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Export Trading Company Affairs (ETCA)

The Export Trade Certificate of Review Program - The Competitive Edge for U.S. Exporters

[Federal Register: December 6, 2005 (Volume 70, Number 233)]


[Page 72609-72611]

From the Federal Register Online via GPO Access []






International Trade Administration


Export Trade Certificate of Review


ACTION: Notice of application.



SUMMARY: Export Trading Company Affairs (``ETCA''), International Trade

Administration, Department of Commerce, has received an application for

an Export Trade Certificate of Review. This notice summarizes the

conduct for which certification is sought and requests comments

relevant to whether the Certificate should be issued.


FOR FURTHER INFORMATION CONTACT: Jeffrey Anspacher, Director, Export

Trading Company Affairs, International Trade Administration, by

telephone at (202) 482-5131 (this is not a toll free number) or E-mail





[[Page 72610]]



Title III of the Export Trading Company Act of 1982 (15 U.S.C.

4001-21) authorizes the Secretary of Commerce to issue Export Trade

Certificates of Review. A Certificate of Review protects the holder and

the members identified in the Certificate from state and federal

government antitrust actions and from private, treble damage antitrust

actions for the export conduct specified in the Certificate and carried

out in compliance with its terms and conditions. Section 302(b)(1) of

the Act and 15 CFR 325.6(a) require the Secretary to publish a notice

in the Federal Register, identifying the applicant and summarizing its

proposed export conduct.


Request for Public Comments


Interested parties may submit written comments relevant to the

determination whether a Certificate should be issued. If the comments

include any privileged or confidential business information, it must be

clearly marked and a nonconfidential version of the comments

(identified as such) should be included. Any comments not marked

privileged or confidential business information will be deemed to be

nonconfidential. An original and five copies, plus two copies of the

nonconfidential version, should be submitted no later than 20 days

after the date of this notice to: Office of Export Trading Company

Affairs, International Trade Administration, Department of Commerce,

Room 7021H, Washington, DC 20230, or transmit by E-mail at Information submitted by any person is exempt from


disclosure under the Freedom of Information Act (5 U.S.C. 552).

However, nonconfidential versions of the comments will be made

available to the applicant if necessary for determining whether or not

to issue the Certificate. Comments should refer to this application as

``Export Trade Certificate of Review, application number 05-00002.'' A

summary of the application follows.


Summary of the Application


Applicant: California Tomato Export Group (``CTEG''), 230

Thunderbird Drive, Aptos, California 95003; Contact: Rodger Wasson,

Consultant; Telephone: (831) 254-5405.

Application No.: 05-00002.

Date Deemed Submitted: November 21, 2005.

Members (in addition to applicant): CTEG is a newly formed export

joint venture comprising the following members: Ingomar Packing

Company, Los Banos, CA; Los Gatos Tomato Products, Huron, CA; and SK

Foods, Lemoore, CA.

CTEG seeks a Certificate to engage in the Export Trade Activities

and Methods of Operation described below in the following Export Trade

and Export Markets:


Export Trade




CTEG plans to export processed tomato products. Products that are

included are tomato paste, diced tomatoes, canned foodservice tomatoes,

canned retail tomatoes, and formulated glass retail products.


Export Markets


The Export Markets include all parts of the world except the United

States (the fifty states of the United States, the District of

Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American

Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the

Trust Territory of the Pacific Islands).


Export Trade Activities and Methods of Operation


CTEG seeks certification for the following activities and exchanges

of information:

CTEG and/or one or more of its Members may on behalf of and with

the advice and assistance of its Members:


1. Export Promotion of Processed Tomatoes


a. Research, develop and conduct promotion and public relations

activities to develop demand for the exported products of the member


b. Seek export promotional funds jointly to combine efforts to

promote the companies' exports aimed at expanding existing markets and

creating new markets;

c. Develop and disseminate industry news reports of interest to

foreign buyers. Provide information collectively to prospective export

buyers regarding items such as crop inventory and structure of the U.S.

processed tomato industry; and

d. Organize joint representation at world tomato conferences;


2. Investment


Invest jointly in export infrastructure, activities, and

operations, such as:

a. Bill and collect from foreign buyers and provide collective

accounting, tax, legal and consulting assistance and services;

b. Write contracts for export payment terms;

c. Organize and conduct joint representation at tomato industry

conferences where foreign buyers are present;

d. Develop and maintain a website/newsletter and marketing

brochures with product and crop information for the benefit of foreign


e. Purchase/rent warehouse facilities to conduct export operations;

f. Combine purchases of inputs for export operations;

g. Negotiate and enter into agreements with providers of

transportation services for the export of processed tomato products;

h. Consolidate CTEG shipments to export markets;

i. Administer phytosanitary protocols to qualify the processed

tomato products for export markets;


