61780 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

merchandise imported into the United States

pursuant to this Agreement shall not be

loaned or swapped.

Mill Certification

MOFTEC shall ensure that all shipments of

CTL plate exported to the United States

pursuant to this Agreement shall be

accompanied by a copy of the original mill

certification, which includes the heat

number(s).

Sales to Countries Other Than the United

States

Pursuant to Section VIII, paragraph A,

MOFTEC will provide country-specific

volume and value information for all exports

of CTL plate to third countries. The following

information shall be provided except that

information requested in item #6, importer of

record, and item #10, other, may be omitted

if unknown to MOFTEC and the licensee.

1. Customs Export Declaration Number:

Indicate the number(s) related to each

shipment.

2. Quantity: Indicate in original units of

measure sold and/or entered in metric tons.

3. Date of Sale: The date all essential terms

of the order (i.e., price and quantity) become

fixed.

4. Sales Order Number(s): Indicate the

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

5. Date of Export: Date of Export

Certification is issued.

6. Importer of Record: Name and address.

7. Customer: Name and address of the first

unaffiliated party purchasing from the

Chinese producer/exporter.

8. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

9. Name of Vessel: Identify the name of

vessel for each shipment to third countries.

10. Other: The identity of any subsequent

trading company in the transaction chain

pursuant to Section VII.B.

11. Estimated Date of Entry: Date the

merchandise entered the third country or the

date a book transfer took place.

Home Market Sales

Pursuant to Section VIII.A., MOFTEC will

provide transaction-specific home market

information for sales of subject merchandise,

upon demand. The following information

shall be provided, except that information

requested in item #6 may be omitted if

unknown to MOFTEC and the licensee.

1. Quantity: Indicate in original units of

measure sold and/or entered in metric tons.

2. Date of Sale: The date all essential terms

of the order (i.e., price and quantity become

fixed.

3. Sales Order Number(s): Indicate the

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

4. Customer: Name and address of the first

affiliated party purchasing from the Chinese

exporter.

5. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

6. Other: The identity of any party(ies) in

the transaction chain between the customer

and the final destination.

[FR Doc. 97–30394 Filed 11–18–97; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–821–808]

Suspension of Antidumping Duty

Investigation: Certain Cut-to-Length

Carbon Steel Plate From the Russian

Federation

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

SUMMARY: The Department of Commerce

(the Department) has suspended the

antidumping duty investigation

involving certain cut-to-length carbon

steel plate (CTL plate) from the Russian

Federation. The basis for this action is

an agreement between the Department

and the Ministry of Foreign Economic

Relations and Trade of the Russian

Federation (MINFER) wherein MINFER

has agreed to restrict the volume of

direct or indirect exports to the United

States of CTL plate from all Russian

producers/exporters and to revise its

prices to eliminate completely sales of

this merchandise to the United States at

less than fair value.

EFFECTIVE DATE: October 24, 1997.

FOR FURTHER INFORMATION CONTACT:

Nithya Nagarajan, or Eugenia Chu,

Office of AD/CVD Enforcement III,

Import Administration, International

Trade Administration, U.S. Department

of Commerce, 14th & Constitution

Avenue N.W., Washington, D.C. 20230;

telephone (202) 482–1324, or (202) 482–

3964 respectively.

SUPPLEMENTARY INFORMATION:

Background

On December 3, 1996, the Department

initiated an antidumping investigation

under section 732 of the Tariff Act of

1930, (the Act), as amended, to

determine whether imports of CTL plate

from the Russian Federation are being or

are likely to be sold in the United States

at less than fair value (61 FR 64051

(December 3, 1996)). On December 19,

1996, the United States International

Trade Commission (ITC) notified the

Department of its affirmative

preliminary injury determination (see

ITC Investigation Nos. 731–TA–753–

756). On June 11, 1997, the Department

preliminarily determined that CTL plate

is being, or is likely to be, sold in the

United States at less than fair value

(LTFV), as provided in section 733 of

the Tariff Act of 1930, as amended by

the Uruguay Round Agreements Act (62

FR 31967, (June 11, 1997)).

The Department and MINFER

initialed a proposed agreement

suspending this investigation on

September 24, 1997. On September 25,

1997, we invited interested parties to

provide written comments on the

agreement and received comments from

Geneva Steel, Gulf States Steel,

Bethlehem Steel Corp., U.S. Steel

Group, United Steel Workers of

America, and the Government of the

Russian Federation.

The Department and MINFER signed

the final suspension agreement on

October 24, 1997.

Scope of Investigation

See Notice of Final Determination of

Sales at Less Than Fair Value: Certain

Cut-to-Length Carbon Steel Plate From

Ukraine, signed on October 24, 1997.

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. In accordance with Section

734 (l) of the Act, we have determined

that the agreement will prevent the

suppression or undercutting of price

levels of domestic products by imports

of the merchandise under investigation,

that the agreement is in the public

interest, and that the agreement can be

monitored effectively. See October 24,

1997, Public Interest Memorandum. We

find, therefore, that the criteria for

suspension of an investigation pursuant

to section 734(l) of the Act have been

met. The terms and conditions of this

agreement, signed October 24, 1997, are

set forth in Annex 1 to this notice.

Pursuant to section 734(f)(2)(A) of the

Act, the suspension of liquidation of all

entries of cut-to-length carbon steel

plate from the Russian Federation

entered or withdrawn from warehouse,

for consumption, as directed in our

notice of ‘‘Preliminary Determination of

Sales at Less Than Fair Value: Cut-toLength Carbon Steel Plate from the

Russian Federation’’ and

‘‘Postponement of the Final

Determination: Cut-to-Length Carbon

Steel Plate from the Russian Federation’’

is hereby terminated. Any cash deposits

on entries of cut-to-length carbon steel

plate from the Russian Federation

pursuant to that suspension of

liquidation shall be refunded and any

bonds shall be released.

