Sugar From Mexico: Amendment to the Agreement Suspending the Countervailing Duty Investigation, 3613-3616 [2020-00972]
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Federal Register / Vol. 85, No. 14 / Wednesday, January 22, 2020 / Notices
V. Recommendation
[FR Doc. 2020–00954 Filed 1–21–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–201–846]
Sugar From Mexico: Amendment to the
Agreement Suspending the
Countervailing Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable January 15, 2020.
SUMMARY: The Department of Commerce
(Commerce) and a representative of the
Government of Mexico (GOM) have
signed an amendment to the Agreement
Suspending the Countervailing Duty
Investigation on Sugar from Mexico
(CVD Agreement). The amendment to
the CVD Agreement modifies the
definitions for sugar from Mexico,
modifies the restrictions of the volume
of direct or indirect exports to the
United States of sugar from all Mexican
producers/exporters, and provides for
enhanced monitoring and enforcement
mechanisms.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
Sally C. Gannon or David Cordell at
(202) 482–0162 or (202) 482–0408,
respectively; Bilateral Agreements Unit,
Office of Policy, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
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Background
On April 17, 2014, Commerce
initiated a countervailing duty
investigation under section 702 of the
Tariff Act of 1930, as amended (the Act),
to determine whether manufacturers,
producers, or exporters of sugar from
Mexico receive subsidies.1 On August
25, 2014, Commerce preliminarily
determined that countervailable
subsidies are being provided to
producers and exporters of sugar from
Mexico and aligned the final
countervailing duty determination with
the final antidumping duty
determination.2
1 See Sugar from Mexico: Initiation of
Countervailing Duty Investigation, 79 FR 22790
(April 24, 2014).
2 See Sugar from Mexico: Preliminary Affirmative
Countervailing Determination and Alignment of
Final Countervailing Determination with Final
Antidumping Duty Determination, 79 FR 51956
(September 2, 2014).
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Commerce and the GOM signed the
CVD Agreement on December 19, 2014.3
On January 8, 2015, Imperial Sugar
Company (Imperial) and AmCane Sugar
LLC (AmCane) each notified Commerce
that they had petitioned the
International Trade Commission (ITC) to
conduct a review of the CVD Agreement
under section 704(h) of the Act to
determine whether the injurious effects
of the imports of the subject
merchandise are eliminated completely
by the CVD Agreement. On March 24,
2015, in a unanimous vote, the ITC
found that the CVD Agreement
eliminated completely the injurious
effects of imports of sugar from Mexico.4
As a result of the ITC’s determination,
the CVD Agreement remained in effect,
and on March 27, 2015, Commerce, in
accordance with section 704(h)(3) of the
Act, instructed U.S. Customs and Border
Protection (CBP) to terminate the
suspension of liquidation of all entries
of sugar from Mexico and refund all
cash deposits.
Notwithstanding issuance of the CVD
Agreement, pursuant to requests by
domestic interested parties, Commerce
continued its investigation and made an
affirmative final determination that
countervailable subsidies were being
provided to exporters and producers of
sugar from Mexico.5 In its Final
Determination, Commerce calculated
countervailable subsidy rates of 43.93
percent for Fondo de Empresas
Expropiadas del Sector Azucarero
(FEESA), 5.78 percent for Ingenio Tala
S.A. de C.V. and certain affiliated sugar
mills of Grupo Azucarero Mexico S.A.
de C.V. (collectively, the GAM Group),
and 38.11 percent for producers and
exporters that were not individually
investigated. Commerce stated in its
Final Determination that it would ‘‘not
instruct CBP to suspend liquidation or
collect cash deposits calculated herein
unless the {CVD} Suspension
Agreement is terminated.’’ 6 The ITC
subsequently made an affirmative
determination of material injury to an
industry in the United States by reason
of imports of sugar from Mexico.7
In June 2016, Commerce and GOM
began consultations regarding the CVD
3 See Sugar From Mexico: Suspension of
Countervailing Investigation, 79 FR 78044
(December 29, 2014) (CVD Agreement).
4 See Sugar from Mexico: Determinations, 80 FR
16426 (March 27, 2015).
5 See Sugar From Mexico: Continuation of
Antidumping and Countervailing Duty
Investigations, 80 FR 25278 (May 4, 2015); Sugar
From Mexico: Final Affirmative Countervailing Duty
Determination, 80 FR 57337 (September 23, 2015)
(Final Determination).
6 Final Determination, 80 FR at 57338.
7 See Sugar From Mexico, 80 FR 70833
(November 16, 2015) (Final ITC Determination).
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3613
Agreement to address concerns raised
by the domestic industry and to ensure
that the CVD Agreement continued to
meet all of the statutory requirements
for a suspension agreement, e.g., that
suspension of the investigation is in the
public interest, including the
availability of supplies of sugar in the
U.S. market, and that effective
monitoring is practicable. The
consultations resulted in Commerce and
the GOM initialing a draft amendment
to the CVD Agreement on June 14, 2017,
and subsequently signing a finalized
amendment on June 30, 2017.8
CSC Sugar LLC (CSC Sugar)
challenged Commerce’s determination
to amend the CVD Agreement by
contending that Commerce did not meet
its obligation to file a complete
administrative record.9 Specifically,
CSC Sugar argued that Commerce failed
to memorialize and include in the
record ex parte communications
between Commerce officials and
interested parties (including the
domestic sugar industry and
representatives of Mexico), as required
by section 777(a)(3) of the Act.10 The
CIT agreed with CSC Sugar and ordered
Commerce to supplement the
administrative record with any ex parte
communications regarding the 2017
CVD Amendment.11
Ultimately, the CIT found that
Commerce’s failure to follow the
recordkeeping requirements of Section
777 of the Act cannot be described as
‘‘harmless.’’ 12 The CIT found that this
recordkeeping failure substantially
prejudiced CSC Sugar.13 On that basis,
the CIT stated that the 2017 CVD
Amendment must be vacated.14
Consistent with CIT’s ruling in CSC
Sugar II, on December 6, 2019,
Commerce terminated the 2017 CVD
Amendment prospectively—and
accordingly, as of December 7, 2019, the
unamended CVD Agreement has been in
force and effective, and the 2017 CVD
Amendment has had no force or effect.15
8 See Sugar From Mexico: Amendment to the
Agreement Suspending the Countervailing Duty
Investigation, 82 FR 31942 (July 11, 2017) (2017
CVD Amendment).
9 See CSC Sugar LLC v. United States, Ct. No. 17–
00214, Slip Op. 19–131 (CIT October 18, 2019) (CSC
Sugar II) at 4.
