USDA announces increase in FY 2010 Raw Sugar Tariff-Rate Quota

By Agri-Pulse Staff

© Copyright Agri-Pulse Communications, Inc.

Washington, April 23 – Responding to supply concerns, USDA announced Friday a reassignment of surplus sugar under domestic cane sugar allotments of 200,000 short tons raw value (STRV) to imports, and an increase in the FY 2010 raw sugar Tariff-Rate Quota (TRQ) by the same amount. USDA explained that its action was taken after a determination that additional supplies of raw cane sugar are required in the U.S. market. The Office of the U.S. Trade Representative (USTR) will announce country allocations of this TRQ increase “shortly.”

FY 2010 Reassignment of Sugar Marketing Allotments

“USDA’s Commodity Credit Corporation (CCC) announced the reassignment of projected surplus cane sugar marketing allotments and allocations under the FY 2010 (October 1, 2009 – September 30, 2010) Sugar Marketing Allotment program. The FY 2010 cane sector allotment and cane state allotments are larger than can be fulfilled by domestically-produced cane sugar. This surplus was reassigned to raw sugar imports as required by law. Upon review of the domestic sugarcane processors’ sugar marketing allocations relative to their FY 2010 expected raw sugar supplies, CCC determined that all sugarcane processors had surplus allocation. Therefore, all sugarcane states’ sugar marketing allotments are reduced with this reassignment. The new cane state allotments are Florida, 1,983,802 STRV, Louisiana, 1,581,306 STRV, Texas, 178,366 STRV, and Hawaii, 272,417 STRV. The FY 2010 sugar marketing allotment program will not prevent any domestic sugarcane processors from marketing all of their FY 2010 sugar supply. CCC will shortly announce reassigned allocations for all sugarcane and sugar beet processors.”

FY 2010 Raw Sugar TRQ Increase

“On September 25, 2009, USDA established the FY 2010 TRQ for raw cane sugar at 1,231,497 STRV (1,117,195 metric tons raw value, MTRV*), the minimum to which the United States is committed under the World Trade Organization (WTO) Uruguay Round Agreements. Pursuant to Additional U.S. Note 5 to Chapter 17 of the U.S. Harmonized Tariff Schedule (HTS) and Section 359k of the Agricultural Adjustment Act of 1938, as amended, the Secretary of Agriculture today increased the raw cane sugar tariff-rate quota by 200,000 STRV. With this increase, the overall FY 2010 raw sugar TRQ is now 1,431,497 STRV (1,298,632 MTRV). Raw cane sugar under this quota must be accompanied by a certificate for quota eligibility and may be entered under subheading 1701.11.10 of the HTS until September 30, 2010. USTR will allocate this increase among supplying countries and Customs areas.”

USDA pointed out that it will continue to closely monitor stocks, consumption, imports, and all sugar market and program variables on an ongoing basis. USDA noted that it “may need to make additional adjustments to import TRQs and domestic marketing allotments to ensure an adequate supply for the domestic market, avoid forfeitures, and prevent or correct market disruptions.”

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

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