Honey From the People's Republic of China; Suspension of Investigation

DEPARTMENT OF COMMERCE

[A-570-838]

Honey From the People's Republic of China; Suspension of

Investigation

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of suspension of investigation; honey from the People's

Republic of China.

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SUMMARY: The Department of Commerce (the Department) has suspended the

antidumping investigation on honey from the People's Republic of China

(PRC). The basis for the suspension is an agreement by the Government

of the

[[Page 42522]]

PRC to restrict the volume of direct or indirect exports to the United

States of honey products from all PRC producers/exporters, thus,

preventing the suppression or undercutting of price levels of domestic

products by imports of the merchandise under investigation.

EFFECTIVE DATE: August 16, 1995.

FOR FURTHER INFORMATION CONTACT: James Doyle or Lisa Yarbrough, Office

of Agreements Compliance, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-

3793.

SUPPLEMENTARY INFORMATION:

Case History

On October 24, 1994, the Department initiated an antidumping duty

investigation on honey from the PRC based on a petition filed by

members of the American Beekeeping Federation and the American Honey

Producers Association (59 FR 54434, October 31, 1994) (petitioners).

The International Trade Commission issued an affirmative preliminary

injury determination on November 25, 1994 (59 FR 60655). On March 20,

1995, the Department preliminarily determined that imports of honey

from the PRC are being sold at less than fair value in the United

States (60 FR 14725).

On March 16, 1995, the China Chamber of Commerce for Foodstuffs,

Native Produce and Animal By-Products Importers and Exporters, (the

Chamber) and 28 respondent exporters (the respondents), listed in the

``Continuation of Suspension of Liquidation'' section of this notice,

requested that the Department postpone the final determination. On

March 30, 1995, we did so (60 FR 17514, April 6, 1995).

On March 22, 1995, respondents filed two ministerial error

allegations regarding the preliminary determination and the valuation

of raw honey and steel drums. The Department rejected these allegations

(See Memorandum from The Team, Office of Antidumping Investigations, to

Barbara R. Stafford, Deputy Assistant Secretary for Investigations,

dated April 14, 1995).

On April 27, 1995, petitioners alleged that critical circumstances

exist with respect to imports of honey from the PRC. Accordingly, the

Department, on May 3, 1995, requested that respondents provide monthly

volume and value shipment data for exports of honey to the United

States. They did so on May 15, 1995. On May 30, 1995, the Department

issued its preliminary critical circumstances determination (60 FR

29824, June 6, 1995).

In June 1995, we conducted verifications at the Ministry of Foreign

Trade and Economic Cooperation (MOFTEC), the Chamber, Kunshan Xinlong

Foods, Ltd. (Kunshan Xinlong), Jiangsu Native Produce Import and Export

(Jiangsu Native) and its supplier Jiangsu Sweet, Jiangxi Native Produce

Import and Export (Jiangxi Native), and its suppliers Jiangxi Ao Shan

Duo Qi Beverage Factory (Ao Shan) and Qinghai Provincial Bee Products

(Qinghai Bee), and Zhejiang Native Produce & Animal By-product Import

and Export (Zhejiang Native) and its supplier Hangzhou Lewei Food

Factory (Hangzhou Lewei). Verification reports were issued in June

1995.

On July 3, 1995, the Assistant Secretary for Import Administration

and representatives of the Chinese government initialed a proposed

suspension agreement.

Case briefs were filed by petitioners, respondents, and the

National Honey Packers and Dealers Association (the NHPDA) on July 3,

1995. Rebuttal briefs were submitted by each of these parties on July

7, 1995. A public hearing was held on July 11, 1995.

Comments regarding the proposed suspension agreement were filed by

petitioners, respondents, and the NHPDA on July 3, 1995. Petitioners

filed rebuttal comments on July 26, 1995.

Scope of the Agreement

The products covered by this investigation are natural honey,

artificial honey containing more than 50 percent natural honey by

weight, and preparations of natural honey containing more than 50

percent natural honey by weight. The subject products include all

grades and colors of honey whether in liquid, creamed, comb, cut comb,

or chunk form, and whether packaged for retail or in bulk form.

