’’) of
the United States of America, of the one
part, and the Ministry of Economy of the
United Mexican States (‘‘Secretaria de
´
Economıa’’ or ‘‘SE’’) of the other part;
(hereinafter referred to as the ‘‘Parties’’)
enter into this Agreement (the
‘‘Agreement’’):
Desiring to resolve the numerous
trade disputes arising from the
Mexican Cement Order and to
promote more liberal and stable
trade in cement between Mexico
and the United States;
Reaffirming the rights, obligations,
and undertakings of the United
States and Mexico under the North
American Free Trade Agreement
(‘‘NAFTA’’) and the Marrakesh
Agreement Establishing the World
Trade Organization (‘‘WTO’’)
(including the Agreement on
Implementation of Article VI of the
GATT 1994);
Sharing a common interest in
liberalizing trade in, and facilitating
the cross–border movement of,
cement between the territories of
the United States and Mexico,
consistent with the NAFTA;
Desiring to ensure the satisfactory
resolution of a dispute settlement
proceeding in the WTO and
numerous proceedings under
Chapter 19 of the NAFTA relating
to the Mexican Cement Order;
Desiring, after a period during which
trade in cement would be governed
through trade liberalizing measures,
to terminate the Mexican Cement
Order; and
Noting the trade–liberalizing
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objectives of the Security and
Prosperity Partnership of North
America announced by President
Fox and President Bush on March
23, 2005;
HAVE AGREED AS FOLLOWS:
I. Definitions
For purposes of this Agreement, the
following definitions shall apply:
A. ‘‘Act’’ means the United States
antidumping law, as contained in Title
VII of the Tariff Act of 1930, Sections
731 et seq., 19 U.S.C. Sections 1673, et
seq., as amended.
B. ‘‘Circumvention’’ means:
1. The exportation of Mexican Cement
by a Mexican Cement Producer, any
person or enterprise in Mexico, or any
person or enterprise outside of Mexico
that is, as a matter of fact and law, acting
on behalf of a Mexican Cement
Producer, to a Sub–region that:
a. is not accompanied by an Export
License;
b. for which an Import License has
not been issued, once the U.S.
Import License system has been
established; or
c. exceeds in quantity the Export
Limits for any Sub–region or the
Export Rights allocated by SE to the
producer of that cement; or
2. Shipping from Mexico to the United
States, through third countries, Mexican
Cement that is unaccompanied by an
Export License;
except for any such exports that are
inconsequential, inadvertent, or do not
substantially frustrate the purposes of
this Agreement.
C. ‘‘Date of Export’’ means the date on
which SE issues an Export License.
D. ‘‘Effective Date’’ means April 3, 2006.
E. ‘‘Escrow Accounts’’ means the
accounts at SunTrust Bank established
pursuant to the Escrow Agreement.
F. ‘‘Escrow Agreement’’ means the
agreement entered into by the
individual members of the Southern
Tier Cement Committee (‘‘STCC’’),
Holcim (US) Inc. (‘‘Holcim’’), Capitol
Aggregates, Ltd. (‘‘Capitol Aggregates’’),
and the U.S. importers of record of
Mexican Cement produced by CEMEX
and GCCC, on the date of this
Agreement, CEMEX Cement, Inc.
(formerly known as Sunbelt Cement,
Inc.) (‘‘CEMEX Cement’’), Gulf Coast
Portland Cement Co. (formerly known
as HM Gulf Coast Portland Cement
Company)(‘‘Gulf Coast Portland
Cement’’), and Rio Grande Portland
Cement Corp. and its successor, GCC
Rio Grande, Inc. (collectively ‘‘GCC Rio
Grande’’). The Escrow Agreement is
attached to this Agreement as Appendix
13.
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G. ‘‘Export License’’ means the
document issued by SE in a given
Export Limit Period (containing the
information described in Appendix 22)
that authorizes an exporter in Mexico to
export a certain quantity of Mexican
Cement during a given 90 day period
specified in the Export License and to
a given Sub–region.
H. ‘‘Export Limit’’ means the quantity of
Mexican Cement permitted to be
exported (based upon the Date of
Export) under Section III of this
Agreement from Mexico to a given Sub–
region during a given Export Limit
Period.
I. ‘‘Export Limit Period’’ means one of
the following periods:
First Export Limit Period – The period
beginning on April 3, 2006 (the
Effective Date) and ending on
March 31, 2007.
Second Export Limit Period – The
period beginning on April 1, 2007,
and ending on March 31, 2008.
Third Export Limit Period – The
period beginning on April 1, 2008,
and ending on March 31, 2009.
J. ‘‘Export Rights’’ means the share of
the Export Limit for a given Sub–region
and Export Limit Period assigned by SE
to a specific Mexican Cement Producer.
K. ‘‘Import License’’ means the number
generated by the automatic import
licensing system established by DOC
(based on the information supplied by
the U.S. importer of record as described
in Appendix 20).
L. ‘‘Mexican Cement’’ means gray
portland cement and clinker from
Mexico. Gray portland cement is a
hydraulic cement and the primary
component of concrete. Clinker, an
intermediate material produced when
manufacturing cement, has no use other
than being ground into finished cement.
Specifically included within the scope
of this definition are pozzolanic blended
cements and oil well cements.
Specifically excluded are white cement
and Type ‘‘S’’ masonry cement as
defined in the DOC’s April 25, 1996,
scope determination (61 FR 18381).
Gray portland cement is currently
classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS)
item number 2523.29 and cement
clinker is currently classifiable under
HTSUS item number 2523.10. Gray
portland cement has also been entered
under HTSUS item number 2523.90 as
‘‘other hydraulic cements.’’ These
HTSUS subheadings are provided for
convenience and USCBP purposes; the
written definition is controlling for
purposes of this Agreement.
M. ‘‘Mexican Cement Order’’ means the
U.S. antidumping duty order on
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Mexican Cement issued on August 30,
1990 (55 FR 35443).
N. ‘‘Mexican Cement Producers’’ means
the producers of Mexican Cement on the
Effective Date or at any time while this
Agreement is in force, including the
Mexican Cement Producers Cementos
Mexicanos of Mexico, S.A. de C.V.
(‘‘CEMEX’’), GCC Cemento, S.A. de C.V.
(and its predecessor–in-interest,
Cementos de Chihuahua, S.A. de C.V.
(‘‘GCCC’’), Holcim Apasco, S.A. de C.V.
(‘‘Apasco’’), Cooperativa Cruz Azul,
S.C.L. (‘‘Cruz Azul’’), Cementos
Moctezuma, S.A. de C.V.
(‘‘Moctezuma’’), and Lafarge Cementos,
S.A. For purposes of this Agreement,
CEMEX and GCCC are considered to be
unrelated and unaffiliated entities.
O. ‘‘Southern Tier’’ means the region of
the United States that is comprised of
the following states: California, Arizona,
New Mexico, Texas, Louisiana,
Mississippi, Alabama, and Florida.
P. A ‘‘Sub–region’’ means one of the
following regions:
‘‘Alabama/Mississippi,’’ which
comprises the state of Alabama and
the state of Mississippi;
‘‘Arizona,’’ which comprises the state
of Arizona;
‘‘California,’’ which comprises the
state of California;
‘‘Florida,’’ which comprises the state
of Florida;
‘‘New Mexico/El Paso,’’ which
comprises the state of New Mexico
and the following counties in the
state of Texas: Cochran, Hockley,
Lubbock, Yoakum, Terry, Lynn,
Gaines, Dawson, Andrews, Martin,
El Paso, Hudspeth, Culberson,
Reeves, Loving, Winkler, Ector,
Midland, Ward, Crane, Upton, Jeff
Davis, and Pecos;
‘‘Texas,’’ which comprises all of the
counties in the state of Texas not
included in the ‘‘New Mexico/El
Paso’’ Sub–region;
‘‘New Orleans,’’ which comprises the
state of Louisiana; and
‘‘Rest of the United States,’’ which
comprises all other states,
territories, and regions of the
United States.
Q. ‘‘Southern Tier Cement Committee’’
means the coalition currently comprised
of the following companies (including
their predecessors and successors in
interest): Alamo Cement Co., Arizona
Portland Cement, Ash Grove Cement
Co., Inc., Ash Grove Texas LP, Buzzi
Unicem USA Inc., California Portland
Cement Co., Eagle Materials, Inc.,
Florida Crushed Stone Co., Giant
Cement Holding Inc., Hanson
Permanente Cement, Lafarge Building
Materials, Inc., Lehigh Cement Co.,
Lafarge North America, Inc., Lehigh
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Southwest Cement Co., Lone Star
Industries, Inc., National Cement Co. of
Alabama, National Cement Co. of
California, Rinker Materials Corp., Salt
River Materials Group, Suwannee
American Cement Company, Inc., Texas
Industries, Inc., Texas–Lehigh Cement
Co., and Titan America LLC.
R. The ‘‘Committee for Fairly Traded
Mexican Cement’’ means the coalition
currently comprised of the following
companies (including their predecessors
and successors in interest): TXI
Riverside Cement Co. and all of the
members of the STCC except Ash Grove
Cement Co., Inc.; Buzzi Unicem USA
Inc.; Eagle Materials, Inc.; Giant Cement
Holding Inc.; and Lafarge North
America, Inc. This Committee (rather
than the STCC) is the party to the sunset
proceedings involving the Mexican
Cement Order before the DOC and the
International Trade Commission (‘‘ITC’’)
and the related NAFTA panel
proceedings.
S. ‘‘United States’’ means the customs
territory of the United States of America
and all foreign trade zones located in
the territory of the United States of
America.
T. ‘‘USCBP’’ means United States
Customs and Border Protection.
U. ‘‘1999 Sunset Review’’ means the five
year review of the Mexican Cement
Order under 19 U.S.C. § 1675(c)
initiated by DOC in August 1999.
V. ‘‘2005 Sunset Review’’ means the five
year review of the Mexican Cement
Order under 19 U.S.C. § 1675(c)
initiated by DOC on October 3, 2005.
II. General Provisions
A. This Agreement shall enter into force
on the Effective Date, provided that all
of the following events have occurred:
1. SE has established an Export License
system for all exports of Mexican
Cement to the United States.
2. The parties in the following NAFTA
panel proceedings concerning DOC
determinations have entered into a
settlement agreement and, with the
consent of the other parties, DOC has
filed a Notice of Motion requesting
termination of the Panel reviews, as of
the Effective Date, pursuant to Rule
71(2) of the NAFTA Rules of Procedure
for Article 1904 Panel Reviews:
In the Matter of Gray Portland Cement
and Clinker from Mexico,
Secretariat File No. USA–MEX–
1998–1904–02 (6th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker from Mexico,
Secretariat File No. USA–MEX
2000–1904–03 (8th Administrative
Review);
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In the Matter of Gray Portland Cement
and Clinker from Mexico,
Secretariat File No. USA–MEX–
2001–1904–04 (9th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariat File No. USA–MEX–
2002–1904–05 (10th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariat File No. USA–MEX–
2003–1904–01 (11th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariat File No. USA–MEX–
2003–1904–03 (12th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariat File No. USA–MEX–
2004–1904–03 (13th Administrative
Review);
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariat File No. USA–MEX–
2006–1904–03 (14th Administrative
Review); and
In the Matter of Gray Portland Cement
and Clinker From Mexico,
Secretariate File No. USA–MEX–
2000–1904–05 (DOC Final Results
of the 1999 Sunset Review).
The settlement agreement and Notices
of Motion are attached to this
Agreement as Appendix 1.
3. The ITC has filed, with the consent
of CEMEX and GCCC, a Notice of
Motion requesting termination of the
panel review below, as of the Effective
Date, pursuant to Rule 71(2) of the
NAFTA Rules of Procedure for Article
1904 Panel reviews:
ITC Dismissal of a Request to Institute
a Section 751(b) Review (USA–MEX
2002–1904–01).
The Notice of Motion is attached to this
Agreement As Appendix 1.
