Amendment to the Suspension Agreement on Fresh Tomatoes from Mexico

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-820]

Amendment to the Suspension Agreement on Fresh Tomatoes from

Mexico

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Amendment to the Suspension Agreement on Fresh

Tomatoes from Mexico.

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SUMMARY: The Department of Commerce and producers/exporters of fresh

tomatoes from Mexico signed an amendment to the Suspension Agreement on

Fresh Tomatoes from Mexico. The amendment establishes new reference

prices and provides for enhanced enforcement of the Suspension

Agreement.

EFFECTIVE DATE: August 21, 1998.

FOR FURTHER INFORMATION CONTACT: Gary Taverman at (202) 482-0161 or

Judith Wey Rudman at (202) 482-0192; Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, Washington, D.C. 20230.

SUPPLEMENTARY INFORMATION:

Background

On October 28, 1996, the Department of Commerce (``the

Department'') and the producers/exporters of fresh tomatoes from Mexico

signed the Suspension Agreement on Fresh Tomatoes from Mexico (``the

Agreement'') and, on November 1, 1996, the Agreement was published in

the Federal Register (61 FR 56618). Following consultations with

producers/exporters of fresh tomatoes from Mexico and with members of

the domestic industry, on August 6, 1998, the Department accepted an

amendment to the Agreement. The amendment establishes a second

reference price and the time periods during which each reference price

is applicable. In addition, the amendment establishes documentation

requirements as a condition of release of subject tomatoes beyond the

Customs port of entry and provides that the Department may notify

producer/exporter trade organizations composed of signatory parties of

any sales that may have been made at prices inconsistent with the

Agreement. Finally, the amendment makes other minor changes to the

Agreement to facilitate the Department's administration of the

Agreement. The text of the amendment is attached to this notice.

Additional producers/exporters have signed the Agreement as

amended. The additional signatories and the revisions provided for in

the amendment ensure that the Agreement continues to eliminate

completely the injurious effect of imports of tomatoes from Mexico, and

that the Agreement continues to be in the public interest.

Dated: August 7, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

Amendment to the Suspension Agreement on Fresh Tomatoes From Mexico

Consistent with the requirements of section 734(c) of the Tariff

Act of 1930, as amended, to eliminate completely the injurious effect

of exports to the United States and to prevent the suppression or

undercutting of price levels of domestic tomatoes, the Department of

Commerce (the Department) and signatory producers/exporters of subject

merchandise agree to amend the Suspension Agreement on Fresh Tomatoes

From Mexico (the Agreement) as indicated below. All other provisions of

the Agreement remain in force and apply to this Amendment.

1. In order to establish a second reference price which would be

applicable during the July 1 to October 22 time period and to revise

the reference price applicable at all other times of the year, the

parties amend the Agreement to add the following after the third

paragraph of Appendix A:

The Department and the signatory producers/exporters agree to

adjust the reference price applicable to imports into the United States

between July 1 and October 22 of any given year. The Department has

calculated a reference price for this period by calculating a ratio of

Mexican tomato import prices to domestic tomato prices. The ratio

consists of weighted-average prices for the United States and Mexico

based on data reported by the Agricultural Marketing Service. As

calculated pursuant to this methodology, the reference price for the

July 1 through October 22 period will be $0.172 per pound (equivalent

to $4.30 for a 25-pound box).

Effective October 23, 1998, the Department and the signatory

producers/exporters have agreed to adjust the reference price

applicable to imports into the United States between October 23 and

June 30 of any given year. The Department has calculated a reference

price for this period by calculating a ratio of Mexican tomato import

prices to domestic tomato prices.

[[Page 43675]]

The ratio consists of weighted-average prices for the United States and

Mexico based on data reported by the Agricultural Marketing Service. As

calculated pursuant to this methodology, the reference price for the

October 23 through June 30 period will be $0.2108 per pound (equivalent

to $5.27 for a 25-pound box).