On October 14, 1997 we received a

request from petitioners requesting that

we continue the investigation. We

received separate requests for

continuation from Bethlehem Steel

Corp., U.S. Steel Corp. (A Unit of USX

Corporation), and the United

Steelworkers of America, interested

parties under section 771(9)(D) of the
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61781

Act. Pursuant to these requests, we have

completed the investigation in

accordance with section 734(g) of the

Act, and have notified the International

Trade Commission (ITC) of our

determination. If the ITC’s injury

determination is negative, the agreement

will have no force or effect, and the

investigation will be terminated (see

section 734(f)(3)(A) of the Act). If the

ITC’s determination is affirmative, the

Department will not issue an

antidumping duty order as long as the

suspension agreement remains in force

(see section 734(f)(3)(B) of the Act).

This notice is published pursuant to

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

Dated: November 7, 1997.

Robert S. LaRussa,

Assistant Secretary for Import

Administration.

Agreement Suspending the

Antidumping Investigation on Cut-ToLength Carbon Steel Plate From the

Russian Federation

For the purpose of encouraging free

and fair trade in cut-to-length carbon

steel plate (‘‘steel plate’’), establishing

more normal market relations, and

preventing the suppression or

undercutting of price levels of the

domestic product, the United States

Department of Commerce (‘‘U.S. DOC’’)

and the Ministry of Foreign Economic

Relations and Trade of the Russian

Federation (‘‘MINFER of Russia’’) enter

into this suspension agreement (‘‘the

Agreement’’).

Pursuant to this Agreement, MINFER

of Russia will restrict the volume of

direct and indirect exports to the United

States of steel plate from all Russian

producers/exporters, subject to the

terms and provisions set forth below.

On the basis of this Agreement,

pursuant to the provisions of Section

734(1) of the Tariff Act of 1930, as

amended (19 U.S.C. 1673c(1)), (see

Appendix II), U.S. DOC shall suspend

its antidumping investigation with

respect to steel plate produced in

Russia, subject to the terms and

provisions set forth below. Further, U.S.

DOC will instruct the U.S. Customs

Service to terminate the suspension of

liquidation of, and release any cash

deposit or bond posted on, the steel

plate 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

steel plate to the United States shall be

considered the date on which the Export

License/Temporary Document 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

submission of factual information or

written argument.

C. ‘‘Indirect Exports’’ means

arrangements as defined in Section III.E

of this Agreement and exports from

Russia through one or more third

countries, whether or not such exports

are further processed, insofar as they

remain within the scope of the

Agreement, and includes further

processing which results in minor

alterations, or under certain limited

circumstances, as described in Section

VII. G., further processing which results

in substantial transformation as a result

of an attempt to circumvent the

Agreement, whether or not such exports

are sold in one or more third countries

prior to importation into the United

States and whether or not the Russian

producer knew the product was

destined to enter 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.

E. ‘‘For Consumption’’ means all steel

plate sold to customers, such as, trading

companies, distributors, resellers, endusers, or service centers.

F. ‘‘End-User’’ means an entity, such

as a steel service center, reseller, trading

company, end-user. etc. which

consumes steel plate as defined in

Section I.E.

G. ‘‘Date of Sale’’ is defined as the

date on which price and quantity

become firm, e.g., the specification date

or, the date of the contract if the

contract fixes the price and quantity for

more than one year. as recorded in the

company s records kept in the ordinary

course of business.

H. ‘‘Export License/Temporary

Document’’ is the document issued by

(‘‘MINFER’’) of Russia which serves also

as both a quota certificate and a

certificate of origin. An Export License/

Temporary Document must accompany

all shipments of steel plate from Russia

to the United States, and must contain

all of the information enumerated in the

Appendix I to this Agreement, except

that Date of Entry, Importer of Record,

Final Destination, and Other, may be

omitted if unknown to MTNFFR of

Russia and the licensee.

I. Reference Price’’ means the price

calculated by U.S. DOC, as described in

Section IV, on a quarterly basis to be

used as a floor price for sales of steel

plate to the United States.

J. ‘‘Relevant Period’’ for the export

limit of this Agreement means the

period from January I through December

31 of each year that the Agreement is in

effect, except that the First Relevant

Period shall be the period from October

24, 1997 through December 31, 1998.

The Final Relevant Period shall be the

period from January 1, 2002 through

October 23, 2002.

II. Product Coverage

The products covered by this

Agreement include hot-rolled iron and

non-alloy steel universal mill steel

plates (i.e., flat-rolled products rolled on

four faces or in a closed box pass. of a

width exceeding 150 mm but not

exceeding 1250 mm and of a thickness

of not less than 4 mm, not in coils and

without patterns in relief), of

rectangular shape, neither clad, plated

nor coated with metal, whether or not

painted, varnished, or coated with

plastics or other non-metallic

substances; and certain iron and nonalloy steel flat-rolled products not in

coils, of rectangular shape. hot-rolled,

neither clad, plated, nor coated with

metal. whether or not painted,

varnished, or coated with plastics or

other nonmetallic substances, 4.75 mm

or more in thickness and of a width

which exceeds 150 mm and measures at

least twice the thickness. Included as

steel plate in this Agreement are

flatrolled products of nonrectangular

cross-section where such cross-section

is achieved subsequent to the rolling

process (i.e., products which have been

‘‘worked after rolling’’) for example.

products which have been beveled or

rounded at the edges. This merchandise

is currently classifiable in the

Harmonized Tariff Schedule of the

United States (‘‘HTS’’) under item

numbers 7208.40.3030, 7208.40.3060.