10 Id.
11 Id. (citing CSC Sugar LLC v. United States, 317
F. Supp. 3d 1322, 1326 (CIT 2018)).
12 Id. at 11–12.
13 Id. at 12.
14 See Sugar From Mexico: Notice of Court
Decision Regarding Amendment to the Agreement
Suspending the Countervailing Duty Investigation,
84 FR 58136 (October 30, 2019).
15 See Sugar From Mexico: Notice of Termination
of Amendment to the Agreement Suspending the
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Federal Register / Vol. 85, No. 14 / Wednesday, January 22, 2020 / Notices
On November 4, 2019, Commerce
formally opened consultations to
renegotiate an amendment to the CVD
Agreement.16 On November 6, 2019,
Commerce released a proposed
amendment to the CVD Agreement and
invited parties to provide written
comments on the proposed amendment
by November 12, 2019.17 On December
4, 2019, Commerce and the GOM
initialed a draft amendment to the CVD
Agreement, and Commerce released a
corresponding draft statutory
memorandum.18 Interested parties were
invited to provide comments on the
draft amendment and draft
memorandum by December 16, 2019.
Scope of Agreement
See Section I, Product Coverage, of
the CVD Agreement.
Analysis of Comments Received
We received comments on the draft
amendment and draft statutory
memorandum from CSC Sugar; the
petitioners, American Sugar Coalition
and its members; 19 Imperial Sugar
Company; the Government of Mexico;
the Sugar Users Association; the
International Sugar Trade Coalition,
Inc.; and the Corn Refiners Association.
In reaching a final amendment to the
CVD Agreement, Commerce has taken
into account all comments submitted on
the record of the suspension agreement
proceeding and has made changes,
where warranted, to the December 4,
2019 draft CVD amendment based upon
those comments.
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Amendment to CVD Agreement
Commerce consulted with the GOM
and domestic interested parties and has
considered the comments submitted by
interested parties with respect to the
Countervailing Duty Investigation, 84 FR 67718,
67719 (December 11, 2019).
16 See Letter to the Government of Mexico from
P. Lee Smith, Deputy Assistant Secretary for Policy
& Negotiations, ‘‘Consultations on Potential
Amendment to the Agreement Suspending the
Countervailing Duty Investigation on Sugar from
Mexico’’ (November 4, 2019).
17 See Letter to All Interested Parties from P. Lee
Smith, Deputy Assistant Secretary for Policy &
Negotiations, ‘‘Release of Draft Amendment to the
Agreement Suspending the Countervailing Duty
Investigation on Sugar from Mexico’’ (November 6,
2019).
18 See Letter to All Interested Parties from Sally
C. Gannon, Director for Bilateral Agreements, ‘‘Draft
Amendment to the Agreement Suspending the
Countervailing Duty Investigation on Sugar from
Mexico and Draft Statutory Memorandum’’
(December 4, 2019).
19 Petitioners are the American Sugar Coalition
and its individual members: American Sugar Cane
League, American Sugar Refining, Inc., American
Sugarbeet Growers Association, Florida Sugar Cane
League, Rio Grande Valley Sugar Growers, Inc.,
Sugar Cane Growers Cooperative of Florida, and
United States Beet Sugar Association.
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draft amendment to the CVD
Agreement. On January 15, 2020, after
consideration of the interested party
comments received, Commerce and the
GOM signed a finalized amendment to
the CVD Agreement. The 2020
Amendment, as integrated with the CVD
Agreement (the amended CVD
Agreement), allows for exports of
Mexican sugar to the United States in
accordance with the collective terms
therein.
In accordance with section 704(c) of
the Act, we have determined that
extraordinary circumstances, as defined
by section 704(c)(4) of the Act, exist
with respect to the amended CVD
Agreement. We have also determined
that the amended CVD Agreement is in
the public interest and can be monitored
effectively, as required under section
704(d) of the Act.
For the reasons outlined above, we
find that the amended CVD Agreement
meets the criteria of section 704(c) and
(d) of the Act.
The terms and conditions of the
amended CVD Agreement, signed on
January 15, 2020, are set forth in the
2020 Amendment to the CVD
Agreement, which is attached in Annex
1 to this notice.
Administrative Protective Order Access
The administrative protective order
(APO) Commerce granted in the
suspension agreement segment of this
proceeding remains in place and
effective for the amended CVD
Agreement. All new parties requesting
access under the APO currently in effect
to business proprietary information
submitted during the administration of
the amended CVD Agreement must
submit an APO application in
accordance with Commerce’s
regulations currently in effect.20
We are issuing and publishing this
notice in accordance with section
704(f)(1)(A) of the Act and 19 CFR
351.208(g)(2).
Dated: January 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Annex 1: Amendment to the Agreement
Suspending the Countervailing Duty
Investigation on Sugar From Mexico
The Agreement Suspending the
Countervailing Duty Investigation on Sugar
from Mexico (Agreement) signed by the
United States Department of Commerce
(Commerce) and the Government of Mexico
(GOM) on December 19, 2014, is amended, as
set forth below (Amendment).
20 See section 777(c)(1) of the Act; 19 CFR
351.103, 351.304, 351.305, and 351.306.
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If a provision of the Agreement conflicts
with a provision of this Amendment, the
provision of the Amendment shall supersede
the provision of the Agreement to the extent
of the conflict. All other provisions of the
Agreement and their applicability continue
with full force.
Commerce and the GOM hereby agree as
follows:
Section II (‘‘Definitions’’) is amended as
follows:
Section II.D is replaced with:
‘‘Effective Date of the Agreement’’ means
the date on which Commerce and the GOM
signed the Agreement. Additionally, the
‘‘Effective Date of the Amendment’’ means
the date on which Commerce and the GOM
sign the Amendment.
Section II.G.1 is replaced with:
1. ‘‘Initial Export Limit Period’’ covers
entries of Sugar entered, or withdrawn from
warehouse for consumption, between
October 1, 2019 and September 30, 2020.
Section II.K is replaced with:
‘‘Other Sugar’’ means
a. Sugar at a polarity of less than 99.2, as
produced and measured on a dry basis;
b. Where such Sugar is Additional U.S.
Needs Sugar, as defined in Section II.U,
Sugar at a polarity of less than 99.5, as
produced and measured on a dry basis; and,
c. In the event that Section V.B.4.d is
exercised, Sugar at a polarity specified by
USDA that is below 99.5, as produced and
measured on a dry basis.
Such Other Sugar must be exported to the
United States loaded in bulk and freely
flowing (i.e., not in a container, tote, bag or
otherwise packaged) into the hold(s) of an
ocean-going vessel. To be considered as
Other Sugar, if Sugar leaves the Mexican mill
in a container, tote, bag or other package (i.e.,
is not freely flowing), it must be emptied
from the container, tote, bag or other package
into the hold of the ocean-going vessel for
exportation. All other exports of Sugar from
Mexico that are not transported in bulk and
freely flowing in the hold(s) of an oceangoing vessel will be considered to be Refined
Sugar for purposes of the Export Limit or
Additional U.S. Needs Sugar, regardless of
the polarity of that Sugar.
