USTR Announces FY 2005 TRQs, Allocations for Raw Cane Sugar, Refined Sugar, and Sugar-Containing Products
The Office of the U.S. Trade Representative (USTR) has issued a notice and press release announcing the country-by-country allocations of the in-quota quantity of the tariff-rate quotas (TRQs) for imported raw cane sugar, refined sugar, and sugar-containing products for fiscal year (FY) 2005 (which runs from October 1, 2004 and ends September 30, 2005). The U.S. Department of Agriculture (USDA) has also issued a press release on these allocations.
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Raw Cane Sugar. The USTR states that for raw cane sugar, an in-quota TRQ quantity of 1,117,195 metric tons raw value (MTRV) (1,231,497 short tons raw value (STRV)) has been established by the Secretary of Agriculture that will be allocated among 40 countries based on the countries' historical shipments to the U.S.
The USTR further notes that allocations of the raw cane sugar TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin.
According to the USDA press release, Certificates for Quota Eligibility (CQEs) will be issued to allow Brazil, the Dominican Republic, and the Philippines to ship up to 25% of each country's allocation at the low-tier tariff during each quarter of FY 2005. The USDA also states that Argentina, Australia, Guatemala, and Peru will be allowed to ship up to 50% of their initial allocations in the first six months of FY 2005. Allocations not entered with U.S. Customs and Border Protection (CBP) during any quarter or six-month period may be entered in any subsequent period.
For all other countries, the USDA states that CQEs corresponding to each country's allocation may be entered at the low-tier tariff at any time during FY 2005. (See USTR's notice for FY 2005 raw sugar cane allocations for each of the 40 countries.)
Refined Sugar (including Specialty Sugar). The USTR's notice states that the in-quota quantity of the TRQ for refined sugar for FY 2005, has been established by the Secretary of Agriculture at 43,000 MTRV (47,399 STRV), of which the Secretary has reserved 22,656 MTRV (24,974 STRV) for specialty sugars.
The USTR states that of the quantity not reserved for specialty sugar, a total of 10,300 MTRV (11,354 STRV) is being allocated to Canada and 2,954 MTRV (3,256 STRV) is being allocated to Mexico. The remaining 7,090 MTRV (7,815 STRV) of the in-quota quantity may be supplied by any country on a first-come, first-served basis, subject to any other provision of law.
According to the USDA, the specialty sugar allocation of 22,656 MTRV (24,974 STRV) will be administered in four tranches. The first, totaling 1,656 MTRV, will open on October 26, 2004, with all specialty sugars being eligible for entry under this tranche. The next three tranches will each be equal to 7,000 MTRV each. The second tranche will open on November 16, 2004, the third on March 22, 2005, and the fourth on June 7, 2005.
The USDA states that the second, third, and fourth tranches of the specialty sugar allocation will be reserved for organic and other specialty sugars not currently commercially produced in the U.S. or reasonably availablefrom domestic sources. The USTR explains that the specialty sugar allocation is not being allocated among supplying countries and is available on a first-come, first-served basis, subject to any other provision of law.
Sugar-Containing Products. The USTR states that with respect to the TRQ of 64,709 MTRV (71,329 STRV) for certain sugar-containing products maintained pursuant to Additional U.S. Note (AUSN) 8 to HTS Chapter 17, 59,250 MTRV (65,312 STRV) of sugar-containing products is being allocated to Canada. The remaining in-quota quantity for this TRQ is available to other countries on a first-come, first-served basis.
USTR contact - Sharon Sydow (202) 395-6127
(See ITT's Online Archives or 08/02/04 news, 04080225 1, for BP summary of CBP's notice on the opening of a FY 2004 fourth tranche for specialty sugar. According to the USDA press release, this fourth tranche is designated entirely to the specialty sugar TRQ and is needed to accommodate a rapidly expanding market for organic sugar. See USDA's press release below for further details.)
USTR Notice (FR Pub 08/02/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-17475.pdf
USTR Press Release (Press Release 2004-63, dated 07/23/04) available at http://www.ustr.gov/releases/2004/07/04-63.pdf
USDA Press Release (No. 0294.04, dated 07/16/04) available athttp://www.usda.gov/Newsroom/0294.04.html