USDA Announces Sugar Tariff Rate Quotas for Fiscal Year 2016

Contact: Foreign Agricultural Service Public Affairs, (202) 720-7115

WASHINGTON, June 12, 2015—The U.S. Department of Agriculture (USDA) today announced the fiscal year 2016 raw and refined sugar tariff-rate quotas (TRQ), and an increase in the fiscal year 2015 specialty sugar TRQ. 

Initial Fiscal Year 2016 Sugar TRQ Announcement

USDA is establishing the fiscal year 2016 TRQ for raw cane sugar at 1,231,497 short tons raw value (1,117,195 metric tons raw value, MTRV*), the minimum to which the United States is committed under the World Trade Organization Uruguay Round Agreement on Agriculture. Pursuant to additional U.S. note 5 to chapter 17 of the U.S. Harmonized Tariff Schedule and section 359k of the Agricultural Adjustment Act of 1938, as amended, USDA published this decision in the Federal Register.

Raw cane sugar under this TRQ must be accompanied by a certificate of quota eligibility and may enter the United States until Sept. 30, 2016. The Office of the U.S. Trade Representative will allocate this TRQ among supplying countries and customs areas.

The fiscal year 2016 refined sugar TRQ is established at 145,505 short tons raw value (132,000 MTRV). Of this quantity, 123,079 short tons raw value (111,656 MTRV) is reserved for the importation of specialty sugars as defined by the Office of the U.S. Trade Representative. The total refined sugar TRQ includes the 24,251 short tons raw value (22,000 MTRV) minimum to which the United States is committed under Uruguay Round Agreement on Agriculture; that amount includes 1,825 short tons raw value (1,656 MTRV) reserved for specialty sugar.
 
Because the specialty sugar TRQ is first-come, first-served, tranches are needed to allow for orderly marketing throughout the year. The fiscal year 2016 specialty sugar TRQ will be opened in five tranches. The first tranche, totaling 1,825 short tons raw value (1,656 MTRV) will open Oct. 9, 2015. All specialty sugars are eligible for entry under this tranche. The second tranche will open on Oct. 23, 2015 and be equal to 30,314 short tons raw value (27,500 MTRV). The remaining tranches will each be equal to 30,314 short tons raw value (27,500 MTRV), with the third opening on Jan. 8, 2016; the fourth, on April 8, 2016; and the fifth, on July 8, 2016. 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.

The Office of the U.S. Trade Representative will allocate the refined sugar TRQ, other than the 123,079 short tons raw value reserved for specialty sugar, among supplying countries and customs areas.

Increase in Fiscal Year 2015 Specialty Sugar TRQ

USDA also announced an increase in the fiscal year 2015 specialty sugar TRQ of 22,046 short tons raw value (20,000 MTRV). The increase will accommodate the expanding demand for organic sugar and other specialty sugars that are not currently produced or available from domestic sources. This sugar will be permitted entry into the United States beginning on July 10, 2015, and raise the fifth and last tranche of the fiscal year 2015 specialty sugar TRQ from 24,306 short tons raw value (22,050 MTRV) to 46,352 short tons raw value (42,050 MTRV).

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

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