4. DOC has taken each of the following
actions:
a. Issued instructions to USCBP to
liquidate entries of Mexican Cement
produced by CEMEX or GCCC that
were imported by CEMEX Cement,
Gulf Coast Portland Cement, and
GCC Rio Grande (listed on USCBP
Form 4811 designating SunTrust
Bank as the agent), at the rate of ten
U.S. cents ($0.10) per metric ton,
and to refund to the Escrow
Accounts the deposits of estimated
duties in excess of that rate, with all
accrued interest thereon. DOC shall
work with USCBP, CEMEX, and
GCCC to ensure that all of CEMEX’s
and GCCC’s entries are liquidated
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pursuant to this provision. These
instructions are attached to this
Agreement as Appendix 2;
b. Issued instructions to USCBP,
pursuant to the settlement of the
NAFTA litigation arising from the
14th administrative review of the
Mexican Cement Order (Gray
Portland Cement and Clinker from
Mexico: Notice of Final Results of
Antidumping Duty Administrative
Review, 71 FR 2909 (January 18,
2006)), to change the estimated duty
deposit rate for CEMEX and GCCC
to three U.S. Dollars ($3.00) per
metric ton as of the Effective Date.
Copies of these instructions are
attached to this Agreement as
Appendix 3. DOC shall publish a
Notice in the Federal Register
within 10 days of the Effective Date
amending the final results of the
14th administrative review and
announcing the new deposit rate. A
copy of the Notice is attached to
this Agreement as Appendix 4;
c. Signed a determination (the text of
which is attached to this Agreement
as Appendix 5), that will be
published in the Federal Register
within 10 days of the Effective Date,
rescinding, pursuant to 19 C.F.R.
§ 351.213(d)(1), all administrative
reviews of the Mexican Cement
Order in progress on the Effective
Date; and
d. Suspended the 2005 Sunset Review
of the Mexican Cement Order.
5. CEMEX Cement, Gulf Coast Portland
Cement, and GCC Rio Grande have each
executed an irrevocable power of
attorney (all of which are attached to the
Agreement in Appendix 6) appointing
SunTrust Bank as its attorney–in-fact to
take all actions required for receiving
and depositing into the Escrow
Accounts all refunds pursuant to this
Agreement of estimated antidumping
duties on Mexican Cement.
6. DOC, CEMEX Cement, Gulf Coast
Portland Cement, and GCC Rio Grande
have entered into settlement
agreements, pursuant to Section 617 of
the Tariff Act of 1930, 19 U.S.C. § 1617,
that take effect on the Effective Date,
providing for the liquidation of all
entries of Mexican Cement produced by
CEMEX and GCCC entered from August
1, 2004, through April 2, 2006, at the
rate of ten U.S. cents ($0.10) per metric
ton. These settlement agreements are
attached to this Agreement as Appendix
7.
7. The World Trade Organization (WTO)
panel in United States – Anti–Dumping
Measures on Cement from Mexico (WT/
DS281) has granted the Government of
Mexico’s request for suspension of the
panel proceedings, pursuant to Article
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12.12 of the WTO’s Understanding on
Rules and Procedures Governing the
Settlement of Disputes. The
communication from the Chairman of
the panel granting this request is
attached to this Agreement as Appendix
8.
8. CEMEX, GCCC, and the STCC and its
members have filed documents, as
appropriate, through their counsel, with
DOC (attached to this Agreement as
Appendix 9):
a. Withdrawing all outstanding
requests for administrative reviews
of the Mexican Cement Order under
Section 751 of the Act and
requesting DOC to rescind all
administrative reviews in progress
as of the Effective Date;
b. Requesting DOC to lift any
suspension of liquidation under 19
U.S.C. § 1516a(g)(5)(C)(i) and 19
C.F.R. § 356.8 in connection with
NAFTA panel reviews of DOC
administrative reviews concerning
all entries of Mexican Cement that
entered the United States before the
Effective Date; and
c. Requesting DOC to lift the
suspension of liquidation instituted
by DOC under 19 U.S.C.
§ 1516a(g)(5)(C)(i) and 19 C.F.R.
§ 356.8, pursuant to the NAFTA
litigation covering the 1999 Sunset
Review:
1. of all entries of Mexican Cement
that entered the United States
before the Effective Date; and
2. of all entries of Mexican Cement
covered by any administrative
review of such entries during an
administrative review period
ending after the Effective Date
(following the end of the period for
requesting that administrative
review), so that those entries can be
liquidated in accordance with this
Agreement (provided that this
Agreement remains in force at the
time liquidation is ordered).
9. CEMEX, GCCC, and Apasco have
each filed an irrevocable letter with
DOC (attached to this Agreement as
Appendix 10) agreeing, in the event the
submitter of the letter has been found to
have engaged in Circumvention, to
participate in any accelerated changed
circumstances review conducted by
DOC (pursuant to Paragraph VII.C) to
establish a new estimated antidumping
duty deposit rate, by:
a. Filing with DOC, within two weeks
of receiving a written request, a
submission with sufficient
information to enable DOC to
calculate a weighted–average
dumping margin, based on the
company’s sales in the two most
recent quarters;
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b. Permitting DOC to verify the
submission in Paragraph II.A.9.a;
c. Waiving the company’s right to
participate in the changed
circumstances review, other than by
filing with DOC the submission
described in Paragraph II.A.9.a and
one administrative brief two weeks
before DOC’s final determination is
scheduled to be issued; and
d. Accepting that, if it does not make
the submission described in
Paragraph II.A.9.a, DOC shall
determine the new estimated duty
deposit rate on the basis of the facts
available to be $42.63 per metric
ton (the average of the calculated
rates for the 12th and 13th
administrative review periods).
10. CEMEX, GCCC, the Committee for
Fairly Traded Mexican Cement, and the
ITC have obtained from the NAFTA
panel reviewing the determination of
the ITC in the 1999 Sunset Review a
Notice of Suspension of Panel Review,
and the ITC has filed a Notice of Motion
of Termination of Panel Review (ITC
Sunset Review of the Antidumping Duty
Order, USA–MEX–2000–1904–10)
(attached to this Agreement as
Appendix 11) that, respectively, will:
a. suspend the Panel proceeding for as
long as this Agreement remains in
force; and
b. terminate the Panel proceeding
upon notification by DOC to the
NAFTA Secretariat that DOC has
revoked the Mexican Cement Order
as to CEMEX and GCCC, or DOC
has determined not to revoke the
Mexican Cement Order as to
CEMEX or GCCC pursuant to
Section XI.B. of this Agreement.
11. The Committee for Fairly Traded
Mexican Cement, CEMEX, GCCC, and
Apasco have filed with the DOC,
through their counsel, a letter (attached
to this Agreement as Appendix 12):
a. expressing their shared view that,
while this Agreement remains in
force, the 2005 Sunset Review is
neither required nor permitted, and
should be suspended; and
b. requesting DOC, if this Agreement
has not been terminated before
March 31, 2009, to terminate the
2005 Sunset Review on that date.
12. The STCC members, Capitol
Aggregates, Holcim, CEMEX Cement,
Gulf Coast Portland Cement, and GCC
Rio Grande have entered into the
Escrow Agreement attached to this
Agreement as Appendix 13.
13. The STCC and its members, Holcim,
Capitol Aggregates, CEMEX Cement,
Gulf Coast Portland Cement, and GCC
Rio Grande have each filed with DOC,
either themselves or through their
counsel, an irrevocable letter (attached
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Jkt 208001
to this Agreement as Appendix 14),
effective on the Effective Date, stating,
as appropriate, that:
a. While this Agreement remains in
force, the party submitting the letter
will not request any review under
Section 751 of the Act of any
Mexican Cement Producer that has
not engaged in Circumvention. In
the event that a Mexican Cement
Producer engages in Circumvention,
the party submitting the letter
reserves the right to request an
administrative review and a
changed circumstances review only
of exports by that Mexican Cement
Producer;
b. Provided that this Agreement has
not been terminated before March
31, 2009, the party submitting the
letter has ‘‘no interest’’ in
maintaining the Mexican Cement
Order after the expiration of this
Agreement, except with respect to
any Mexican Cement Producer that
has substantially exceeded the
Export Rights allocated to it by SE
for any Sub–region for the Third
Export Limit Period; and
c. The party shall not file a petition
requesting remedies with respect to
Mexican Cement under the Act, the
U.S. countervailing duty law,
Sections 201–204 of the Trade Act
of 1974, as amended, or Sections
301–305 of the Trade Act of 1974,
as amended, for the duration of this
Agreement and for a period of nine
(9) months after this Agreement
expires and will oppose any such
petition filed by any other person or
enterprise during that period.
14. Representatives of SunTrust Bank,
the institution responsible for the
Escrow Accounts, have completed two
copies of Form 5106, and CEMEX
Cement, Gulf Coast Portland Cement
and GCC Rio Grande have filed such
copies of Form 5106 with USCBP,
providing Suntrust Bank’s addresses for
purposes of receipt of refunds and
interest payments from USCBP. One
copy of Form 5106 will provide an
agent’s number for the account used by
CEMEX Cement and Gulf Coast Portland
Cement. The second copy will provide
an agent’s number for the account used
by GCC Rio Grande. These copies are
attached to this Agreement as part of
Appendix 15.
15. CEMEX Cement, Gulf Coast Portland
Cement, and GCC Rio Grande have each
filed with USCBP:
a. A Form 4811 for each U.S. port of
entry having entries of Mexican
Cement that will be covered by a
settlement under this Agreement,
directing USCBP to send all refunds
of estimated antidumping duty
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Sfmt 4703
deposits pursuant to such a
settlement to the importers of
record in care of SunTrust Bank
(also attached to this Agreement as
Appendix 15);
b. A blanket statement of non–
reimbursement, pursuant to 19 CFR
§ 351.402(f)(2), certifying that it has
not entered into any agreement or
understanding for the payment of
all or any part of antidumping
duties by the manufacturer,
producer, seller or exporter of the
subject merchandise (attached to
this Agreement as Appendix 16);
and
c. A waiver (attached to this
Agreement as Appendix 17) of the
right under 19 U.S.C. § 1514 to
protest the liquidation of the entries
subject to this Agreement, other
than to contest and correct:
1. the rate at which the entry was
liquidated if the rate is other than
the rate contained in the DOC
instructions;
2. the calculation of the refund; or
3. clerical errors and mistakes of fact,
following consultation with both
DOC and SE, and agreement by both
DOC and SE that the error or
mistake is, indeed, clerical in
nature or, indeed, a mistake of fact.
16. CEMEX Cement, Gulf Coast Portland
Cement and GCCC Rio Grande have
each certified to DOC that they have
supplied a complete list of all entries
covered by the settlement in connection
with this Agreement (attached to this
Agreement as Appendix 18).
B. The Parties undertake the following
obligations once this Agreement has
entered into force (provided that this
Agreement remains in force):
1. SE shall not issue an Export License
to any Mexican Cement Producer that
has not filed the letter described in
Paragraph II.A.9 of this Agreement.
2. DOC shall publish in the Federal
Register, within 10 days of the Effective
Date, the notice (attached to this
Agreement as Appendix 19) describing
this Agreement.
3. DOC shall notify SunTrust Bank in
writing, within 10 days of the Effective
Date, that this Agreement has become
effective.
4. DOC shall publish in the Federal
Register, within 10 days of the Effective
Date, the notice (attached to this
Agreement as Appendix 5) announcing
the termination of all ongoing annual
administrative reviews of the Mexican
Cement Order.
5. To the extent that DOC does not
receive a request for an administrative
review of entries subject to the Mexican
Cement Order at the close of each
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period for requesting such an
administrative review, DOC shall order
liquidation of all entries under the
Mexican Cement Order at the deposit
rate in effect upon the date of entry,
pursuant to 19 CFR § 351.212. If, while
this Agreement is in force, DOC receives
a request for an administrative review of
entries of Mexican Cement produced or
exported by a Mexican Cement
Producer, DOC shall conduct that
review as required by 19 U.S.C. Section
1675(a). However, DOC intends to settle,
under 19 U.S.C. § 1617, the claim for the
antidumping duties on the entries
covered by the request at the estimated
duty deposit rate in effect on the date of
entry. In deciding whether to reach such
a settlement, DOC shall take into
account whether Circumvention has
occurred and whether SE has
compensated for the Circumvention.
6. Upon request, DOC shall conduct an
expedited changed circumstances
review to establish a new estimated
duty deposit rate for any Mexican
Cement exporter (and its affiliated
parties) that:
a. had an estimated duty deposit rate
under the Mexican Cement Order;
b. did not receive the new estimated
duty deposit rate of three U.S.
dollars ($3.00) per metric ton
referenced in Section II.A.4.b of this
Agreement; and
c. exported Mexican Cement to the
United States in the year preceding
the Effective Date or exports
Mexican Cement to the United
States while this Agreement
remains in force.
