USTR Announces Country Allocations for FY 2012 Sugar TRQs

(USTR explains that these TRQs allow countries to export specified quantities of a product to the U.S. at a relatively low tariff, with all imports of the product above the specified quantity subject to a higher tariff.)

FY 2012 Raw Cane Sugar TRQ and Country Allocations

The Secretary of Agriculture recently announced that the in-quota quantity for the TRQ on raw cane sugar for FY 2012 is 1,117,195 metric tons raw value (MTRV), which is the minimum amount to which the U.S. is committed under the World Trade Organization (WTO) Uruguay Round Agreements.

USTR is allocating this raw cane sugar TRQ to the 38 countries in the quantities specified below:

These allocations are based on the countries’ historical shipments to the U.S. The 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, and certificates for quota eligibility must accompany imports from any country to which an allocation is provided.

USDA to Open Raw Sugar Cane TRQs One Month Earlier on Sept 1

In response to increased tightness in the U.S. raw cane sugar market, USDA also announced that it will open the raw cane sugar TRQs on September 1, 2011, a month earlier than the usual entry date of October 1, 2011. This early entry date does not apply to TRQs for refined and specialty sugar and sugar-containing products.

FY 2012 Refined and Specialty Sugar TRQ

USTR states that the U.S. Department of Agriculture also announced that the refined and specialty sugar¹ TRQ restraint limit is 112,718 MTRV and is for certain sugars, syrups, and molasses (collectively referred to as refined sugar).

This amount includes the minimum quantity to which the U.S. is committed under the WTO Uruguay Round Agreement (22,000 MTRV, of which 1,656 MTRV is reserved for specialty sugar).

USTR states that it is allocating a total of 12,050 MTRV of refined sugar to Canada, and 8,294 MTRV of refined sugar to be administered on a first-come, first-served basis.

Specialty Sugar Portion of Refined/Specialty Sugar TRQ Consists of 5 Tranches

The total quantity of the specialty sugar portion of the refined sugar TRQ will be the 1,656 MTRV included in the WTO minimum and an additional 90,718 MTRV, the sum of which will be administered in five tranches, as follows:

• First tranche of 1,656 MTRV will open on October 12, 2011 for all types of specialty sugars;
• Second tranche of 33,565 MTRV will open on October 26, 2011;*
• Third tranche of 19,051 MTRV will open on January 11, 2012;*
• Fourth tranche of 19,051 MTRV will open on April 11, 2012;*
• Fifth tranche of 19,051 MTRV will open on July 11, 2012.*

*The second, third, fourth, and fifth tranches will be reserved for organic sugar and other specialty sugars not currently produced commercially in the U.S. or reasonably available from domestic sources.

FY 2012 Sugar-Containing Products TRQ

The USTR states that with respect to the 2012 TRQ of 64,709 metric tons (MT) for certain sugar-containing products maintained under HTS Chapter 17, Additional U.S. Note 8, it is allocating 59,250 metric tons to Canada. The remainder, 5,459 metric tons, is available for other countries on a first-come, first-served basis.

¹The sucrose content, by weight in the dry state, must have a polarimeter reading of 99.5 degrees or more.

Conversion factor: 1 metric ton = 1.10231125 short tons.

(See ITT's Online Archives or 08/02/11 news, 11080220, for BP summary of USDA announcing the 2012 TRQs for raw, refined, and specialty sugar.)

Federal Register notice is available here.