98-16701. Special Provision for Frozen Concentrated Orange Juice Under the North American Free Trade Agreement Implementation Act

[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)]
[Notices]
[Page 34361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16701]


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DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service


Special Provision for Frozen Concentrated Orange Juice Under the 
North American Free Trade Agreement Implementation Act

AGENCY: Foreign Agricultural Service.

ACTION: Notice of Determination of Existence of Price Conditions 
Necessary for Imposition of Temporary Duty on Frozen Concentrated 
Orange Juice from Mexico.

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SUMMARY: Pursuant to Section 309(a) of the North American Free Trade 
Agreement Implementation Act of 1993 (``NAFTA Implementation Act''), 
this is a notification that for 5 consecutive business days the daily 
price for frozen concentrated orange juice was lower than the trigger 
price.

FOR FURTHER INFORMATION CONTACT:
Joseph Somers, Horticultural and Tropical Products Division, Foreign 
Agricultural Service, U.S. Department of Agriculture, Washington, DC 
20250-1000 or telephone at [phone].

SUPPLEMENTARY INFORMATION: The NAFTA Implementation Act authorizes the 
imposition of a temporary duty (snapback) for Mexican frozen 
concentrated orange juice when certain conditions exist. Mexican 
articles falling under subheading 2009.11.00 of the Harmonized Tariff 
Schedule of the United States (HTS) are subject to the snapback duty 
provision.

    Under Section 309(a) of the NAFTA Implementation Act, certain price 
conditions must exist before the United States can apply a snapback 
duty on imports of Mexican frozen concentrated orange juice. In 
addition, such imports must exceed specified amounts before the 
snapback duty can be applied. The price conditions exist when for each 
period of 5 consecutive business days the daily price for frozen 
concentrated orange juice is less than the trigger price.
    For the purpose of this provision, the term daily price means the 
daily closing price of the New York Cotton Exchange, or any successor 
as determined by the Secretary of Agriculture (the ``Exchange''), for 
the closest month in which contracts for frozen concentrated orange 
juice are being traded on the Exchange. The term ``business day'' means 
a day in which contracts for frozen concentrated orange juice are being 
traded on the Exchange.
    The term trigger price means the average daily closing price of the 
Exchange for the corresponding month during the previous 5-year period, 
excluding the year with the highest average price for the corresponding 
month and the year with the lowest average price for the corresponding 
month.
    Price conditions no longer exist when the Secretary determines that 
for a period of 5 consecutive business days the daily price for frozen 
concentrated orange juice has exceeded the trigger price. Whenever the 
price conditions are determined to exist or to cease to exist the 
Secretary is required to immediately notify the Commissioner of Customs 
of such determination. Whenever the determination is that the price 
conditions exist and the quantity of Mexican articles of frozen 
concentrated orange juice entered exceeds (1) 264,978,000 liter (single 
strength equivalent) in any of calendar years 1994 through 2002, or (2) 
340,560,000 liters (single strength equivalent) in any of calendar 
years 2003 through 2007, the rate of duty on Mexican articles of frozen 
concentrated orange juice that are entered after the date on which the 
applicable quantity limitation is reached and before the date of 
publication in the Federal Register of the determination that the price 
conditions have ceased to exist shall be the lower of--(1) the column 
1--General rate of duty in effect for such articles on July 1, 1991; or 
(2) the column 1--General rate of duty in effect on that day. For the 
purpose of this provision, the term ``entered'' means entered or 
withdrawn from warehouse for consumption in the customs territory of 
the United States.
    In accordance with Section 309(a) of the NAFTA Implementation Act, 
it has been determined that for the period June 2-8, the daily for 
frozen concentrated orange juice was less than the trigger price.

    Issued at Washington, D.C. the 12th day of June, 1998.
Lon Hatamiya,
Administrator, Foreign Agricultural Service.
[FR Doc. 98-16701 Filed 6-23-98; 8:45 am]
BILLING CODE 3410-10-M