[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Notices]
[Pages 78039-78044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30396]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-845]


Sugar From Mexico: Suspension of Antidumping Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: December 19, 2014.

SUMMARY: The Department of Commerce (``the Department'') has suspended 
the antidumping duty investigation on sugar from Mexico. The basis for 
this action is an agreement between the Department and signatory 
producers/exporters accounting for substantially all imports of sugar 
from Mexico, wherein each signatory producer/exporter has agreed to 
revise its prices to eliminate completely the injurious effects of 
exports of the subject merchandise to the United States.

FOR FURTHER INFORMATION CONTACT: Sally Craig Gannon or Judith Wey 
Rudman at (202) 482-0162 or (202) 482-0192, respectively; Bilateral 
Agreements Unit, Office of Policy, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street & Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On April 17, 2014, the Department initiated an antidumping duty 
investigation under section 732 of the Tariff Act of 1930, as amended 
(``the Act''), to determine whether imports of sugar from Mexico are 
being, or are likely to be, sold in the United States at less than fair 
value (``LTFV''). See Sugar from Mexico: Initiation of Antidumping Duty 
Investigation, 79 FR 22795 (April 24, 2014). On October 24, 2014, the 
Department preliminarily determined that sugar from Mexico is being, or 
is likely to be, sold in the United States at LTFV, as provided in 
section 733 of the Act, and postponed the final determination in this 
investigation until no later than 135 days after the date of 
publication of the preliminary determination in the Federal Register. 
See Sugar from Mexico: Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 79 FR 65189 
(November 3, 2014) (``Preliminary Determination'').
    On October 27, 2014, the Department and a representative of the 
signatory producers/exporters initialed a proposed agreement to suspend 
the antidumping investigation on sugar from Mexico. After initialing 
the proposed agreement, consistent with 734(e)(1) of the Act, the 
Department notified and consulted with the petitioners (i.e., the 
American Sugar Coalition and its individual members: American Sugar 
Cane League, American Sugar Refining, Inc., American Sugarbeet Growers 
Association, Florida Sugar Cane League, Hawaiian Commercial and Sugar 
Company, Rio Grande Valley Sugar Growers, Inc., Sugar Cane Growers 
Cooperative of Florida, and United States Beet Sugar Association) 
concerning its intention to suspend the antidumping investigation on 
sugar from Mexico. The Department also notified the other parties to 
the investigation and the International Trade Commission (``ITC'') of 
the proposed agreement, consistent with 734(e)(1) of the Act. Also on 
October 27, 2014, we invited interested parties to provide written 
comments on the proposed suspension agreement by no later than the 
close of business on November 10, 2014. See ``Memorandum to All 
Interested Parties'' and ``Draft Agreement Suspending the Antidumping 
Duty Investigation on Sugar from Mexico,'' dated October 27, 2014. On 
October 30, 2014, the Department issued a memorandum titled ``Proposed 
Scope Clarification'' and requested comments from interested parties. 
On November 7, 2014, we extended the deadline to submit comments on the 
draft suspension agreement and the proposed scope clarification until 
November 18, 2014. See memorandum titled ``Sugar

[[Page 78040]]

from Mexico: Notice of Extension of Deadline to Submit Comments on 
Draft Suspension Agreements and Scope Clarification,'' dated November 
7, 2014. We received comments from numerous parties by the November 18, 
2014, deadline.
    The Department and a representative of the signatory producers/
exporters accounting for substantially all imports of sugar from Mexico 
signed the suspension agreement on December 19, 2014. See Agreement 
Suspending the Antidumping Duty Investigation on Sugar from Mexico, 
signed on December 19, 2014 (``Suspension Agreement''), attached 
hereto. Based on the scope comments received in this investigation, the 
Department has revised the scope of this investigation, as provided in 
the scope of the Suspension Agreement.

Scope of Agreement

    See Section I, Product Coverage, of the Suspension Agreement.