The subject merchandise is currently classifiable under subheadings

0409.00.00, 1702.90.50, 2106.90.61, and 2106.90.69 of the Harmonized

Tariff Schedule of the United States (HTSUS).

Period of Investigation

The period of investigation (POI) is May 1, 1994, through October

31, 1994.

Suspension of Investigation

The Department consulted with the parties to the proceeding and has

considered the comments submitted with respect to the proposed

suspension agreement. The signed suspension agreement reflects the

decisions of the Department with respect to many of the issues parties

raised in their comments on the proposed agreement.

We have determined that the agreement will prevent the suppression

or undercutting of price levels of honey in the United States, that the

agreement can be monitored effectively, and that the agreement is in

the public interest. We find, therefore, that the criteria for

suspension of an investigation pursuant to Section 734(l) of the Tariff

Act of 1930, as amended (the ``Act''), have been met. The terms and

conditions of the agreement, signed August 2, 1995, are set forth in

Annex 1 to this notice.

Pursuant to Section 734(f)(2)(A) of the Act, effective (date of

publication of Federal Register notice), the suspension of liquidation

of all entries entered or withdrawn from warehouse, for consumption of

honey from the PRC, as directed in our notice of ``Preliminary

Determination of Sales at Less Than Fair Value: Honey from the People's

Republic of China'' is hereby terminated. Any cash deposits on entries

of honey from the PRC pursuant to that suspension of liquidation shall

be refunded and any bonds shall be released.

Notwithstanding the suspension agreement, the Department will

continue the investigation if we receive such a request in accordance

with Section 734(g) of the Act within 20 days after the date of

publication of this notice. This notice is published pursuant to

Section 734(f)(1)(A) of the Act.

Dated: August 7, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

Annex 1: Agreement Suspending the Antidumping Investigation on Honey

From the People's Republic of China

For the purpose of encouraging free and fair trade in honey,

establishing more normal market relations, and preventing the

suppression or undercutting of price levels of the domestic product,

the United States Department of Commerce (``the Department'') and the

Government of the People's Republic of China (``PRC'') enter into this

suspension agreement (``the Agreement'').

Pursuant to this Agreement, the Government of the PRC will restrict

the volume of direct or indirect exports to the United States of honey

products from all PRC producers/exporters, subject to the terms and

provisions set forth below.

On the basis of this Agreement, pursuant to the provisions of

Section 734(l) of the Tariff Act of 1930, as

[[Page 42523]]

amended (the ``Act'') (19 U.S.C. 1673c(l)), the Department shall

suspend its antidumping investigation with respect to honey produced in

the PRC, subject to the terms and provisions set forth below. Further,

the Department will instruct the U.S. Customs Service to terminate the

suspension of liquidation of, and release any cash deposit or bond

posted on, the products covered by this Agreement as of the effective

date of this Agreement.

I. Definitions

For purposes of this Agreement, the following definitions apply:

A. ``Date of Export'' for imports of subject merchandise into the

United States shall be considered the date the Quota Certificate was

issued.

B. ``Parties to the Proceeding'' means any interested party, within

the meaning of Section 353.2(k) of the Department's Regulations, which

actively participates through written submissions of factual

information or written argument.

C. ``Indirect Exports'' means arrangements as defined in Section

III.E of this Agreement and exports from the PRC through one or more

third countries, whether or not such exports are sold in one or more

third countries prior to importation into the United States.

D. For purposes of this Agreement, ``United States'' shall comprise

the customs territory of the United States of America (the 50 States,

the District of Columbia and Puerto Rico) and foreign trade zones

located in the territory of the United States of America.

E. ``For consumption'' means material sold in retail form, or in

bulk form to end-users. The material shall not be resold except as a

result of force majeure.

F. ``End-user'' means an entity, such as a retailer or an

industrial purchaser (e.g., a baker or manufacturer), which consumes

subject merchandise.

G. ``Quota Certificate'' is the document which serves as both a

quota certificate and a certificate of origin. A Quota Certificate must

accompany all shipments of subject merchandise from the PRC to the

United States, and must contain all of the information enumerated in

the Appendix (U.S. sales), except Date of Entry information and Final

Destination.

H. ``Relevant Period'' for the export limits of this Agreement

means the period August 1 through July 31.