7. DOC shall conduct an expedited new
shipper review, upon request, of each
Mexican exporter and its affiliated
parties that:
a. did not have an estimated duty
deposit rate established under the
Mexican Cement Order;
b. exports Mexican Cement to the
United States while this Agreement
remains in force; and
c. has satisfied all of the applicable
certification requirements of 19 CFR
§ 351.214(b).
8. DOC shall establish an automatic
Import License system for Mexican
Cement for the purpose of monitoring
the level of imports of Mexican Cement.
Once this Import License system is in
operation, each importer of record of
Mexican Cement will be required to
include the U.S. Import License number
on the entry summary (or its electronic
equivalent) provided to USCBP upon
entry into the United States. The list of
information required on each Import
License application is attached as
Appendix 20.
9. DOC shall rely on the representations
contained in the letters submitted by
STCC, CEMEX, GCCC, Capitol
Aggregates, and Holcim, through
counsel, referenced in Section II.A.13.b
of this Agreement, as the basis for the
commitments made by DOC in Sections
IX and XI of this Agreement.
10. If this Agreement remains in force
on January 2, 2007, SE and USTR shall
ensure that their respective governments
notify the WTO Dispute Settlement
Body, pursuant to Article 3.6 of the
WTO Dispute Settlement
Understanding, that they have arrived at
a mutually agreed solution to the
dispute United States - Anti–Dumping
Measures on Cement from Mexico (WT/
DS281).
11. If this Agreement terminates before
March 31, 2009, DOC promptly shall
resume the 2005 Sunset Review and
inform the ITC of the new
circumstances.
C. This Agreement is without prejudice
to the position of any Party regarding
the validity of the Mexican Cement
Order or the merits of any litigation
related to the Mexican Cement Order.
III. Export Limits and Export Licensing
A. SE shall ensure that no Mexican
Cement is exported (based on the Date
of Export) from Mexico to the United
States in a quantity that exceeds the
Export Limits set forth below. SE shall
ensure that no Mexican Cement is
exported (based on the Date of Export)
from Mexico to the United States
without an Export License.
1. The Export Limits for Mexican
Cement for the First Export Limit Period
for each Sub–region shall be:
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a. Alabama/Mississippi ............................................................................................................................................
b. Arizona .................................................................................................................................................................
c. California ..............................................................................................................................................................
d. Florida ..................................................................................................................................................................
e. New Mexico/El Paso ...........................................................................................................................................
f. New Orleans .........................................................................................................................................................
g. Texas ...................................................................................................................................................................
h. Rest of United States ..........................................................................................................................................
Total .........................................................................................................................................................................
2. DOC shall adjust the Export Limit for
each Sub–region for the Second and
Third Export Limit Periods as follows:
a. Export Limit calculation: DOC shall
increase or decrease the Export
Limit for the previous Export Limit
Period by the percent change (up to
4.5 percent) in apparent
consumption of cement in that
Sub–region during the most recent
12 months for which data is
available at the time DOC makes
this calculation, as compared to the
previous 12 months (as described in
Appendix 21). DOC shall provide to
SE, STCC, Holcim, and Capitol
Aggregates, no later than 60 days
before the beginning of the Second
and Third Export Limit Periods, the
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Jkt 208001
Export Limits for that period.
b. Adjustment for New Orleans: DOC
shall increase the base Export Limit
calculated under Paragraph III.A.2.a
for New Orleans by 25,000 metric
tons and decrease the base Export
Limit for the Rest of the United
States by 25,000 metric tons. This
one–time adjustment to the base
Export Limit shall apply to both the
Second and Third Export Limit
Periods.
3. DOC and SE shall consult, as
necessary, regarding whether any of the
Export Limits should be increased (after
all other adjustments provided for by
this Agreement) by a combined total for
all Sub–regions of up to 200,000 metric
tons in any Export Limit Period, in
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55,000
1,250,000
150,000
200,000
725,000
280,000
215,000
125,000
3,000,000
metric
metric
metric
metric
metric
metric
metric
metric
metric
tons
tons
tons
tons
tons
tons
tons
tons
tons
order to respond to increased U.S.
demand for cement in connection with
a declaration of a state of emergency as
the result of a disaster. DOC shall only
accept an application for an Import
License from a U.S. importer of record
of such additional Mexican Cement that
states that the imports will be used for
the purpose of disaster relief.
4. SE may carry over to the next Export
Limit Period or carry back to the current
Export Limit Period up to 8 percent of
the Export Limit for each Sub–region
(except for Arizona, for which the
allowed carry–over or carry–back is 5
per cent). The quantity permitted to be
carried over or carried back under this
paragraph shall be calculated on the
basis of the Export Limit before any
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adjustment under Paragraph III.A.2.a
(for changes in apparent consumption)
or adjustments under Paragraph III.A.2.b
(for New Orleans and the Rest of the
United States), or any increase under
Paragraph III.A.3 with respect to a state
of emergency.
B. SE shall allocate Export Rights to
Mexican Cement Producers in
accordance with the Export Limits
specified or calculated under Section
III.A., taking into consideration each
producer’s exports to the United States
during the previous five year period. SE
shall reserve at least 6 percent by
volume of the Export Limit for exports
of Mexican Cement Producers which
have not previously shipped Mexican
Cement to the United States during the
last five years.
C. SE shall not issue Export Licenses
authorizing the export of a quantity of
Mexican Cement to any Sub–region in
any half of any Export Limit Period that
exceeds 60 percent of the Export Limit
for that Sub–region for that Export Limit
Period (before any carry forward or
carry back adjustments provided for in
this Agreement). This provision shall
not apply to exports to the Sub–regions
of Alabama/Mississippi and the Rest of
the United States.
D. SE shall enforce the Export Limits
under the Mexican Foreign Trade Law
(‘‘Ley de Comercio Exterior’’) by
establishing an Export License system in
accordance with Articles 4III, 5V, 15II,
21, 23 and 24 of that law, and the
relevant provisions of the Foreign Trade
Law Regulations.
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IV. Implementation
A. Under the Export License system, SE
shall permit exports (based upon the
Date of Export) of Mexican Cement to
the United States only when the
shipment is accompanied by a valid
Export License.
B. Each Export License shall:
1. Contain all of the information set out
in Appendix 22 to this Agreement (an
official translation in English) and
identify the time period for which the
Export License is effective. Additional
information may be included on the
Export License or, if necessary, on a
separate page attached to the Export
License.
2. Be issued sequentially by each
regional office of SE in Mexico and
counted against the Export Limit and
Export Rights for the relevant Export
Limit Period for each Sub–region.
Export Licenses shall remain valid for
entry into the United States for 90 days.
DOC and SE may agree to an extension
of the validity of the Export License in
extraordinary circumstances.
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Jkt 208001
3. Be issued in the Spanish language.
C. DOC shall require that each importer
submit to USCBP, with its entry
summary package, a valid Export
License. For multiple shipments at
multiple ports or multiple entries at one
port, the original license shall be
presented with the first entry and a copy
of the Export License shall be presented
with each subsequent entry.
D. DOC shall deduct from the amount
authorized on each Export License the
quantity of each shipment reported on
corresponding Import Licenses for the
appropriate Export Limit for the given
Sub–region for the Export Limit Period,
based on the Date of Export. The
validity of an Export License shall not
be affected by any subsequent change of
an HTSUS number.
E. SE shall take the following measures
to ensure compliance with the Export
Limits:
1. Ensure that no Mexican Cement is
exported from Mexico (based on the
Date of Export) for entry into the United
States that exceeds the applicable
Export Limit for each applicable Sub–
region or Export Rights for each
Mexican Cement Producer.
2. Ensure that each Mexican Cement
Producer certifies, when applying for an
Export License, that it will deliver
Mexican Cement only to the specified
Sub–region for which the Export
License is being requested.
3. Ensure that each Mexican Cement
Producer that exports Mexican Cement
to the United States certifies, when
applying for an Export License, that it
will provide to SE and DOC a monthly
report specifying the date of sale,
quantity, the complete name and
address (including county) of each
affiliated and unaffiliated purchaser to
whom Mexican Cement was sold, and
the Export License numbers pursuant to
which the Mexican Cement that was
sold during that month was imported
into the United States. This monthly
report shall be due 30 days after the end
of each month (or the next business
day).
4. Permit verification by DOC of all
information concerning the enforcement
of the Export Limits on an annual basis,
to the extent not prohibited by Mexican
Law.
V. Market Access
A. SE and DOC are committed to
identifying and addressing any barriers
to market access that may prevent open
and stable trade in cement between the
United States and Mexico. SE and DOC
promptly and completely shall
investigate, as appropriate, any specific
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Fmt 4703
Sfmt 4703
allegation, based on evidence, of a
market access barrier or an unfair trade
or business practice that may prevent
cement from the other country from
entering its market.
B. SE and DOC, shall, with the support
of the Mexican and U.S. cement
industries, establish a North American
Cement Committee in order to facilitate
cement trade between Mexico and the
United States. The Parties shall hold the
first meeting of the new cement
committee within six months of the
Effective Date. The committee will
analyze possible mechanisms that could
promote cement trade between the
United States and Mexico, such as:
1. International buyer delegations:
Encourage delegations of Mexican
buyers/end–users of cement and cement
products to participate in major trade
shows in the United States, and U.S.
buyers/end–users of cement and cement
products to participate in major trade
shows in Mexico.
2. Technical seminars: Co–host
technical seminars at relevant trade
shows in Mexico and the United States
to discuss new products and to present
U.S. producers to the Mexican industry,
and Mexican producers to the U.S.
industry, respectively.
3. Trade missions: Co–host trade
missions to Mexico and the United
States of U.S. cement (and related
products) producers and Mexican
cement (and related products)
producers, respectively.
4. Market research and trade leads:
Facilitate the collection and
dissemination of information on market
opportunities for U.S. cement products
in Mexico, and Mexican cement
products in the United States, including
specific trade leads and project
opportunities.
C. SE and DOC shall monitor these
activities and how they influence the
evolution of trade in cement between
Mexico and the United States. SE and
DOC shall consult on a quarterly basis
and discuss any areas where
improvement may be made. SE and
DOC intend to invite Canada to join the
North American Cement Committee.
D. SE shall ensure that any Mexican
importer of cement designated by a U.S.
cement producer or exporter is
permitted to be registered into the
Mexican Importers’ Registry (‘‘Padron
de Importadores’’) and the Mexican
Importers’ Registry for Specific Sectors
(Padron de Importadores para Sectores
Especificos’’), provided that the
importer fully complies with the
requirements set out under Mexican
law. These registration requirements are
set forth in Appendix 23 to this
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Agreement. In the event that an
application for any of these registries is
denied, the Mexican importer may
request SE to consult with the
competent authority. In such case, SE
shall inform the importer in writing,
within 45 days of the request, of the
reasons for which the application was
denied.
E. SE shall ensure that the Camara
Nacional del Cemento de Mexico
(‘‘CANACEM’’), CEMEX, GCCC and
Apasco each submit a letter to SE
(attached to this Agreement as
Appendix 24) stating that:
1. It will not interpose an objection with
the competent authority in Mexico to an
application by any Mexican importer
designated by a U.S. cement producer or
exporter to be registered into the
Mexican Importers’ Registry or the
Mexican Importers’ Registry for Specific
Sectors to import U.S. - produced
cement.
2. If it files an objection with the
competent authority in Mexico to an
application for inclusion on either
registry filed by a Mexican importer,
designated by a U.S. cement producer or
exporter to register to import cement
produced in a third country, the writer
of the letter will provide a copy of the
objection to SE.
SE shall ensure that, if CANACEM,
CEMEX, GCCC, or Apasco should object
to an application for inclusion on either
registry as described in subparagraphs
(E) (1) and (2), it shall provide DOC with
a copy of the objection within 45 days.
F. To the extent that an objection
described in Paragraph E above contains
confidential information, SE shall
ensure that the companies will consult
with SE to explain the nature of the
confidential information. If possible, SE
shall obtain a non–confidential
summary of the information and
provide that summary to DOC.
