Tariff-rate quotas allow countries to export certain quantities of a product to the United States at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff.
On July 30, the U.S. Department of Agriculture announced sugar program provisions for fiscal year 2011. The in-quota quantity for the tariff-rate quota on raw cane sugar for fiscal year 2011 is 1,117,195 metric tons raw value, which is the minimum amount to which the United States is committed under the World Trade Organization Uruguay Round Agreements.
The USTR said the allocations are based on the countries' historical shipments to the United States. The allocations of the raw cane sugar tariff-rate quota to countries that are net importers of sugar are conditioned on receipt of origin verifications, and certificates for quota eligibility must accompany imports from any country to which an allocation is provided.
Also on July 30, the USDA set the in-quota quantity for the fiscal year 2011 refined sugar tariff-rate quota at 99,111 metric tons raw value. This amount includes the minimum quantity to which the United States is committed under the WTO Uruguay Round Agreement (22,000 metric tons raw value, of which 1,656 metric tons raw value is reserved for specialty sugar). For refined sugar, USTR has allocated 10,300 metric tons raw value to Canada, 2,954 metric tons raw value to Mexico, and 7,090 metric tons raw value of refined sugar to be administered on a 'first-come, first-served basis.'
In addition, imports of all specialty sugar will be administered on a first-come, first-served basis in five tranches. USDA has announced that the total quantity of specialty sugar will be the 1,656 metric tons raw value included in the WTO minimum and an additional 77,111 metric tons raw value.
The first tranche of 1,656 metric tons will open on Oct. 20. All types of specialty sugars are eligible for entry under this tranche. The second tranche of 27,500 metric tons raw value will open on Nov. 10. The third, fourth, and fifth tranches of 16,537 metric tons raw value each will open on Jan. 12, 2011; May 18, 2011; and Aug. 24, 2011, respectively. 'The second, third, fourth, and fifth tranches will be reserved for organic sugar and other specialty sugars not currently produced commercially in the United States or reasonably available from domestic sources,' USTR said.
With respect to the in-quota amount of 64,709 metric tons for the tariff-rate quota on certain sugar-containing products maintained under Additional U.S. Note 8 in Chapter 17 of the U.S. Harmonized Tariff Schedule, USTR will allocate 59,250 metric tons to Canada. The remainder is available for other countries on a first-come, first-served basis, USTR said.
Raw cane sugar, refined and specialty sugar and sugar-containing products volumes for fiscal year 2011 tariff-rate quotas may enter the United States starting Oct. 1.
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