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Q: Sugar Quotas ( Answered,   0 Comments )
Question  
Subject: Sugar Quotas
Category: Business and Money > Economics
Asked by: sugarpop-ga
List Price: $50.00
Posted: 13 Nov 2002 11:02 PST
Expires: 13 Dec 2002 11:02 PST
Question ID: 107005
I want to bring in about 30 truckloads of sugar from Canada over the
course of a year without
paying any dues, taxes or import fees (I'm not sure if there are any).
What are the ramifications for doing this? What are the current quotas
for sugar this year and in
years past? How are they evaluated and have they been met? Are there
other solutions to bringing in sugar without cost? If not what are
costs? what if sugar is
packaged or mixed with another ingredient? What are some key links
that would offer information regarding this? I'm looking for detailed
answers on an immediate basis.

Request for Question Clarification by aceresearcher-ga on 13 Nov 2002 11:06 PST
sugarpop,

Just to verify: are you wanting to bring the sugar into the US?
(Trucks from Canada can go to Mexico as well.)

aceresearcher

Clarification of Question by sugarpop-ga on 13 Nov 2002 12:51 PST
Only to US. I am particulraly interested in how the US looks at other
products that have sugar in them, like COCOA or other drink mixes.
Answer  
Subject: Re: Sugar Quotas
Answered By: larre-ga on 13 Nov 2002 14:33 PST
 
Thanks for asking.


SUGAR IMPORTATION QUOTAS
**********************************************************************

As established by the Office of the United States Trade Representative
and published in the Federal Register on August 8, 2002, the 2003
(October 1, 2002 - September 30, 2003) Import Quotas for refined sugar
are listed as follows:

"The in-quota quantity of the tariff-rate quota for refined sugar for
the period October 1, 2002-September 30, 2003, has been established by
the Secretary of Agriculture at 37,000 metric tons, raw value (40,786
short tons), of which the Secretary has reserved 16,656 metric tons
(18,360 short tons) for specialty sugars. Of the quantity not reserved
for specialty sugars, a total of 10,300 metric tons (11,354 short
tons) is being allocated to Canada and 2,954 metric tons (3,256 short
tons) is being allocated to Mexico. The remaining 7,090 metric tons
(7,815 short tons) of the in-quota quantity not reserved for specialty
sugars may be supplied by any country on a first-come, first-served
basis, subject to any other provision of law. The 16,656 metric
tons(18,360 short tons) reserved for specialty sugars is also not
being allocated among supplying countries and is available on a
first-come, first-served basis, subject to any other provision of
law."

The Federal Register Online
[Federal Register: August 8, 2002 (Volume 67, Number 153)]
[Notices]               
[Page 51618-51619]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au02-110]                         
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-20008-filed

As noted, 10,300 metric tons of the quota is allocated to Canadian
imports. This is the standard historical Canadian allocation per year.
See http://www.fas.usda.gov/htp/sugar/2001/Nov/ustrq02.pdf for the
2002 import quotas.

Specific Inquires about the sugar quotas may be directed to:

Sharon Sydow, 
Director of Agricultural Trade Policy, Office of Agricultural Affairs,
Office of the United States Trade Representative, 600 17th Street,
NW.,
Washington, DC 20508
202-395-6127


SUGAR IMPORTATION TARIFFS
**********************************************************************

The specific U.S. Tariff Documents which regulate sugar importation in
various forms are contained in the Harmonized Tariff Schedule
following. Canadian exceptions and reductions are noted in the tables
with the abbreviation CA. Tariffs on pure cane or beet sugar range
from 1.4 cents per kilogram to 4.2 cents per kilogram with Canada
shown as $0.00 under the provisions of the North American Free Trade
Agreement. You will obtain your HTS code designations from these
documents.

Chapters 17 - Raw and Refined Sugars
http://dataweb.usitc.gov/SCRIPTS/tariff/0204c17.pdf
Chapter 18 - Cocoa and Cocoa Preparations
http://dataweb.usitc.gov/SCRIPTS/tariff/0204c18.pdf
Chapter 19 - Preparations of cereals, flour, starch or milk; bakers'
wares
http://dataweb.usitc.gov/SCRIPTS/tariff/0204c19.pdf
Chapter 21 - Miscellaneous Edible Preparations
http://dataweb.usitc.gov/SCRIPTS/tariff/0204c21.pdf


The U.S. Department of Agriculture offers a Sugar Fact Sheet which
summarizes a goodly proportion of its information about sugar
importation, provides summary explanations of the provisions of the
Harmonized Tariff Schedule, and offers links to relevant documents. I
think you will find it quite helpful. I have included an excerpt from
the summaries which explain the importation of sugar mixed with other
products:

"Chapter 18 of the HTS (Additional U.S. Note 1) establishes a TRQ of
2,313 metric tons for cocoa powders containing more than 10 percent by
dry weight of sugar. All products from Mexico and those imported in
bulk containing more than 65-percent sugar are excluded from the TRQ.
The concessional rate of duty depends on the product and the country
of origin.

