On June 12, 2015, the U.S. Department of Agriculture (USDA) announced the Fiscal Year (FY) 2016 tariff-rate quotas (TRQs) for imports of raw cane sugar, refined sugar, and specialty sugar.
In addition, on July 15, 2015, the United States Trade Representative (USTR) announced both the country specific and the first-come, first-serve in-quota allocations for these TRQs, as well as for sugar-containing products.
The 2016 FY covers the period from October 1, 2015 through September 30, 2016, although some quotas may potentially fill upon opening.
Sugar Quota amounts and allocations
Raw: For raw cane sugar, the FY 2016 TRQ will be 1,117,195 metric tons raw value (MTRV). Raw cane sugar under this TRQ must be accompanied by a certificate of quota eligibility (CQE). Country specific allocation may be found in the USTR announcement.
Refined: For refined sugar, the FY 2016 TRQ will be 132,000 MTRV. Of this quantity, 111,656 MTRV is reserved for the importation of specialty sugars. The USTR allocated 10,300 MTRV of refined sugar to Canada, 2.954 MTRV to Mexico, and 7,090 MTRV of refined sugar to be administered on a first-come, first-served basis.
Specialty: For specialty sugar, imports will be administered on a first-come, first-served basis in five tranches, as follows:
- First tranche opens October 9, 2015, and totals 1,656 MTRV, with all specialty sugars eligible for entry under this tranche.
The remaining tranches will each be reserved for 27,500 MTRV:
- Second tranche -opens October 23, 2015;
- Third tranche -opens January 8, 2016;
- Fourth tranche -opens April 8, 2016;
- Fifth tranche -opens July 8, 2016.
The second through fifth tranches require a “Specialty Sugar Certificate” issued by the USDA, and are reserved for organic sugar and other specialty sugars not currently produced commercially in the United States or reasonably available from domestic sources.
Sugar containing products: For sugar containing products of Additional U.S. Note 8 to Chapter 17 to The U.S. Tariff, the FY 2016 TRQ will be 64,709 metric tons (MT). The USTR allocated 59,250 MT to Canada. The remainder, 5,459 MT, is available for other countries on a first-come, first-served basis.
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.
If you have any questions regarding tariff rate quota for sugar in the 2016 fiscal year, Livingston can help! Please contact either your Livingston account manager or our U.S. Regulatory Affairs Group.