Tariff Rate Quota Announcement

What is a TRQ?
A tariff-rate quota is a quota for a volume of imports that enters a country at no tariff or a low tariff. After the quota is reached, a higher tariff is applied on additional imports. Suppose a country replaces its "absolute" quota of 10,000 tons with a TRQ of 10,000 tons. The TRQ appears to differ little from the earlier "absolute" quota. The distinction is that under an absolute quota it is legally impossible to import more than 10,000 tons, whereas under a TRQ, imports can exceed 10,000 tons but a higher, over-quota tariff is applied on the excess.

In principle, a TRQ provides more market access to imports than a quota. In practice, however, many over-quota tariffs are prohibitively high and effectively exclude imports in excess of the quota. It is possible to design a TRQ so that it reproduces the trade-volume limit of the quota it replaces.

USTR Announces FY 2010 Tariff-Rate Quota Allocations for Additional Raw Cane Sugar

Washington, D.C. – The Office of the United States Trade Representative (USTR) today announced country-specific allocations of additional fiscal year (FY) 2010 in-quota quantity of the tariff-rate quota (TRQ) for imported raw cane sugar. TRQs allow countries to export specified 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 April 23, 2010, the Secretary of Agriculture announced an additional in-quota quantity for the TRQ for raw cane sugar for the remainder of FY 2010 (ending September 30, 2010) in the amount of 181,437 metric tons* raw value (MTRV). This quantity is in addition to the minimum amount to which the United States is committed under the World Trade Organization Uruguay Round Agreements.

Based on consultations with quota holding countries, USTR is allocating the quantity of 181,437 MTRV to the following countries in the quantities specified below:

Country

Additional FY 2010 Allocation

Argentina

7,826

Australia

15,106

Belize

2,002

Bolivia

1,456

Brazil

26,391

Colombia

4,368

Congo

7,258

Costa Rica

2,730

Dominican Republic

32,033

Ecuador

2,002

El Salvador

4,732

Guatemala

8,736

Guyana

2,184

Honduras

1,820

India

1,456

Jamaica

2,002

Malawi

1,820

Mauritius

2,185

Mozambique

2,366

Nicaragua

3,822

Panama

5,278

Peru

7,462

Philippines

24,571

South Africa

4,186

Swaziland

2,912

Thailand

2,548

Zimbabwe

2,185

These allocations are based on the countries’ historical shipments to the United States. 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.

Conversion factor: 1 metric ton = 1.10231125 short tons.

USTR Announces Reallocation of Unused FY 2010 Tariff-Rate Quota Volume for Raw Cane Sugar

Washington, D.C. --* The Office of the United States Trade Representative (USTR) today announced country-specific reallocations of the fiscal year (FY) 2010 in-quota quantity of the tariff-rate quota (TRQ) for imported raw cane sugar. TRQs allow countries to export specified 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.

Based on consultations with quota holding countries, USTR is reallocating 81,946 metric tons* raw value (MTRV) of the minimum amount of the original TRQ for raw cane sugar from countries that have stated they will be unable to fill previously allocated FY 2010 raw sugar TRQ quantities.

USTR is allocating this quantity to the following countries in the quantities specified below:

Country

Argentina

FY 2010 Reallocation

3,729

Australia

7,197

Belize

954

Bolivia

694

Brazil

12,574

Colombia

2,081

Costa Rica

1,301

Dominican Republic

15,262

Ecuador

954

El Salvador

2,255

Guatemala

4,162

Guyana

1,041

Honduras

867

India

694

Jamaica

954

Malawi

867

Mozambique

1,127

Nicaragua

1,821

Panama

2,515

Peru

3,555

Philippines

11,706

South Africa

1,994

Swaziland

1,387

Thailand

1,214

Zimbabwe

1,041

These allocations are based on the countries' historical shipments to the United States. 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.

*Conversion factor: 1 metric ton = 1.10231125 short tons.

USTR Announces FY 2010 Tariff-Rate Quota Allocations for Raw Cane Sugar, Refined and Specialty Sugar and Sugar-Containing Products

Washington, D.C. -- The Office of the United States Trade Representative (USTR) today announced the country-specific in-quota allocations under the tariff-rate quotas on imported raw cane sugar, refined and specialty sugar and sugar-containing products for Fiscal Year (FY) 2010 (Oct. 1, 2009 through Sept. 30, 2010). Tariff-rate quotas allow countries to export specified 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 September 25, 2009, the Secretary of Agriculture announced sugar program provisions for FY 2010. The in-quota quantity for the tariff-rate quota (TRQ) on raw cane sugar for FY 2010 is 1,117,195 metric tons* raw value (MTRV), which is the minimum amount to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreements. USTR is allocating the raw cane sugar TRQ of 1,117,195 MTRV to the following countries in the quantities specified below:

Country FY 2010 Raw Cane Sugar Allocations (MTRV)
Argentina 45,281
Australia 87,402
Barbados 7,371
Belize 11,583
Bolivia 8,424
Brazil 152,691
Colombia 25,273
Congo 7,258
Costa Rica 15,796
Cote d'Ivoire 7,258
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 shipments to the United States. 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.

On September 25, 2009, the Secretary of Agriculture announced the establishment of the in-quota quantity for the FY 2010 refined sugar TRQ at 90,039 MTRV for which the sucrose content, by weight in the dry state, must have a polarimeter reading of 99.5 degrees or more. This amount includes the minimum quantity to which the United States is committed under the WTO Uruguay Round Agreement (22,000 MTRV, of which 1,656 MTRV is reserved for specialty sugar). USTR is allocating a total of 10,300 MTRV of refined sugar to Canada, 2,954 MTRV of refined sugar to Mexico, and 7,090 MTRV of refined sugar to be administered on a first-come, first-served basis.

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 MTRV included in the WTO minimum and an additional 68,039 MTRV. The first tranche of 1,656 MTRV will open on October 20, 2009. All types of specialty sugars are eligible for entry under this tranche. The second tranche of 25,000 MTRV will open on November 10, 2009. The third, fourth, and fifth tranches of 14,346 MTRV each will open on January 12, 2010; May 17, 2010; and August 24, 2010, 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.

With respect to the in-quota amount of 64,709 metric tons (MT) for the TRQ on certain sugar-containing products maintained under Additional U.S. Note 8 to Chapter 17 to the Harmonized Tariff Schedule of the United States, USTR is allocating 59,250 MT to Canada. The remainder is available for other countries on a first-come, first-served basis.

*Conversion factor: 1 metric ton = 1.10231125 short tons.

This page was last modified 6/1/2010 11:05:50 AM