7208.51.0030, 7208.51.0045,

7208.51.0060, 7208.52.0000,

7208.53.0000, 7208.90.0000,

7210.70.3000, 7210.90.9000,

7211.13.0000, 7211.14.0030,

7211.14.0045, 7211.90.0000,

7212.40.1000, 7212.40.5000,

7212.50.0000. Excluded from steel plate

within the scope of this Agreement is

grade X–70 steel plate. Although the

HTS subheadings are provided for

convenience and customs purposes, the

written description of the scope of this

Agreement is dispositive.

The products covered by the above

definition shall be referred to

hereinafter as ‘‘steel plate’’.
61782 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

III. Export Limits

A. The export limit for each Relevant

Period shall be 100,000 metric tons of

steel plate, except that for the First

Relevant Period the export limit shall be

118,630 metric tons of steel plate and

for the Final Relevant Period the export

limit shall be 81,370 metric tons of steel

plate. No later than 60 days prior to the

end of the First Relevant Period, U.S.

DOC shall calculate an upward or

downward adjustment to the next

Relevant Period’s export limit based

upon the changes in U.S. apparent

consumption for steel plate. U.S.

apparent consumption will be

calculated using of financial statistics of

the U.S. Census Bureau and data from

the American Iron and Steel Institute

regarding domestic shipments. The

maximum adjustment will be plus or

minus no more than 6 percent per

Relevant Period, and will be calculated

by comparing the most recent twelve

months of data for U.S. apparent

consumption available to U.S. DOC at

the time of the calculation, to the level

of the previous corresponding twelve

months of data. U.S. DOC will then

apply the adjustment to the Relevant

Period’s export limit. U.S. DOC will

similarly adjust the export limit every

Relevant Period, and the effects of the

adjustments shall be cumulative.

Deductions from the export limit shall

be made based on the ‘‘Date of Export’’,

as defined in Section I. MINFER of

Russia will not issue Export Licenses/

Temporary Documents accounting for

more than sixty percent of the export

limits for any Relevant Period during

either semi-annual period within such

Relevant Period. The two semi-annual

periods within the Relevant Period are

defined as: (I) January 1 through June

30; and (2) July 1 through December 31

and except that for the First Relevant

Period, the two semi-annual periods are

defined as: (1) the period beginning on

October 24, 1997 through May 31 1998;

and (2) the period June 17 1998 through

December 31, 1998. and for the Final

Relevant Period, the semi-annual

periods are defined as: (1) January 1,

2002 through May 31, 2002; and (2) June

1, 2001 through October 23, 2002.

B. On and after October 24, 1997,

MINFER of Russia will restrict the

volume of direct or indirect exports of

steel plate to the United States, and the

transfer and withdrawal from inventory

of steel plate (consistent with the

provisions of Section III.D) in

accordance with the export limit then in

effect.

C. Any amount delivered during a

Relevant Period shall not when

cumulated with all prior deliveries in

such Relevant Period, exceed the export

limit for that Relevant Period except as

provided for in Section III.G.

D. Any inventories of steel plate

currently held in the United States by a

Russian entity and imported into the

United States between November 5,

1996, and October 24 1997. 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 an Export

License/Temporary Document issued by

MINFER of Russia. Any such transfers

or withdrawals from inventory shall be

deducted from the export limit in effect

at the time the Export License/

Temporary Document is issued.

2. A request for an Export License/

Temporary Document under this

provision shall be accompanied by a

report specifying the data pursuant to

the provisions of Russian legislation, in

particular, the identity of the original

exporter and importer, the customer, if

known, the original date of export and

entry into the United States, if known,

the quantity expressed in metric tons,

and a complete description of the steel

plate (including heat numbers and other

available identifying documentation).

E. Any arrangement involving the

exchange, sale, or delivery of steel plate

products from Russia whether or not

further processed within the meaning of

I.C., to the degree it can be shown to

have resulted in the sale or delivery in

the United States of steel plate products

from a country other than Russia, will

be counted toward the export limit

under this Agreement. Any such

transaction that does not comply with

the requirements of Section V will be

deducted from the export limit pursuant

to Section VII.

F. When steel plate is imported into

the United States and is subsequently

re-exported, or re-packaged and reexported or further processed within the

meaning of I.C. and re-exported, the

export limit shall be increased by the

quantity re-exported. Such increase will

be applicable to the Relevant Period

corresponding to the time of such reexport. Such increase will be applied

only after U.S. DOC receives, and has

the opportunity to verify, evidence

demonstrating original importation. any

repackaging or further processing, and

subsequent exportation.

G. Export Licenses/Temporary

Documents issued for a given Relevant

Period may not be used after the

expiration of that Relevant Period,

except that Export Licenses/Temporary

Documents not used during the

Relevant Period may be used 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 limit applicable to the

previous Relevant Period.

Export Licenses/Temporary

Documents for up to 15 percent of the

export limit for a subsequent Relevant

Period may be issued as early as 45 days

prior to the beginning of the subsequent

Relevant Period. Such ‘‘carried-back’’

quota shall be counted against the

export limit applicable to the following

Relevant Period.

H. For the first 120 days after October

24, 1997, steel plate shall be admitted

into the United States with a

‘‘Temporary Document.’’

The volume of any such imports will

be deducted from the export limit

applicable to the First Relevant Period.