Suspension of Investigation

    The Department consulted with the Mexican sugar producers/exporters 
and the petitioners and has considered the comments submitted by 
interested parties with respect to the proposal to suspend the 
antidumping investigation. In accordance with section 734(c) of the 
Act, we have determined that extraordinary circumstances are present in 
this case, as defined by section 734(c)(2)(A) of the Act. See the 
memorandum titled ``Agreement Suspending the Antidumping Duty 
Investigation on Mexican Sugar from Mexico: U.S. Import Coverage, 
Existence of Extraordinary Circumstances, Public Interest, and 
Effective Monitoring Assessments'' from Lynn Fischer Fox, Deputy 
Assistant Secretary for Policy and Negotiations, to Paul Piquado, 
Assistant Secretary for Enforcement and Compliance, dated December 19, 
2014 (``statutory requirements memorandum'').
    The Suspension Agreement provides, in accordance with 734(c)(1) of 
the Act, that the subject merchandise will be sold at or above the 
established reference price and, for each entry of each exporter, the 
amount by which the estimated normal value exceeds the export price (or 
constructed export price) will not exceed 15 percent of the weighted-
average amount by which the estimated normal value exceeded the export 
price (or constructed export price) for all less-than-fair-value 
entries of the producer/exporter examined during the course of the 
investigation. We have determined that the Suspension Agreement will 
eliminate completely the injurious effect of exports to the United 
States of the subject merchandise and prevent the suppression or 
undercutting of price levels of domestic sugar by imports of that 
merchandise from Mexico, as required by section 734(c)(1) of the Act. 
See the memorandum titled ``The Prevention of Price Suppression or 
Undercutting of Price Levels by the Agreement Suspending the 
Antidumping Duty Investigation on Sugar from Mexico'' from Lynn Fischer 
Fox, Deputy Assistant Secretary for Policy and Negotiations, to Paul 
Piquado, Assistant Secretary for Enforcement and Compliance.
    We have also determined that the Suspension Agreement is in the 
public interest and can be monitored effectively, as required under 
section 734(d) of the Act. See statutory requirements memorandum.
    For the reasons outlined above, we find that the Suspension 
Agreement meets the criteria of section 734(c) and (d) of the Act.
    The terms and conditions of this Suspension Agreement, signed 
December 19, 2014, are set forth in the Suspension Agreement, which is 
attached to this notice.

International Trade Commission

    In accordance with section 734(f) of the Act, the Department has 
notified the ITC of the Suspension Agreement.

Suspension of Liquidation

    The suspension of liquidation ordered in the Preliminary 
Determination, shall continue to be in effect, subject to section 
734(h)(3) of the Act. Section 734(f)(2)(B) of the Act provides that the 
Department may adjust the security required to reflect the effect of 
the Suspension Agreement. The Department has found that the Suspension 
Agreement eliminates completely the injurious effects of imports and, 
thus, the Department is adjusting the security required from 
signatories to zero. The security rates in effect for imports from any 
non-signatory producers/exporters remain as published in the 
Preliminary Determination. If there is no request for review of 
suspension under section 734(h) of the Act, or if the ITC conducts a 
review and finds that the injurious effect of imports of the subject 
merchandise is eliminated completely by the Suspension Agreement, the 
Department will terminate the suspension of liquidation of all entries 
of sugar from Mexico, and refund any cash deposits collected on entries 
of sugar from Mexico consistent with section 734(h)(3) of the Act.
    Notwithstanding the Suspension Agreement, the Department will 
continue the investigation if it receives such a request within 20 days 
after the date of publication of this notice in the Federal Register, 
in accordance with section 734(g) of the Act. Pursuant to Section X of 
the Suspension Agreement, the Department will terminate the Suspension 
Agreement in the event that signatories accounting for a significant 
proportion of exports of sugar from Mexico request continuation of this 
investigation, or the Government of Mexico requests continuation of the 
countervailing duty investigation of sugar from Mexico, and will resume 
the investigation.