II. Product Coverage

The products covered by this Agreement (``subject merchandise'')

are natural honey, artificial honey containing more than 50 percent

natural honey by weight, and preparations of natural honey containing

more than 50 percent natural honey by weight. The subject products

include all grades and colors of honey whether in liquid, creamed,

comb, comb cut, or chunk form, and whether packaged for retail or in

bulk form.

The subject merchandise is currently classifiable under subheadings

0409.00.00, 1702.90.50, 2106.90.61, and 2106.90.69 of the Harmonized

Tariff Schedule of the United States (``HTSUS''). Although the HTSUS

subheading is provided for convenience and customs purposes, our

written description of the scope is dispositive.

III. Export Limits

A. The export limits for subject merchandise in each Relevant

Period shall be 43,925,000 pounds plus or minus a maximum of six

percent per year of quota based upon the U.S. honey market growth in

each Relevant Period. The export limits for each Relevant Period shall

be allocated in semi-annual quota allocation periods. No more than 60%

of the export limits for any Relevant Period can be allocated in any

given semi-annual quota allocation period. Deductions from the export

limits shall be made based on the ``Date of Export'', as defined in

Section I.

B. On or after the effective date of this Agreement, the Government

of the PRC will restrict the volume of direct or indirect exports of

subject merchandise to the United States, and the transfer or

withdrawal from inventory of subject merchandise (consistent with the

provisions of Section III.D), in accordance with the export limits then

in effect.

C. A delivery may not be made for more than the entire amount of

quota allocated for that semi-annual quota allocation period. Any

amount delivered during a Relevant Period shall not, however, when

cumulated with all prior deliveries in such Relevant Period, exceed the

annual quota for that Relevant Period.

D. Any inventories of subject merchandise currently held in the

United States by a Chinese entity and imported into the United States

between December 20, 1994 (the date corresponding to the Department's

critical circumstances determination) and the effective date of this

Agreement will be subject to the following conditions:

1. Such inventories will not be transferred or withdrawn from

inventory for consumption in the United States without a Quota

Certificate issued by the Government of the PRC. Any such transfers or

withdrawals from inventory shall be deducted from the export limits in

effect at the time the Quota Certificate is issued.

2. A request for a Quota Certificate under this provision shall be

accompanied by a report specifying the original date of export, the

date of entry into the United States, the identity of the original

exporter and importer, the customer, a complete description of the

product (including lot numbers and other available identifying

documentation), and the quantity expressed in pounds.

3. In the event that there is a surge of sales of subject

merchandise from such inventory, the Department will decrease the

export limits to take into account such sales.

E. Any arrangement involving the exchange, sale, or delivery of

honey products from the PRC, to the degree it results in the sale or

delivery in the United States of honey products from a country other

than the PRC, is subject to the requirements of Section V and will be

counted toward the export limits. Any such transaction that does not

comply with the requirements of Section V will be deducted from the

export limits pursuant to Section VII.

F. Where subject merchandise is imported into the United States and

is subsequently re-exported, or re-packaged and re-exported, the export

limits shall be increased by the amount of pounds re-exported. Such

increase will be applicable to the Relevant Period corresponding to the

time of such re-export. Such increase will be applied only after the

Department receives, and has the opportunity to verify, evidence

demonstrating original importation, any re-packaging, and subsequent

exportation. The re-exported material must be identical to the imported

material.

G. Quota Certificates for a given Relevant Period may not be issued

after July 31, except that Quota Certificates not so issued may be

issued during the first three months of the following Relevant Period,

up to a maximum of 15 percent of the export limit for that following

Relevant Period. Such ``carried-over'' quota shall be counted against

the export limits applicable to the previous Relevant Period.

Quota Certificates for up to 15 percent of the export limits for a

subsequent Relevant Period may be issued as early as June 1 of the

preceding Relevant Period. Such ``carried-back'' quota shall be counted

against the export limits applicable to the following Relevant Period.

[[Page 42524]]

H. For the first 90 days after the effective date of this

Agreement, subject merchandise shall be admitted into the United States

with a ``Quota Certificate/Certificate of Origin (Temporary Papers).''

