Implementation of Tariff-Rate Quota for Imports of Sugar

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

15 CFR Part 2011

Implementation of Tariff-Rate Quota for Imports of Sugar

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Final rule.

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SUMMARY: This rule makes final the interim final rule published on

October 4, 1990 in the Federal Register governing certificates of quota

eligibility for imports of sugar, specialty sugar, and allocations for

``Other Specified Countries and Areas'', with a change responding to

comments received on that interim final rule and with conforming

changes to reflect the entry into force of the Agreement Establishing

the World Trade Organization (WTO).

EFFECTIVE DATE: May 29, 1996.

ADDRESSES: Office of the United States Trade Representative, Office of

Agricultural Affairs, 600 17th Street NW., Washington, DC 20506.

FOR FURTHER INFORMATION CONTACT:

Thomas Perkins, Senior Economist for Agricultural Affairs, Room 421,

Office of the United States Trade Representative, Washington, DC 20506;

telephone: (202) 395-6127.

SUPPLEMENTARY INFORMATION: As a result of the Uruguay Round Agreements,

approved by the Congress in section 101 of the Uruguay Round Agreements

Act (URAA) (Pub. L. 103-465), the United States has replaced the

previous tariff-rate quota (TRQ) for imports of certain sugars, syrups,

and molasses with a new tariff-rate quota provided in Schedule XX--

United States of America annexed to the Marrakesh Protocol to the

General Agreement on Tariffs and Trade 1994 (GATT 1994). Pursuant to

section 111 of the URAA, the President proclaimed a number of changes

to the Harmonized Tariff Schedule of the United States (HTS) to

implement the new sugar TRQ (President Proclamation No. 6763 of

December 23, 1994). The changes include, among other things, changes in

the HTS item numbers for imports of sugar, the deletion of notes to the

HTS, and the proclaiming of new notes to the HTS.

A number of conforming changes need to be made to the sugar

regulations issued by the United States Trade Representative (USTR) to

reflect these changes to the HTS. This rule makes those conforming

changes, as well as some technical and clerical amendments. Those

conforming changes include correcting the references to the HTS to

reflect the new HTS item numbers and removing subpart C as unnecessary

in light of the fact that the allocations under the new TRQ will be

announced annually.

In addition, when the United States Trade Representative

promulgated the current rule on October 4, 1990 (55 FR 40648), it did

so as an interim rule and invited public comments. This rule includes

an amendment to the definition of specialty sugar in response to the

comments received.

Summary of Issues Raised by Public Comments

Four public comments were received.

Specialty Sugars

One commenter requested that certain edible sugar decorations be

added to the list of products eligible for potential treatment as

``specialty sugars.'' Pursuant to this public comment, this final rule

adds to that list sugar decorations. Two informal comments that were

received after the December 4, 1990, deadline requested that various

other specified sugar products be added to the list of products

eligible for treatment as ``specialty sugars.'' The Office of the

United States Trade Representative, responding to these written

comments, has added to the list: golden granulated sugar, muscovado,

molasses sugar and sugar cubes. The United States Trade Representative

has determined that these specific items are appropriate because they

represent specialty sugars within the normal commerce of the United

States.

The United States Trade Representative also has determined that it

is appropriate to provide in the definition for other forms of sugar

determined by the United States Trade Representative to be specialty

sugar products within the normal commerce of the United States.

Another commenter requested that rock candy be removed from the

list of products which are eligible for potential treatment as

specialty sugar. The commenter's suggestion was not adopted primarily

because rock candy appears to qualify as specialty sugar.

Reallocation of Quota Shortfalls

Finally, a commenter suggested that the rule contain a provision

that if a country were not fully utilizing its allocation under the

tariff-rate quota, then that country's allocation would be

automatically reallocated to other countries. The commenter's

suggestion was not adopted in the final rule because a general

provision to that effect is unnecessary given alternative means by

which unused allocations may be reallocated on a case-by-case bais when

appropriate. Moreover, the HTS authorizes the USTR, in consultation

with the Secretaries of State and Agriculture, to modify or suspend a

country's allocation for the remainder of a quota year whenever he or

she determines that a country will not be filling such allocation and

he or she finds that such action is appropriate to carry out the rights

or obligations of the United States under any international agreement

to which the United States is a party or is appropriate to promote the

economic interests of the United States.