Administrative Protective Order Access

    The Administrative Protective Order (``APO'') the Department 
granted in the investigation segment of this proceeding remains in 
place. While the investigation is suspended, parties subject to the APO 
may retain, but may not use, information received under that APO. All 
parties wishing access to business proprietary information submitted 
during the administration of the Suspension Agreement must submit new 
APO applications in accordance with the Department's regulations 
currently in effect. See section 777(c)(1) of the Act; 19 CFR 351.103, 
351.304, 351.305, and 351.306. An APO for the administration of the 
Suspension Agreement will be placed on the record within five days of 
the date of publication of this notice in the Federal Register.
    We are issuing and publishing this notice in accordance with 
section 734(f)(1)(A) of the Act and 19 CFR 351.208(g)(2).

    Dated: December 19, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Agreement Suspending the Antidumping Duty Investigation on Sugar From 
Mexico

    Pursuant to the requirements of section 734(c) of the Tariff Act of 
1930, as amended (the Act) (19 U.S.C. 1673c(c)) and 19 CFR 351.208, and 
in satisfaction of the requirements of those provisions, the U.S. 
Department of Commerce (the Department) and the signatory producers and 
exporters of Sugar from Mexico (the Signatories) enter into this 
agreement suspending the antidumping duty investigation of Sugar from 
Mexico (Agreement), as follows:

I. Product Coverage

    The product covered by this Agreement is raw and refined sugar of 
all polarimeter readings derived from

[[Page 78041]]

sugar cane or sugar beets. The chemical sucrose gives sugar its 
essential character. Sucrose is a nonreducing disaccharide composed of 
glucose and fructose linked by a glycosidic bond via their anomeric 
carbons. The molecular formula for sucrose is 
C<INF>12</INF>H<INF>22</INF>O<INF>11</INF>; the International Union of 
Pure and Applied Chemistry (IUPAC) International Chemical Identifier 
(InChl) for sucrose is 1S/C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-
12(3-15)10(20)7(17)5(2-14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-
,10+,11-, 12+/m1/s1; the InChl Key for sucrose is CZMRCDWAGMRECN-
UGDNZRGBSA-N; the U.S. National Institutes of Health PubChem Compound 
Identifier (CID) for sucrose is 5988; and the Chemical Abstracts 
Service (CAS) Number of sucrose is 57-50-1.
    Sugar described in the previous paragraph includes products of all 
polarimeter readings described in various forms, such as raw sugar, 
estandar or standard sugar, high polarity or semi-refined sugar, 
special white sugar, refined sugar, brown sugar, edible molasses, 
desugaring molasses, organic raw sugar, and organic refined sugar. 
Other sugar products, such as powdered sugar, colored sugar, flavored 
sugar, and liquids and syrups that contain 95 percent or more sugar by 
dry weight are also within the scope of this Agreement.
    The scope of the Agreement does not include (1) sugar imported 
under the Refined Sugar Re-Export Programs of the U.S. Department of 
Agriculture; \1\ (2) sugar products produced in Mexico that contain 95 
percent or more sugar by dry weight that originated outside of Mexico; 
(3) inedible molasses (other than inedible desugaring molasses noted 
above); (4) beverages; (5) candy; (6) certain specialty sugars; and (7) 
processed food products that contain sugar (e.g., cereals). Specialty 
sugars excluded from the scope of this Agreement are limited to the 
following: Caramelized slab sugar candy, pearl sugar, rock candy, 
dragees for cooking and baking, fondant, golden syrup, and sugar 
decorations.
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    \1\ This exclusion applies to sugar imported under the Refined 
Sugar Re-Export Program, the Sugar-Containing Products Re-Export 
Program, and the Polyhydric Alcohol Program administered by the U.S. 
Department of Agriculture.
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    Merchandise covered by this Agreement is typically imported under 
the following headings of the HTSUS: 1701.12.1000, 1701.12.5000, 
1701.13.1000, 1701.13.5000, 1701.14.1000, 1701.14.5000, 1701.91.1000, 
1701.91.3000, 1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010, 
1701.99.5025, 1701.99.5050, and 1702.90.4000. The tariff classification 
is provided for convenience and customs purposes; however, the written 
description of the scope of this Agreement is dispositive.

