U.S. sets sugar import quotas

The U.S. Department of Agriculture and the Office of the U.S. Trade Representative (USTR) have announced the fiscal year 2001 tarrif-rate quotas (TRQs) for raw, refined, and specialty sugar. Under the sugar program, countries can export to the U.S. market up to the quota level at a relatively low tariff; any sugar entering above the quota would face a much higher tariff. The U.S. has restricted sugar imports almost continuously since 1934, a system designed to benefit domestic producers by maintaining the U.S. price well above the world price.

USDA has established the FY 2001 TRQ for imports of sugar into the U.S. at 1,360,983 metric tons raw value (1,500,227 short tons raw value). The total includes a quantity for raw sugar of 1,117,195 metric tons raw value, the minimum level to which the U.S. is committed under the Uruguay Round Agreement; a quantity for refined sugar of 38,000 metric tons raw value; 105,788 metric tons raw value, which is the additional amount that the U.S. is committed to provide to Mexico under the North American Free Trade Agreement; and 100,000 metric tons raw value to be allocated, if needed, contingent on developments in international markets. USDA will make available all but the contingent quantity to the USTR for allocation for import into the U.S. customs territory.

In accordance with the U.S.'s Harmonized Tariff Schedule, USDA has established the FY 2001 raw sugar TRQ at 1,222,983 metric tons raw value (1,348,108 short tons raw value). Certificates of Quota Eligibility (CQEs) will be issued to allow Brazil, the Dominican Republic, and the Philippines to ship up to 25% of each country's initial allocation at the low-tier tariff during each quarter of FY 2001. Argentina, Australia, Guatemala, and Peru will be allowed to ship up to 50% of their initial allocations in the first six months of FY 2001. Allocations not entered with the U.S. Customs Service during any quarter or six-month period may be entered in any subsequent period. The shipping pattern for Mexico will be determined at a later date. For all other countries, CQEs corresponding to each country's allocation may be entered at the low-tier tariff at any time during the fiscal year.

In addition, USDA has established the FY 2001 refined sugar TRQ at 143,788 metric tons raw value (158,499 short tons raw value) for which the sucrose content, by weight, in the dry state, must have a polarimeter reading of 99.5º or more. USDA established the specialty sugar allocation, a subset of the refined sugar TRQ, at 17,656 metric tons raw value, (19,462 short tons raw value) which must have a polarity of at least 99.5º and be accompanied by a specialty sugar certificate.

Edited by Scott Hegenbart