Section II.L is replaced with:
‘‘Refined Sugar’’ means
a. Sugar at a polarity of 99.2 and above, as
produced and measured on a dry basis;
b. Sugar considered to be Refined Sugar
under Section II.K;
c. Where such Sugar is Additional U.S.
Needs Sugar as defined in Section II.U, Sugar
at a polarity of 99.5 and above, as produced
and measured on a dry basis; and
d. In the event that Section V.B.4.d is
exercised, Sugar at a polarity specified by
USDA that is 99.5 or above, as produced and
measured on a dry basis.
New Section II.U is added as follows:
‘‘Additional U.S. Needs Sugar’’ means the
quantity of Sugar allowed to be exported,
over and above the Export Limit calculated
under Section V.B.3, to fill a need identified
by USDA in the U.S. market for a particular
type and quantity of Sugar, and offered to
Mexico pursuant to Section V.B.4.c.
Section V (‘‘Export Limits’’) is amended as
follows:
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Federal Register / Vol. 85, No. 14 / Wednesday, January 22, 2020 / Notices
Section V.A is replaced with the following:
A. The Export Limit for the Initial Export
Limit Period shall be 1,461,420 short tons
raw value. Effective January 1, 2020, no more
than 1,004,726 short tons raw value of sugar
from Mexico, may be exported to the United
States during the period October 1, 2019,
through March 31, 2020. The restriction in
Section V.C.3, as set forth below, shall apply
to only an amount of 1,361,420 short tons
raw value. The Export Limit for the Initial
Export Limit Period shall be re-calculated in
March 2020 in accordance with Section
V.B.3. The restriction in V.C.3 below shall
apply to only the Export Limit calculated in
March 2020 less 100,000 short tons raw
value.
Section V.B—the first sentence of the first
paragraph is amended as follows (changes in
italics):
The Export Limit for each Subsequent
Export Limit Period will be fifty (50) percent
of the Target Quantity of U.S. Needs as
calculated based on the July WASDE
preceding the beginning of the Export Limit
Period.
Section V.B.4 is replaced with the
following:
4. Increases to the Export Limit
a. Prior to April 1 of any Export Limit
Period, if USDA notifies Commerce, in
writing, of any additional need for Sugar,
Commerce shall, consistent with 704(c) of the
Act, increase the Export Limit to address
potential shortages in the U.S. market based
on USDA’s request.
b. Starting in March, within 10 days
following the publication of each WASDE
report during a given Export Limit Period,
Commerce agrees that it shall consult with
USDA and the GOM regarding any potential
increase in the Export Limit on or after April
1. Following each consultation with the
GOM, the GOM will notify Commerce within
10 days of (1) the extent to which the GOM
has issued export licenses for Other Sugar
and Refined Sugar to fulfill 100 percent of
the Target Quantity of U.S. Needs; (2) the
quantity of Other Sugar and Refined Sugar
that has been exported under such licenses,
and (3) the nature and quantity of the Sugar
that Mexico can supply, with supporting
documentation for the foregoing, and
Commerce shall notify USDA.
c. Pursuant to such consultations, and
upon receiving notice from USDA in writing
of a need in the U.S. market for a particular
type and quantity of additional Sugar that
Mexico has indicated it can supply,
Commerce shall: (1) Request written
confirmation from the GOM that Mexico can
and will supply 100 percent of the Target
Quantity of U.S. Needs (as calculated
pursuant to Section V.B.3 based on the
March WASDE); and (2) upon receiving such
confirmation, increase the Export Limit,
consistent with 704(c) of the Act, by an
amount equal to 100 percent of such
particular type and quantity of sugar
identified by USDA (hereinafter ‘‘Additional
U.S. Needs Sugar’’). When such Additional
U.S. Needs Sugar is requested by USDA, and
in turn offered to Mexico by Commerce, the
definitions for Other Sugar and Refined
Sugar in Section II.K.a and Section II.L.a,
respectively, shall apply prior to May 1 of
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any Export Limit Period, and, on or after
such date, the definition in Section II.K.b and
Section II.L.c, respectively, shall apply. Such
Additional U.S. Needs Sugar shall comply
with the applicable definitions and
requirements in the Agreement, for Other
Sugar and Refined Sugar, respectively.
d. In the event of an extraordinary and
unforeseen circumstance that seriously
threatens the economic viability of the U.S.
sugar refining industry, USDA may specify
the polarity of the amount of additional
Sugar specifically needed to rectify such
extraordinary and unforeseen circumstance.
To the extent possible under the
circumstances, USDA will consult with the
GOM and other interested parties. When
such additional Sugar is requested by USDA
under this Section V.B.4.d, and in turn
offered to Mexico by Commerce, the
definitions for Other Sugar and Refined
Sugar in Section II.K.c and Section II.L.d,
respectively, shall apply.
e. If Commerce has imposed penalties for
polarity non-compliance under Section
VIII.B.4 in a given Export Limit Period,
Mexico may not be eligible for Additional
Needs U.S. Sugar.
f. Any additional Sugar may be limited to
Other Sugar or Refined Sugar, or any
combination thereof, as specified by USDA.
For greater certainty, Section V.C does not
apply to any additional Sugar exported by
Mexico pursuant to this Section V.B.4.
Section V.C is amended as follows:
Section V.C.2 is amended as follows
(changes in italics):
No more than 55 percent of U.S. Needs
calculated in each September and effective
January 1 may be exported to the United
States during the period October 1 through
March 31, unless that amount is less than or
equal to the amount calculated under
Section V.C.1, in which case the amount
calculated under Section V.C.1 will continue
to apply until March 31.
Section V.C.3 is amended as follows
(changes in italics):
Refined Sugar may account for no more
than 30 percent of the exports during any
given Export Limit Period.
Section VI (‘‘Implementation’’) is amended
as follows:
Section VI.A—the following sentences are
added at the end of the paragraph:
On the Effective Date of the Amendment,
presentation of an Export License is required
as a condition for entry of Sugar from Mexico
into the United States. The GOM will issue
amended regulations to implement the
Amendment, as necessary.
Section VI.B—the first sentence is
amended as follows (changes in italics) and
a new sentence is inserted after the first
sentence (in italics):
Export Licenses will be contract-specific
and must contain the information identified
in Appendix I. Export Licenses issued by the
GOM must, in addition to specifying whether
or not exported Other Sugar is for furtherprocessing, also specify the identity of the
entity that is further processing the Other
Sugar, if known.