II. Definitions

    For purposes of the Agreement, the following definitions apply:
    A. ``Anniversary Month'' means the month in which the Agreement 
becomes effective.
    B. ``Date of Export'' means the date on which the product is 
exported from Mexico to the United States.
    C. ``Effective Date'' means the date on which the Department and 
the signatory producers/exporters sign the Agreement.
    D. ``Interested Party'' means any person or entity that meets the 
definitions provided in section 771(9) of the Act.
    E. ``Mexico'' means the customs territory of the United Mexican 
States and foreign trade zones located within the territory of Mexico.
    F. ``Other Sugar'' means Sugar that does not meet the definition of 
Refined Sugar under this Agreement.
    G. ``Reference Price'' means the minimum price at which merchandise 
subject to this Agreement can be sold in the United States.
    H. ``Refined Sugar'' means Sugar with a polarity of 99.5 and above.
    I. ``Sugar'' means the product described under Section I, ``Product 
Coverage,'' of the Agreement.
    J. ``Substantially all'' of the subject merchandise means exporters 
and producers that have accounted for not less than 85 percent by value 
or volume of the subject merchandise.
    K. ``United States'' means the customs territory of the United 
States of America (the 50 States, the District of Columbia and Puerto 
Rico) and foreign trade zones located within the territory of the 
United States.
    L. ``USDA'' means the United States Department of Agriculture.
    M. ``Violation'' means noncompliance with the terms of the 
Agreement, whether through an act or omission, except for noncompliance 
that is inconsequential or inadvertent, and does not materially 
frustrate the purposes of the Agreement.
    Any term or phrase not defined by this section shall be defined 
using either a definition provided in the Act for that term or phrase, 
or the plain meaning of that term, as appropriate.

III. Suspension of Investigation

    As of the Effective Date, in accordance with section 734(c) of the 
Act and 19 CFR 351.208, the Department will suspend its antidumping 
duty investigation on Sugar from Mexico initiated on April 17, 2014. 
See Sugar from Mexico: Initiation of Antidumping Duty Investigation, 79 
FR 22795 (April 24, 2014).

IV. U.S. Import Coverage

    In accordance with section 734(c)(1) of the Act, the Signatories 
are the producers and exporters in Mexico which account for 
substantially all of the subject merchandise imported into the United 
States. The Department may at any time during the period of the 
Agreement require additional producers/exporters in Mexico to accede to 
the Agreement to ensure that not less than substantially all imports 
into the United States are subject to this Agreement.

V. Statutory Conditions for the Agreement

    In accordance with section 734(c)(2) of the Act, the Department has 
determined that extraordinary circumstances are present in this 
investigation because the suspension of the investigation will be more 
beneficial to the domestic industry than the continuation of the 
investigation and that the investigation is complex.
    In accordance with section 734(d) of the Act, the Department 
determines that the suspension of the investigation is in the public 
interest and that effective monitoring of the Agreement by the United 
States is practicable. Section 734(a)(2)(B) of the Act provides that 
the public interest includes the availability of supplies of the 
merchandise and the relative impact on the competitiveness of the 
domestic industry producing the like merchandise, including any such 
impact on employment and investment in that industry. Accordingly, if a 
domestic producer requests an administrative review of the status of, 
and compliance with, the Agreement, the Department will take these 
factors into account in conducting that review. If the Department finds 
that the Agreement is not working as intended in this regard, the 
Department will explore all appropriate measures, including 
renegotiation of the terms of the Agreement to resolve the problem or 
measures under section 751(d)(1) of the Act.

VI. Price Undertaking

    Each Signatory individually agrees that, to prevent price 
suppression or undercutting, it will not sell in the United States, on 
or after the Effective Date, Sugar at prices that are less than the 
Reference Prices, established in Appendix I to the Agreement.

[[Page 78042]]

    Each Signatory individually agrees that for each entry the amount 
by which the estimated normal value exceeds the export price (or the 
constructed export price) will not exceed 15 percent of the weighted 
average amount by which the estimated normal value exceeded the export 
price (or constructed export price) for all less-than-fair-value 
entries of the producer/exporter examined during the course of the 
investigation, in accordance with the Act and the Department's 
regulations and procedures, including but not limited to the 
calculation methodologies described in Appendix II of this Agreement.