Chapter 19 of the HTS (Additional U.S. Note 3) establishes a TRQ of 10
percent on 5,398 metric tons of bakery mixes and doughs containing
more than 10 percent by dry weight of sugar. All products from Mexico
and those imported in bulk containing more than 65-percent sugar are
excluded from the TRQ. Products from Canada and developing countries
benefiting from special trade preferences enter duty free under the
TRQ.

Chapter 21 of the HTS (Additional U.S. Note 4) establishes a TRQ of
7.5 percent duty on 689 metric tons of mixed condiments and seasonings
containing more than 10 percent by dry weight of sugar. Products from
Mexico are excluded from this TRQ. Products from Canada and developing
countries benefiting from special trade preferences enter duty free
under the TRQ."

TRQ = Tariff Rate Quotas (Document Chapters listed above)

U.S. Department of Agriculture
Fact Sheet: The U.S. Sugar Program
http://www.fas.usda.gov/info/factsheets/sugar.html


SUGAR IMPORTATION APPLICATIONS AND PROCEDURES
**********************************************************************

To import sugar under preferential treatment of the North American
Free Trade Agreement (reduced duty or duty-free) the following
application must be completed:

NAFTA Application
http://www.fas.usda.gov/itp/imports/naftaform.pdf

Specialty Sugar Import Application
http://www.fas.usda.gov/itp/imports/specialty.html


Additional documents related to 2003 Sugar Importation

2003 Sugar Allocations
http://www.fas.usda.gov/scriptsw/PressRelease/pressrel_dout.asp?Entry=valid&PrNum=0209-02

Administration of Sugar Imports
Fact Sheets and Import Application Documents
http://www.fas.usda.gov/itp/imports/ussugar.html


You should present the appropriate completed application to the
customs broker at the time of importation. The status of any
particular quota is assessed at its time of entry, based upon
computerized record-keeping methods which determine how much of a
commodity has been imported under a specific quota, and how much of
the quota is still available to be filled.

"The quota status of a commodity subject to a tariff-rate quota cannot
be determined in advance of its entry. The quota rates of duty are
ordinarily assessed on such commodities entered from the beginning of
the quota period until such time in the period as it is determined
that imports are nearing the quota level. District directors of
Customs are then instructed to require the deposit of estimated duties
at the over-quota duty rate and to report the time of official
presentation of each entry. A final determination of the date and time
when a quota is filled is made, and all district directors are advised
accordingly."

Global Trades Ltd.
Import Export Fundamentals
http://www.global-trades-ltd.com/usimport.html

I'll be happy to locate the applicable District Director of Customs
contact information if you wish to specify your location, otherwise,
you may obtain information directly from the Quota Branch in
Washington DC.

Commodities Subject to Quotas Administered by Customs 

As provided in the Harmonized Tariff Schedule of the United States,
the commodities listed below [includes sugar and sugar products] are
subject to quota limitations in effect as of the date of publication
of this booklet. Local Customs officers can be consulted about any
changes. Information may also be obtained by contacting:

Quota Branch, U.S. Customs Service. 
1301 Constitution Avenue NW, 
Washington, D.C. 20229, 
(202) 927-5850.




ALTERNATIVE DUTY-FREE IMPORTATION
**********************************************************************

Sugar imports are accorded preferential (duty-free treatment) under
both the Sugar Re-Export program and the Polyhydric Alcohol Program.
Sugar intended for eventual re-export, either in dry form, as part of
sugar containing products, or in the form of polyhydric alcohol may be
exempted from duties it would otherwise be subject to under quotas.

Sugar Re-Export, Sugar Containing Products, and Polyhydric Alcohol
Programs
http://www.fas.usda.gov/info/fr/1999/021299.txt


IMPORTATION GUIDES
**********************************************************************

Import Entrepreneurs

"All importers should take advantage of submitting a request for an
"advance ruling" from the U.S. Customs Service. In such a request, you
will get within 60 days a definitive answer from Customs on such
issues as classification, valuation, and country of origin. Advance
ruling requests may be made to the Customs district in which you
intend to import merchandise or to Customs Headquarters in Washington,
D.C. The ruling from Customs is then attached to the other entry
documentation submitted to Customs in order to avoid any delay in the
importation of your merchandise."

Becker & Poliakoff
Entrepreneurs
http://www.becker-poliakoff.com/publications/article_archive/entrepreneurs.htm

Limit the Risks of International Trade
http://www.becker-poliakoff.com/publications/article_archive/limit_the_risks.htm


**********************************************************************

In summary, I've listed the year's relevant quotas, the regulations
covering importation of sugar specialty products, and applications and
contact information for the U.S. Customs service. You'll need to
consult the the specific Harmonized Tariff Schedules (Chapters 17,18,
19, 21) to determine HTS codes for refined sugar or sugar contain
products. You may contact the U.S. Customs Service for an advance
ruling on specific shipments, or alternatively quota status and duties
(if any) will be determined by the Customs Service at the time of
import.

Search Strategy
U.S. Department of Agriculture Website
Google Search Terms
U.S. sugar importation canada
north american free trade agreement sugar
u.s. customs service sugar importation

Should you have any questions about the information and links
provided, or require further explanations, I will be happy to assist
you.

larre-ga
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