A full reporting of any such imports,

which must correspond to the

information detailed in Appendix I.B. to

this Agreement, must be submitted to

U.S. DOC no later than 45 days after the

conclusion of the 120 day period. This

data must be sorted on the basis of date

of export and must be set forth on a

transaction-specific basis.

IV. Reference Price

A. Steel plate will not be sold below

the reference price in effect on the date

of sale.

B. The reference price issued

quarterly by U.S. DOC 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 the First Relevant

Period shall be issued and effective on

October 24. 1997. Either party is entitled

to request consultations regarding the

calculation of reference prices.

C. The reference price for the First

Relevant Period shall be as follows:

A36—$300.00 per metric ton

AS72—$325.00 per metric ton

Until such time as U.S. DOC and

MINFER of Russia agree, after

consultations, upon reference prices for

other grades of steel plate, only grades

A36 and A572 rnay be exported to the

United States. Consultations regarding

reference prices for other grades of steel

plate shall be held within 30 days of a

request and shall be completed within

15 days.

D. For each subsequent Relevant

Period, the reference price will be

adjusted on a quarterly basis to reflect

the change in the BLS Producer Price

Index (PPI) for carbon steel plate over

the three months for which data is

available preceding the date on which

the reference price is issued.
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61783

1The validity of an Export License/Temporary

Document will not be affected by a subsequent

change of an HTS number.

If the last month of BLS PPI for the

three-month period preceding the date

on which the reference price is issued

has fallen by more than 2.6 percent from

the average of the first two months of

the period, the reference price will be

adjusted on the basis of the PPI for the

last month of the three-month period.

E. MINFER of Russia will ensure that,

with respect to merchandise covered by

each Export License/Temporary

Document, the Russian unit values of

steel plate exports will equal or exceed

the reference price at equivalent points

in the transaction chain. The reference

price will be F.O.B. port. MINFER of

Russia will ensure that contracts and all

relevant documentation will be

available to U.S. DOC and will be

subject to verification.

V. Export License/Temporary Document

A. MINFER of Russia shall restrict the

volume of direct or indirect exports of

steel plate to the United States by means

of annual quota allocations and Export

Licenses/Temporary Documents. Export

Licenses/Temporary Documents shall be

issued by MINFER of Russia for all

direct or indirect exports of steel plate

to the United States in accordance with

the export limit in Section III and the

reference price in Section IV.

B. Thirty days following the

allocation of quota rights for any

Relevant Period.

MINFER of Russia shall provide to

U.S. DOC a notice identifying each

quota recipient and the volume of quota

which each recipient has been accorded

(‘‘notice of quota allocation results’’).

MINFER of Russia shall not be required

to seek the approval of U.S. DOC for

changing the volume of quota assigned

to individual quota recipients. MINFER

of Russia shall inform U.S. DOC of any

changes in the volume of quota assigned

to individual quota recipients within 60

days of the date on which such changes

become effective.

C. Before it issues an Export License/

Temporary Document, MINFER of

Russia will ensure that the Relevant

Period’s export limit is not exceeded

and that the price for the steel plate is

at or above the reference price.

D. MINFER of Russia shall take

measures, as may be necessary, to make

effective the obligations resulting from

the reference price, export limits and

Export Licenses/Temporary Documents.

MINFER of Russia will inform U.S. DOC

of any violations concerning reference

price, export limits and/or Export

Licenses/Temporary Documents which

come to its attention and the measures

taken with respect thereto.

U.S. DOC will inform MINFER of

Russia of violations concerning the

reference price, export limits, and/or

Export Licenses/Temporary Documents

which come to its attention and the

actions taken with respect thereto.

E. Export Licenses/Temporary

Documents will be issued sequentially,

endorsed against the export limit for the

Relevant Period, and will reference the

notice of quota allocation results for the

appropriate Relevant Period.

F. Export License/Temporary

Document must be issued no earlier

than 90 days before the day on which

the steel plate is accepted-by a

transportation company, as indicated in

the bill of lading or a comparable

transportation document, for export.

Export License/Temporary Document

must be also issued in English.

G. On and after October 24, 1997, the

United States shall require presentation

of an original stamped Export License/

Temporary Document as a condition for

entry of steel plate into the United

States. The United States will prohibit

the entry of any steel plate not

accompanied by an original stamped

Export License/Temporary Document.1

VI. Implementation

In order to effectively restrict the

volume of exports of steel plate to the

United States, MINFER of Russia agrees

to implement the following procedures

no later than 90 days after October 24

1997, except as noted in Section VI.A.:

A. Establish a quota and licensing

program for all exports of steel plate to,

or destined directly or indirectly for

consumption in, the United States no

later than 120 days after October 24,

1997.

B. Ensure compliance by any official

Russian institution, chamber, or other

entities authorized by the Government

of Russia all Russian producers,

exporters, brokers. and traders of the

steel plate, and their relevant affiliated

parties; as well as relevant trading

companies/resellers utilized by the

Russian producer to make sales to the

United States. with all procedures

established in order to effectuate this

Agreement.

C. Collect information-from all

Russian producers, exporters, brokers,

and traders of steel plate, and their

relevant affiliated parties, as well as

relevant trading companies/resellers

utilized by the Russian producer, on the

sale of the steel plate, and report such

information pursuant to Article VIII.A of

this Agreement

D. Issue Export Licenses/Temporary

Documents to Russian producers and

exporters of steel plate for the duration

of this Agreement in accordance with

Russian legislation.

E. Impose strict measures, such as

prohibition from participation in the

export limits allowed by the Agreement.

in the event that any Russian entity does

not comply in full with the terms of the

Agreement.