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VI. Monitoring and Notifications
A. As is necessary and appropriate to
monitor the implementation of, and
compliance with, this Agreement, SE
shall:
1. Within thirty days following the
allocation of Export Rights for any
Export Limit Period, notify DOC of the
quantity allocated to each recipient for
each applicable Sub–region. SE also
shall inform DOC of any changes in the
allocation of Export Rights within 30
days of the date on which such changes
become effective, including the
allocation of Export Rights for Mexican
Cement carry–over or carry–back
pursuant to paragraph III.A.4.
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2. a. Monitor all exports of Mexican
Cement to the United States and deduct
the quantity of each such export from
the Export Limit identified on the
Export License; and
b. Prevent, in coordination with the
Mexican General Customs
Administration, the exportation of
any Mexican Cement not
accompanied by an Export License
or in a quantity exceeding the
quantity shown on the Export
License.
3. Collect and provide to DOC
information on Export Licenses issued
in the format specified in Appendix 25
to this Agreement, including a copy of
each Export License issued. This
information shall be collected for the
six-month period beginning on the
Effective Date and each subsequent sixmonth period and will be provided no
later than 60 days following the end of
each such six-month period.
4. Collect and provide to DOC
information identifying each shipment
of Mexican Cement made pursuant to
each Export License in the format
specified in Appendix 25. This
information shall be collected for the
six-month period beginning on the
Effective Date and each subsequent sixmonth period and will be provided to
DOC no later than 60 days following the
end of each such six-month period.
5. Permit DOC to verify all information
furnished by SE to DOC under this
Agreement to the extent not prohibited
by Mexican Law.
B. DOC shall monitor and collect the
following information to determine
whether there have been imports of
Mexican Cement into the United States
that may be inconsistent with this
Agreement and, to the extent not
prohibited by U.S. law, provide this
information to representatives of all
interested parties to this segment of the
DOC proceedings on Mexican Cement
(as defined by Section 771(9) of the Act)
upon request:
1. U.S. Bureau of the Census data, and
other publicly–available data, on a
quarterly basis.
2. U.S. Bureau of the Census
computerized records that include the
quantity and value of each entry. DOC
may also request USCBP to provide
other specific entry information, such as
the identity of the producer/exporter
which may be responsible for such
sales.
3. Information from the Import License
system established under this
Agreement.
C. DOC shall release to counsel for the
interested parties to this segment of the
DOC proceedings on Mexican Cement
(as defined by Section 771(9) of the Act)
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13089
and to counsel for SE all business
proprietary information submitted to
DOC:
1. under this Agreement, pursuant to
this Agreement for Disclosure of, and
Access to, Business Proprietary
Information (attached to this Agreement
as Appendix 26); and
2. during the course of any
administrative proceedings relating to
Mexican Cement conducted by DOC
following the entry into force of this
Agreement, pursuant to DOC’s
regulations and standard procedures
governing the release of business
proprietary information.
VII. Circumvention
A. The Parties shall take the following
measures to address Circumvention:
1. DOC shall investigate any alleged
Circumvention that is brought to its
attention, both by asking SE to
investigate such allegations and by itself
gathering relevant information. In such
case, DOC shall provide to SE all
relevant information, provided that this
is not prohibited by U.S. law. DOC shall
notify SE of the results of the inquiry
within 15 days after the conclusion of
the inquiry.
2. SE shall investigate any alleged
Circumvention that is brought to its
attention. SE shall promptly initiate an
inquiry into the alleged Circumvention,
and normally complete the inquiry
within 45 days. SE shall notify DOC of
the results of the inquiry within 15 days
after its conclusion.
B. If a Mexican person or enterprise has
engaged in Circumvention that results
in an Export Limit being exceeded, DOC
and SE shall deduct from the Export
Limit for the Sub–region and Export
Limit Period for which the Export Limit
was exceeded (or, if the Export Limit for
that Sub–region and Export Limit Period
has been filled, the following Export
Limit Period) 150 percent of the
quantity of Mexican Cement involved.
DOC and SE shall notify the other Party
of any penalties imposed under this
Section within 15 days of their
imposition.
C. If there has been Circumvention for
which SE has not compensated by
reducing the Export Limit for the
applicable Sub–region consistent with
Paragraph VII.B, DOC may self–initiate
an accelerated changed circumstances
review (to be completed within 90 days
of initiation) of the producer of the
Mexican Cement involved in the
Circumvention, in order to change the
deposit rate applicable to that Mexican
Cement Producer. In the event that DOC
receives a petition requesting a changed
circumstances review of a Mexican
Cement Producer as a result of
E:\FR\FM\14MRN1.SGM
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Circumvention by that producer for
which SE has compensated under
Paragraph VII.B of this Agreement, DOC
will consider the compensation (and
penalties imposed upon that producer)
material to its decision whether to
initiate such a review, and will reflect
its consideration of that material factor
in its written decision on whether to
initiate the review. Should a changed
circumstances review be initiated under
this provision, SE shall require the
Mexican Cement Producer in question
to provide to DOC, within two weeks
after the date of initiation of the review,
all cost and sales data for the two most
recently completed quarters, or accept a
new deposit rate based on the facts
available, in the amount of $42.63 per
metric ton (the average of the rates for
the 12th and 13th administrative reviews
of Mexican Cement).
D. DOC shall require all importers of
Mexican Cement into the United States
to submit to DOC a written statement,
30 days after the end of every quarter (or
on the next business day), listing all
entries of such merchandise and
certifying that the Mexican Cement
imported during that quarter was not
obtained under any arrangement in
Circumvention. Where DOC has reason
to believe that such a certification has
been made falsely, DOC shall refer the
matter to the United States Department
of Homeland Security or the United
States Department of Justice for further
action, as appropriate.
VIII. Consultations
The Parties shall hold consultations
concerning the implementation,
operation and enforcement of this
Agreement at least once each year
during the anniversary month of the
Effective Date and upon request by SE,
DOC, or USTR. Within six months of the
Effective Date, SE and DOC shall
consult regarding the information
exchanged under this Agreement.
wwhite on PROD1PC65 with NOTICES
IX. Intentions of the Parties with
Respect to Future Unfair Trade Actions
and Challenges to this Agreement
For the duration of this Agreement and
for nine (9) months after the expiration
of this Agreement:
A. DOC shall not self–initiate an
investigation under Title VII of the Act,
or any successor law, with respect to
imports of Mexican Cement. If a petition
for such an investigation is filed by a
member of the STCC, Holcim, or Capitol
Aggregates, DOC shall dismiss the
petition, based upon the letters
submitted by those parties and
referenced in Paragraph II.A.13 of this
Agreement.
VerDate Aug<31>2005
20:18 Mar 13, 2006
Jkt 208001
B. USTR shall not self–initiate an action
under Sections 201–204 of the Trade
Act of 1974, as amended, or any
successor law, with respect to imports
of Mexican Cement.
C. USTR shall not self–initiate an
investigation under Sections 301–305 of
the Trade Act of 1974, as amended, or
any successor law, with respect to
imports of Mexican Cement.
D. SE shall not initiate an investigation
or take action under Titles V or VI of the
Mexican Foreign Trade Law, or any
successor law, with respect to imports
of cement from the United States. If
CEMEX, GCCC, or Apasco files with SE
a petition for an investigation under
Title V of the Mexican Foreign Trade
Law, SE shall dismiss the petition,
based upon the letter from that producer
attached to this Agreement as Appendix
27 or submitted by that producer to SE
after the date this Agreement is signed.
X. Violations of this Agreement
The Parties shall not consider a
violation of this Agreement as being
material unless corresponding to the
definition of a material violation or
breach contained in the Vienna
Convention on the Law of Treaties.
XI. Duration of this Agreement and
Revocation of the Order
A. This Agreement shall expire on
March 31, 2009, provided that it has not
been terminated before that date.
B. Provided that this Agreement has not
been terminated before March 31, 2009,
DOC shall revoke the Mexican Cement
Order on April 1, 2009, for all Mexican
Cement Producers that have not
exported any Mexican Cement to the
United States since August 30, 1990, or
that have not exported substantially
more than the Export Limits allocated
by SE to such producers for any Sub–
region for the Third Export Limit
Period. The revocation shall be based on
the ‘‘no interest’’ statements submitted
in the letters of Section II.A.13 of this
Agreement.
C. Any Party may terminate this
Agreement upon 90 days written notice
to the other Parties.
D. If this Agreement terminates before
March 31, 2009, for any reason, any
amounts remaining in the Escrow
Account shall be distributed in
accordance with the specific provisions
in the Escrow Agreement providing for
that contingency.
XII. Other Provisions
A. The English and Spanish language
versions of this Agreement shall be
equally authentic.
B. For all purposes hereunder, the
Parties shall be represented by, and all
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
communications and notice shall be
given and addressed to:
Office of the United States Trade
Representative, Office of the Americas,
600 17th St., N.W., Washington, D.C.
20508.
U.S. Department of Commerce,
Assistant Secretary for Import
Administration, International Trade
Administration, Washington, DC 20230.
Secretaria de Economia, Subsecretaria
de Negociaciones Comerciales
Internacionales, Alfonso Reyes, 30- 9th
Floor, Col. Condesa, C.P. 06400, Mexico
D.F.
Signed at Washington, DC, on this 6th
day of March, 2006.
For the Office of the United States Trade
Representative of the United States of
America: Robert Portman
For the United States Department of
Commerce of the United States of America:
Carlos Guiteriez
For the Ministry of Economy (Secretaria de
Economia) of the United Mexican States:
Sergio Garcia De Alba
[FR Doc. E6–3531 Filed 3–13–06; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–843, A–570–901]
Notice of Postponement of Preliminary
Determinations of Antidumping Duty
Investigation: Certain Lined Paper
Products from the People’s Republic
of China and India
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: March 14, 2006.
FOR FURTHER INFORMATION CONTACT: For
the People’s Republic of China, contact
Marin Weaver at (202) 482–2336 or
Charles Riggle at (202) 482–0650, and
for India, contact Christopher Hargett at
(202) 482–4161, AD/CVD Operations,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
Postponement of Preliminary
Determinations
On October 6, 2005, the Department
of Commerce (‘‘Department’’) published
the initiation of the antidumping duty
investigations of certain lined paper
products from India, Indonesia and the
People’s Republic of China. See
Initiation of Antidumping Duty
E:\FR\FM\14MRN1.SGM
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Agencies
[Federal Register Volume 71, Number 49 (Tuesday, March 14, 2006)]
[Notices]
[Pages 13082-13090]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3531]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-201-802
Gray Portland Cement and Clinker from Mexico: Agreement Between
the Office of the United States Trade Representative, The United States
Department of Commerce and Secretaria de Economia of Mexico on Trade in
Cement
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Office of the United States Trade Representative (USTR)
and the United States Department of Commerce (Commerce) have entered
into an agreement with the Secretaria de Economia of Mexico pertaining
to imports of gray portland cement and clinker from Mexico (Mexican
Cement). The Agreement Between the Office of the United States Trade
Representative and the Department of Commerce of the United States of
America and the Ministry of Economy of the United Mexican States
(Secretaria de Economia) on Trade in Cement (Agreement) provides for
the settlement or suspension of ongoing litigation before North
American Free Trade Agreement (NAFTA) and World Trade Organization
(WTO) panels challenging various antidumping duty determinations
involving Mexican Cement. In addition, Commerce has agreed to
compromise its claims for duties with respect to entries of Mexican
Cement not currently in litigation. Finally, the Agreement creates a
system whereby Mexican Cement imports will be subject to regional
export limits, which will be monitored by both Commerce and Secretaria
de Economia through export license and import license systems. The
Agreement provides that, if Mexican Cement producers successfully abide
by the terms of the Agreement for three years, then the antidumping
duty order will be revoked with respect to those producers.
EFFECTIVE DATE: April 3, 2006.
FOR FURTHER INFORMATION CONTACT: Sally C. Gannon, Judith Wey Rudman, or
Jonathan Herzog (202) 482-0162, (202) 482-0192, and (202) 482-4271
respectively, Bilateral Agreements Unit, Office of Policy and
Negotiations, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14\th\ Street and
Constitution Avenue, NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Scope of Investigation
For a complete description of the subject merchandise of this
Agreement, see Section I.L of the Agreement.