VII. Monitoring of the Agreement

A. Import Monitoring

    1. The Department will monitor entries of Sugar from Mexico to 
ensure compliance with section VI of this Agreement.
    2. The Department will review publicly available data and other 
official import data, including, as appropriate, records maintained by 
U.S. Customs and Border Protection (CBP), to determine whether there 
have been imports that are inconsistent with the provisions of this 
Agreement. The Department also intends to consult with the USDA 
regarding monthly information submitted by processors, refiners, and 
importers of Sugar from Mexico.
    3. The parties to this Agreement acknowledge that the Signatories 
intend to establish a joint industry-Government-of-Mexico working group 
(``Working Group'') that will regularly monitor and reconcile Mexican 
export data and identify and address any inconsistencies or 
irregularities. The Working Group will refer any alleged violations 
(either those discovered during its monitoring exercises or those 
reported by the Department) to the Government of Mexico (``GOM'') for 
appropriate action. For further information, please see information 
provided in the links provided at the Department's Web page, http://enforcement.trade.gov/agreements/index.html.
    4. The Department will review, as appropriate, data it receives 
from the Working Group and through any data exchange program between 
U.S. and GOM agencies to determine whether there have been imports that 
are inconsistent with the provisions of this Agreement.

B. Compliance Monitoring

    1. The Department may require, and each Signatory agrees to provide 
confirmation through documentation provided to the Department, that the 
price received on any sale subject to this Agreement was not less than 
the established Reference Prices. The Department may require that such 
documentation be provided and be subject to verification.
    2. The Department may require, and each Signatory agrees to report 
in the prescribed format and using the prescribed method of data 
compilation, each sale of Sugar, either directly or indirectly to 
unrelated purchasers in the United States, including each adjustment 
applicable to each sale, as specified by the Department. The 
information to be reported may include, for example, F.O.B. sales 
value, unit price, date of sale, sales order number(s), importer of 
record, trading company, customer, customer relationship, destination, 
as well as any other information deemed by the Department to be 
relevant. Each Signatory agrees to permit review and on-site inspection 
of all information deemed necessary by the Department to verify the 
reported information.
    3. The Department may initiate administrative reviews under section 
751(a) of the Act in the month immediately following the Anniversary 
Month, upon request or upon its own initiative, to ensure that exports 
of Sugar from Mexico satisfy the requirements of sections 734(c)(1)(A) 
and (B) of the Act. The Department may conduct administrative reviews 
under sections 751(b) and (c), and 781 of the Act, as appropriate. The 
Department may perform verifications pursuant to administrative reviews 
conducted under section 751 of the Act.
    4. At any time it deems appropriate, and without prior notice, the 
Department will conduct verifications of persons or entities handling 
Signatory merchandise to determine whether they are selling Signatory 
merchandise in accordance with the terms of this Agreement. The 
Department will also conduct verifications at locations and times it 
deems appropriate to ensure compliance with the terms of this 
Agreement.

C. Shipping and Other Arrangements

    1. All Reference Prices will be expressed in U.S. Dollars ($) per 
pound (lb.) by dry weight commercial value, in accordance with Appendix 
I of this Agreement.
    2. The parties to this Agreement acknowledge that under Mexican 
regulations, Mexican Sugar producers and exporters exporting to the 
United States will need to become Signatories to the Agreement. 
Signatories will fully comply with all requirements of Mexican 
regulations issued by the relevant Mexican authorities.
    For further information please see information in the links 
provided at the Department's Web page, http://enforcement.trade.gov/agreements/index.html.
    3. Signatories agree not to take any action that would circumvent 
or otherwise evade, or defeat the purpose of, this Agreement. 
Signatories agree to undertake any measures that will help to prevent 
circumvention.
    4. Not later than 30 days after the end of each quarter, each 
Signatory will submit a written statement to the Department certifying 
that all sales during the most recently completed quarter were at net 
prices, after rebates, discounts, or other adjustments, at or above the 
Reference Prices in effect and were not part of or related to any act 
or practice which would have the effect of hiding the real price of the 
Sugar being sold. Further, each Signatory will certify in this same 
statement that all sales made during the relevant quarter were not part 
of or related to any bundling arrangement, discounts/free goods/
financing package, swap or other exchange where such arrangement is 
designed to circumvent the basis of the Agreement. Each Signatory that 
did not export Sugar to the United States during any given quarter will 
submit a written statement to the Department certifying that it made no 
sales to the United States during the most recently completed quarter. 
Each Signatory agrees to permit full verification of its certification 
as the Department deems necessary. Failure to provide a quarterly 
certification may be considered a violation of the Agreement.

