USTR Announces FY 2006 TRQs for Raw Cane Sugar, Refined Sugar, and Sugar-Containing Products, Etc.

The U.S. Department of Agriculture (USDA) has also issued three press releases on these in-quota TRQ allocations for FY 2006, including one that announces the opening of the FY 2006 TRQ for refined sugar early, on September 8, 2005, due to the effects of Hurricane Katrina. USDA states that this early entry does not include specialty sugar, for which the below - listed dates of opening remain unchanged.

U.S. Customs and Border Protection (CBP) has also issued a notice on this September 8, 2005 early opening.

Raw Cane Sugar. The USTR states that for raw cane sugar in FY 2006, an in-quota TRQ quantity of 1,226,057 metric tons raw value (MTRV) (1,351,497 short tons raw value (STRV)) has been established by USDA 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.

In addition, USTR states that it is still consulting with Mexico regarding its "net surplus producer" status under the NAFTA for FY 2006.

According to one USDA press release, Certificates of Quota Eligibility (CQEs) corresponding to each country's allocation may be entered at the in-quota rate (low-tier tariff) at any time during the fiscal year. The USDA explains that certain shipping pattern restrictions used in previous years are no longer being imposed because of changes occurring over time in the domestic marketing of cane sugar.

Refined Sugar (including Specialty Sugar in Four Trauches). The USTR's notice states that the in-quota quantity of the TRQ for refined sugar for FY 2006 has been established by the USDA at 49,000 MTRV (54,013 STRV), of which 28,656 MTRV (31,588 STRV) is reserved for specialty sugar.

USDA states that it will administer the FY 2006 specialty sugar TRQ in four traunches. The first, totaling 1,656 tons raw value, will open on October 26, 2005. All specialty sugars are eligible for entry under this tranche. The next three tranches will each be equal to 9,000 tons. The second tranche will open on November 9, 2005; the third on March 15, 2006; and the fourth on June 7, 2005. The second, third and fourth tranches will be reserved for organic sugar and other specialty sugars not currently commercially produced in the U.S. or reasonably availablefrom domestic sources.

The USTR states that of the quantity not reserved for specialty sugars, 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.

The 28,656 metric tons (31,588 short tons) reserved for specialty sugars is also not being allocated among supplying countries and is available on a first-come, first-served basis, subject to any other provision of law.

According to USTR, it has also reinstated the Certificate of Quota eligibility requirements for sugar entering under the TRQ for refined sugar that is the product of a country that has been allocated a share of the TRQ for refined sugar.

Early Sept 8th Opening of Refined Sugar due to Hurricane Katrina.According to an August 30, 2005 USDA press release, USDA is opening the refined sugar TRQ early, on September 8, 2005. USDA states that this early entry does not include specialty sugar, for which the above-listed dates of opening remain unchanged. This action is intended to boost refined sugar quantities immediately, to ameliorate already-tight domestic market conditions, exacerbated by the forced closure of two major sugar refineries by Hurricane Katrina.

USDA adds that allowing this early entry is expected to result in an additional 22,000 STRV available at once to the market, as most of this quantity is already in the U.S. in bonded warehouse facilities or nearby in Canada.

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.

(Conversion factor: 1 metric ton = 1.10231125 short tons)

USTR Press Release (dated 08/30/04) available at http://www.ustr.gov/Document_Library/Press_Releases/2005/August/USTR_Announces_FY_2006_Tariff-Rate_Quota_Allocations_for_Raw_Cane_Sugar,_Refined_Sugar,_Sugar-Containing_Products_printer.html

USDA Press Release (No. 0305.05, dated 08/12/05) and revised in part in FSA press release (No. 1553.05, dated 08/19/05) available at http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1RD?printable=true&contentidonly=true&contentid=2005/08/0305.xml and http://www.fsa.usda.gov/pas/FullStory.asp?StoryID=2176 respectively

USDA press release on modification of refined sugar opening due to Hurricane Katrina (No. 0338.05, dated 08/30/05), available at http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1RD?printable=true&contentidonly=true&contentid=2005/08/0338.xml

CBP QBT-05-519 (dated 09/01/05) on Sept 8, 2005 early opening, available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2005/05_519.ctt/05_519.doc.