F. Require that purchasers agree not to

circumvent this Agreement, report to

MINFER of Russia subsequent

arrangement entered into for the sale,

exchange, or loan to the United States

of steel plate purchased from Russia,

and include these same provisions in

any subsequent contracts involving steel

plate purchased from Russia.

G. For purposes of this Agreement the

duration of validity of Export Licenses/

Temporary Documents will be six (6)

months. U.S. D.O.C. and MINFER of

Russia may agree to an extension of the

validity of the Export License/

Temporary Document in cases of force

majeure.

VII. Anticircumvention

A. MINFER of Russia will take all

appropriate measures under Russian

law to prevent circumvention of this

Agreement. It shall respond promptly to

conduct an inquiry into allegations of

circumvention, including allegations

raised by U.S. DOC, and shall complete

such inquiries in a timely manner

(normally within 45 days). MINFER of

Russia shall notify U.S. DOC of the

results of its inquiries within 15 days of

the conclusion of such inquiries. Within

15 days of a request from U.S. DOC,

MINFER of Russia shall share with U.S.

DOC all information received or

collected by MINFER of Russia

regarding its inquiries, its analysis of

such information, and the results of

such inquiries. MINFER of Russia will

require all Russian exporters of steel

plate to include a provision in their

contracts for sales to countries other

than the United States that the steel

plate sold through such contracts cannot

be re-exported, transshipped, or

swapped to the United States, or

otherwise used to circumvent the export

limits of this Agreement. This

requirement does not apply to exports to

the United States through a third

country which are accompanied by a

valid Export License/Temporary

Document. MINFER of Russia will also

establish appropriate mechanisms to

enforce this requirement.

B. If, in an inquiry pursuant to

Section VI.A, MINFER of Russia

determines that a Russian entity has

participated in a transaction that

resulted in circumvention of the export

limits of this Agreement, then MINFER
61784 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

of Russia shall impose measures on

such company including, but not

limited to, denial of access to a quota for

the steel plate. Additionally, MINFER of

Russia shall deduct an amount of steel

plate equivalent to the amount involved

in such circumvention from the export

limit and shall immediately notify U.S.

DOC of the amount deducted. If

sufficient tonnage is not available in the

current Relevant Period, then the

remaining amount necessary shall be

deducted from the subsequent Relevant

Period.

C. If MINFER of Russia determines

that a company from a third country has

circumvented the Agreement and the

parties agree that no Russian entity

participated in or had knowledge of

such activities, then the parties shall

hold consultations for the purpose of

sharing information regarding such

circumvention and reaching mutual

agreement on the appropriate measures

to be taken to eliminate such

circumvention. If the parties are unable

to reach mutual agreement within 45

days, then U.S. DOC may take

appropriate measures, such as

deducting the amount of steel plate

involved in such circumvention from

the export limit, or instructing U.S.

Customs to deny entry to any steel plate

sold by the entity found to be

circumventing the Agreement, taking

into account all relevant factors. Before

taking such measures U.S. DOC will

notify MINFER of Russia of the facts and

reasons constituting the basis for U.S.

DOC’s intended action and will afford

MINFER of Russia 15 days in which to

comment.

D. If U.S. DOC determines that a

Russian 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 60 days, U.S. DOC

may take appropriate measures, such as

deducting the amount of steel plate

involved in such circumvention from

the export limit or instructing U.S.

Customs to deny entry to any steel plate

sold by the entity found to be

circumventing the Agreement. Before

taking such measures, U.S. DOC will

notify MINFER of Russia of the facts and

reasons constituting the basis for U.S.

DOC’s intended action and will afford

MINFER of Russia 30 days in which to

comment.

E. U.S. DOC shall direct the U.S.

Customs Service to require all importers

of steel plate into the United States,

regardless of stated country of origin, to

submit at the time of entry a written

statement certifying that the steel plate

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

U.S. DOC has reason to believe that

such a certification has been made

falsely, U.S. DOC will refer the matter

to the U.S. Customs Service or U.S.

Department of Justice for further action.

F. U.S. DOC will take the following

factors into account in distinguishing

normal steel plate 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 U.S. DOC pursuant to

Section VIII;

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 steel plate facilities;

6. Existence of any payments

unaccounted for by previous or

subsequent deliveries, or any payments

to one party for steel plate 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 steel plate

without physical transfer. These may

include exchange of ownership of steel

plate in different countries, so that the

parties obtain ownership of products

located in different countries, or

exchange of ownership of steel plate

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 steel plate,

without any exchange of ownership.

Displacement swaps—involve the sale

or delivery of steel plate from Russia 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 steel plate,

regardless of the sequence of the

transaction.

H. U.S. DOC will enter its

determinations regarding circumvention

into the record of the Agreement.

I. MINFER of Russia may request an

extension of up to 15 days for any of the

deadlines mentioned in this Section.

VIII. Monitoring

MINFER of Russia will provide to

U.S. DOC such information as is

necessary and appropriate to monitor

the implementation of and compliance

with the terms of this Agreement. U.S.

DOC shall provide semi-annual reports

to MINFER of Russia indicating the

volume of imports of the steel plate 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 October 24, 1997,

MINFER of Russia shall collect and

provide to U.S. DOC information for

exports to the United States set forth in

the agreed format in the Appendix I to

this Agreement. All such information

will be provided to U.S. DOC by March

31st of each year for exports to the

United States during the period from

July 1st through December 31st. In

addition, such information will be

provided to U.S. DOC by September

30th for exports from January 1st

through June 30th, or within 90 days of

a request made by U.S. DOC. Such

information will be subject to the

verification provision identified in

Section VIII.C of this Agreement.

