USTR Determines that Sugar and Sugar-Containing Products Exported from Chile are Not Eligible for UCFTA Duty-Free TRQ in 2005
The Office of the U.S. Trade Representative (USTR) has issued a notice announcing its determination that in 2004 Chile did not have a trade surplus in sugar, sugar-containing products, and high fructose corn syrup, and as a result, was a net importer1of these products for 2004.
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According to USTR sources, under the terms of the U.S.-Chile Free Trade Agreement (UCFTA or CFTA), Chile must be a net exporter of these products in 2004 in order to be eligible to utilize the 2005 duty-free tariff-rate quota (TRQ) for sugar and sugar-containing products provided for by the UCFTA.
Since Chile was a net importer of sugar in 2004, USTR sources state that sugar and sugar containing product exports from Chile are not eligible to enter the U.S. under the UCFTA duty-free TRQ in 2005.
(The UCFTA provides duty-free tariff treatment (in the form of a duty-free TRQ) to a quantity of sugar and sugar-containing products if Chile is a net exporter of sugar, sugar-containing products, and high fructose corn syrup. This duty-free TRQ is provided for in HTS Chapter 99, Subchapter XI, U.S. Note 12, which states that the aggregate quantity of originating goods of Chile entered duty-free under HTS 9911.17.05 in any calendar year shall be the quantity of goods equal to the amount of Chile's trade surplus (as determined by U.S. Note 12(a)), but the aggregate quantity of such goods shall not exceed certain amounts specified in U.S. Note 12 (e.g., for 2005, 2,100 metric tons).
U.S. Note 12(a) requires the USTR to annually publish a determination of the amount of Chile's trade surplus, by volume, with all sources for goods in Harmonized System (HS) subheadings 1701.11, 1701.12, 1701.91, 1701.99, 1702.20, 1702.30, 1702.40, 1702.60, 1702.90, 1806.10, 2101.12, 2101.20, and 2106.90, except that Chile's imports of U.S. goods under HS subheadings 1702.40 and 1702.60 that qualify for preferential treatment under the UCFTA may not be included in the calculation of Chile's trade surplus.)
1 During calendar year 2004, the USTR states that Chile's imports of these goods exceeded its exports by 299,120 metric tons.
USTR contact - Beth Leier (202) 395-6127
USTR notice (FR Pub 06/20/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-12093.pdf.