Section VIII.B (‘‘Compliance Monitoring’’)
is amended as follows:
Section VIII.B.4 is added as follows:
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4. Penalties for Polarity Non-Compliance of
this Agreement and/or Price Non-Compliance
of the Agreement Suspending the
Antidumping Duty Investigation on Sugar
from Mexico (AD Agreement): Commerce
will review documentation regarding polarity
testing that is placed on the record of this
Agreement, in accordance with Section
VII.C.6 of the AD Agreement, to determine
whether there have been imports that are
inconsistent with the provisions of this
Agreement and Sections II.F, II.H, VII.C.6 and
Appendix I of the AD Agreement. Where
Commerce finds that polarity test results of
an entry of Sugar are not compliant with the
Agreement’s or AD Agreement’s applicable
definition of Other Sugar or Sugar was sold
at prices that are less than the Reference
Prices established in Appendix I of the AD
Agreement: (1) Commerce shall deduct two
(2) times the quantity of that entry from
Mexico’s Export Limit, and (2) the GOM will,
in turn, deduct that same quantity from the
specific producer’s/exporter’s Export Limit
allocation.
a. The penalty will be applied on the date
Commerce notifies the GOM in writing of
such non-compliance.
b. If Other Sugar that enters during the
period from October 1 through the day before
the publication of the July WASDE tests at or
above 99.2 polarity (or at or above 99.5 or
other polarity in the case of Additional U.S.
Needs Sugar), then Commerce will reduce
Mexico’s current Export Limit by two (2)
times the quantity of that entry. The Export
Limit determined under Section V.B.2 and
V.B.3 will be correspondingly reduced by the
same amount. At the time of the March
WASDE when the Target Quantity of U.S.
Needs is determined, and up to the day
before the publication of the July WASDE,
USDA may exercise its authority to seek to
fill from other countries the particular type
and quantity of sugar needed in the U.S.
market to address the penalty amount by
which Mexico’s current-year Export Limit
was reduced.
c. If Other Sugar that enters during the
period from the day of the publication of the
July WASDE through September 30 tests at
or above 99.2 polarity (or at or above 99.5 or
other polarity in the case of Additional U.S.
Needs Sugar), then Commerce will reduce
the Export Limit for the next Export Limit
Period by two (2) times the quantity of that
entry. That reduction will be applied to each
revision of the Export Limit under Section
V.B.1, V.B.2 and V.B.3. If Mexico’s next fiscal
year Export Limit is reduced, USDA may
exercise its authority to seek to fill from other
countries the particular type and quantity of
sugar needed in the U.S. market to address
the penalty amount by which Mexico’s
Export Limit was reduced.
d. If Commerce finds that issues with
meeting the polarity, testing, or compliance
requirements of this Agreement continue to
arise, Commerce can at any time terminate
the Agreement under Section XI.B. Apart
from termination, Commerce may take
additional steps to ensure compliance with
the terms of this Agreement and the AD
Agreement as appropriate, including
reducing the Export Limit up to three (3)
times the quantity of entries that do not
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Federal Register / Vol. 85, No. 14 / Wednesday, January 22, 2020 / Notices
comply with this Agreement or the AD
Agreement.
Appendix I is amended as follows (changes
in italics):
The GOM will issue contract-specific
Export Licenses to Mexican entities that shall
contain the following fields:
At Appendix I, the following will be added
to the Export License:
12. Contract Identification Information:
Indicate the contract identification
information with which the license is
associated.
At Appendix II, the following will be
added to the information reported to
Commerce:
12. Contract Identification Information:
Indicate the contract identification
information with which the license is
associated.
13. Date of Export: Indicate the date of
export of the Sugar from Mexico to the
United States.
It is acknowledged that reported
information may need to be updated from
time to time to reflect corrected information
from customs authorities.
For the U.S. Department of Commerce:
lllllllllllllllllllll
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance, U.S. Department of
Commerce.
lllllllllllllllllllll
Date
For the Government of Mexico:
lllllllllllllllllllll
Luz Marı´a de la Mora Sa´nchez,
Subsecretaria de Comercio Exterior,
Secretarı´a de Economı´a.
lllllllllllllllllllll
Date
[FR Doc. 2020–00972 Filed 1–21–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–489–501]
Circular Welded Carbon Steel Standard
Pipe and Tube Products From Turkey:
Final Results of Antidumping Duty
Administrative Review and Final
Determination of No Shipments; 2017–
2018
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that the single
entity comprised of Borusan
Mannesmann Boru Sanayi ve Ticaret
A.S. (Borusan Mannesmann) and
Borusan Istikbal Ticaret T.A.S. (Borusan
Istikbal) (collectively, Borusan) made
sales of circular welded carbon steel
standard pipe and tube products
(welded pipe and tube) from Turkey at
less than normal value (NV) during the
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AGENCY:
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16:42 Jan 21, 2020
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period of review (POR), May 1, 2017
through April 30, 2018. Commerce also
determines that the single entity
comprised of Toscelik Profil ve Sac
Endustrisi A.S., Tosyali Dis Ticaret A.S.,
and Toscelik Metal Ticaret A.S.
(Toscelik Metal) (collectively, Toscelik)
did not make sales of welded pipe and
tube from Turkey at less than NV during
the POR.
DATES: Applicable January 22, 2020.
FOR FURTHER INFORMATION CONTACT:
Magd Zalok or Karine Gziryan, AD/CVD
Operations, Office IV, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–4162 or (202) 482–4081,
respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary
Results on July 18, 2019.1 This review
covers 16 producers or exporters of
subject merchandise, including the two
mandatory respondents, the single
entity of Borusan,2 and the single entity
of Toscelik.3 We invited interested
parties to comment on the Preliminary
Results. On September 13, 2019 and
September 24, 2019, we received case
1 See Circular Welded Carbon Steel Standard Pipe
and Tube Products from Turkey: Preliminary
Results of Antidumping Duty Administrative
Review and Preliminary Determination of No
Shipments; 2017–2018, 84 FR 34345 (July 18, 2019)
and accompanying Memorandum, ‘‘Decision
Memorandum for Preliminary Results of
Antidumping Duty Administrative Review: Circular
Welded Carbon Steel Standard Pipe and Tube
Products from Turkey; 2017–2018’’ dated July 18,
2019 (Preliminary Results).
2 In prior segments of this proceeding, we treated
Borusan Mannesmann Boru Sanayi ve Ticaret A.S.
and Borusan Istikbal Ticaret T.A.S. as a single
entity. See, e.g., Welded Carbon Steel Standard Pipe
and Tube Products from Turkey: Final Results of
Antidumping Duty Administrative Review and
Final Determination of No Shipments; 2013–2014,
80 FR 76674, 76674 (December 10, 2015). We
determine that there is no evidence on the record
for altering our treatment of Borusan Mannesmann
Boru Sanayi ve Ticaret A.S. and Borusan Istikbal
Ticaret T.A.S., as a single entity.