The volume of any such imports will be deducted from the export

limits applicable to the first Relevant Period. A full reporting of any

such imports, which must correspond to the United States sales

information detailed in the Appendix, must be submitted to the

Department no later than 30 days after the conclusion of the 90 day

period. This data must be sorted on the basis of date of export.

IV. Reference Price

A. Subject merchandise will not be sold below the reference price.

Each HTS category of material shall have its own reference price, and

all such reference prices shall be calculated in the same manner.

B. The reference price, issued quarterly by the Department, shall

be released by September 1, December 1, March 1, and June 1 of each

year and shall be effective on October 1, January 1, April 1, and July

1, respectively. The reference price for August 4 through September 30

of the first Relevant Period shall be issued and effective on August 4.

Either party is entitled to request consultations regarding the

calculation of reference prices.

C. The reference price equals the product of 92 percent and the

weighted-average of the honey unit import values from all other

countries for the most recent six months of data available at the time

the reference price is calculated. The source of the unit import values

will be publicly available United States trade statistics from the

United States Bureau of the Census.

D. The Government of the PRC will ensure that the PRC unit values

of subject imports will equal or exceed the reference price at

equivalent points in the transaction chain. The reference price will be

at a level in the transaction chain as far upstream as possible (i.e.,

F.O.B.). The Government of the PRC will ensure that contracts and all

relevant documentation will be available to the Department and will be

subject to verification.

E. Subject merchandise imported after the effective date of the

Agreement, exported from the PRC prior to August 2, 1995, and sold

pursuant to a contract in effect on or before July 3, 1995, shall not

be subject to reference price restrictions. Consistent with Section

III.H., the volume of such imports shall be deducted from the export

limits.

V. Quota Certificate

A. The Government of the PRC will restrict the volume of direct or

indirect exports of subject merchandise by means of semi-annual quota

allocations and Quota Certificates. Quota Certificates shall be issued

by the Ministry of Foreign Trade and Economic Cooperation (``MOFTEC'')

for all direct or indirect exports of subject merchandise to the United

States in accordance with the export limits in Section III and the

reference price in Section IV.

B. Thirty days following the semi-annual allocation of quota rights

for any Relevant Period, MOFTEC shall provide to the Department a

report identifying each quota recipient and the volume of quota which

each recipient has been accorded (``report of quota allocation

results'').

C. Before it issues a Quota Certificate, MOFTEC will ensure that

the Relevant Period's quota volume is not exceeded and that the price

for the subject merchandise is at or above the reference price.

D. The Government of the PRC shall take action, including the

imposition of penalties, as may be necessary to make effective the

obligations resulting from the price restrictions, export limits, and

Quota Certificates. The Government of the PRC will inform the

Department of any violations concerning the price restrictions, export

limits and/or Quota Certificates which come to its attention and the

action taken with respect thereto.

The Department will inform the Government of the PRC of violations

concerning the price restrictions, export limits, and/or Quota

Certificates which come to its attention and the action taken with

respect thereto.

E. Quota Certificates will be issued sequentially, endorsed against

the export limits for the Relevant Periods, and will reference the

report of quota allocation results for the appropriate Relevant Period.

F. Quota Certificates must be issued no earlier than one month

before the day, month, and year on which the merchandise is accepted by

a transportation company, as indicated in the bill-of-lading or a

comparable transportation document, for export. Quota Certificates must

contain an English language translation.

G. On or after the effective date of this Agreement, the United

States shall require presentation of a Quota Certificate as a condition

for entry of subject merchandise into the United States. The United

States will prohibit the entry of any subject merchandise not

accompanied by a Quota Certificate.

VI. Implementation

In order to effectively restrict the volume of exports of honey to

the United States, the Government of the PRC agrees to implement the

following procedures:

A. Establish, through MOFTEC, a quota certification program for all

exports of subject merchandise to, or destined directly or indirectly

for consumption in, the United States, no later than 90 days after the

effective date of this Agreement.

B. Ensure compliance by any official PRC institution, chamber, or

other entities authorized by the Government of the PRC, all Chinese

producers, exporters, brokers, and traders of the subject merchandise,

and their related parties, with all procedures established in order to

effectuate this Agreement.