MINFER of Russia agrees to provide

Export Licenses/Temporary Documents

to only those Russian producers/

exporters which permit verification and

full reporting of data. U.S. DOC 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

exports of steel plate to each third

country will be provided to U.S. DOC by

March 31st of each year for exports

during the period from July 1st through

December 31st. In addition, such

information will be provided to U.S.

DOC by September 30th for exports

from January 1st through June 30th.

Upon request by the U.S. DOC,

transaction-specific data for exports of

steel plate to third country(ies) and

home market sales of steel plate will

also be reported in the format provided

in the Appendix I. This information

shall be provided within 45 days of the

request. However, MINFER of Russia
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61785

may request an extension of up to 30

days.

Both Parties recognize that the

effective monitoring of this Agreement

may require that MINFER of Russia

provide information additional to that

which is identified above. Accordingly,

U.S. DOC may establish additional

reporting requirements, as appropriate,

during the course of this Agreement.

U.S. DOC shall provide notice to

MINFER of Russia 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.

MINFER of Russia may request an

extension of up to 30 days for any of the

deadlines mentioned in this Section.

B. Other Sources for Monitoring

U.S. DOC will review publicly

available data as well as U.S. Customs

entry summaries and other of financial

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.

U.S. DOC will monitor Bureau of the

Census 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, U.S. DOC

may request the U.S. Customs Service to

provide such information. U.S. DOC

may request other additional

documentation from the U.S. Customs

Service.

U.S. DOC may also request the U.S.

Customs Service to direct ports of entry

to forward an Antidumping Report of

Importations for entries of the steel plate

during the period this Agreement is in

effect.

C. Verification

MINFER of Russia will permit full

verification of all information related to

the administration of this Agreement, on

an annual basis or more frequently, as

the U.S. D.O.C. deems necessary to

ensure that MINFER of Russia 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. U.S. DOC shall make available to

representatives of each party to the

proceeding, under appropriately-drawn

administrative protective orders

consistent with U.S. laws and

regulations, business proprietary

information submitted to U.S. DOC

semi-annually or upon request, and in

any administrative review of this

Agreement.

B. Not later than 45 days after the date

of disclosure under Section VIII.A, the

parties to the proceeding may submit

written comments to U.S. DOC, 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 U.S. laws and

regulations.

X. Consultations

MINFER of Russia and U.S. DOC 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

MINFER of Russia or U.S. DOC.

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 U.S. Laws and regulations.

MINFER of Russia and U.S. DOC will

inform the other Party of any violations

of the Agreement which come to their

attention and the action taken with

respect thereto.

Exports 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 U.S.

laws and regulations where such

exports are inconsequential,

inadvertent, and are applied against the

export limits of the following Relevant

Period.

Prior to making a determination of an

alleged violation, U.S. DOC will engage

in emergency consultations. Such

consultations shall begin no later than

21 days from the day of request and

shall provide for full review, but in no

event will exceed 40 days. After

consultations, U.S. DOC will provide

MINFER of Russia 20 days within which

to provide comments. U.S. DOC will

make a determination within 30 days

after the date established for submission

of comments by MINFER of Russia.

B. Appropriate Action

If U.S. DOC determines that this

Agreement is being or has been violated,

U.S. DOC will take such action as it

determines is appropriate under the

U.S. laws and regulations.

C. MINFER of Russia may request an

extension of up to 15 days for any of the

deadlines mentioned in this Section.

XII. Duration

The export limit provided for in

Section III of this Agreement shall

remain in force from October 24, 1997

through October 23, 2002.

U.S. DOC will, upon receiving a

proper request made by MINFER of

Russia, conduct an administrative

review under the U.S. laws and

regulations. U.S. DOC expects to

terminate this Agreement and the

underlying investigation no later than 5

years from October 24, 1997, provided

that no Russian entity has been found to

have violated the Agreement in any

substantive manner. Such review and

termination shall be conducted with

U.S. laws and regulations.

MINFER of Russia may terminate this

Agreement at any time upon notice to

U.S. DOC. Termination shall be effective

60 days after such notice is given to U.S.

DOC. Upon termination at the request of

MINFER of Russia, the provisions of

U.S. laws and regulations shall apply.

XIII. Other Provisions

A. U.S. DOC 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 steel

plate products by imports of the steel

plate subject to this Agreement.

B. U.S. DOC does not consider any of

the obligations concerning exports of

steel plate to the United States

undertaken by MINFER of Russia

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.

C. The English and Russian language

versions of this Agreement shall be

authentic and equally binding, with the

English version being controlling.

D. All provisions of this Agreement,

including the provisions of the

Preamble, shall have equal force.

E. For all purposes hereunder, the

signatory Parties shall be represented

by, and all communications and notices

shall be given and addressed to:

Department: U.S. Department of

Commerce, Assistant Secretary for

Import Administration, International

Trade Administration, Washington,

D.C. 20230
61786 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

Ministry: Head of Department for the

Regulation of External Economic

Activities of the Ministry for Foreign

Economic Relations and Trade of the

Russian Federation, 18/1

Ovchinnikovskaya naberezhnaya,

Moscow∼ 1 13324, Russia

XIV. Effective Date

The effective date of this Agreement

suspending the antidumping

investigation on cut-to-length carbon

steel plate from Russia shall be October

24, 1997.

Signed on this 24th day of October, 1997.

For U.S. DOC.

Robert LaRussa,

Assistant Secretary for Import

Administration.

For MINFER of Russia.