3 In prior segments of this proceeding, we treated
Toscelik Profil ve Sac Endustrisi A.S., Tosyali Dis
Ticaret A.S., and Toscelik Metal as a single
company. See, e.g., Welded Carbon Steel Standard
Pipe and Tube Products from Turkey: Final Results
of Antidumping Duty Administrative Review and
Final Determination of No Shipments; 2013–2014,
80 FR 76674, 76674 n.2 (December 10, 2015).
Accordingly, we determined that there is no
evidence on the record for altering our treatment of
Toscelik Profil ve Sac Endustrisi A.S., Tosyali Dis
Ticaret A.S., and Toscelik Metal as a single
company. See also Memorandum, ‘‘Administrative
Review of the Antidumping Duty Order on Circular
Welded Carbon Steel Standard Pipe and Tube
Products from Turkey: Respondent Selection,’’
dated August 8, 2018 (Respondent Selection
Memorandum).
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
briefs from interested parties,4 and on
September 27th and 30th, respectively,
we received rebuttal briefs from
interested parties.5 On August 14, 2019,
Borusan requested that Commerce
conduct a hearing in this proceeding.6
We held a hearing on October 23, 2019.
On November 1, 2019, Commerce
extended the deadline for the final
results by 60 days to January 14, 2020.7
Commerce conducted this
administrative review in accordance
with section 751(a) of the Tariff Act of
1930, as amended (the Act).
Scope of the Order
The products covered by this order
are welded carbon steel standard pipe
and tube products with an outside
diameter of 0.375 inch or more but not
over 16 inches of any wall thickness,
and are currently classified under the
following Harmonized Tariff Schedule
of the United States (HTSUS)
subheadings: 7306.30.10.00,
7306.30.50.25, 7306.30.50.32,
7306.30.50.40, 7306.30.50.55,
7306.30.50.85, and 7306.30.50.90.
Although the HTSUS subheading is
provided for convenience and customs
purposes, the written description of the
merchandise under investigation is
dispositive. These products, commonly
referred to in the industry as standard
pipe or tube, are produced to various
4 See Borusan’s Letter, ‘‘Administrative Review of
the Antidumping Order on Circular Welded Pipe
and Tubes from Turkey: Redacted Case Brief,’’
dated September 24, 2019 (Borusan’s Case Brief);
see also Petitioner’s Letter, ‘‘Circular Welded Pipe
and Tubes from Turkey: Case Brief,’’ dated
September 24, 2019 (Petitioner’s Case Brief); and
Letter on behalf of Independence Tube Corporation
(Independence Tube) and Southland Tube,
Incorporated (Southland Tube), Nucor companies
(collectively, Nucor Company), ‘‘Certain Welded
Carbon Steel Standard Pipes and Tubes from
Turkey: Case Brief,’’ dated September 13, 2019. The
Nucor Company submitted its brief in support of
Wheatland’s case brief, concurring and adopting by
reference the arguments set forth in Wheatland’s
brief. The petitioner is Wheatland Tube Company
(petitioner).
5 See Petitioner’s Letter, ‘‘Circular Welded Pipe
and Tubes from Turkey: Rebuttal Brief ’’ dated
September 30, 2019 (Petitioner’s Rebuttal Brief); see
also Borusan’s Letter, ‘‘Circular Welded Pipe and
Tubes from Turkey Case No. A–489–501: BMB’s
Rebuttal Brief,’’ dated September 30, 2019
(Borusan’s Rebuttal Brief); and the Nucor
Company’s Letter ‘‘Certain Welded Carbon Steel
Standard Pipes and Tubes from Turkey: Rebuttal
Brief,’’ dated September 27, 2019. The Nucor
Company submitted its rebuttal brief in support of
Wheatland’s rebuttal brief, concurring and adopting
by reference the arguments set forth in Wheatland’s
rebuttal brief.
6 See Borusan’s Letter, ‘‘Circular Welded Pipe and
Tubes from Turkey Case No. A–489–501: Request
for Hearing,’’ dated July 18, 2019;
7 See Memorandum, ‘‘Circular Welded Carbon
Steel Standard Pipe and Tubes from Turkey:
Extension of Deadline for Final Results of 2017–
2018 Antidumping Duty Administrative Review,’’
dated November 1, 2019.
E:\FR\FM\22JAN1.SGM
22JAN1
]]>Agencies
[Federal Register Volume 85, Number 14 (Wednesday, January 22, 2020)]
[Notices]
[Pages 3613-3616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00972]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-201-846]
Sugar From Mexico: Amendment to the Agreement Suspending the
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable January 15, 2020.
SUMMARY: The Department of Commerce (Commerce) and a representative of
the Government of Mexico (GOM) have signed an amendment to the
Agreement Suspending the Countervailing Duty Investigation on Sugar
from Mexico (CVD Agreement). The amendment to the CVD Agreement
modifies the definitions for sugar from Mexico, modifies the
restrictions of the volume of direct or indirect exports to the United
States of sugar from all Mexican producers/exporters, and provides for
enhanced monitoring and enforcement mechanisms.
FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or David Cordell at
(202) 482-0162 or (202) 482-0408, respectively; Bilateral Agreements
Unit, Office of Policy, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On April 17, 2014, Commerce initiated a countervailing duty
investigation under section 702 of the Tariff Act of 1930, as amended
(the Act), to determine whether manufacturers, producers, or exporters
of sugar from Mexico receive subsidies.\1\ On August 25, 2014, Commerce
preliminarily determined that countervailable subsidies are being
provided to producers and exporters of sugar from Mexico and aligned
the final countervailing duty determination with the final antidumping
duty determination.\2\
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\1\ See Sugar from Mexico: Initiation of Countervailing Duty
Investigation, 79 FR 22790 (April 24, 2014).
\2\ See Sugar from Mexico: Preliminary Affirmative
Countervailing Determination and Alignment of Final Countervailing
Determination with Final Antidumping Duty Determination, 79 FR 51956
(September 2, 2014).
---------------------------------------------------------------------------
Commerce and the GOM signed the CVD Agreement on December 19,
2014.\3\
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\3\ See Sugar From Mexico: Suspension of Countervailing
Investigation, 79 FR 78044 (December 29, 2014) (CVD Agreement).
---------------------------------------------------------------------------
On January 8, 2015, Imperial Sugar Company (Imperial) and AmCane
Sugar LLC (AmCane) each notified Commerce that they had petitioned the
International Trade Commission (ITC) to conduct a review of the CVD
Agreement under section 704(h) of the Act to determine whether the
injurious effects of the imports of the subject merchandise are
eliminated completely by the CVD Agreement. On March 24, 2015, in a
unanimous vote, the ITC found that the CVD Agreement eliminated
completely the injurious effects of imports of sugar from Mexico.\4\ As
a result of the ITC's determination, the CVD Agreement remained in
effect, and on March 27, 2015, Commerce, in accordance with section
704(h)(3) of the Act, instructed U.S. Customs and Border Protection
(CBP) to terminate the suspension of liquidation of all entries of
sugar from Mexico and refund all cash deposits.
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\4\ See Sugar from Mexico: Determinations, 80 FR 16426 (March
27, 2015).