C. Collect information from all Chinese producers, exporters,

brokers, and traders of the subject merchandise, and their related

parties, on the sale of the subject merchandise.

D. Impose strict sanctions, such as penalties or prohibition from

participation in the export limits allowed by the Agreement, in the

event that any Chinese or Chinese-related party does not comply in full

with all the terms of the Agreement.

VII. Anticircumvention

A. The Government of the PRC will take all appropriate measures

under Chinese law to prevent circumvention of this Agreement. It shall

respond promptly to conduct an inquiry into any and all allegations of

circumvention, including allegations raised by the Department, and

shall complete such inquiries in a timely manner (normally within 45

days). The Government of the PRC shall notify the Department of the

results of its inquiries within ten days of the conclusion of such

inquiries. Within 15 days of a request from the Department, the

Government of the PRC shall share with the Department all facts known

to the Government of the PRC regarding its inquiries, its analysis of

such facts and the results of such inquiries. The Government of the PRC

will require all Chinese exporters of honey to include a provision in

their contracts for sales to countries other than the United States

that the honey sold through such contracts cannot be re-exported,

transhipped or swapped to the United States, or otherwise used to

circumvent the export limits of this Agreement. The Government of the

PRC will also establish appropriate mechanisms to enforce this

requirement.

B. If, in an inquiry pursuant to paragraph A, the Government of the

[[Page 42525]]

PRC determines that a Chinese company has participated in a transaction

that resulted in circumvention of the export limits of this Agreement,

then the Government of the PRC shall impose penalties on such company

including, but not limited to, denial of access to the honey quota.

Additionally, the Government of the PRC shall deduct an amount of honey

equivalent to the amount involved in such circumvention from the

available quota and shall immediately notify the Department of the

amount deducted. If sufficient quota is not available in the current

Relevant Period, then the remaining amount necessary shall be deducted

from the subsequent Relevant Period.

C. If the Government of the PRC determines that a company from a

third country has circumvented the Agreement and the parties agree that

no Chinese entity participated in or had knowledge of such activities,

then the parties shall hold consultations for the purpose of sharing

evidence regarding such circumvention and reaching mutual agreement on

the appropriate steps to be taken to eliminate such circumvention, such

as the Government of the PRC prohibiting sales of Chinese honey to the

company responsible or reducing honey exports to the country in

question. If the parties are unable to reach mutual agreement within 45

days, then the Department may take appropriate action, such as

deducting the amount of honey involved in such circumvention from the

available quota, taking into account all relevant factors. Before

taking such action, the Department will notify the Government of the

PRC of the facts and reasons constituting the basis for the

Department's intended action and will afford the Government of the PRC

ten days in which to comment.

D. If the Department determines that a Chinese entity participated

in circumvention, the parties shall hold consultations for the purpose

of sharing evidence regarding such circumvention and reaching mutual

agreement on an appropriate resolution of the problem. If the parties

are unable to reach mutual agreement within 45 days, the Department may

take appropriate action, such as deducting the amount of honey involved

in such circumvention from the available quota. Before taking such

action, the Department will notify the Government of the PRC of the

facts and reasons constituting the basis for the Department's intended

action and will afford the Government of the PRC ten days in which to

comment.

E. The Department shall direct the U.S. Customs Service to require

all importers of honey into the United States, regardless of stated

country of origin, to submit at the time of entry a written statement

certifying that the honey being imported was not obtained under any

arrangement, swap, or other exchange which would result in the

circumvention of the export limits established by this Agreement. Where

the Department has reason to believe that such a certification has been

made falsely, the Department will refer the matter to Customs or the

Department of Justice for further action.

F. Given the fungibility of the world honey market, the Department

will take the following factors into account in distinguishing normal

honey market arrangements, swaps, or other exchanges from arrangements,

swaps, or other exchanges which would result in the circumvention of

the export limits established by this Agreement:

1. existence of any verbal or written arrangements which would result

in the circumvention of the export limits established by this

Agreement;

2. existence of any arrangement as defined in Section III.E that was

not reported to the Department pursuant to Section VIII.A;

3. existence and function of any subsidiaries or affiliates of the

parties involved;

4. existence and function of any historical and/or traditional trading

patterns among the parties involved;

5. deviations (and reasons for deviation) from the above patterns,

including physical conditions of relevant honey facilities;

6. existence of any payments unaccounted for by previous or subsequent

deliveries, or any payments to one party for merchandise delivered or

swapped by another party;

7. sequence and timing of the arrangements; and

8. any other information relevant to the transaction or circumstances.

