*EPF111 08/05/2002
Text: USDA, USTR Announce Sugar Quotas for Year Starting Oct. 1
(Allocations based on historical trade with U.S.) (1140)

The largest quotas for U.S. sugar imports for the fiscal year beginning October 1 will again go to the Dominican Republic, Brazil and the Philippines, the Office of the U.S. Trade Representative has announced.

USTR announced the country-by-country quota allocations for fiscal year 2003 in an August 5 news release. The U.S. Department of Agriculture had earlier announced the overall limits of the quotas at 1,117,195 metric tons raw value, the minimum required under Uruguay Round Agreement and unchanged from the previous year.

An additional quota is provided for Mexico under the North American Free Trade Agreement (NAFTA).

The United States has restricted sugar imports almost continuously since 1934. For the past decade the United States has restricted sugar imports under two tariff-rate quota systems, one for raw cane sugar and the other for refined sugar.

A tariff-rate quota is an import policy that allows a specified quantity of imports of a product at a relatively low tariff and subjects all other imports of that product to a higher tariff.

Following are the texts of the USDA and USTR announcements:

(begin text)

U.S. Department of Agriculture
Foreign Agricultural Service

USDA Announces Fiscal 2003 Tariff-Rate Quotas
For Raw, Refined and Specialty Sugar

WASHINGTON, July 30, 2002 -- The U.S. Department of Agriculture today announced the fiscal year 2003 tariff-rate quotas (TRQs) for raw, refined and specialty sugar.

The FY 2003 TRQ for imports of raw cane sugar into the United States is set at 1,117,195 metric tons raw value (1,231,497 short tons raw value). This amount represents the level to which the United States is committed under the Uruguay Round Agreement. The allocation for Mexico provided for under the North American Free Trade Agreement will be made at a later date.

Certificates of Quota Eligibility (CQEs) will be issued to allow Brazil, the Dominican Republic and the Philippines to ship up to 25 percent of each country's allocation at the low-tier tariff during each quarter of FY 2003. Argentina, Australia, Guatemala and Peru will be allowed to ship up to 50 percent of their initial allocations in the first six months of FY 2003. Allocations not entered with the U.S. Customs Service during any quarter or six-month period may be entered in any subsequent period. 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 2003 refined sugar TRQ at 37,000 metric tons raw value (40,786 short tons raw value) for which the sucrose content, by weight, in the dry state, must have a polarimeter reading of 99.5 degrees or more. This refined sugar TRQ includes 22,000 metric tons raw value, the minimum level to which the United States is committed under the Uruguay Round Agreement, and an additional 15,000 metric tons raw value for specialty sugars.

With the additional 15,000 tons, the total specialty sugar allocation is 16,656 metric tons raw value (18,360 short tons raw value). USDA will administer this allocation in two tranches. The first, totaling 1,656 metric tons, will open Oct. 30. All specialty sugars are eligible for entry under this tranche. A second tranche, totaling 15,000 tons, will open on Nov. 19. It will be reserved for organic sugar and other specialty sugars not currently commercially produced in the United States or reasonably available from domestic sources.

(end USDA news release)

(begin USTR text)

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.

August 5, 2002

USTR Announces Allocation of the Raw Cane Sugar, Refined Sugar, And Sugar-Containing Products Tariff-Rate Quotas For 2002/2003

WASHINGTON -- The Office of the United States Trade Representative [USTR] today announced the country-by-country allocations of the raw cane sugar, refined sugar, and sugar-containing products tariff-rate quotas for Fiscal Year (FY) 2003. The allocation for Mexico provided for under the North American Free Trade Agreement will be made at a later date. A tariff-rate quota is an import policy that allows a specified quantity of imports of a product at a relatively low tariff, and subjects all other imports of that product to a higher tariff.

A tariff-rate quota quantity for raw cane sugar of 1,117,195 metric tons, the minimum level to which the United States is committed under the Uruguay Round Agreement, is being allocated to the following countries:

Country FY 2003 Allocation

Argentina 45,281
Australia 87,402
Barbados 7,371
Belize 11,583
Bolivia 8,424
Brazil 152,691
Colombia 25,273
Congo 7,258
Cote d'Ivoire 7,258
Costa Rica 15,796
Dominican Republic 185,335
Ecuador 11,583
El Salvador 27,379
Fiji 9,477
Gabon 7,258
Guatemala 50,546
Guyana 12,636
Haiti 7,258
Honduras 10,530
India 8,424
Jamaica 11,583
Madagascar 7,258
Malawi 10,530
Mauritius 12,636
Mexico 7,258
Mozambique 13,690
Nicaragua 22,114
Panama 30,538
Papua New Guinea 7,258
Paraguay 7,258
Peru 43,175
Philippines 142,160
South Africa 24,220
St. Kitts & Nevis 7,258
Swaziland 16,849
Taiwan 12,636
Thailand 14,743
Trinidad-Tobago 7,371
Uruguay 7,258
Zimbabwe 12,636

These allocations are based on the countries' historical trade 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 the appropriate verifications of origin.

This allocation includes the following minimum-quota countries: Congo, Cote d'Ivoire, Gabon, Haiti, Madagascar, Papua New Guinea, Paraguay, St. Kitts & Nevis, and Uruguay.

The in-quota quantity of the tariff-rate quota for refined sugar for FY 2003 has been established by the Secretary of Agriculture at 37,000 metric tons, raw value (40,786 short tons), of which the Secretary has reserved 16,656 metric tons (18,360 short tons) for specialty sugars. Of the quantity not reserved for specialty sugar, a total of 10,300 metric tons (11,354 short tons) is allocated to Canada and 2,954 metric tons (3,256 short tons) is allocated to Mexico. The remaining 7,090 metric tons (7,815 short tons) of the in-quota quantity may be supplied by any country, subject to any other provisions of the law, on a first-come, first-served basis. The 16,656 metric tons reserved for specialty sugars may also be supplied by any country, subject to any other provisions of the law, on a first-come, first-served basis.

With respect to the tariff-rate quota for certain sugar-containing products maintained under Additional U.S. Note 8 to chapter 17 to the Harmonized Tariff Schedule of the United States, 59,250 metric tons (65,312 short tons) is being allocated to Canada. The remainder of the sugar-containing products tariff-rate quota is available for other countries on a first-come, first-served basis.

Conversion factor: 1 metric ton = 1.10231125 short tons.

(end USTR text)

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

Return to Public File Main Page

Return to Public Table of Contents