Review

This rule has been determined to be a ``significant regulatory

action'' under Executive Order 12866.

Pursuant to the Unfunded Mandates Reform Act of 1995, USTR has

assessed the effects of this rulemaking action on state, local, and

tribal governments, and the private sector. This action does not compel

the expenditure of $100 million or more by any state, local, or tribal

government, or by anyone in the private sector, and therefore a

statement under section 202 of the Act is not required.

Pursuant to the Paperwork Reduction Act of 1980, the Office of

Management and Budget has approved the information collection

requirements imposed by this rule under Office of Management and Budget

control number 0551-0014. Comments on any burden resulting from the

information collection requirements of this regulation may be forwarded

to: Desk Officer for Agriculture, Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, DC 20503. These

programs are not subject to the provisions of Executive Order 12372

which required intergovernmental consultation with State and local

officials.

No regulatory flexibility analysis is required for this rule since

neither 5 U.S.C. 553 nor any other provision of law requires

publication of a general notice of proposed rulemaking with respect to

this rule. However, the United States Trade Representative has also

determined that the rule will not have

[[Page 26784]]

a significant economic impact on a substantial number of small

entities.

List of Subjects in 15 CFR Part 2011

Certificates of quota eligibility, imports, specialty sugars,

sugar.

Accordingly, the interim rule amending 15 CFR part 2011 which

published at 55 FR 40648 (October 4, 1990) is adopted as a final rule

with the following changes:

PART 2011--ALLOCATION OF TARIFF-RATE QUOTA ON IMPORTED SUGARS,

SYRUPS AND MOLASSES

1. The authority citation for part 2011 is revised to read as

follows:

Authority: 19 U.S.C. 3601, Presidential Proclamation No. 6763,

Additional U.S. note 5 to chapter 17 of the Harmonized Tariff

Schedule of the United States.

Section 2011.101 is revised to read as follows:

Sec. 2011.101 General.

This subpart sets forth the terms and conditions under which

certificates of quota eligibility will be issued to foreign countries

that have been allocated a share of the U.S. sugar tariff-rate quota.

Except as otherwise provided in this subpart, sugar imported from a

foreign country may not be entered unless such sugar is accompanied by

a certificate of quota eligibility. This subpart applies only to the

ability to enter sugar at the in-quota tariff rates of the quota

(subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10,

1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall

affect the ability to enter articles at the over-quota tariff rate

(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50,

1702.90.20, 2106.90.46).

3. Section 2011.102 is amended by redesignating paragraphs (g)

through (m) as paragraph (h) through (n) respectively, adding a new

paragraph (g), and revising paragraphs (a), (c), (e), (f), (j), (k),

(l), and (n) (as so redesignated) to read as follows:

Sec. 2011.102 Definitions.

* * * * *

(a) ``Additional U.S. Note 5'' means additional U.S. Note 5 to

chapter 17 of the HTS, including any amendments thereto.

* * * * *

(c) ``Certificate of quota eligibility'' or ``certificate'' means a

certificate issued by the Secretary to a foreign country that, when

duly executed and issued by the certifying authority of such foreign

country, authorizes the entry into the United States of sugar produced

in such country.

* * * * *

(e) ``Enter'' or ``Entry'' means to enter or withdraw from

warehouse, or the entry or withdrawal from warehouse, for consumption

in the customs territory of the United States.

(f) ``Foreign country'' means, for any quota period, any foreign

country or area with which an agreement or arrangement described in

section 2011.106 is in effect for that quota period and to which the

United States Trade Representative has allocated a particular quantity

of the quota.

(g) ``HTS'' means the Harmonized Tariff Schedule of the United

States.

* * * * *

(j) ``Quota'' means the tariff-rate quota on imports of sugar

provided in additional U.S. Note 5.

(k) ``Quota period'' means the period October 1 of a calendar year

through September 30 of the following calendar year.

(1) ``Raw value'' has the meaning provided in additional U.S. Note

5.

* * * * *

(n) ``Sugar'' means sugars, syrups, and molasses described in

subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10,

and 2106.90.44 of the HTS, but does not include for any foreign country

for any quota period specialty sugars as defined in subpart B of this

part if a quantity of the quota for that quota period has been reserved

for specialty sugars and an amount of that quota quantity has been

allocated to that country.