G. ``Swaps'' include, but are not limited to:

Ownership swaps--involve the exchange of ownership of any type of

honey product(s), without physical transfer. These may include exchange

of ownership of honey products in different countries, so that the

parties obtain ownership of products located in different countries; or

exchange of ownership of honey products produced in different

countries, so that the parties obtain ownership of products of

different national origin.

Flag swaps--involve the exchange of indicia of national origin of

honey products, without any exchange of ownership.

Displacement swaps--involve the sale or delivery of any type of

honey product(s) from China to an intermediary country (or countries)

which can be shown to have resulted in the ultimate delivery or sale

into the United States of displaced honey products of any type,

regardless of the sequence of the transaction.

H. The Department will enter its determinations regarding

circumvention into the record of the Agreement.

VIII. Monitoring

The Government of the PRC will provide to the Department such

information as is necessary and appropriate to monitor the

implementation of and compliance with the terms of this Agreement. The

Department of Commerce shall provide semi-annual reports to the

Government of the PRC indicating the volume of imports of the subject

merchandise to the United States, together with such additional

information as is necessary and appropriate to monitor the

implementation of this Agreement.

A. Reporting of Data

Beginning on the effective date of this Agreement, the Government

of the PRC shall collect and provide to the Department the information

set forth, in the agreed format, in the Appendix. All such information

will be provided to the Department by April 30th of each year for

exports during the period from August 1 through January 31st. In

addition, such information will be provided to the Department by

October 31st for sales from February 1st through July 31st, or within

90 days of a request made by the Department. Such information will be

subject to the verification provision identified in Section VIII.C of

this Agreement. The Department may disregard any information submitted

after the deadlines set forth in this Section or any information which

it is unable to verify to its satisfaction.

Aggregate quantity and value of sales by HTS category to each third

country will be provided to the Department by April 30th of each year

for exports during the period from August 1st of the previous year

through January 31st. In addition, such quantity and value information

will be provided to the Department by October 31st for sales from

February 1st through July 31st.

Transaction specific data for all third country sales will also be

reported on the schedule provided above in the format provided in the

Appendix. However, if the Department concludes that the transaction

specific data is not necessary for a given period, it will

[[Page 42526]]

notify the Government of the PRC at least 90 days before the reporting

deadline that transaction specific sales data need not be reported. If

the Department determines that such data is relevant in connection with

Section VII and requests information on transactions for one or more

third countries during a period for which the Department waived

complete reporting, the Government of the PRC will provide the data

listed in the Appendix for those specific transactions within 90 days

of the request.

Both governments recognize that the effective monitoring of this

Agreement may require that the PRC provide information additional to

that which is identified above. Accordingly, the Department may

establish additional reporting requirements, as appropriate, during the

course of this Agreement.

The Department shall provide notice to the Government of the PRC of

any additional reporting requirements no later than 45 days prior to

the period covered by such reporting requirements unless a shorter

notice period is mutually agreed.

B. Other Sources for Monitoring

The Department will review publicly-available data as well as

Customs Form 7501 entry summaries and other official import data from

the Bureau of the Census, on a monthly basis, to determine whether

there have been imports that are inconsistent with the provisions of

this Agreement.

The Department will monitor Bureau of the Census IM-115

computerized records, which include the quantity and value of each

entry. Because these records do not provide other specific entry

information, such as the identity of the producer/exporter which may be

responsible for such sales, the Department may request the U.S. Customs

Service to provide such information. The Department may request other

additional documentation from the U.S. Customs Service.

The Department may also request the U.S. Customs Service to direct

ports of entry to forward an Antidumping Report of Importations for

entries of the subject merchandise during the period this Agreement is

in effect.

C. Verification

The Government of the PRC will permit full verification of all

information related to the administration of this Agreement, on an

annual basis or more frequently, as the Department deems necessary to

ensure that the PRC is in full compliance with the terms of the

Agreement. Such verifications may take place in association with

scheduled consultations whenever possible.