2. In order to revise the time periods during which separate

summer/winter reference prices would be applicable and clarify that

consultations may be requested at any time after the first year of the

Agreement, the parties amend the first four sentences of section IV.G.

of the Agreement (``Operations Consultations'') to read as follows:

During the first anniversary month of this Agreement, the

Department will consult with the signatory producers/exporters

regarding the operation of the Agreement. Consultations may be

requested by any party to the Agreement following the first anniversary

of the Agreement. Consistent with the statutory requirement that the

Agreement prevent the suppression or undercutting of price levels of

domestic fresh tomatoes, the Department may revise the reference price

following consultations under this provision. In particular, the

Department expects to make downward or upward adjustments to the

reference price to take into account any significant changes within the

most recent time period equivalent to the period to which the adjusted

price would apply (July 1-October 22; October 23-June 30).

3. In order to vest the Department with sole authority to make

revisions to the weight chart used to apply the reference price to

particular box configurations, the parties amend the sixth paragraph

and first sentence of the seventh paragraph of Appendix A to read as

follows:

The reference price for each type of box shall be determined based

on the average weights stated in the chart attached as Amendment

Appendix A. This chart was based on the average weights used by U.S.

Customs at the port of Nogales, AZ for duty assessment purposes, as

revised effective February 8, 1997. For example, if the average weight

of a 3-layer, 6 x 6 box of tomatoes is stated as 30 pounds, the

reference price for that box will be equal to 30 times the per pound

reference price then in effect. If, based upon information that one or

more average weights on the chart are no longer accurate, the

Department determines to revise an average weight figure, the

Department will provide 15 days notice to signatory producers/exporters

(through the producer/exporter trade organizations party to this

Agreement) prior to such revised average weights becoming effective for

purposes of this Agreement. In making any revisions to the weight

chart, the Department will coordinate with the U.S. Customs Service to

obtain representative average weights of entries of fresh tomatoes from

Mexico.

In the event that a signatory producer/exporter intends to export

subject merchandise to the United States in a box for which there is no

average weight on the chart, the signatory producer/exporter shall

notify the Department in writing no later than 45 days prior to the

date of the first export of such boxes to the United States.

4. In order to establish the ``reference price declaration'' as a

condition of release of subject tomatoes beyond the Customs port of

entry and to provide for the inclusion of additional information in the

``reference price declaration,'' the parties amend section IV.C.1. of

the Agreement (``Shipping and Other Arrangements'') to read as follows:

On or after August 1, 1998, the United States shall require

presentation of a declaration from the signatory producer/exporter,

stating that the entry conforms with the requirement that the

merchandise has been or will be sold at or above the reference price,

as a condition of release into the United States of fresh tomatoes

subject to this Agreement. The declaration presented to the U.S.

Customs Service must be an original, dated, sequentially-numbered

document signed by the signatory and shall include the signatory

identification number, the brand label on the tomatoes, and the

identity of the U.S. receiver. Copies of the declaration must be

maintained by both the signatory and the U.S. importer to permit

verification by the Department. The United States will prohibit the

release into the United States of any fresh tomatoes produced by a

signatory not accompanied by such a declaration.

5. In order to improve the monitoring of compliance with the

Agreement by all parties, the parties amend the Agreement to add the

following sentence after the first sentence of section IV.E.1. of the

Agreement:

In addition, the Department may notify the potential inconsistency

to any producer/exporter trade organization composed of the signatory

parties to this Agreement.

6. Unless otherwise provided, the terms of this amendment must be

implemented not later than the fifteenth day following signature by the

producers/exporters and by the Department of Commerce.

The Parties agree that these amendments constitute an integral part

of the Agreement.

Dated: August 6, 1998.

For U.S. Department of Commerce.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

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Date

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For Agrovica ABC:

Alejandro Canelos:......................................... 6/30/98

For Conrado Gonzalez Sandaval Y Copropiedad:

Conrado Gonzalez:.......................................... 7/23/98

For Rancho Santa Rosa:

Daniel Gonzalez:........................................... 7/8/98

For members of the Confederacion de Asociaciones Agricolas

del Estado (CAADES):

Diego Ley:................................................. 6/30/98

For Rancho Camino Real S. de R.L. de C.V.:

Diego Rojas Guevara:....................................... 7/30/98

For Vizcaino Agricola S.A. de C.V.:

Ernesto Echavarria......................................... 6/30/98

For Rancho Seco:

Felipe Ruiz Esparza A...................................... 7/30/98

For Rancho Santa Lucia:

Fernando A. Aragon......................................... 7/9/98

For DBA Dos Amigos:

Fortino Heredia Villegas................................... 7/4/98

For Productora Agricola Industrial del Noroeste, S.A.:

Francisco J. Conejo C...................................... 7/29/98

On behalf of: Antonio Rodriguez, Benjamin Rodriguez,

Carlos Rodriguez, Victor Rodriguez

For S.P.R. Campesinos de Lopez Rayon San Vicente de R.I.:

Genaro Urquidez Ruiz....................................... 7/8/98

For Soc. de Prod. Rural de R.L. Maciel Romero, S.P.R. de

R.L.:

Gerardo Maciel............................................. 7/8/98

For Everardo Ramon Olmos Asencio

Gilberto Olmos............................................. 7/10/98

For Agricola Yory:

Hernan Galvez.............................................. 6/30/98

For Rancho Nuevo Produce S.A. de C.V.:

Hugo Belerra............................................... 7/30/98

For DBA, Punta Colonet, San Telmo S. de P.R. de R.I.:

Jose Martinez Lozano....................................... 7/4/98

For Maria Trinidad Mesta Gonzalez:

Manuel Ybarguen............................................ 7/29/98

For Rancho San Marcos:

Marcos Marron.............................................. 8/4/98

For Members of the Confederacion Nacional de Productores de

Hortalizas (C.N.P.H.):

Mario Robles............................................... 6/30/98

For Rancho San Miguel:

Miguel A. Garcia A......................................... 7/8/98

For Sociedad Agricola Bella Vista:

Ramon Silva................................................ 7/31/98

For Agricola La Campana:

[[Page 43676]]

Ricardo Castaneda.......................................... 7/28/98

For Agrovida, S. de R.L. de C.V.:

Roberto Rojas Guevara...................................... 7/30/98

For Agricola San Simon S.A. de C.V.:

Francisco J. Conejo C......................................

On behalf of: Victor Rodriguez 7/29/98

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Amendment Appendix A

Chart of Average Weights Suspension Agreement on Fresh Tomatoes from Mexico

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July 1-October 22 October 23-June 30

Type Layers Size Avg kg Avg lb $.172/lb Reference $.2108/lb Reference

Weight Weight* Price Price

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Tomato (cherry)..................... ....................... 12 Baskets............. 6.32 13.93 $2.40 $2.94

Tomato (cherry)..................... Bulk................... Bulk................... 8.13 17.92 3.08 3.78

Tomato (roma)....................... Bulk................... UC 82**................ 11.69 25.77 4.43 5.43

Tomato.............................. 2...................... 4 x 4.................. 10.78 23.77 4.09 5.01

Tomato.............................. 2...................... 4 x 5.................. 10.81 23.83 4.10 5.02

Tomato.............................. 2...................... 5 x 5.................. 10.43 22.99 3.96 4.85

Tomato.............................. 2...................... 5 x 6.................. 9.71 21.41 3.68 4.51

Tomato.............................. 3...................... 6 x 6.................. 13.33 29.39 5.05 6.19

Tomato.............................. 3...................... 6 x 7.................. 12.92 28.48 4.90 6.00

Tomato.............................. Bulk................... LRG 25 lbs............. 12.15 26.79 4.61 5.65

Tomato (20/Box)..................... Bulk................... Sml. Ctn............... 5.57 12.28 2.11 2.59

Tomato (1 Layer).................... 1...................... Long Box............... 7.41 16.34 2.81 3.44

Tomato (Green) 20#.................. Bulk................... Small.................. 8.16 17.99 3.09 3.79

Tomato.............................. 1...................... 4 x 5.................. 5.12 11.29 1.94 2.38

Tomato.............................. 1...................... 5 x 5.................. 4.99 11.00 1.89 2.32

Tomato (30/Box)..................... 1...................... Clusters............... 4.70 10.36 1.78 2.18

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*Conversion factor from kg to lb based on 1 kg=2.20462 lbs

**Also applicable to 4/7 bushel cartons.

[FR Doc. 98-21930 Filed 8-13-98; 8:45 am]

BILLING CODE 3510-OS-P