3. Funding


Apply for and utilize export assistance and incentive programs, as

well as arrange financing through bank holding companies, governmental

programs, and other arrangements;


4. Export Market Development


a. Design and develop foreign marketing strategies for CTEG's

export markets; and

b. Design, develop, and market generic corporate and/or CTEG labels

for export;


5. Export Sales Prices


Establish export sale prices, minimum export sale prices, target

export sales prices and/or minimum target export sale prices, and other

terms of sale;


6. Joint Bidding


Engage in joint bidding or other joint selling arrangements for

export processed exported tomatoes and allocate export sales resulting

from such arrangements;


7. Quantities


Agree on quantities of processed tomatoes to be exported, provided

each member shall be required to dedicate only such quantity or

quantities as each such member shall independently determine;


8. Foreign Buyer Negotiations


Participate in negotiations and enter into agreements with foreign

buyers (including governments and private persons) regarding:

a. The quantities, time periods, prices and terms and conditions in

connection with actual or potential bona fide export opportunities; and

b. Non-tariff trade barriers in the export markets;


[[Page 72611]]


9. Refusals to Deal


Refuse to quote prices for export products, or to market or sell

export products, to or for any customer in the export processed tomato

market, or any countries or geographical areas in the export markets;


10. Market and Customer Allocation


Allocate geographic areas or countries in the export markets and/or

customers in the export markets among members of the California Tomato

Export Group;


11. Exclusive and Nonexclusive Export Intermediaries


Enter into exclusive and nonexclusive agreements appointing one or

more export intermediaries for the sale of export products with price,

quantity, territorial and/or customer restrictions. ``Export

Intermediary'' means a person who acts as a distributor, sales

representative, sales or marketing agent, broker, or who performs

similar functions including providing or arranging for the provision of

export trade facilitation services;


12. Meetings


Meet with members of the Certificate and manager of the Certificate



13. Non-Member Activities


a. Enter into agreements with non-members, whether or not

exclusive, to provide export trade facilitation services;

b. Purchase tomatoes from non-members to fulfill specific export

sales obligations, provided that CTEG and/or its members shall make

such purchases only on a transaction-by-transaction basis and when the

members are unable to supply, in a timely manner, the requisite

products at a price competitive under the circumstances. In no event

shall a non-member be included in any deliberations concerning any

export activities and operations; and


14. Government Liaison


Advise and cooperate with the United States and foreign governments


a. Establishing procedures regulating the export of processed

tomato products, and

b. Fulfilling the phytosanitary and/or funding requirements imposed

by foreign governments for export of the processed tomato products.

CTEG may exchange the following information with and among the

Members as necessary to carry out export trade activities and methods

of operation:

1. Information about export sales and marketing efforts; selling

strategies, contract and spot pricing in the export markets;

2. Information regarding projected demand in the export markets;

3. Information about the customary terms of sales in export


4. Information about export prices and availability of competitor's

processed tomato products for sale in the export markets;

5. Specifications for processed tomato products by customers in the

export markets;

6. Information about terms and conditions of contracts for sale in

the export markets to be considered and/or bid on by CTEG and its


7. Information about the price, quality, source, and delivery dates

of processed tomato products available for export by CTEG members;

8. Information about joint bidding and/or selling arrangements for

export markets;

9. Information regarding terms, conditions, and specifications of

particular export contracts for sale or to be considered and/or bid on

by the CTEG;

10. Information about expenses specific to exporting to and within

the export markets, sales and distribution networks established by CTEG

or its members in export markets;

11. Information about export customer credit terms and credit


12. Information about United States and foreign legislation and

regulations, including federal marketing order programs, affecting

sales to the export markets;

13. Information about joint bidding or selling arrangements for the

export markets and allocations of sales resulting from such

arrangements among the members;

14. Information about expenses specific to exporting to and within

the export markets, including without limitation, transportation,

trans-or intermodal shipments, insurance, inland freight to port, port

storage, commissions, export sales, documentation; financing, customs,

duties, and taxes;

15. Information about CTEG's or its members' export operations,

including without limitation, sales and distribution networks

established by CTEG or its members in the export markets, and prior

export sales by members (including export price information);

16. Information regarding the forecasted quantity of processed

tomatoes secured through contracts by each member for upcoming seasons;

17. Information regarding the potential available supply of

processed tomato products available for export and not committed to

domestic markets in upcoming seasons; and

18. Information about global tomato crop supply, including planting

intentions, growing conditions, weather, disease, transportation,

consumer trends, health news, regulatory impacts and information that

impacts on the availability, conditions and costs to foreign buyers.


Dated: December 1, 2005.

Jeffrey Anspacher,

Director, Export Trading Company Affairs.

[FR Doc. E5-6872 Filed 12-5-05; 8:45 am]




Last Updated: 8/25/15 5:46 PM

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