4. Section 2011.103 is amended by revising paragraphs (a) and

(b)(3) to read as follows:

Sec. 2011.103 Entry into the United States.

(a) General. Except as otherwise provided in Secs. 2011.104,

2011.109, and 2011.110, no sugar that is the product of a foreign

country may be permitted entry unless at the time of entry the person

entering such sugar presents to the appropriate customs official a

valid and properly executed certificate of quota eligibility for such

sugar.

(b) * * *

(3) This paragraph (b) shall not affect the manner in which the

amount of sugar (raw value) entered is determined fo purposes of

administering the quota.

5. Section 2011.104(a) is revised to read as follows:

Sec. 2011.104 Waiver.

(a) General. The Secretary may waive, with respect to individual

shipments, any or all of the requirements of this subpart if he or she

determines that a waiver will not impair the proper operation of the

sugar quota system, that it will not have the effect of modifying the

allocation of sugar made pursuant to the provisions of subdivision (b)

of additional U.S. Note 5, and that such waiver is justified by

unusual, unavoidable, or otherwise appropriate circumstances. Such

circumstances include, but are not limited to, loss or destruction of

the certificate, unavoidable delays in transmittal of the certificate

to the port of entry, and clerical errors in the execution or issuance

of the certificate.

* * * * *

6. Section 2011.105(b) is revised to read as follows:

Sec. 2011.105 Form and applicability of certificate.

* * * * *

(b) Other limitations. The Secretary may attach such other terms,

limitations, or conditions to individual certificates of quota

eligibility as he or she determines are appropriate to carry out the

purposes of this subpart, provided that such other terms, limitations,

or conditions will not have the effect of modifying the allocation of

sugar made pursaunt to the provisions of subdivision (b) of additional

U.S. Note 5. Such terms, limitations, or conditions may include, but

are not limited to, maximum quantities per certificate and a specified

period of time during which the certificate shall be valid. In no event

shall the maximum quantity per certificate exceed 10,000 short tons.

* * * * *

7. Section 2011.107(b) introductory text is revised to read as

follows:

Sec. 2011.107 Issuance of certificates to foreign countries.

* * * * *

(b) Adjustments. The Secretary may adjust the amount of

certificates issued to a certifying authority for any quota period,

provided that such adjustment will not have the effect of modifying the

allocation of sugar made pursaunt to the provisions of subdivision (b)

of additional U.S. Note 5 to reflect:

* * * * *

8. Section 2011.109(a) is revised to read as follows:

Sec. 2011.109 Suspension or revocation of individual certificates.

(a) Suspension or revocation. The Secretary may suspend, revoke,

modify or add further limitations to any certificate if the Secretary

determines that such action or actions is necessary to ensure the

effective operation of the import quota system for sugar and that

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such suspension, revocation, modification or addition of further

limitations will not have the effect of modifying the allocation of

sugar made pursuant to the provisions of subdivision (b) of additional

U.S. Note 5.

* * * * *

9. Section 2011.201 is revised to read as follows:

Sec. 2011.201 General.

This subpart sets forth the terms and conditions under which

certificates will be issued to U.S. importers for importing specialty

sugars from specialty sugar source countries. Specialty sugars imported

from specialty sugar source countries may not be entered unless

accompanied by a specialty sugar certificate. This subpart applies only

to the ability to enter specialty sugar at the in-quota tariff rates of

the quota (subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10,

1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall

affect the ability to enter articles at the over-quota tariff rate

(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50,

1702.90.20, 2106.90.46).

10. Section 2011.202 is amended by removing paragraph (g),

redesignating paragraphs (h) through (j) as paragraphs (g) through (i),

respectively, revising paragraphs (b), (c), (f), (g), and (i), as

redesignated, and adding a new paragraph (j) as follows:

Sec. 2011.202 Definitions.

* * * * *

(b) ``Certificate'' means a specialty sugar certificate issued by

the Certifying Authority permitting the entry of specialty sugar.

(c) ``Certifying Authority'' means the Team Leader, Import Quota

Programs, Foreign Agricultural Service, U.S. Department of Agriculture,

or his or her designee.

* * * * *

(f) ``Person'' means any individual, partnership, corporation,

association, estate, trust, or other legal entity, and, wherever

applicable, any unit, instrumentality, or agency, of a government,

domestic or foreign.