Background
On October 23, 1989, Commerce initiated an antidumping duty
investigation of Mexican Cement. See Initiation of Antidumping Duty
Investigation; Gray Portland Cement and Clinker from Mexico, 54 FR
43190 (October 23, 1989). On August 30, 1990, pursuant to the Final
Determination of Sales at Less Than Fair Value; Gray Portland Cement
and Clinker from Mexico, 55 FR 29244 (July 18, 1990), Commerce issued
an antidumping duty order (Order) applicable to shipments of Mexican
Cement. See Antidumping Duty Order: Gray Portland Cement and Clinker
from Mexico, 55 FR 35443 (August 30, 1990). Since the issuance of the
Order, Commerce has conducted fourteen administrative reviews,
initiated a fifteenth administrative review, completed a five-year
Sunset Review of the Order, and initiated a second Sunset Review.
Several of these proceedings have been challenged before NAFTA and WTO
panels: Gray Portland Cement and Clinker from Mexico: Notice of Final
Results of Antidumping Duty Administrative Review, 63 FR 12764 (March
16, 1998) (6th Review), Gray Portland Cement and Clinker from Mexico:
Notice of Final Results of Antidumping Duty Administrative Review, 65
FR 13943 (March 15, 2000) (8th Review), Gray Portland Cement and
Clinker from Mexico: Notice of Final Results of Antidumping Duty
Administrative Review, 66 FR 14889 (March 14, 2001) (9th Review), Gray
Portland Cement and Clinker from Mexico: Notice of Final Results of
Antidumping Duty Administrative Review, 67 FR 12518 (March 19, 2002)
(10th Review), Gray Portland Cement and Clinker from Mexico: Notice of
Final Results of Antidumping Duty Administrative Review, 68 FR 1816
(January 14, 2003) (11th Review), Gray Portland Cement and Clinker from
Mexico: Notice of Final Results of Antidumping Duty Administrative
Review, 68 FR 54203 (September 16, 2003) (12th Review), and Gray
Portland Cement and Clinker from Mexico: Notice of Final Results of
Antidumping Duty Administrative Review, 69 FR 77987 (December 29, 2004)
(13th Review), Gray Portland Cement and Clinker from Mexico: Notice of
Final Results of Antidumping Duty Administrative Review, 71 FR 2909
(January 18, 2006) (14th Review), and Commerce's final determination in
Gray
[[Page 13083]]
Portland Cement and Cement Clinker from Mexico; Final Results of Full
Sunset Review, 65 FR 41049 (July 3, 2000) (2000 Sunset Review).
Furthermore, certain International Trade Commission (ITC)
determinations involving Mexican Cement have been challenged before
NAFTA panels as well.
On March 6, 2006, USTR, Commerce, and Secretaria de Economia
entered into the Agreement. Under its terms, the Agreement settles or
suspends the NAFTA litigation of the 6\th\ Review, 8\th\ Review, 9\th\
Review, 10\th\ Review, 11th Review, 12\th\ Review, 13\th\ Review,
14\th\ Review, 2000 Sunset Review, and two challenges involving the
ITC. A challenge before the WTO is suspended as well. In addition, the
parties requesting the 15\th\ administrative review of Mexican Cement,
initiated on September 28, 2005 (see 70 FR 56331 (September 28, 2005)),
have requested rescission of that review. See Gray Portland Cement and
Clinker From Mexico: Rescission of Antidumping Duty Administrative
Review and Compromise of Outstanding Claims (Publication Pending).
Commerce has compromised claims to antidumping duties for entries of
Mexican Cement covered by both that review period, as well as entries
of subject merchandise that entered the United States from August 1,
2005 through April 2, 2006. Furthermore, the Agreement provides a
system whereby, for three years, Mexican exporters of subject
merchandise will be subject to specific sub-regional export limits and
will be required to obtain, prior to entry, an export license issued by
the Government of Mexico. Importers of Mexican Cement will be required
to apply for an import license number issued by Commerce. Both a copy
of the export license and the import license number must be provided to
U.S. Customs and Border Protection when the importer files Customs Form
7501.
As a result of the litigation settlement, a new assessment rate
will be applied to all entries of Mexican Cement from Cementos
Mexicanos de Mexico, S.A. de C.V. (CEMEX), and GCC Cemento, S.A. de
C.V. (and its predecessor-in-interest, Cementos de Chihuahua, S.A. de
C.V.) (GCCC), covered by the various NAFTA challenges. Furthermore, a
new cash deposit rate of $3.00 per metric ton has been established for
all entries from CEMEX and GCCC after the effective date of the
Agreement as a result of the settlement of the 14\th\ review. See Gray
Portland Cement and Clinker from Mexico: Notice of Amended Final
Results of Antidumping Duty Administrative Reviews (Publication
Pending).
The duration of the Agreement is three years. If all of the terms
of the Agreement are complied with by the interested parties, the
Agreement will expire on March 31, 2009, and Commerce will revoke the
Order. For further details, please see the Agreement, attached.
Dated: March 6, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
AGREEMENT BETWEEN THE OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
AND THE DEPARTMENT OF COMMERCE OF THE UNITED STATES OF AMERICA AND THE
MINISTRY OF ECONOMY OF THE UNITED MEXICAN STATES (SECRETARIA DE
ECONOMIA) ON TRADE IN CEMENT
The Office of the United States Trade Representative (``USTR'') and
the Department of Commerce (``DOC'') of the United States of America,
of the one part, and the Ministry of Economy of the United Mexican
States (``Secretaria de Econom[iacute]a'' or ``SE'') of the other part;
(hereinafter referred to as the ``Parties'') enter into this Agreement
(the ``Agreement''):
Desiring to resolve the numerous trade disputes arising from the
Mexican Cement Order and to promote more liberal and stable trade in
cement between Mexico and the United States;
Reaffirming the rights, obligations, and undertakings of the United
States and Mexico under the North American Free Trade Agreement
(``NAFTA'') and the Marrakesh Agreement Establishing the World Trade
Organization (``WTO'') (including the Agreement on Implementation of
Article VI of the GATT 1994);
Sharing a common interest in liberalizing trade in, and
facilitating the cross-border movement of, cement between the
territories of the United States and Mexico, consistent with the NAFTA;
Desiring to ensure the satisfactory resolution of a dispute
settlement proceeding in the WTO and numerous proceedings under Chapter
19 of the NAFTA relating to the Mexican Cement Order;
Desiring, after a period during which trade in cement would be
governed through trade liberalizing measures, to terminate the Mexican
Cement Order; and
Noting the trade-liberalizing objectives of the Security and
Prosperity Partnership of North America announced by President Fox and
President Bush on March 23, 2005;
HAVE AGREED AS FOLLOWS:
I. Definitions
For purposes of this Agreement, the following definitions shall apply:
A. ``Act'' means the United States antidumping law, as contained in
Title VII of the Tariff Act of 1930, Sections 731 et seq., 19 U.S.C.
Sections 1673, et seq., as amended.
B. ``Circumvention'' means:
1. The exportation of Mexican Cement by a Mexican Cement Producer, any
person or enterprise in Mexico, or any person or enterprise outside of
Mexico that is, as a matter of fact and law, acting on behalf of a
Mexican Cement Producer, to a Sub-region that:
a. is not accompanied by an Export License;
b. for which an Import License has not been issued, once the U.S.
Import License system has been established; or
c. exceeds in quantity the Export Limits for any Sub-region or the
Export Rights allocated by SE to the producer of that cement; or
2. Shipping from Mexico to the United States, through third countries,
Mexican Cement that is unaccompanied by an Export License;
except for any such exports that are inconsequential, inadvertent, or
do not substantially frustrate the purposes of this Agreement.
C. ``Date of Export'' means the date on which SE issues an Export
License.
D. ``Effective Date'' means April 3, 2006.
E. ``Escrow Accounts'' means the accounts at SunTrust Bank established
pursuant to the Escrow Agreement.
F. ``Escrow Agreement'' means the agreement entered into by the
individual members of the Southern Tier Cement Committee (``STCC''),
Holcim (US) Inc. (``Holcim''), Capitol Aggregates, Ltd. (``Capitol
Aggregates''), and the U.S. importers of record of Mexican Cement
produced by CEMEX and GCCC, on the date of this Agreement, CEMEX
Cement, Inc. (formerly known as Sunbelt Cement, Inc.) (``CEMEX
Cement''), Gulf Coast Portland Cement Co. (formerly known as HM Gulf
Coast Portland Cement Company)(``Gulf Coast Portland Cement''), and Rio
Grande Portland Cement Corp. and its successor, GCC Rio Grande, Inc.
(collectively ``GCC Rio Grande''). The Escrow Agreement is attached to
this Agreement as Appendix 13.
[[Page 13084]]
G. ``Export License'' means the document issued by SE in a given Export
Limit Period (containing the information described in Appendix 22) that
authorizes an exporter in Mexico to export a certain quantity of
Mexican Cement during a given 90 day period specified in the Export
License and to a given Sub-region.
H. ``Export Limit'' means the quantity of Mexican Cement permitted to
be exported (based upon the Date of Export) under Section III of this
Agreement from Mexico to a given Sub-region during a given Export Limit
Period.
I. ``Export Limit Period'' means one of the following periods:
First Export Limit Period - The period beginning on April 3, 2006
(the Effective Date) and ending on March 31, 2007.
Second Export Limit Period - The period beginning on April 1, 2007,
and ending on March 31, 2008.
Third Export Limit Period - The period beginning on April 1, 2008,
and ending on March 31, 2009.
J. ``Export Rights'' means the share of the Export Limit for a given
Sub-region and Export Limit Period assigned by SE to a specific Mexican
Cement Producer.
K. ``Import License'' means the number generated by the automatic
import licensing system established by DOC (based on the information
supplied by the U.S. importer of record as described in Appendix 20).
L. ``Mexican Cement'' means gray portland cement and clinker from
Mexico. Gray portland cement is a hydraulic cement and the primary
component of concrete. Clinker, an intermediate material produced when
manufacturing cement, has no use other than being ground into finished
cement. Specifically included within the scope of this definition are
pozzolanic blended cements and oil well cements. Specifically excluded
are white cement and Type ``S'' masonry cement as defined in the DOC's
April 25, 1996, scope determination (61 FR 18381). Gray portland cement
is currently classifiable under the Harmonized Tariff Schedule of the
United States (HTSUS) item number 2523.29 and cement clinker is
currently classifiable under HTSUS item number 2523.10. Gray portland
cement has also been entered under HTSUS item number 2523.90 as ``other
hydraulic cements.'' These HTSUS subheadings are provided for
convenience and USCBP purposes; the written definition is controlling
for purposes of this Agreement.
M. ``Mexican Cement Order'' means the U.S. antidumping duty order on
Mexican Cement issued on August 30, 1990 (55 FR 35443).
N. ``Mexican Cement Producers'' means the producers of Mexican Cement
on the Effective Date or at any time while this Agreement is in force,
including the Mexican Cement Producers Cementos Mexicanos of Mexico,
S.A. de C.V. (``CEMEX''), GCC Cemento, S.A. de C.V. (and its
predecessor-in-interest, Cementos de Chihuahua, S.A. de C.V.
(``GCCC''), Holcim Apasco, S.A. de C.V. (``Apasco''), Cooperativa Cruz
Azul, S.C.L. (``Cruz Azul''), Cementos Moctezuma, S.A. de C.V.
(``Moctezuma''), and Lafarge Cementos, S.A. For purposes of this
Agreement, CEMEX and GCCC are considered to be unrelated and
unaffiliated entities.
O. ``Southern Tier'' means the region of the United States that is
comprised of the following states: California, Arizona, New Mexico,
Texas, Louisiana, Mississippi, Alabama, and Florida.
P. A ``Sub-region'' means one of the following regions:
``Alabama/Mississippi,'' which comprises the state of Alabama and
the state of Mississippi;
``Arizona,'' which comprises the state of Arizona;
``California,'' which comprises the state of California;
``Florida,'' which comprises the state of Florida;
``New Mexico/El Paso,'' which comprises the state of New Mexico and
the following counties in the state of Texas: Cochran, Hockley,
Lubbock, Yoakum, Terry, Lynn, Gaines, Dawson, Andrews, Martin, El Paso,
Hudspeth, Culberson, Reeves, Loving, Winkler, Ector, Midland, Ward,
Crane, Upton, Jeff Davis, and Pecos;
``Texas,'' which comprises all of the counties in the state of
Texas not included in the ``New Mexico/El Paso'' Sub-region;
``New Orleans,'' which comprises the state of Louisiana; and
``Rest of the United States,'' which comprises all other states,
territories, and regions of the United States.
