Trade Law Daily is a Warren News publication.

First Tranche of FY 2011 Specialty Sugar TRQ Opens Oct 20

U.S. Customs and Border Protection has issued a memorandum announcing that the first tranche (period 1) for the fiscal year 2011 specialty sugar tariff rate quota opens October 20, 2010 at 1:00 p.m. EDT, or its equivalent in other time zones.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

The first tranche has a specialty sugar allocation of 1,656,000 kg (1,825 short tons raw value (STRV)), and is expected to oversubscribe at opening moment.

(The U.S. Department of Agriculture has previously stated that the FY 2011 specialty sugar TRQ will be administered on a first-come, first-served basis, in five tranches with the first opening on October 20, 2010, the second opening on November 10, 2010; the third opening on January 12, 2011; the fourth opening on May 18, 2011; and the fifth opening on August 24, 2011.)

First Tranche Open for All Specialty Sugars

According to the Office of the U.S. Trade Representative, all types of specialty sugars are eligible for entry under the first tranche, with the second, third, fourth and fifth tranches 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)

(See ITT’s Online Archives or 08/03/10 news, (Ref:10080321), BP summary of the USDA announcement of the FY 2011 TRQs for raw, refined and specialty sugar, and their opening dates.)

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

(QBT-10-570, dated 10/18/10)