“The result of these changes has been to give a competitive advantage to a segment of the U.S. sugar industry (U.S. cane sugar refineries), at the expense of CCS Sugar and others, for which costs worsen when lower purity sugars need to be processed,” said the SCC. The amendment to the CVD Directive amends the definitions of sugar from Mexico, changes the volume of direct or indirect sugar exports to the United States by all Mexican producers/exporters to the United States, and provides for increased monitoring and enforcement of legislation. A sugar export permit issued by the Mexican government will remain necessary. The final amendments will ensure that sugar suspension agreements, in coordination with the USDA sugar program, will continue to promote stability in the U.S. sugar market. NEW YORK – On October 18, the U.S. Court of International Trade in New York rescinded changes to the 2014 agreements that suspended significant anti-dumping and countervailing duties on U.S. sugar imports from Mexico. CSC Sugar LLC, a Connecticut-based company, argued that “the 2017 amendment was the result of negotiations between the U.S.
and Mexican governments that changed the definition of refined sugar purity, have effectively changed the definition of the product for commercial purposes and have significantly jeopardized CSC`s operations, whose state-of-the-art refining processes have been developed to use greater purity,” Huschwell Blackwell, CSC`s law firm, said in a press release. 5. For any sale that a signatory enters into to an intermediary customer, the signatory undertakes, in its sales contract with the intermediate customer, that these customers comply with the terms of the agreement, including the sale of Mexican sugar to the first non-downstream U.S. customer, in accordance with the terms of the agreement. In addition, for any sale of a signatory to an intermediary customer, the signatory must include in its sales contract with the middle customer a provision requiring the intermediary customer to provide Commerce with all sales and other related information. These “suspension agreements,” signed in December 2014 and amended in June 2017, resulted in an unnecessarily high base price for imports of raw and refined sugar from Mexico, as well as quantitative restrictions on sugar imports. The trade carried out this audit in accordance with Article 751, paragraph 1, of the Act, which stipulates that the trade “verifies the situation and compliance with an agreement on the basis of which an investigation has been suspended”. In this case, Commerce and GOM signed the CVD agreement on December 19, 2014. In accordance with the cvd agreement, the GOM agreed that the subject “Start Printed Page 6907merchandise” would be subject to export restrictions under the CVD agreement.  The GOM also agreed to other conditions, including restrictions on refined sugars  and the issuance of shipping-specific export certificates (later amended for contract-specific export certificates).  The amendment to the CVD agreement also made some changes to GOM`s licensing system and the polarity of sugar to be exported.