Q. ``Southern Tier Cement Committee'' means the coalition currently
comprised of the following companies (including their predecessors and
successors in interest): Alamo Cement Co., Arizona Portland Cement, Ash
Grove Cement Co., Inc., Ash Grove Texas LP, Buzzi Unicem USA Inc.,
California Portland Cement Co., Eagle Materials, Inc., Florida Crushed
Stone Co., Giant Cement Holding Inc., Hanson Permanente Cement, Lafarge
Building Materials, Inc., Lehigh Cement Co., Lafarge North America,
Inc., Lehigh Southwest Cement Co., Lone Star Industries, Inc., National
Cement Co. of Alabama, National Cement Co. of California, Rinker
Materials Corp., Salt River Materials Group, Suwannee American Cement
Company, Inc., Texas Industries, Inc., Texas-Lehigh Cement Co., and
Titan America LLC.
R. The ``Committee for Fairly Traded Mexican Cement'' means the
coalition currently comprised of the following companies (including
their predecessors and successors in interest): TXI Riverside Cement
Co. and all of the members of the STCC except Ash Grove Cement Co.,
Inc.; Buzzi Unicem USA Inc.; Eagle Materials, Inc.; Giant Cement
Holding Inc.; and Lafarge North America, Inc. This Committee (rather
than the STCC) is the party to the sunset proceedings involving the
Mexican Cement Order before the DOC and the International Trade
Commission (``ITC'') and the related NAFTA panel proceedings.
S. ``United States'' means the customs territory of the United States
of America and all foreign trade zones located in the territory of the
United States of America.
T. ``USCBP'' means United States Customs and Border Protection.
U. ``1999 Sunset Review'' means the five year review of the Mexican
Cement Order under 19 U.S.C. Sec. 1675(c) initiated by DOC in August
1999.
V. ``2005 Sunset Review'' means the five year review of the Mexican
Cement Order under 19 U.S.C. Sec. 1675(c) initiated by DOC on October
3, 2005.
II. General Provisions
A. This Agreement shall enter into force on the Effective Date,
provided that all of the following events have occurred:
1. SE has established an Export License system for all exports of
Mexican Cement to the United States.
2. The parties in the following NAFTA panel proceedings concerning DOC
determinations have entered into a settlement agreement and, with the
consent of the other parties, DOC has filed a Notice of Motion
requesting termination of the Panel reviews, as of the Effective Date,
pursuant to Rule 71(2) of the NAFTA Rules of Procedure for Article 1904
Panel Reviews:
In the Matter of Gray Portland Cement and Clinker from Mexico,
Secretariat File No. USA-MEX-1998-1904-02 (6\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker from Mexico,
Secretariat File No. USA-MEX 2000-1904-03 (8\th\ Administrative
Review);
[[Page 13085]]
In the Matter of Gray Portland Cement and Clinker from Mexico,
Secretariat File No. USA-MEX-2001-1904-04 (9\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariat File No. USA-MEX-2002-1904-05 (10\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariat File No. USA-MEX-2003-1904-01 (11\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariat File No. USA-MEX-2003-1904-03 (12\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariat File No. USA-MEX-2004-1904-03 (13\th\ Administrative
Review);
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariat File No. USA-MEX-2006-1904-03 (14\th\ Administrative
Review); and
In the Matter of Gray Portland Cement and Clinker From Mexico,
Secretariate File No. USA-MEX-2000-1904-05 (DOC Final Results of the
1999 Sunset Review).
The settlement agreement and Notices of Motion are attached to this
Agreement as Appendix 1.
3. The ITC has filed, with the consent of CEMEX and GCCC, a Notice of
Motion requesting termination of the panel review below, as of the
Effective Date, pursuant to Rule 71(2) of the NAFTA Rules of Procedure
for Article 1904 Panel reviews:
ITC Dismissal of a Request to Institute a Section 751(b) Review (USA-
MEX 2002-1904-01).
The Notice of Motion is attached to this Agreement As Appendix 1.
4. DOC has taken each of the following actions:
a. Issued instructions to USCBP to liquidate entries of Mexican
Cement produced by CEMEX or GCCC that were imported by CEMEX Cement,
Gulf Coast Portland Cement, and GCC Rio Grande (listed on USCBP Form
4811 designating SunTrust Bank as the agent), at the rate of ten U.S.
cents ($0.10) per metric ton, and to refund to the Escrow Accounts the
deposits of estimated duties in excess of that rate, with all accrued
interest thereon. DOC shall work with USCBP, CEMEX, and GCCC to ensure
that all of CEMEX's and GCCC's entries are liquidated pursuant to this
provision. These instructions are attached to this Agreement as
Appendix 2;
b. Issued instructions to USCBP, pursuant to the settlement of the
NAFTA litigation arising from the 14\th\ administrative review of the
Mexican Cement Order (Gray Portland Cement and Clinker from Mexico:
Notice of Final Results of Antidumping Duty Administrative Review, 71
FR 2909 (January 18, 2006)), to change the estimated duty deposit rate
for CEMEX and GCCC to three U.S. Dollars ($3.00) per metric ton as of
the Effective Date. Copies of these instructions are attached to this
Agreement as Appendix 3. DOC shall publish a Notice in the Federal
Register within 10 days of the Effective Date amending the final
results of the 14\th\ administrative review and announcing the new
deposit rate. A copy of the Notice is attached to this Agreement as
Appendix 4;
c. Signed a determination (the text of which is attached to this
Agreement as Appendix 5), that will be published in the Federal
Register within 10 days of the Effective Date, rescinding, pursuant to
19 C.F.R. Sec. 351.213(d)(1), all administrative reviews of the
Mexican Cement Order in progress on the Effective Date; and
d. Suspended the 2005 Sunset Review of the Mexican Cement Order.
5. CEMEX Cement, Gulf Coast Portland Cement, and GCC Rio Grande have
each executed an irrevocable power of attorney (all of which are
attached to the Agreement in Appendix 6) appointing SunTrust Bank as
its attorney-in-fact to take all actions required for receiving and
depositing into the Escrow Accounts all refunds pursuant to this
Agreement of estimated antidumping duties on Mexican Cement.
6. DOC, CEMEX Cement, Gulf Coast Portland Cement, and GCC Rio Grande
have entered into settlement agreements, pursuant to Section 617 of the
Tariff Act of 1930, 19 U.S.C. Sec. 1617, that take effect on the
Effective Date, providing for the liquidation of all entries of Mexican
Cement produced by CEMEX and GCCC entered from August 1, 2004, through
April 2, 2006, at the rate of ten U.S. cents ($0.10) per metric ton.
These settlement agreements are attached to this Agreement as Appendix
7.
7. The World Trade Organization (WTO) panel in United States - Anti-
Dumping Measures on Cement from Mexico (WT/DS281) has granted the
Government of Mexico's request for suspension of the panel proceedings,
pursuant to Article 12.12 of the WTO's Understanding on Rules and
Procedures Governing the Settlement of Disputes. The communication from
the Chairman of the panel granting this request is attached to this
Agreement as Appendix 8.
8. CEMEX, GCCC, and the STCC and its members have filed documents, as
appropriate, through their counsel, with DOC (attached to this
Agreement as Appendix 9):
a. Withdrawing all outstanding requests for administrative reviews
of the Mexican Cement Order under Section 751 of the Act and requesting
DOC to rescind all administrative reviews in progress as of the
Effective Date;
b. Requesting DOC to lift any suspension of liquidation under 19
U.S.C. Sec. 1516a(g)(5)(C)(i) and 19 C.F.R. Sec. 356.8 in connection
with NAFTA panel reviews of DOC administrative reviews concerning all
entries of Mexican Cement that entered the United States before the
Effective Date; and
c. Requesting DOC to lift the suspension of liquidation instituted
by DOC under 19 U.S.C. Sec. 1516a(g)(5)(C)(i) and 19 C.F.R. Sec.
356.8, pursuant to the NAFTA litigation covering the 1999 Sunset
Review:
1. of all entries of Mexican Cement that entered the United States
before the Effective Date; and
2. of all entries of Mexican Cement covered by any administrative
review of such entries during an administrative review period ending
after the Effective Date (following the end of the period for
requesting that administrative review), so that those entries can be
liquidated in accordance with this Agreement (provided that this
Agreement remains in force at the time liquidation is ordered).
9. CEMEX, GCCC, and Apasco have each filed an irrevocable letter with
DOC (attached to this Agreement as Appendix 10) agreeing, in the event
the submitter of the letter has been found to have engaged in
Circumvention, to participate in any accelerated changed circumstances
review conducted by DOC (pursuant to Paragraph VII.C) to establish a
new estimated antidumping duty deposit rate, by:
a. Filing with DOC, within two weeks of receiving a written
request, a submission with sufficient information to enable DOC to
calculate a weighted-average dumping margin, based on the company's
sales in the two most recent quarters;
[[Page 13086]]
b. Permitting DOC to verify the submission in Paragraph II.A.9.a;
c. Waiving the company's right to participate in the changed
circumstances review, other than by filing with DOC the submission
described in Paragraph II.A.9.a and one administrative brief two weeks
before DOC's final determination is scheduled to be issued; and
d. Accepting that, if it does not make the submission described in
Paragraph II.A.9.a, DOC shall determine the new estimated duty deposit
rate on the basis of the facts available to be $42.63 per metric ton
(the average of the calculated rates for the 12\th\ and 13\th\
administrative review periods).
10. CEMEX, GCCC, the Committee for Fairly Traded Mexican Cement, and
the ITC have obtained from the NAFTA panel reviewing the determination
of the ITC in the 1999 Sunset Review a Notice of Suspension of Panel
Review, and the ITC has filed a Notice of Motion of Termination of
Panel Review (ITC Sunset Review of the Antidumping Duty Order, USA-MEX-
2000-1904-10) (attached to this Agreement as Appendix 11) that,
respectively, will:
a. suspend the Panel proceeding for as long as this Agreement
remains in force; and
b. terminate the Panel proceeding upon notification by DOC to the
NAFTA Secretariat that DOC has revoked the Mexican Cement Order as to
CEMEX and GCCC, or DOC has determined not to revoke the Mexican Cement
Order as to CEMEX or GCCC pursuant to Section XI.B. of this Agreement.
11. The Committee for Fairly Traded Mexican Cement, CEMEX, GCCC, and
Apasco have filed with the DOC, through their counsel, a letter
(attached to this Agreement as Appendix 12):
a. expressing their shared view that, while this Agreement remains
in force, the 2005 Sunset Review is neither required nor permitted, and
should be suspended; and
b. requesting DOC, if this Agreement has not been terminated before
March 31, 2009, to terminate the 2005 Sunset Review on that date.
12. The STCC members, Capitol Aggregates, Holcim, CEMEX Cement, Gulf
Coast Portland Cement, and GCC Rio Grande have entered into the Escrow
Agreement attached to this Agreement as Appendix 13.
13. The STCC and its members, Holcim, Capitol Aggregates, CEMEX Cement,
Gulf Coast Portland Cement, and GCC Rio Grande have each filed with
DOC, either themselves or through their counsel, an irrevocable letter
(attached to this Agreement as Appendix 14), effective on the Effective
Date, stating, as appropriate, that:
a. While this Agreement remains in force, the party submitting the
letter will not request any review under Section 751 of the Act of any
Mexican Cement Producer that has not engaged in Circumvention. In the
event that a Mexican Cement Producer engages in Circumvention, the
party submitting the letter reserves the right to request an
administrative review and a changed circumstances review only of
exports by that Mexican Cement Producer;
b. Provided that this Agreement has not been terminated before
March 31, 2009, the party submitting the letter has ``no interest'' in
maintaining the Mexican Cement Order after the expiration of this
Agreement, except with respect to any Mexican Cement Producer that has
substantially exceeded the Export Rights allocated to it by SE for any
Sub-region for the Third Export Limit Period; and
c. The party shall not file a petition requesting remedies with
respect to Mexican Cement under the Act, the U.S. countervailing duty
law, Sections 201-204 of the Trade Act of 1974, as amended, or Sections
301-305 of the Trade Act of 1974, as amended, for the duration of this
Agreement and for a period of nine (9) months after this Agreement
expires and will oppose any such petition filed by any other person or
enterprise during that period.