D. Rejection of Submissions

    The Department may reject: (1) Any information submitted after the 
deadlines set forth in this Agreement; (2) any submission that does not 
comply with the filing, format, translation, service, and certification 
of documents requirements under 19 CFR 351.303; (3) submissions that do 
not comply with the procedures for establishing business proprietary 
treatment under 19 CFR 351.304; and (4) submissions that do not comply 
with any other applicable regulations, as appropriate. If information 
is not submitted in a complete and timely fashion or is not fully 
verifiable, the Department may use facts otherwise available for the 
basis of its decision, as it determines appropriate, consistent with 
section 776 of the Act.

[[Page 78043]]

E. Consultations

1. Compliance Consultations
    a. When the Department identifies, through import or compliance 
monitoring or otherwise, that sales may have been made at prices 
inconsistent with section VI of this Agreement, or that the sales are 
otherwise in circumvention of this Agreement, the Department will 
notify each Signatory which it believes is responsible or, if 
applicable, notify the Signatory's representative. The Department will 
consult with each such party for a period of up to 60 days to establish 
a factual basis regarding sales that may be inconsistent with section 
VI of this Agreement.
    b. During the consultation period, the Department will examine any 
information that it develops or which is submitted, including 
information requested by the Department under any provision of this 
Agreement.
    c. If the Department is not satisfied at the conclusion of the 
consultation period that sales by such Signatory are being made in 
compliance with section VI of this Agreement, or that the sales are not 
circumventing this Agreement, the Department may evaluate under section 
351.209 of its regulations, or section 751 of the Act whether this 
Agreement is being violated, as defined in section VIII of this 
Agreement, by such Signatory.
    If the Department concludes that sales by a Signatory have been 
made at prices inconsistent with section VI of this Agreement, or that 
sales are circumventing the Agreement, the Department shall take 
action, as warranted. The provisions of this section do not supersede 
the provisions of paragraphs VIII.A-VIII.C if the Department determines 
that the entries were made at prices inconsistent with section VI of 
this Agreement.
2. Operations Consultations
    a. The Department will consult with the Signatories regarding the 
operation of this Agreement. A party to the Agreement may request such 
consultations, as necessary.
    b. Notwithstanding the previous paragraph, the parties may agree to 
revise the Reference Prices subject to consultations.

VIII. Violations of the Agreement

    A. If the Department determines that there has been a violation of 
the Agreement or that the Agreement no longer meets the requirements of 
section 734(c) or (d) of the Act, the Department shall take action it 
determines appropriate under section 734(i) of the Act and the 
Department's regulations.
    B. Pursuant to section 734(i) of the Act, the Department will refer 
to CBP any violations of the Agreement that appear to be intentional. 
Any person who intentionally commits a violation of the Agreement shall 
be subject to a civil penalty assessed in the same amount, in the same 
manner, and under the same procedures as the penalty imposed for a 
fraudulent violation of section 592(a) of the Act. A fraudulent 
violation of section 592(a) of the Act is punishable by a civil penalty 
in an amount not to exceed the domestic value of the merchandise. For 
purposes of the Agreement, the domestic value of the merchandise will 
be deemed to be not less than the Reference Prices, as the Signatories 
agree to not sell the subject merchandise at prices that are less than 
the Reference Price and to ensure that sales of the subject merchandise 
are made consistent with the terms of the Agreement.
    C. In addition, the Department will examine the activities of 
Signatories and any other party to a sale subject to the Agreement to 
determine whether any activities conducted by any party aided or 
abetted another party's violation of the Agreement. If any such parties 
are found to have aided or abetted another party's violation of the 
Agreement, they shall be subject to the same civil penalties described 
in section VIII.B above. Signatories to this Agreement consent to 
release of all information presented to or obtained by the Department 
during the conduct of verifications with CBP and/or the USDA.
    D. The following activities shall be considered violations of the 
Agreement:
    1. Sales that are at net prices (after rebates, back-billing, 
discounts, and other claims) that are below the Reference Prices.
    2. Any act or practice which would have the effect of hiding the 
real price of the Sugar being sold.
    3. Any other material violation or breach, as determined by the 
Department.