Vladimir M. Chibirev,

Acting Trade Representative of the Russian

Federation to the United States.

Appendix I

In accordance with the established format,

MINFER of Russia shall collect and provide

to U.S. DOC all information necessary to

ensure compliance with this Agreement. This

information will be provided-to U.S. DOC on

a semi-annual basis.

MINFER of Russia will collect and

maintain data on exports to the United States

on a continuous basis. Sales data for the

home market, and data for exports to

countries other than the United States. will

be reported upon request.

MINFER of Russia will provide a narrative

explanation to substantiate all data collected

in accordance with the following formats.

A. Report of Inventories

Report by location, the inventories held by

Russian entities in the United States and

imported into the United States during the

period November 5, 1996 through October

24, 1997.

l. Quantity: Indicate original units of measure

and in metric tons.

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 steel plate.

4. Export License/Temporary Document

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 Export

License/Temporary Document is issued.

7. Date of Entry: Date the steel plate 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 heat numbers, HTS numbers,

physical description. ASTM

specification, and other available

information.

B. Exports to The United States

MINFER of Russia will provide all Export

License/Temporary Document, which shall

contain the following information except that

information requested in item #9, date of

entry, item #10, importer of record, item #16,

final destination, and item #17 other, may be

omitted if unknown to MINFFR of Russia and

the Russian licensee.

1. Export License/Temporary Document:

Indicate the number(s) relating to each

sale and or entry.

2. Complete Description of Merchandise:

Include the 10 digit HTS category, and

the ASTM or equivalent grade.

3. Quantity: Indicate in metric tons.

4. F.O.B. Sales Value: Indicate currency used.

5. Unit Price: Indicate currency used per

metric ton.

6. Date of Sale: The date all essential terms

of the order (i.e, price and quantity)

become fixed.

7. Sales Order Number(s): Indicate the

number(s) relating to each sale and/or

entry.

8. Date of Export: Date the Export License/

Temporary Document 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. Trading Company: Name and address of

trading company involved in sale.

12. Customer: Name and address of the first

unaffiliated party purchasing from the

Russian exporter.

13. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated

to the Russian exporter.

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. Final Destination: The complete name

and address of the end-user.

17. Other: The identity of any party(ies) in

the transaction chain between the

customer and the final destination/enduser.

Mill Certification

MINFER of Russia shall ensure that all

shipments of steel plate exported to the

United States pursuant to this Agreement,

shall be accompanied by a copy of the

original mill certification, which includes the

heat number(s).

C. Exports Other Than to The United States

Pursuant to Section VIII, paragraph A,

MINFER of Russia will provide countryspecific volume and value information for

exports of steel plate to third countries, upon

request, regardless of whether MINFER of

Russia licenses exports of steel plate to such

country(ies). The following information shall

be provided except that information

requested in item #6, date of entry, #7,

importer of record, and item #10, may be

omitted if unknown to MINFER of Russia and

the Russian licensee.

1. Export License/Temporary Document:

Indicate the number(s) relating to each

sale and/or entry, if any.

2. Quantity: Indicate in original units of

measure sold and/or entered in metric

tons.

3. Date of Sale: The date all essential terms

of the order (i.e., price and quantity)

become fixed.

4. Sales Order Number(s): Indicate the

number(s) relating to each sale and/or

entry.

5. Date of Export: Date Export License/

Temporary Document is issued, if any.

6. Date of Entry: Date the merchandise

entered the third country or the date a

book transfer took place.

7. Importer of Record: Name and address.

8. Customer: Name and address of the first

unaffiliated party purchasing from the

Russian exporter.

9. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

10. Other: The identity of any party(ies) in

the transaction chain between the

customer and the final destination.

D. Home Market Sales

Pursuant to Section VIII, paragraph A, the

MINFER of Russia will provide home market

volume and value information for sales of

steel plate, upon request. The following

information shall be provided with the

exception of item #6, if unknown to MINFER

of Russia and the Russian producer/exporter.

1. Quantity: Indicate in original units of

measure sold and/or entered in metric

tons. .

2. Date of Sale: The date all essential terms

of order (i.e., price and quantity) become

fixed.

3. Sales Order Number(s): Indicate the

number(s) relating to each sale and/or

entry.

4. Customer: Name and address of the first

unaffiliated party purchasing from the

Russian exporter.

5. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

6. Other: The identity of any party(ies) in the

transaction chain between the customer

and the final destination.

Appendix II

Section 734 (1) of the Tariff Act of 1930 as

amended:

(1) Special Rule for Non-Market Economy

Countries

(I) In General.—The administering

authority may suspend an investigation

under this subtitle upon acceptance of an

agreement with a non-market economy

country to restrict the volume of imports into

the United States of the merchandise under

investigation only if the administering

authority determines that:

(A) such agreement satisfies the requirements

of subsection (d), and

(B) will prevent the suppression or

undercutting of price levels of domestic

products by imports of the merchandise

under investigation.

(2) Failure of Agreements.—If the

administering authority determines that the

agreement accepted under this subsection no
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61787

longer prevents the suppression or

undercutting of domestic prices of

merchandise manufactured in the United

States, the provisions of subsection (I) shall

apply.

[FR Doc. 97–30395 Filed 11–18–97; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–821–808]

Notice of Final Determination of Sales

at Less Than Fair Value: Certain Cutto-Length Carbon Steel Plate from the

Russian Federation

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: November 19, 1997.

FOR FURTHER INFORMATION CONTACT:

Nithya Nagarajan at (202) 482–1324 or

Eugenia Chu at (202) 482–3964, Import

Administration, International Trade

Administration, U.S. Department of

Commerce, 14th Street and Constitution

Avenue, N.W., Washington, D.C. 20230.

