USDA Adjusts Appendices to the Dairy TRQ Licensing Regulations
The Department of Agriculture (USDA) has issued a final rule, effective May 17, 2004, that revises the appendices to its Dairy Tariff-Rate Import Quota Licensing Regulations (7 CFR 6.20-6.37) for the 2004 tariff-rate quota (TRQ) year to reflect the cumulative annual transfers from Appendix 1 to Appendix 2 for certain dairy product import licenses permanently surrendered by licensees or revoked by the USDA. The Appendices also list Appendix 3 quantities. The three Appendices are described as follows:
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Appendix 1 - Historical licenses. These licenses are renewable. A person with a historical license in one year may ask USDA for a license for the same product from the same country for the next year. A new license will be issued as long as that person has met the requirements of the regulation.
Appendix 2 - Nonhistorical licenses. These licenses cannot be renewed. A person may reapply to USDA for an identical nonhistorical license for the next year, but the application may or may not be granted because these licenses are issued through a lottery.
Appendix 3 - Designated licenses. These cheese import licenses are issued to importers who have met the regulation's qualification standards and have been designated by the government of the exporting country to receive a license. Not all exporting countries participate in the designation process. According to USDA sources, Appendix 3 license quantities for cheese remain unchanged, and will only change pursuant to negotiations on a multilateral basis.
The USDA states that it issues licenses on a calendar year basis, and each license authorizes the license holder to import a specified quantity and type of dairy article from a specified country of origin. The USDA adds that pursuant to 7 CFR 6.34(A) whenever a historical license (Appendix 1) is not issued to an applicant pursuant to the provisions of 7 CFR 6.23, is permanently surrendered, or is revoked by the USDA, the amount of such license is transferred to Appendix 2 (nonhistorical license).
(According to the USDA, for dairy products subject to this TRQ licensing system, an import license from USDA's Foreign Agriculture Service (FAS) is generally required to bring in items at the low-tier tariff rate. No license is required to import subject products at the high-tier rate; to import dairy products for an agency of the U.S. Government; or to bring in products for personal use, as long as net weight does not exceed 5 kilograms (11 pounds) in any one shipment.
In addition, the USDA explains that certain dairy products may be imported without a license, such as soft-ripened cow's-milk cheeses, such as Brie, or products from 100% sheep's or goat's milk (except for blue cheese made from or containing sheep's or goat's milk).
In addition, certain dairy products may also be imported without a license under a "first-come, first-served" system. This means these products may be brought in at the low-tier tariff rate until a specified TRQ is filled. The USDA states that the items covered under the "first-come, first-served" system include (partial list): dairy products from Mexico, certain dairy products from Israel, certain cheddar cheese from Canada, fluid milk or cream (fresh or sour), milk or cream (condensed or evaporated and in airtight containers), and dried buttermilk or whey.)
Revised Appendices List Cheese and Non-Cheese Dairy Products by Chapter 4 AUSN and their Quantities for the 2004 TRQ Year
The revised appendices to the USDA's Dairy Tariff-Rate Import Quota Licensing Regulation for the 2004 TRQ year lists subject cheese and non-cheese dairy articles by a description and their HTS Chapter 4 Additional U.S. Note (AUSN) number. The total appendix 1, 2 and 3 quantities for each TRQ are listed, as well as the sublevels for specified countries or country groups, for the 2004 TRQ year.
(The country sublevels for cheese articles are listed in the HTS Chapter 4 AUSNs as well as in the USDA appendices, while the country sublevels for non-cheese articles are only listed in the USDA appendices.)
(See ITT's Online Archives or 06/23/03 news, 03062315, for BP summary of the 2003 appendix adjustments to the dairy TRQs.)
USDA Contact - Michael Hankin (202) 720-9439
USDA Final Rule (FR Pub 05/17/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-11057.pdf
USDA Fact Sheet on the Dairy Import Licensing System (March 2004) available at http://www.fas.usda.gov/info/factsheets/dairyim.html