U.S. – Mexico Sign Sugar Suspension Agreement

The U.S. Department of Commerce and the government of Mexico reached agreement on finalized amendments on the antidumping duty (AD) and countervailing duty (CVD) suspension agreements for imported sugar from Mexico.

The CVD amendment modifies definitions for sugar from Mexico, modifies the restrictions of the volume of direct or indirect exports to the U.S. of sugar from all Mexican producers/exporters, and provides for enhanced monitoring and enforcement.  A sugar Export Permit issued by the Mexican government will continue to be required.

The AD amendment modifies definitions for sugar from Mexico (to match CVD definitions), revises the reference prices for sugar from Mexico, and provides for enhanced monitoring and enforcement.

Of note from a fact sheet detailing the changes:

  • The definition of ‘Refined Sugar’ is changed to sugar with a polarity of 99.2 degrees and above (previously 99.5 degrees and above).
  • The definition of ‘Other Sugar’ is changed to sugar with a polarity less than 99.2 degrees and shipped in bulk, freely flowing. ‘Other Sugar’ must be exported in the hold(s) of an ocean-going vessel. If shipped in a container, tote, bag or other package that is not free flowing, it will be considered to be ‘Refined Sugar’ for the purposes of Reference prices, no matter what the polarity.
  • Establishment of `Additional U.S. Needs Sugar’ for Sugar allowed to be exported, over and above Export Limits to fill a need identified by USDA in the U.S. market for a particular type and quantity of Sugar. When entered using this provision a polarity of 99.5 and above would be considered ‘Refined Sugar’, and lower than 99.5 would be considered ‘Other Sugar’.
  • Importers of record of ‘Other Sugar’ must ensure testing for polarity by a laboratory approved by U.S. CBP upon entry into the U.S., reporting the polarity test results for each entry within 30 days of entry.
  • The AD Reference Price for ‘Refined Sugar’ is raised from 26 to 28 cents per pound, and ‘Other Sugar’ from 22.25 to 23 cents per pound.

The Amendments apply to all contracts for sugar from Mexico for the October 1, 2017 through September 30, 2018 Export Limit Period, and to all contracts for sugar from Mexico (regardless of Export Limit Period) exported from Mexico on or after October 1, 2017.

The finalized amendments will ensure that the sugar suspension agreements continue to promote stability in the U.S sugar market, in coordination with USDA’s sugar program.

If you have any questions regarding the U.S. – Mexican sugar suspension agreement, Livingston can help!  Please contact either your Livingston account manager or our U.S. Regulatory Affairs Group at usregaffairs@livingstonintl.com.