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Notwithstanding issuance of the CVD Agreement, pursuant to requests
by domestic interested parties, Commerce continued its investigation
and made an affirmative final determination that countervailable
subsidies were being provided to exporters and producers of sugar from
Mexico.\5\ In its Final Determination, Commerce calculated
countervailable subsidy rates of 43.93 percent for Fondo de Empresas
Expropiadas del Sector Azucarero (FEESA), 5.78 percent for Ingenio Tala
S.A. de C.V. and certain affiliated sugar mills of Grupo Azucarero
Mexico S.A. de C.V. (collectively, the GAM Group), and 38.11 percent
for producers and exporters that were not individually investigated.
Commerce stated in its Final Determination that it would ``not instruct
CBP to suspend liquidation or collect cash deposits calculated herein
unless the {CVD{time} Suspension Agreement is terminated.'' \6\ The
ITC subsequently made an affirmative determination of material injury
to an industry in the United States by reason of imports of sugar from
Mexico.\7\
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\5\ See Sugar From Mexico: Continuation of Antidumping and
Countervailing Duty Investigations, 80 FR 25278 (May 4, 2015); Sugar
From Mexico: Final Affirmative Countervailing Duty Determination, 80
FR 57337 (September 23, 2015) (Final Determination).
\6\ Final Determination, 80 FR at 57338.
\7\ See Sugar From Mexico, 80 FR 70833 (November 16, 2015)
(Final ITC Determination).
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In June 2016, Commerce and GOM began consultations regarding the
CVD Agreement to address concerns raised by the domestic industry and
to ensure that the CVD Agreement continued to meet all of the statutory
requirements for a suspension agreement, e.g., that suspension of the
investigation is in the public interest, including the availability of
supplies of sugar in the U.S. market, and that effective monitoring is
practicable. The consultations resulted in Commerce and the GOM
initialing a draft amendment to the CVD Agreement on June 14, 2017, and
subsequently signing a finalized amendment on June 30, 2017.\8\
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\8\ See Sugar From Mexico: Amendment to the Agreement Suspending
the Countervailing Duty Investigation, 82 FR 31942 (July 11, 2017)
(2017 CVD Amendment).
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CSC Sugar LLC (CSC Sugar) challenged Commerce's determination to
amend the CVD Agreement by contending that Commerce did not meet its
obligation to file a complete administrative record.\9\ Specifically,
CSC Sugar argued that Commerce failed to memorialize and include in the
record ex parte communications between Commerce officials and
interested parties (including the domestic sugar industry and
representatives of Mexico), as required by section 777(a)(3) of the
Act.\10\ The CIT agreed with CSC Sugar and ordered Commerce to
supplement the administrative record with any ex parte communications
regarding the 2017 CVD Amendment.\11\
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\9\ See CSC Sugar LLC v. United States, Ct. No. 17-00214, Slip
Op. 19-131 (CIT October 18, 2019) (CSC Sugar II) at 4.
\10\ Id.
\11\ Id. (citing CSC Sugar LLC v. United States, 317 F. Supp. 3d
1322, 1326 (CIT 2018)).
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Ultimately, the CIT found that Commerce's failure to follow the
recordkeeping requirements of Section 777 of the Act cannot be
described as ``harmless.'' \12\ The CIT found that this recordkeeping
failure substantially prejudiced CSC Sugar.\13\ On that basis, the CIT
stated that the 2017 CVD Amendment must be vacated.\14\ Consistent with
CIT's ruling in CSC Sugar II, on December 6, 2019, Commerce terminated
the 2017 CVD Amendment prospectively--and accordingly, as of December
7, 2019, the unamended CVD Agreement has been in force and effective,
and the 2017 CVD Amendment has had no force or effect.\15\
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\12\ Id. at 11-12.
\13\ Id. at 12.
\14\ See Sugar From Mexico: Notice of Court Decision Regarding
Amendment to the Agreement Suspending the Countervailing Duty
Investigation, 84 FR 58136 (October 30, 2019).
\15\ See Sugar From Mexico: Notice of Termination of Amendment
to the Agreement Suspending the Countervailing Duty Investigation,
84 FR 67718, 67719 (December 11, 2019).
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[[Page 3614]]
On November 4, 2019, Commerce formally opened consultations to
renegotiate an amendment to the CVD Agreement.\16\ On November 6, 2019,
Commerce released a proposed amendment to the CVD Agreement and invited
parties to provide written comments on the proposed amendment by
November 12, 2019.\17\ On December 4, 2019, Commerce and the GOM
initialed a draft amendment to the CVD Agreement, and Commerce released
a corresponding draft statutory memorandum.\18\ Interested parties were
invited to provide comments on the draft amendment and draft memorandum
by December 16, 2019.
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\16\ See Letter to the Government of Mexico from P. Lee Smith,
Deputy Assistant Secretary for Policy & Negotiations,
``Consultations on Potential Amendment to the Agreement Suspending
the Countervailing Duty Investigation on Sugar from Mexico''
(November 4, 2019).
\17\ See Letter to All Interested Parties from P. Lee Smith,
Deputy Assistant Secretary for Policy & Negotiations, ``Release of
Draft Amendment to the Agreement Suspending the Countervailing Duty
Investigation on Sugar from Mexico'' (November 6, 2019).
\18\ See Letter to All Interested Parties from Sally C. Gannon,
Director for Bilateral Agreements, ``Draft Amendment to the
Agreement Suspending the Countervailing Duty Investigation on Sugar
from Mexico and Draft Statutory Memorandum'' (December 4, 2019).
---------------------------------------------------------------------------
Scope of Agreement
See Section I, Product Coverage, of the CVD Agreement.
Analysis of Comments Received
We received comments on the draft amendment and draft statutory
memorandum from CSC Sugar; the petitioners, American Sugar Coalition
and its members; \19\ Imperial Sugar Company; the Government of Mexico;
the Sugar Users Association; the International Sugar Trade Coalition,
Inc.; and the Corn Refiners Association. In reaching a final amendment
to the CVD Agreement, Commerce has taken into account all comments
submitted on the record of the suspension agreement proceeding and has
made changes, where warranted, to the December 4, 2019 draft CVD
amendment based upon those comments.
---------------------------------------------------------------------------
\19\ Petitioners are the American Sugar Coalition and its
individual members: American Sugar Cane League, American Sugar
Refining, Inc., American Sugarbeet Growers Association, Florida
Sugar Cane League, Rio Grande Valley Sugar Growers, Inc., Sugar Cane
Growers Cooperative of Florida, and United States Beet Sugar
Association.
---------------------------------------------------------------------------
Amendment to CVD Agreement
Commerce consulted with the GOM and domestic interested parties and
has considered the comments submitted by interested parties with
respect to the draft amendment to the CVD Agreement. On January 15,
2020, after consideration of the interested party comments received,
Commerce and the GOM signed a finalized amendment to the CVD Agreement.