Applicable Statute: Unless otherwise

indicated, all citations to the statute are

references to the provisions effective

January 1, 1995, the effective date of the

amendments made to the Tariff Act of

1930 (the Act) by the Uruguay Round

Agreements Act (URAA). In addition,

unless otherwise indicated, all citations

to the Department’s regulations are to 19

C.F.R. part 353 (1997).

Final Determination: We determine

that certain cut-to-length steel plate

(CTL plate) from the Russian Federation

is being, or is likely to be, sold in the

United States at less than fair value

(LTFV), as provided in section 735 of

the Act.

Case History

Since the preliminary determination

in this investigation (Preliminary

Determination of Sales at Less Than

Fair Value: Certain Cut-to-Length

Carbon Steel Plate From the Russian

Federation, 62 FR 31967 (June 11,

1997)), the following events have

occurred:

In June 1997, we verified the

Severstal’s questionnaire responses. On

July 23, 1997, the Department issued its

report on verification findings.

Petitioners and Respondent, Severstal,

submitted case briefs on July 31, 1997,

and rebuttal briefs on August 5, 1997. A

public hearing was not requested nor

held.

On August 8, 1997, the Department

provided interested parties the

opportunity to submit additional

publicly-available information (PAI)

from surrogate countries to value certain

factors of production. The Department

received responses on August 15, 1997,

and comments on August 22, 1997.

Scope of Investigation

The products covered by this

investigation are hot-rolled iron and

non-alloy steel universal mill plates

(i.e., flat-rolled products rolled on four

faces or in a closed box pass, of a width

exceeding 150 mm but not exceeding

1250 mm and of a thickness of not less

than 4 mm, not in coils and without

patterns in relief), of rectangular shape,

neither clad, plated nor coated with

metal, whether or not painted,

varnished, or coated with plastics or

other nonmetallic substances; and

certain iron and non-alloy steel flatrolled products not in coils, of

rectangular shape, hot-rolled, neither

clad, plated, nor coated with metal,

whether or not painted, varnished, or

coated with plastics or other

nonmetallic substances, 4.75 mm or

more in thickness and of a width which

exceeds 150 mm and measures at least

twice the thickness. Included as subject

merchandise in this petition are flatrolled products of nonrectangular crosssection where such cross-section is

achieved subsequent to the rolling

process (i.e., products which have been

‘‘worked after rolling’’)—for example,

products which have been bevelled or

rounded at the edges. This merchandise

is currently classified in the

Harmonized Tariff Schedule of the

United States (HTS) under item

numbers 7208.40.3030, 7208.40.3060,

7208.51.0030, 7208.51.0045,

7208.51.0060, 7208.52.0000,

7208.53.0000, 7208.90.0000,

7210.70.3000, 7210.90.9000,

7211.13.0000, 7211.14.0030,

7211.14.0045, 7211.90.0000,

7212.40.1000, 7212.40.5000,

7212.50.0000. Excluded from the subject

merchandise within the scope of the

petition is grade X–70 plate. Although

the HTS subheadings are provided for

convenience and customs purposes, our

written description of the scope of this

investigation is dispositive. See

memorandum on Scope of

Investigations on Carbon Steel Plate,

from Joseph Spetrini to Robert S.

LaRussa (October 24, 1997).

Period of Investigation (POI)

The POI is April 1, 1996 through

September 30, 1996.

Separate Rates

Severstal has requested a separate,

company-specific rate. The claimed

ownership structure of Severstal during

the POI is that of a publicly owned joint

stock company, where the state owned

20% of the shares.

To establish whether a firm is

sufficiently independent from

government control to be entitled to a

separate rate, the Department analyzes

each exporting entity under a test

arising out of the Final Determination of

Sales at Less Than Fair Value: Sparklers

from the People’s Republic of China, 56

FR 20588 (May 6, 1991) (Sparklers) and

amplified in Final Determination of

Sales at Less Than Fair Value: Silicon

Carbide from the People’s Republic of

China, 59 FR 22585 (May 2, 1994)

(Silicon Carbide). Under the separate

rates criteria, the Department assigns

separate rates in nonmarket economy

cases only if a respondent can

demonstrate the absence of both de jure

and de facto governmental control over

export activities.

1. Absence of De Jure Control

An individual company may be

considered for a separate rate if it meets

the following de jure criteria: (1) an

absence of restrictive stipulations

associated with an individual exporter’s

business and export licenses; (2) any

legislative enactments decentralizing

control of companies; and (3) any other

formal measures by the government

decentralizing control of companies.

Severstal has placed on the

administrative record a number of

documents demonstrating absence of de

jure control. These documents include

laws, regulations, and provisions

enacted by the government of the

Russian Federation, describing the

deregulation of Russian enterprises as

well as the deregulation of the Russian

export trade (except for a list of

products that may be subject to

government export constraints which

Severstal claims, and the Department

verified, do not include subject

merchandise). Specifically, Severstal

provided English translations of the

laws and regulations governing their

enterprises. These laws and regulations

authorized Severstal to make its own

operational and managerial decisions

during the POI. See Separate Rates

Memorandum, dated June 3, 1997.

2. Absence of De Facto Control

The Department typically considers

four factors in evaluating whether each

respondent is subject to de facto

governmental control of its export

functions: (1) whether the export prices

(‘‘EP’’) are set by or subject to the

approval of a governmental authority;

(2) whether the respondent has

authority to negotiate and sign contracts

and other agreements; (3) whether the