14. Representatives of SunTrust Bank, the institution responsible for
the Escrow Accounts, have completed two copies of Form 5106, and CEMEX
Cement, Gulf Coast Portland Cement and GCC Rio Grande have filed such
copies of Form 5106 with USCBP, providing Suntrust Bank's addresses for
purposes of receipt of refunds and interest payments from USCBP. One
copy of Form 5106 will provide an agent's number for the account used
by CEMEX Cement and Gulf Coast Portland Cement. The second copy will
provide an agent's number for the account used by GCC Rio Grande. These
copies are attached to this Agreement as part of Appendix 15.
15. CEMEX Cement, Gulf Coast Portland Cement, and GCC Rio Grande have
each filed with USCBP:
a. A Form 4811 for each U.S. port of entry having entries of
Mexican Cement that will be covered by a settlement under this
Agreement, directing USCBP to send all refunds of estimated antidumping
duty deposits pursuant to such a settlement to the importers of record
in care of SunTrust Bank (also attached to this Agreement as Appendix
15);
b. A blanket statement of non-reimbursement, pursuant to 19 CFR
Sec. 351.402(f)(2), certifying that it has not entered into any
agreement or understanding for the payment of all or any part of
antidumping duties by the manufacturer, producer, seller or exporter of
the subject merchandise (attached to this Agreement as Appendix 16);
and
c. A waiver (attached to this Agreement as Appendix 17) of the
right under 19 U.S.C. Sec. 1514 to protest the liquidation of the
entries subject to this Agreement, other than to contest and correct:
1. the rate at which the entry was liquidated if the rate is other
than the rate contained in the DOC instructions;
2. the calculation of the refund; or
3. clerical errors and mistakes of fact, following consultation
with both DOC and SE, and agreement by both DOC and SE that the error
or mistake is, indeed, clerical in nature or, indeed, a mistake of
fact.
16. CEMEX Cement, Gulf Coast Portland Cement and GCCC Rio Grande have
each certified to DOC that they have supplied a complete list of all
entries covered by the settlement in connection with this Agreement
(attached to this Agreement as Appendix 18).
B. The Parties undertake the following obligations once this Agreement
has entered into force (provided that this Agreement remains in force):
1. SE shall not issue an Export License to any Mexican Cement Producer
that has not filed the letter described in Paragraph II.A.9 of this
Agreement.
2. DOC shall publish in the Federal Register, within 10 days of the
Effective Date, the notice (attached to this Agreement as Appendix 19)
describing this Agreement.
3. DOC shall notify SunTrust Bank in writing, within 10 days of the
Effective Date, that this Agreement has become effective.
4. DOC shall publish in the Federal Register, within 10 days of the
Effective Date, the notice (attached to this Agreement as Appendix 5)
announcing the termination of all ongoing annual administrative reviews
of the Mexican Cement Order.
5. To the extent that DOC does not receive a request for an
administrative review of entries subject to the Mexican Cement Order at
the close of each
[[Page 13087]]
period for requesting such an administrative review, DOC shall order
liquidation of all entries under the Mexican Cement Order at the
deposit rate in effect upon the date of entry, pursuant to 19 CFR Sec.
351.212. If, while this Agreement is in force, DOC receives a request
for an administrative review of entries of Mexican Cement produced or
exported by a Mexican Cement Producer, DOC shall conduct that review as
required by 19 U.S.C. Section 1675(a). However, DOC intends to settle,
under 19 U.S.C. Sec. 1617, the claim for the antidumping duties on the
entries covered by the request at the estimated duty deposit rate in
effect on the date of entry. In deciding whether to reach such a
settlement, DOC shall take into account whether Circumvention has
occurred and whether SE has compensated for the Circumvention.
6. Upon request, DOC shall conduct an expedited changed circumstances
review to establish a new estimated duty deposit rate for any Mexican
Cement exporter (and its affiliated parties) that:
a. had an estimated duty deposit rate under the Mexican Cement
Order;
b. did not receive the new estimated duty deposit rate of three
U.S. dollars ($3.00) per metric ton referenced in Section II.A.4.b of
this Agreement; and
c. exported Mexican Cement to the United States in the year
preceding the Effective Date or exports Mexican Cement to the United
States while this Agreement remains in force.
7. DOC shall conduct an expedited new shipper review, upon request, of
each Mexican exporter and its affiliated parties that:
a. did not have an estimated duty deposit rate established under
the Mexican Cement Order;
b. exports Mexican Cement to the United States while this Agreement
remains in force; and
c. has satisfied all of the applicable certification requirements
of 19 CFR Sec. 351.214(b).
8. DOC shall establish an automatic Import License system for Mexican
Cement for the purpose of monitoring the level of imports of Mexican
Cement. Once this Import License system is in operation, each importer
of record of Mexican Cement will be required to include the U.S. Import
License number on the entry summary (or its electronic equivalent)
provided to USCBP upon entry into the United States. The list of
information required on each Import License application is attached as
Appendix 20.
9. DOC shall rely on the representations contained in the letters
submitted by STCC, CEMEX, GCCC, Capitol Aggregates, and Holcim, through
counsel, referenced in Section II.A.13.b of this Agreement, as the
basis for the commitments made by DOC in Sections IX and XI of this
Agreement.
10. If this Agreement remains in force on January 2, 2007, SE and USTR
shall ensure that their respective governments notify the WTO Dispute
Settlement Body, pursuant to Article 3.6 of the WTO Dispute Settlement
Understanding, that they have arrived at a mutually agreed solution to
the dispute United States - Anti-Dumping Measures on Cement from Mexico
(WT/DS281).
11. If this Agreement terminates before March 31, 2009, DOC promptly
shall resume the 2005 Sunset Review and inform the ITC of the new
circumstances.
C. This Agreement is without prejudice to the position of any Party
regarding the validity of the Mexican Cement Order or the merits of any
litigation related to the Mexican Cement Order.
III. Export Limits and Export Licensing
A. SE shall ensure that no Mexican Cement is exported (based on the
Date of Export) from Mexico to the United States in a quantity that
exceeds the Export Limits set forth below. SE shall ensure that no
Mexican Cement is exported (based on the Date of Export) from Mexico to
the United States without an Export License.
1. The Export Limits for Mexican Cement for the First Export Limit
Period for each Sub-region shall be:
------------------------------------------------------------------------
------------------------------------------------------------------------
a. Alabama/Mississippi................... 55,000 metric tons
b. Arizona............................... 1,250,000 metric tons
c. California............................ 150,000 metric tons
d. Florida............................... 200,000 metric tons
e. New Mexico/El Paso.................... 725,000 metric tons
f. New Orleans........................... 280,000 metric tons
g. Texas................................. 215,000 metric tons
h. Rest of United States................. 125,000 metric tons
Total.................................... 3,000,000 metric tons
------------------------------------------------------------------------
2. DOC shall adjust the Export Limit for each Sub-region for the Second
and Third Export Limit Periods as follows:
a. Export Limit calculation: DOC shall increase or decrease the
Export Limit for the previous Export Limit Period by the percent change
(up to 4.5 percent) in apparent consumption of cement in that Sub-
region during the most recent 12 months for which data is available at
the time DOC makes this calculation, as compared to the previous 12
months (as described in Appendix 21). DOC shall provide to SE, STCC,
Holcim, and Capitol Aggregates, no later than 60 days before the
beginning of the Second and Third Export Limit Periods, the Export
Limits for that period.
b. Adjustment for New Orleans: DOC shall increase the base Export
Limit calculated under Paragraph III.A.2.a for New Orleans by 25,000
metric tons and decrease the base Export Limit for the Rest of the
United States by 25,000 metric tons. This one-time adjustment to the
base Export Limit shall apply to both the Second and Third Export Limit
Periods.
3. DOC and SE shall consult, as necessary, regarding whether any of the
Export Limits should be increased (after all other adjustments provided
for by this Agreement) by a combined total for all Sub-regions of up to
200,000 metric tons in any Export Limit Period, in order to respond to
increased U.S. demand for cement in connection with a declaration of a
state of emergency as the result of a disaster. DOC shall only accept
an application for an Import License from a U.S. importer of record of
such additional Mexican Cement that states that the imports will be
used for the purpose of disaster relief.
4. SE may carry over to the next Export Limit Period or carry back to
the current Export Limit Period up to 8 percent of the Export Limit for
each Sub-region (except for Arizona, for which the allowed carry-over
or carry-back is 5 per cent). The quantity permitted to be carried over
or carried back under this paragraph shall be calculated on the basis
of the Export Limit before any
[[Page 13088]]
adjustment under Paragraph III.A.2.a (for changes in apparent
consumption) or adjustments under Paragraph III.A.2.b (for New Orleans
and the Rest of the United States), or any increase under Paragraph
III.A.3 with respect to a state of emergency.
B. SE shall allocate Export Rights to Mexican Cement Producers in
accordance with the Export Limits specified or calculated under Section
III.A., taking into consideration each producer's exports to the United
States during the previous five year period. SE shall reserve at least
6 percent by volume of the Export Limit for exports of Mexican Cement
Producers which have not previously shipped Mexican Cement to the
United States during the last five years.
C. SE shall not issue Export Licenses authorizing the export of a
quantity of Mexican Cement to any Sub-region in any half of any Export
Limit Period that exceeds 60 percent of the Export Limit for that Sub-
region for that Export Limit Period (before any carry forward or carry
back adjustments provided for in this Agreement). This provision shall
not apply to exports to the Sub-regions of Alabama/Mississippi and the
Rest of the United States.
D. SE shall enforce the Export Limits under the Mexican Foreign Trade
Law (``Ley de Comercio Exterior'') by establishing an Export License
system in accordance with Articles 4III, 5V, 15II, 21, 23 and 24 of
that law, and the relevant provisions of the Foreign Trade Law
Regulations.
IV. Implementation
A. Under the Export License system, SE shall permit exports (based upon
the Date of Export) of Mexican Cement to the United States only when
the shipment is accompanied by a valid Export License.
B. Each Export License shall:
1. Contain all of the information set out in Appendix 22 to this
Agreement (an official translation in English) and identify the time
period for which the Export License is effective. Additional
information may be included on the Export License or, if necessary, on
a separate page attached to the Export License.
2. Be issued sequentially by each regional office of SE in Mexico and
counted against the Export Limit and Export Rights for the relevant
Export Limit Period for each Sub-region. Export Licenses shall remain
valid for entry into the United States for 90 days. DOC and SE may
agree to an extension of the validity of the Export License in
extraordinary circumstances.
3. Be issued in the Spanish language.
C. DOC shall require that each importer submit to USCBP, with its entry
summary package, a valid Export License. For multiple shipments at
multiple ports or multiple entries at one port, the original license
shall be presented with the first entry and a copy of the Export
License shall be presented with each subsequent entry.
D. DOC shall deduct from the amount authorized on each Export License
the quantity of each shipment reported on corresponding Import Licenses
for the appropriate Export Limit for the given Sub-region for the
Export Limit Period, based on the Date of Export. The validity of an
Export License shall not be affected by any subsequent change of an
HTSUS number.
E. SE shall take the following measures to ensure compliance with the
Export Limits:
1. Ensure that no Mexican Cement is exported from Mexico (based on the
Date of Export) for entry into the United States that exceeds the
applicable Export Limit for each applicable Sub-region or Export Rights
for each Mexican Cement Producer.
2. Ensure that each Mexican Cement Producer certifies, when applying
for an Export License, that it will deliver Mexican Cement only to the
specified Sub-region for which the Export License is being requested.
3. Ensure that each Mexican Cement Producer that exports Mexican Cement
to the United States certifies, when applying for an Export License,
that it will provide to SE and DOC a monthly report specifying the date
of sale, quantity, the complete name and address (including county) of
each affiliated and unaffiliated purchaser to whom Mexican Cement was
sold, and the Export License numbers pursuant to which the Mexican
Cement that was sold during that month was imported into the United
States. This monthly report shall be due 30 days after the end of each
month (or the next business day).
4. Permit verification by DOC of all information concerning the
enforcement of the Export Limits on an annual basis, to the extent not
prohibited by Mexican Law.
V. Market Access
A. SE and DOC are committed to identifying and addressing any barriers
to market access that may prevent open and stable trade in cement
between the United States and Mexico. SE and DOC promptly and
completely shall investigate, as appropriate, any specific allegation,
based on evidence, of a market access barrier or an unfair trade or
business practice that may prevent cement from the other country from
entering its market.