The 2020 Amendment, as integrated with the CVD Agreement (the amended
CVD Agreement), allows for exports of Mexican sugar to the United
States in accordance with the collective terms therein.
In accordance with section 704(c) of the Act, we have determined
that extraordinary circumstances, as defined by section 704(c)(4) of
the Act, exist with respect to the amended CVD Agreement. We have also
determined that the amended CVD Agreement is in the public interest and
can be monitored effectively, as required under section 704(d) of the
Act.
For the reasons outlined above, we find that the amended CVD
Agreement meets the criteria of section 704(c) and (d) of the Act.
The terms and conditions of the amended CVD Agreement, signed on
January 15, 2020, are set forth in the 2020 Amendment to the CVD
Agreement, which is attached in Annex 1 to this notice.
Administrative Protective Order Access
The administrative protective order (APO) Commerce granted in the
suspension agreement segment of this proceeding remains in place and
effective for the amended CVD Agreement. All new parties requesting
access under the APO currently in effect to business proprietary
information submitted during the administration of the amended CVD
Agreement must submit an APO application in accordance with Commerce's
regulations currently in effect.\20\
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\20\ See section 777(c)(1) of the Act; 19 CFR 351.103, 351.304,
351.305, and 351.306.
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We are issuing and publishing this notice in accordance with
section 704(f)(1)(A) of the Act and 19 CFR 351.208(g)(2).
Dated: January 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Annex 1: Amendment to the Agreement Suspending the Countervailing Duty
Investigation on Sugar From Mexico
The Agreement Suspending the Countervailing Duty Investigation
on Sugar from Mexico (Agreement) signed by the United States
Department of Commerce (Commerce) and the Government of Mexico (GOM)
on December 19, 2014, is amended, as set forth below (Amendment).
If a provision of the Agreement conflicts with a provision of
this Amendment, the provision of the Amendment shall supersede the
provision of the Agreement to the extent of the conflict. All other
provisions of the Agreement and their applicability continue with
full force.
Commerce and the GOM hereby agree as follows:
Section II (``Definitions'') is amended as follows:
Section II.D is replaced with:
``Effective Date of the Agreement'' means the date on which
Commerce and the GOM signed the Agreement. Additionally, the
``Effective Date of the Amendment'' means the date on which Commerce
and the GOM sign the Amendment.
Section II.G.1 is replaced with:
1. ``Initial Export Limit Period'' covers entries of Sugar
entered, or withdrawn from warehouse for consumption, between
October 1, 2019 and September 30, 2020.
Section II.K is replaced with:
``Other Sugar'' means
a. Sugar at a polarity of less than 99.2, as produced and
measured on a dry basis;
b. Where such Sugar is Additional U.S. Needs Sugar, as defined
in Section II.U, Sugar at a polarity of less than 99.5, as produced
and measured on a dry basis; and,
c. In the event that Section V.B.4.d is exercised, Sugar at a
polarity specified by USDA that is below 99.5, as produced and
measured on a dry basis.
Such Other Sugar must be exported to the United States loaded in
bulk and freely flowing (i.e., not in a container, tote, bag or
otherwise packaged) into the hold(s) of an ocean-going vessel. To be
considered as Other Sugar, if Sugar leaves the Mexican mill in a
container, tote, bag or other package (i.e., is not freely flowing),
it must be emptied from the container, tote, bag or other package
into the hold of the ocean-going vessel for exportation. All other
exports of Sugar from Mexico that are not transported in bulk and
freely flowing in the hold(s) of an ocean-going vessel will be
considered to be Refined Sugar for purposes of the Export Limit or
Additional U.S. Needs Sugar, regardless of the polarity of that
Sugar.
Section II.L is replaced with:
``Refined Sugar'' means
a. Sugar at a polarity of 99.2 and above, as produced and
measured on a dry basis;
b. Sugar considered to be Refined Sugar under Section II.K;
c. Where such Sugar is Additional U.S. Needs Sugar as defined in
Section II.U, Sugar at a polarity of 99.5 and above, as produced and
measured on a dry basis; and
d. In the event that Section V.B.4.d is exercised, Sugar at a
polarity specified by USDA that is 99.5 or above, as produced and
measured on a dry basis.
New Section II.U is added as follows:
``Additional U.S. Needs Sugar'' means the quantity of Sugar
allowed to be exported, over and above the Export Limit calculated
under Section V.B.3, to fill a need identified by USDA in the U.S.
market for a particular type and quantity of Sugar, and offered to
Mexico pursuant to Section V.B.4.c.
Section V (``Export Limits'') is amended as follows:
[[Page 3615]]
Section V.A is replaced with the following:
A. The Export Limit for the Initial Export Limit Period shall be
1,461,420 short tons raw value. Effective January 1, 2020, no more
than 1,004,726 short tons raw value of sugar from Mexico, may be
exported to the United States during the period October 1, 2019,
through March 31, 2020. The restriction in Section V.C.3, as set
forth below, shall apply to only an amount of 1,361,420 short tons
raw value. The Export Limit for the Initial Export Limit Period
shall be re-calculated in March 2020 in accordance with Section
V.B.3. The restriction in V.C.3 below shall apply to only the Export
Limit calculated in March 2020 less 100,000 short tons raw value.
Section V.B--the first sentence of the first paragraph is
amended as follows (changes in italics):
The Export Limit for each Subsequent Export Limit Period will be
fifty (50) percent of the Target Quantity of U.S. Needs as
calculated based on the July WASDE preceding the beginning of the
Export Limit Period.
Section V.B.4 is replaced with the following:
4. Increases to the Export Limit
a. Prior to April 1 of any Export Limit Period, if USDA notifies
Commerce, in writing, of any additional need for Sugar, Commerce
shall, consistent with 704(c) of the Act, increase the Export Limit
to address potential shortages in the U.S. market based on USDA's
request.
b. Starting in March, within 10 days following the publication
of each WASDE report during a given Export Limit Period, Commerce
agrees that it shall consult with USDA and the GOM regarding any
potential increase in the Export Limit on or after April 1.
Following each consultation with the GOM, the GOM will notify
Commerce within 10 days of (1) the extent to which the GOM has
issued export licenses for Other Sugar and Refined Sugar to fulfill
100 percent of the Target Quantity of U.S. Needs; (2) the quantity
of Other Sugar and Refined Sugar that has been exported under such
licenses, and (3) the nature and quantity of the Sugar that Mexico
can supply, with supporting documentation for the foregoing, and
Commerce shall notify USDA.
c. Pursuant to such consultations, and upon receiving notice
from USDA in writing of a need in the U.S. market for a particular
type and quantity of additional Sugar that Mexico has indicated it
can supply, Commerce shall: (1) Request written confirmation from
the GOM that Mexico can and will supply 100 percent of the Target
Quantity of U.S. Needs (as calculated pursuant to Section V.B.3
based on the March WASDE); and (2) upon receiving such confirmation,
increase the Export Limit, consistent with 704(c) of the Act, by an
amount equal to 100 percent of such particular type and quantity of
sugar identified by USDA (hereinafter ``Additional U.S. Needs
Sugar''). When such Additional U.S. Needs Sugar is requested by
USDA, and in turn offered to Mexico by Commerce, the definitions for
Other Sugar and Refined Sugar in Section II.K.a and Section II.L.a,
respectively, shall apply prior to May 1 of any Export Limit Period,
and, on or after such date, the definition in Section II.K.b and
Section II.L.c, respectively, shall apply. Such Additional U.S.
