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5th Tranche of FY 2010 Specialty Sugar TRQ Opens Aug 24

U.S. Customs and Border Protection has issued a memorandum announcing that the fifth (and final) tranche for the fiscal year 2010 specialty sugar tariff rate quota opens on Tuesday, August 24, 2010 at 12:00 p.m. EDT, or its equivalent in other time zones.

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The fifth tranche has a specialty sugar allocation of 14,346,000 kg (14,346 metric tons raw value (MTRV)), and is expected to oversubscribe at opening moment.

(The U.S. Department of Agriculture previously stated that the FY 2010 specialty sugar TRQ would be administered on a first-come, first-served basis in five tranches.)

Fifth Tranche Reserved for Organic and Certain Other Specialty Sugars

According to the Office of the U.S. Trade Representative, the second, third, fourth and fifth tranches are reserved for organic sugar and other specialty sugars not currently produced commercially in the U.S. or reasonably available from domestic sources.

Specialty Sugar Certificate Required for In-Quota Rate, Etc.

A specialty sugar certificate is required to claim the in-quota (low) rate; however, no specialty sugar certificate is required for the over-quota (high) rate.

CBP’s notice also lists the relevant HTS Chapters 17 and 21 tariff numbers for the in-quota rate, as well as the HTS Chapters 17, 21, and 99 tariff numbers for the over-quota rate.

CBP explains that if the quota fills at opening moment and the importer takes custody of the merchandise prior to determination of the opening status, the importer will be required to pay the high duty rate on the over-quota portion of the entry summary.

Filers who choose to pay quota entries via Automated Clearinghouse (ACH) statement are obligated to pay the original duty amount, even if the quota oversubscribes. CBP cannot refund duties on prorated quota entries until the statement has been paid.

(Conversion factor: 1 metric ton = 1.10231125 short tons)

CBP contact --Pelbea Griffin-Sharpe (202) 863-6585

(QBT-10-541, dated 08/10/10)