IX. Disclosure and Comment

A. The Department shall make available to representatives of each

party to the proceeding, under appropriately-drawn administrative

protective orders consistent with the Department's Regulations,

business proprietary information submitted to the Department semi-

annually or upon request, and in any administrative review of this

Agreement.

B. Not later than 30 days after the date of disclosure under

Section VIII.A, the parties to the proceeding may submit written

comments to the Department, not to exceed 30 pages.

C. During the anniversary month of this Agreement, each party to

the proceeding may request a hearing on issues raised during the

preceding Relevant Period. If such a hearing is requested, it will be

conducted in accordance with Section 751 of the Act (19 U.S.C. 1675)

and applicable regulations.

X. Consultations

The Government of the PRC and the Department shall hold

consultations regarding matters concerning the implementation,

operation including the calculation of reference prices, and/or

enforcement of this Agreement. Such consultations will be held each

year during the anniversary month of this Agreement. Additional

consultations may be held at any other time upon request of either the

Government of the PRC or the Department.

XI. Violations of the Agreement

A. Violation

``Violation'' means noncompliance with the terms of this Agreement

caused by an act or omission in accordance with Section 353.19 of the

Departments Regulations.

The Government of the PRC and the Department will inform the other

party of any violations of the Agreement which come to their attention

and the action taken with respect thereto.

Imports in excess of the export limits set out in this Agreement

shall not be considered a violation of this Agreement or an indication

the Agreement no longer meets the requirements of Section 734(l) of the

Act where such imports are minimal in volume, are the result of

technical shipping circumstances, and are applied against the export

limits of the following year.

Prior to making a determination of an alleged violation, the

Department will engage in emergency consultations. Such consultations

shall begin no later than 14 days from the day of request and shall

provide for full review, but in no event will exceed 30 days. After

consultations, the Department will provide the Government of the PRC 10

days within which to provide comments. The Department will make a

determination within 20 days.

B. Appropriate Action

If the Department determines that this Agreement is being or has

been violated, the Department will take such action as it determines is

appropriate under Section 734(i) of the Act and Section 353.19 of the

Department's Regulations.

XII. Duration

The export limits provided for in Section III of this Agreement

shall remain in force from the effective date of this Agreement through

August 1, 2000.

The Department will, upon receiving a proper request no later than

August 1, 1999, conduct an administrative review under Section 751 of

the Act. The Department expects to terminate this Agreement and the

underlying investigation no later than August 1, 2000, provided that

the PRC has not been found to have violated the Agreement in any

substantive manner. Such review and termination shall be conducted

consistent with Section 353.25 of the Department's Regulations.

The Government of the PRC may terminate this Agreement at any time

upon notice to the Department. Termination shall be effective 60 days

after such notice is given to the Department. Upon termination at the

request of the Government of the PRC, the provisions of Section 734(i)

of the Act shall apply.

XIII. Other Provisions

A. In entering into this Agreement, the Government of the PRC does

not admit that any sales of the merchandise subject to this Agreement

have been made at less than fair value or that such sales have

materially injured, or threatened material injury to, an industry or

industries in the United States.

B. The Department finds that this Agreement is in the public

interest; that effective monitoring of this Agreement by the United

States is practicable; and that this Agreement will prevent the

suppression or undercutting of price levels of United States domestic

honey products by imports of the merchandise subject to this Agreement.

C. The Department does not consider any of the obligations

concerning exports of honey to the United States

[[Page 42527]]

undertaken by the Government of the PRC pursuant to this Agreement

relevant to the question of whether firms in the underlying

investigation would be entitled to separate rates, should the

investigation be resumed for any reason.

D. The English language version of this Agreement shall be

controlling.

E. For all purposes hereunder, the Department and the signatory

Government shall be represented by, and all communications and notices

shall be given and addressed to:

Department of Commerce

U.S. Department of Commerce, Assistant Secretary, for Import

Administration, International Trade Administration, Washington, D.C.

20230

Government of the PRC

Ministry of Foreign Trade and Economic Cooperation, Deputy Director

General, 2, Dong Chang An Street, Beijing, Post Code 100731, People's

Republic of China

XIV. Effective Date

The effective date of this Agreement suspending the antidumping

investigation on honey from the PRC, August 2, 1995.