Needs Sugar shall comply with the applicable definitions and
requirements in the Agreement, for Other Sugar and Refined Sugar,
respectively.
d. In the event of an extraordinary and unforeseen circumstance
that seriously threatens the economic viability of the U.S. sugar
refining industry, USDA may specify the polarity of the amount of
additional Sugar specifically needed to rectify such extraordinary
and unforeseen circumstance. To the extent possible under the
circumstances, USDA will consult with the GOM and other interested
parties. When such additional Sugar is requested by USDA under this
Section V.B.4.d, and in turn offered to Mexico by Commerce, the
definitions for Other Sugar and Refined Sugar in Section II.K.c and
Section II.L.d, respectively, shall apply.
e. If Commerce has imposed penalties for polarity non-compliance
under Section VIII.B.4 in a given Export Limit Period, Mexico may
not be eligible for Additional Needs U.S. Sugar.
f. Any additional Sugar may be limited to Other Sugar or Refined
Sugar, or any combination thereof, as specified by USDA. For greater
certainty, Section V.C does not apply to any additional Sugar
exported by Mexico pursuant to this Section V.B.4.
Section V.C is amended as follows:
Section V.C.2 is amended as follows (changes in italics):
No more than 55 percent of U.S. Needs calculated in each
September and effective January 1 may be exported to the United
States during the period October 1 through March 31, unless that
amount is less than or equal to the amount calculated under Section
V.C.1, in which case the amount calculated under Section V.C.1 will
continue to apply until March 31.
Section V.C.3 is amended as follows (changes in italics):
Refined Sugar may account for no more than 30 percent of the
exports during any given Export Limit Period.
Section VI (``Implementation'') is amended as follows:
Section VI.A--the following sentences are added at the end of
the paragraph:
On the Effective Date of the Amendment, presentation of an
Export License is required as a condition for entry of Sugar from
Mexico into the United States. The GOM will issue amended
regulations to implement the Amendment, as necessary.
Section VI.B--the first sentence is amended as follows (changes
in italics) and a new sentence is inserted after the first sentence
(in italics):
Export Licenses will be contract-specific and must contain the
information identified in Appendix I. Export Licenses issued by the
GOM must, in addition to specifying whether or not exported Other
Sugar is for further-processing, also specify the identity of the
entity that is further processing the Other Sugar, if known.
Section VIII.B (``Compliance Monitoring'') is amended as
follows:
Section VIII.B.4 is added as follows:
4. Penalties for Polarity Non-Compliance of this Agreement and/
or Price Non-Compliance of the Agreement Suspending the Antidumping
Duty Investigation on Sugar from Mexico (AD Agreement): Commerce
will review documentation regarding polarity testing that is placed
on the record of this Agreement, in accordance with Section VII.C.6
of the AD Agreement, to determine whether there have been imports
that are inconsistent with the provisions of this Agreement and
Sections II.F, II.H, VII.C.6 and Appendix I of the AD Agreement.
Where Commerce finds that polarity test results of an entry of Sugar
are not compliant with the Agreement's or AD Agreement's applicable
definition of Other Sugar or Sugar was sold at prices that are less
than the Reference Prices established in Appendix I of the AD
Agreement: (1) Commerce shall deduct two (2) times the quantity of
that entry from Mexico's Export Limit, and (2) the GOM will, in
turn, deduct that same quantity from the specific producer's/
exporter's Export Limit allocation.
a. The penalty will be applied on the date Commerce notifies the
GOM in writing of such non-compliance.
b. If Other Sugar that enters during the period from October 1
through the day before the publication of the July WASDE tests at or
above 99.2 polarity (or at or above 99.5 or other polarity in the
case of Additional U.S. Needs Sugar), then Commerce will reduce
Mexico's current Export Limit by two (2) times the quantity of that
entry. The Export Limit determined under Section V.B.2 and V.B.3
will be correspondingly reduced by the same amount. At the time of
the March WASDE when the Target Quantity of U.S. Needs is
determined, and up to the day before the publication of the July
WASDE, USDA may exercise its authority to seek to fill from other
countries the particular type and quantity of sugar needed in the
U.S. market to address the penalty amount by which Mexico's current-
year Export Limit was reduced.
c. If Other Sugar that enters during the period from the day of
the publication of the July WASDE through September 30 tests at or
above 99.2 polarity (or at or above 99.5 or other polarity in the
case of Additional U.S. Needs Sugar), then Commerce will reduce the
Export Limit for the next Export Limit Period by two (2) times the
quantity of that entry. That reduction will be applied to each
revision of the Export Limit under Section V.B.1, V.B.2 and V.B.3.
If Mexico's next fiscal year Export Limit is reduced, USDA may
exercise its authority to seek to fill from other countries the
particular type and quantity of sugar needed in the U.S. market to
address the penalty amount by which Mexico's Export Limit was
reduced.
d. If Commerce finds that issues with meeting the polarity,
testing, or compliance requirements of this Agreement continue to
arise, Commerce can at any time terminate the Agreement under
Section XI.B. Apart from termination, Commerce may take additional
steps to ensure compliance with the terms of this Agreement and the
AD Agreement as appropriate, including reducing the Export Limit up
to three (3) times the quantity of entries that do not
[[Page 3616]]
comply with this Agreement or the AD Agreement.
Appendix I is amended as follows (changes in italics):
The GOM will issue contract-specific Export Licenses to Mexican
entities that shall contain the following fields:
At Appendix I, the following will be added to the Export
License:
12. Contract Identification Information: Indicate the contract
identification information with which the license is associated.
At Appendix II, the following will be added to the information
reported to Commerce:
12. Contract Identification Information: Indicate the contract
identification information with which the license is associated.
13. Date of Export: Indicate the date of export of the Sugar
from Mexico to the United States.
It is acknowledged that reported information may need to be
updated from time to time to reflect corrected information from
customs authorities.
For the U.S. Department of Commerce:
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Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance, U.S. Department
of Commerce.
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Date
For the Government of Mexico:
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Luz Mar[iacute]a de la Mora S[aacute]nchez,
Subsecretaria de Comercio Exterior, Secretar[iacute]a de
Econom[iacute]a.
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Date
[FR Doc. 2020-00972 Filed 1-21-20; 8:45 am]
BILLING CODE 3510-DS-P