B. SE and DOC, shall, with the support of the Mexican and U.S. cement
industries, establish a North American Cement Committee in order to
facilitate cement trade between Mexico and the United States. The
Parties shall hold the first meeting of the new cement committee within
six months of the Effective Date. The committee will analyze possible
mechanisms that could promote cement trade between the United States
and Mexico, such as:
1. International buyer delegations: Encourage delegations of Mexican
buyers/end-users of cement and cement products to participate in major
trade shows in the United States, and U.S. buyers/end-users of cement
and cement products to participate in major trade shows in Mexico.
2. Technical seminars: Co-host technical seminars at relevant trade
shows in Mexico and the United States to discuss new products and to
present U.S. producers to the Mexican industry, and Mexican producers
to the U.S. industry, respectively.
3. Trade missions: Co-host trade missions to Mexico and the United
States of U.S. cement (and related products) producers and Mexican
cement (and related products) producers, respectively.
4. Market research and trade leads: Facilitate the collection and
dissemination of information on market opportunities for U.S. cement
products in Mexico, and Mexican cement products in the United States,
including specific trade leads and project opportunities.
C. SE and DOC shall monitor these activities and how they influence the
evolution of trade in cement between Mexico and the United States. SE
and DOC shall consult on a quarterly basis and discuss any areas where
improvement may be made. SE and DOC intend to invite Canada to join the
North American Cement Committee.
D. SE shall ensure that any Mexican importer of cement designated by a
U.S. cement producer or exporter is permitted to be registered into the
Mexican Importers' Registry (``Padron de Importadores'') and the
Mexican Importers' Registry for Specific Sectors (Padron de
Importadores para Sectores Especificos''), provided that the importer
fully complies with the requirements set out under Mexican law. These
registration requirements are set forth in Appendix 23 to this
[[Page 13089]]
Agreement. In the event that an application for any of these registries
is denied, the Mexican importer may request SE to consult with the
competent authority. In such case, SE shall inform the importer in
writing, within 45 days of the request, of the reasons for which the
application was denied.
E. SE shall ensure that the Camara Nacional del Cemento de Mexico
(``CANACEM''), CEMEX, GCCC and Apasco each submit a letter to SE
(attached to this Agreement as Appendix 24) stating that:
1. It will not interpose an objection with the competent authority in
Mexico to an application by any Mexican importer designated by a U.S.
cement producer or exporter to be registered into the Mexican
Importers' Registry or the Mexican Importers' Registry for Specific
Sectors to import U.S. - produced cement.
2. If it files an objection with the competent authority in Mexico to
an application for inclusion on either registry filed by a Mexican
importer, designated by a U.S. cement producer or exporter to register
to import cement produced in a third country, the writer of the letter
will provide a copy of the objection to SE.
SE shall ensure that, if CANACEM, CEMEX, GCCC, or Apasco should object
to an application for inclusion on either registry as described in
subparagraphs (E) (1) and (2), it shall provide DOC with a copy of the
objection within 45 days.
F. To the extent that an objection described in Paragraph E above
contains confidential information, SE shall ensure that the companies
will consult with SE to explain the nature of the confidential
information. If possible, SE shall obtain a non-confidential summary of
the information and provide that summary to DOC.
VI. Monitoring and Notifications
A. As is necessary and appropriate to monitor the implementation of,
and compliance with, this Agreement, SE shall:
1. Within thirty days following the allocation of Export Rights for any
Export Limit Period, notify DOC of the quantity allocated to each
recipient for each applicable Sub-region. SE also shall inform DOC of
any changes in the allocation of Export Rights within 30 days of the
date on which such changes become effective, including the allocation
of Export Rights for Mexican Cement carry-over or carry-back pursuant
to paragraph III.A.4.
2. a. Monitor all exports of Mexican Cement to the United States and
deduct the quantity of each such export from the Export Limit
identified on the Export License; and
b. Prevent, in coordination with the Mexican General Customs
Administration, the exportation of any Mexican Cement not accompanied
by an Export License or in a quantity exceeding the quantity shown on
the Export License.
3. Collect and provide to DOC information on Export Licenses issued in
the format specified in Appendix 25 to this Agreement, including a copy
of each Export License issued. This information shall be collected for
the six-month period beginning on the Effective Date and each
subsequent six-month period and will be provided no later than 60 days
following the end of each such six-month period.
4. Collect and provide to DOC information identifying each shipment of
Mexican Cement made pursuant to each Export License in the format
specified in Appendix 25. This information shall be collected for the
six-month period beginning on the Effective Date and each subsequent
six-month period and will be provided to DOC no later than 60 days
following the end of each such six-month period.
5. Permit DOC to verify all information furnished by SE to DOC under
this Agreement to the extent not prohibited by Mexican Law.
B. DOC shall monitor and collect the following information to determine
whether there have been imports of Mexican Cement into the United
States that may be inconsistent with this Agreement and, to the extent
not prohibited by U.S. law, provide this information to representatives
of all interested parties to this segment of the DOC proceedings on
Mexican Cement (as defined by Section 771(9) of the Act) upon request:
1. U.S. Bureau of the Census data, and other publicly-available data,
on a quarterly basis.
2. U.S. Bureau of the Census computerized records that include the
quantity and value of each entry. DOC may also request USCBP to provide
other specific entry information, such as the identity of the producer/
exporter which may be responsible for such sales.
3. Information from the Import License system established under this
Agreement.
C. DOC shall release to counsel for the interested parties to this
segment of the DOC proceedings on Mexican Cement (as defined by Section
771(9) of the Act) and to counsel for SE all business proprietary
information submitted to DOC:
1. under this Agreement, pursuant to this Agreement for Disclosure of,
and Access to, Business Proprietary Information (attached to this
Agreement as Appendix 26); and
2. during the course of any administrative proceedings relating to
Mexican Cement conducted by DOC following the entry into force of this
Agreement, pursuant to DOC's regulations and standard procedures
governing the release of business proprietary information.
VII. Circumvention
A. The Parties shall take the following measures to address
Circumvention:
1. DOC shall investigate any alleged Circumvention that is brought to
its attention, both by asking SE to investigate such allegations and by
itself gathering relevant information. In such case, DOC shall provide
to SE all relevant information, provided that this is not prohibited by
U.S. law. DOC shall notify SE of the results of the inquiry within 15
days after the conclusion of the inquiry.
2. SE shall investigate any alleged Circumvention that is brought to
its attention. SE shall promptly initiate an inquiry into the alleged
Circumvention, and normally complete the inquiry within 45 days. SE
shall notify DOC of the results of the inquiry within 15 days after its
conclusion.
B. If a Mexican person or enterprise has engaged in Circumvention that
results in an Export Limit being exceeded, DOC and SE shall deduct from
the Export Limit for the Sub-region and Export Limit Period for which
the Export Limit was exceeded (or, if the Export Limit for that Sub-
region and Export Limit Period has been filled, the following Export
Limit Period) 150 percent of the quantity of Mexican Cement involved.
DOC and SE shall notify the other Party of any penalties imposed under
this Section within 15 days of their imposition.
C. If there has been Circumvention for which SE has not compensated by
reducing the Export Limit for the applicable Sub-region consistent with
Paragraph VII.B, DOC may self-initiate an accelerated changed
circumstances review (to be completed within 90 days of initiation) of
the producer of the Mexican Cement involved in the Circumvention, in
order to change the deposit rate applicable to that Mexican Cement
Producer. In the event that DOC receives a petition requesting a
changed circumstances review of a Mexican Cement Producer as a result
of
[[Page 13090]]
Circumvention by that producer for which SE has compensated under
Paragraph VII.B of this Agreement, DOC will consider the compensation
(and penalties imposed upon that producer) material to its decision
whether to initiate such a review, and will reflect its consideration
of that material factor in its written decision on whether to initiate
the review. Should a changed circumstances review be initiated under
this provision, SE shall require the Mexican Cement Producer in
question to provide to DOC, within two weeks after the date of
initiation of the review, all cost and sales data for the two most
recently completed quarters, or accept a new deposit rate based on the
facts available, in the amount of $42.63 per metric ton (the average of
the rates for the 12\th\ and 13\th\ administrative reviews of Mexican
Cement).
D. DOC shall require all importers of Mexican Cement into the United
States to submit to DOC a written statement, 30 days after the end of
every quarter (or on the next business day), listing all entries of
such merchandise and certifying that the Mexican Cement imported during
that quarter was not obtained under any arrangement in Circumvention.
Where DOC has reason to believe that such a certification has been made
falsely, DOC shall refer the matter to the United States Department of
Homeland Security or the United States Department of Justice for
further action, as appropriate.
VIII. Consultations
The Parties shall hold consultations concerning the implementation,
operation and enforcement of this Agreement at least once each year
during the anniversary month of the Effective Date and upon request by
SE, DOC, or USTR. Within six months of the Effective Date, SE and DOC
shall consult regarding the information exchanged under this Agreement.
IX. Intentions of the Parties with Respect to Future Unfair Trade
Actions and Challenges to this Agreement
For the duration of this Agreement and for nine (9) months after the
expiration of this Agreement:
A. DOC shall not self-initiate an investigation under Title VII of the
Act, or any successor law, with respect to imports of Mexican Cement.
If a petition for such an investigation is filed by a member of the
STCC, Holcim, or Capitol Aggregates, DOC shall dismiss the petition,
based upon the letters submitted by those parties and referenced in
Paragraph II.A.13 of this Agreement.
B. USTR shall not self-initiate an action under Sections 201-204 of the
Trade Act of 1974, as amended, or any successor law, with respect to
imports of Mexican Cement.
C. USTR shall not self-initiate an investigation under Sections 301-305
of the Trade Act of 1974, as amended, or any successor law, with
respect to imports of Mexican Cement.
D. SE shall not initiate an investigation or take action under Titles V
or VI of the Mexican Foreign Trade Law, or any successor law, with
respect to imports of cement from the United States. If CEMEX, GCCC, or
Apasco files with SE a petition for an investigation under Title V of
the Mexican Foreign Trade Law, SE shall dismiss the petition, based
upon the letter from that producer attached to this Agreement as
Appendix 27 or submitted by that producer to SE after the date this
Agreement is signed.
X. Violations of this Agreement
The Parties shall not consider a violation of this Agreement as
being material unless corresponding to the definition of a material
violation or breach contained in the Vienna Convention on the Law of
Treaties.
XI. Duration of this Agreement and Revocation of the Order
A. This Agreement shall expire on March 31, 2009, provided that it has
not been terminated before that date.
B. Provided that this Agreement has not been terminated before March
31, 2009, DOC shall revoke the Mexican Cement Order on April 1, 2009,
for all Mexican Cement Producers that have not exported any Mexican
Cement to the United States since August 30, 1990, or that have not
exported substantially more than the Export Limits allocated by SE to
such producers for any Sub-region for the Third Export Limit Period.
The revocation shall be based on the ``no interest'' statements
submitted in the letters of Section II.A.13 of this Agreement.
C. Any Party may terminate this Agreement upon 90 days written notice
to the other Parties.
D. If this Agreement terminates before March 31, 2009, for any reason,
any amounts remaining in the Escrow Account shall be distributed in
accordance with the specific provisions in the Escrow Agreement
providing for that contingency.
XII. Other Provisions
A. The English and Spanish language versions of this Agreement shall be
equally authentic.
B. For all purposes hereunder, the Parties shall be represented by, and
all communications and notice shall be given and addressed to:
Office of the United States Trade Representative, Office of the
Americas, 600 17th St., N.W., Washington, D.C. 20508.
U.S. Department of Commerce, Assistant Secretary for Import
Administration, International Trade Administration, Washington, DC
20230.
Secretaria de Economia, Subsecretaria de Negociaciones Comerciales
Internacionales, Alfonso Reyes, 30- 9th Floor, Col. Condesa, C.P.
06400, Mexico D.F.
Signed at Washington, DC, on this 6th day of March, 2006.
For the Office of the United States Trade Representative of the United
States of America: Robert Portman
For the United States Department of Commerce of the United States of
America: Carlos Guiteriez
For the Ministry of Economy (Secretaria de Economia) of the United
Mexican States: Sergio Garcia De Alba
[FR Doc. E6-3531 Filed 3-13-06; 8:45 am]
BILLING CODE 3510-DS-S