Signed on this second day of August, 1995.

For the U.S. Department of Commerce.

Susan G. Esserman,

Assistant Secretary for Import Administration.

MOFTEC for the Government of the People's Republic of China.

Wang Tian Ming,

Minister-Councillor, Embassy of the People's Republic of China in the

United States.

Appendix

In accordance with the established format, the Government of the

PRC shall collect and provide to the Department all information

necessary to ensure compliance with this Agreement. This information

will be provided to the Department on a semi-annual basis, or upon

request.

The Government of the PRC will collect and maintain sales data to

the United States, in the home market, and to countries other than the

United States, on a continuous basis and provide the prescribed

information to the Department.

The Government of the PRC will provide a narrative explanation to

substantiate all data collected in accordance with the following

formats.

Report of Inventories

Report, by location, the inventories held by the PRC in the United

States and imported into the United States between the period beginning

December 20, 1994, through the effective date of the Agreement.

1. Quantity: Indicate original units of measure and in pounds.

2. Location: Identify where the inventory is currently being held.

Provide the name and address for the location.

3. Titled Party: Name and address of party who legally has title to the

merchandise.

4. Quota Certificate Number: Indicate the number(s) relating to each

entry now being held in inventory.

5. Certificate of Origin Number(s): Indicate the number(s) relating to

each sale or entry.

6. Date of Original Export: Date the quota certificate/certificate of

origin is issued.

7. Date of Entry: Date the merchandise entered the United States or the

date book transfer took place.

8. Original Importer: Name and address.

9. Original Exporter: Name and address.

10. Complete Description of Merchandise: Include lot numbers and other

available information.

United States Sales

MOFTEC will provide all Quota Certificates, which shall contain the

following information with the exception of item #9, date of entry, and

item #13, final destination.

1. Quota Certificate/Certificate of Origin Number(s): Indicate the

number(s) relating to each sale and/or entry.

2. Complete Description of Merchandise: Include lot numbers and other

available information including the HTS category to the 10 digit level.

3. Quantity: Indicate in original units of measure and in pounds.

4. Total Sales Value: Indicate currency used.

5. Unit Price: Indicate currency used.

6. Date of Sale: The date all terms of order are confirmed.

7. Sales Order Number(s): Indicate the number(s) relating to each sale

and/or entry.

8. Date of Export: Date the quota certificate is issued.

9. Date of Entry: Date the merchandise entered the United States or the

date book transfer took place.

10. Importer of Record: Name and address.

11. Customer: Name and address of the first party purchasing from the

PRC exporter.

12. Customer Relationship: Indicate whether the customer is related or

unrelated to the PRC exporter.

13. Final Destination: Name and address of the end-user for consumption

in the United States.

14. Quota Allocated to Exporter: Indicate the total amount of quota

allocated to the individual exporter during the Relevant Period.

15. Quota Remaining: Indicate the remaining quota available to the

individual exporter during the Relevant Period.

16. Other: i.e., used as collateral, will be re-exported, etc.

Sales Other Than United States

Pursuant to Section VIII, paragraph A, the Government of the PRC

will provide country-specific sales volume and value information for

all sales of subject merchandise to third countries.

1. Quota Certificate/Certificate of Origin Number(s): Indicate the

number(s) relating to each sale and/or entry.

2. Quantity: Indicate in original units of measure sold and/or entered

and in metric tons.

3. Date of Sale: The date all terms of order are confirmed.

4. Sales Order Number(s): Indicate the number(s) relating to each sale

and/or entry.

5. Date of Export: Date the quota certificate is issued.

6. Date of Entry: Date the merchandise entered the United States or the

date a book transfer took place.

7. Importer of Record: Name and address.

8. Customer: Name and address of the first party purchasing from the

PRC exporter.

9. Customer Relationship: Indicate whether the customer is related or

unrelated.

10. Final Destination: Name and address of the end-user for

consumption.

11. Other: i.e., used as collateral, will be re-exported, etc.

[FR Doc. 95-20297 Filed 8-15-95; 8:45 am]

BILLING CODE 3510-DS-P