IX. Disclosure and Comment

    This section provides the terms for disclosure and comment 
following consultations or during segments of the proceeding not 
involving a review under section 751 of the Act.
    A. The Department may make available to representatives of each 
Interested Party, pursuant to and consistent with 19 CFR 351.304-
351.306, any business proprietary information submitted to and/or 
collected by the Department pursuant to section VII of this Agreement, 
as well as the results of the Department's analysis of that 
information.
    B. If the Department proposes to revise the Reference Price(s) as a 
result of consultations under this Agreement, the Department will 
disclose the preliminary Reference Price(s), including any calculation 
methodology, not less than 30 days before the date on which the 
price(s) would become final and effective.
    C. Interested Parties shall file all communications and other 
submissions made pursuant to section VII of the Agreement via the 
Department's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS), which is available to registered users at 
https://access.trade.gov and to all parties at the following address:

U.S. Department of Commerce,
Central Records Unit, Room 7046,
1401 Constitution Ave. NW.,
Washington, DC 20230

Such communications and submissions shall be filed consistent with the 
requirements provided in 19 CFR 351.303.

X. Duration of the Agreement

    A. This Agreement has no scheduled termination date. Termination of 
the suspended investigation shall be considered in accordance with the 
five-year review provisions of section 751(c) of the Act, and section 
351.218 of the Department's regulations.
    B. The Signatories or the Department may terminate this Agreement 
at any time. Termination of the Agreement shall be effective no later 
than 60 days after the date written notice of termination is provided 
to the Department or the Signatories, respectively.
    C. Upon termination, the Department shall follow the procedures 
outlined in section 734(i)(1) of the Act.
    D. The Department will terminate this Agreement in the event that 
Signatories accounting for a significant proportion of exports of Sugar 
from Mexico request continuation of the antidumping investigation of 
Sugar from Mexico, or the GOM requests continuation of the 
countervailing duty investigation of Sugar from Mexico.

XI. Other Provisions

    A. Upon request, the Department will advise any Signatory of the 
Department's methodology for calculating its export price (or 
constructed export price) and normal value in accordance with the Act 
and the Department's regulations and

[[Page 78044]]

procedures, including but not limited to, the calculation methodologies 
described in Appendix II of this Agreement.
    B. By entering into the Agreement, the Signatories do not admit 
that exports of Sugar from Mexico are having or have had an injurious 
effect on Sugar producers in the United States, have caused the 
suppression or undercutting of prices, or have been sold at less than 
fair value.
    C. As of the Effective Date, the Department shall instruct CBP to 
refund any cash deposits collected as a result of the antidumping duty 
investigation on sugar from Mexico. The Department shall instruct CBP 
to terminate the suspension of liquidation consistent with section 
734(f)(2)(B) of the Act.

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Paul Piquado,
Assistant Secretary for Enforcement and Compliance,
U.S. Department of Commerce.
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Date

    The following parties hereby certify that the producers and 
exporters of Sugar from Mexico that are members of their organization, 
and which have authorized the undersigned to sign this Agreement on 
their behalf, agree to abide by all terms of the Agreement:

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Juan Cortina Gallardo,
President,
C[aacute]mara Nacional de Las Industrias Azucarera y Alcoholera.