(g) ``Quota'' means the tariff-rate quota on imports of sugar

provided in additional U.S. Note 5 to chapter 17 of the Harmonized

Tariff Schedule of the United States.

* * * * *

(i) ``Specialty sugar'' means brown slab sugar (also known as slab

sugar candy), pearl sugar (also known as perl sugar, perle sugar, and

nibs sugar), vanilla sugar, rock candy, demerara sugar, dragees for

cooking and baking, fondant (a creamy blend of sugar and glucose), ti

light sugar (99.2% sugar with the residual comprised of the artificial

sweeteners aspartame and acesulfame K), caster sugar, golden syrup,

ferdiana granella grossa, golden granulated sugar, muscovado, molasses

sugar, sugar decorations, sugar cubes, and other sugars, as determined

by the United States Trade Representative, that would be considered

specialty sugar products within the normal commerce of the United

States, all of which in addition:

(1) are sugars, syrups, or molasses described in subheading

1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10, or

2106.90.44 of the Harmonized Tariff Schedule of the United States,

(2) are the product of a specialty sugar source country, and

* * * * *

(j) ``Specialty sugar source country'' means any country or area to

which the United States Trade Representative has allocated an amount of

the quantity reserved for the importation of specialty sugars under

additional U.S. Note 5 to chapter 17 of the Harmonized Tariff Schedule

of the United States.

11. Section 2011.203 is amended by revising paragraphs (a) and (c)

to read as follows:

Sec. 2011.203 Issuance of specialty sugar certificates.

(a) Specialty sugars imported into the United States from specialty

sugar source countries may be entered only if such specialty sugars are

accompanied by a certificate issued by the Certifying Authority.

* * * * *

(c) Subject to quota availability, an unlimited number of complying

shipments may enter under a given certificate and a given certificate

may cover more than one type of specialty sugar. Issuance of a

certificate does not guarantee the entry of any specific shipment of

specialty sugar, but only permits entry of such sugar if the amount

allocated to the specialty sugar source country is not already filled.

12. Section 2011.204 is revised to read as follows:

Sec. 2011.204 Entry of specialty sugars.

An importer or the importer's agent must present a certificate to

the appropriate customs official at the date of entry of specialty

sugars. Entry of specialty sugars shall be allowed only in conformity

with the description of sugars and other conditions, if any, stated in

the certificate.

13. Section 2011.206 is amended by revising paragraph (c) to read

as follows:

Sec. 2011.206 Suspension or revocation of individual certificates.

* * * * *

(c) The determination of the Certifying Authority under paragraph

(a) that the importer has failed to comply with the requirements of

this subpart may be appealed to the Director, Import Policy and Trade

Analysis Division, Foreign Agricultural Service (FAS), U.S. Department

of Agriculture, Washington, D.C. 20250, within 30 days from the date of

suspension or revocation. The request for reconsideration shall be

presented in writing and shall specifically state the reason or reasons

why such determination should not stand. The Director shall provide

such person with an opportunity for an informal hearing on such matter.

A further appeal may be made to the Administrator, FAS, U.S. Department

of Agriculture, Washington, D.C. 20250, within five working days of

receipt of the notification of the Director's decision. The Certifying

Authority may take action under paragraph (b) during the pendency of

any appeal.

14. Section 2011.207(a) is revised to read as follows:

Sec. 2011.207 Suspension of the certificate system.

(a) Suspension. The U.S. Trade Representative may suspend the

provisions of this subpart whenever he or she determines that the quota

is no longer in force or that this subpart is no longer necessary to

implement the quota. Notice of such suspension and the effective date

thereof shall be published in the Federal Register.

* * * * *

15. Subpart B of part 2011 is amended by adding Sec. 2011.208 to

read as follows:

Sec. 2011.208 Paperwork Reduction Act assigned number.

The Office of Management and Budget (OMB) has approved the

information collection requirements contained in the regulations in

this subpart in accordance with 44 U.S.C. Chapter 25 and OMB control

number 0551-0014 has been assigned with corresponding clearance

effective through April 30, 1997.

Subpart C--[Removed]

16. Subpart C of part 2011 is removed.

Signed at Washington, D.C. on May 15, 1996.

Charlene Barshefsky

Acting United States Trade Representative

[FR Doc. 96-12807 Filed 5-28-96; 8:45 am]

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