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Date

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Humberto Jasso Torres,
Director General,
C[aacute]mara Nacional de Las Industrias Azucarera y Alcoholera.
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Date

Appendix I--Suspension of Antidumping Investigation--Sugar From 
Mexico--Reference Prices

    Consistent with the requirements of section 734(c) of the Act, 
to eliminate completely the injurious effect of exports to the 
United States and to prevent the suppression or undercutting of 
price levels of domestic sugar, the Reference Prices are as follows:
    The FOB plant Reference Price for Refined Sugar is $0.2600 per 
pound by dry weight commercial value.
    The FOB plant Reference Price for all Other Sugar is $0.2225 per 
pound by dry weight commercial value.

Appendix II--Suspension of Antidumping Investigation--Sugar From 
Mexico--Analysis of Prices at Less Than Fair Value

A. Normal Value

    The cost or price information reported to the Department that 
will form the basis of the normal value (NV) calculations for 
purposes of the Agreement must be comprehensive in nature and based 
on a reliable accounting system (e.g., a system based on well-
established standards and can be tied either to the audited 
financial statements or to the tax return filed with the Mexican 
government).

1. Based on Sales Prices in the Comparison Market

    When the Department bases normal value on sales prices, such 
prices will be the prices at which the foreign like product is first 
sold for consumption in the comparison market in the usual 
commercial quantities and in the ordinary course of trade. Also, to 
the extent practicable, the comparison shall be made at the same 
level of trade as the export price (EP) or constructed export price 
(CEP).
    Calculation of NV:

Gross Unit Price
- Billing Adjustments
- Movement Expenses
- Discounts and Rebates
- Direct Selling Expenses
- Commissions
-H ome Market Packing Expenses
= Normal Value (NV)

2. Constructed Value

    When normal value is based on constructed value, the Department 
will compute constructed values (CVs), as appropriate, based on the 
sum of each respondent's costs, plus amounts for selling, general 
and administrative expenses (SG&A), U.S. packing costs, and profit. 
The Department will collect this cost data in order to determine the 
accurate per-unit CV.
Calculation of CV:

+ Direct Materials
+ Direct Labor
+ Factory overhead
= Cost of Manufacturing
+ Home Market SG&A*
= Cost of Production
+ U.S. Packing
+ Profit*
= Constructed Value (CV)

    * SG&A and profit are based on home-market sales of the foreign 
like product made in the ordinary course of trade. SG&A includes 
financing but not movement expenses.

B. Export Price and Constructed Export Price

    EP and CEP refer to the two types of calculated prices for 
merchandise imported into the United States. Both EP and CEP are 
based on the price at which the subject merchandise is first sold to 
a person not affiliated with the foreign producer or exporter.
    Calculation of EP:

Gross Unit Price
- Movement Expenses
- Discounts and Rebates
+/- Billing Adjustments
+ Packing Expenses
+ Rebated Import Duties
= Export Price (EP)
Calculation of CEP:

Gross Unit Price
- Movement Expenses
- Discounts and Rebates
+/- Billing Adjustments
- Direct Selling Expenses
- Indirect Selling Expenses that relate to commercial activity in 
the United States
- The cost of any further manufacture or assembly incurred in the 
United States
- CEP Profit
+ Rebated Import Duties
- Commissions
= Constructed Export Price (CEP)

C. Fair Comparisons

    To ensure that a fair comparison with EP or CEP is made, the 
Department will make adjustments to normal value. The Department 
will adjust for physical differences between the merchandise sold in 
the United States and the merchandise sold in the home market. For 
EP sales, the Department will add in U.S. direct selling expenses, 
U.S. commissions \2\ and packing expenses. For CEP sales, the 
Department will subtract the amount of the CEP offset, if warranted, 
and add in U.S. packing expenses.
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    \2\ If there are not commissions in both markets, then the 
Department will apply a commission offset.

[FR Doc. 2014-30396 Filed 12-24-14; 8:45 am]
BILLING CODE 3510-DS-P