CBP Issues Instructions on 2004/2005 Global TRQs for Specialty Sugar
Customs and Border Protection (CBP) has posted to its Web site its instructions for the global tariff rate quotas (TRQs) for specialty sugar.
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The specialty sugar allocation for October 1, 2004 - September 30, 2005 (2004/2005) will be administered in four global TRQs (i.e., tranches) on a first-come, first-serve basis, as follows:
- October 26, 2004 - first TRQ, totaling 1,656,000 kg, will open on October 26, 2004 at 1:00 p.m. EDT or its equivalent in other time zones;
- November 16, 2004 - second TRQ, totaling 7,000,000 kg, will open on November 16, 2004 at 12:00 p.m. EST or its equivalent in other time zones;
- March 22, 2005 - third TRQ, totaling 7,000,000 kg, will open on March 22, 2005 at 12:00 p.m. EST or its equivalent in other time zones; and
- June 7, 2005 - fourth TRQ, totaling 7,000,000 kg, will open on June 7, 2005 at 12:00 p.m. EST or its equivalent in other time zones.
According to CBP, it expects these TRQs to oversubscribe at opening moment, and notes that per 19 CFR 132.4 no importer shall be permitted to present entries or withdrawals for consumption of quota-class merchandise for a quantity in excess of the quantity admissible under the applicable quota.
CBP's notice lists the relevant HTS Chapters 17 and 21 numbers for the in-quota (low) rate, as well as the HTS Chapters 17, 21, and 99 numbers for the over-quota (high) rate.
CBP states that a specialty sugar certificate is required to claim the in-quota (low) rate, and that these certificates are issued for each separate TRQ opening. No specialty sugar certificate is required for the over quota (high) rate.
CBP further explains that if the importer takes custody of the merchandise prior to determination of the status of the opening, and the quota fills at opening moment, the importer will be required to pay the high rate of duty on the over quota amount as determined by the pro rata percentage authorized.
CBP advises that it would not be advantageous to file entries for specialty sugar utilizing the Automated Clearing House (ACH) as the method of payment. Filers who opt to pay their duties via ACH are locked into paying the total amount of duty for the quantity of specialty sugar originally presented for entry. However, if the TRQ does fill as expected at opening, the filer is not guaranteed to receive the total amount of specialty sugar originally presented for entry but may only be entitled to a portion of that total.
(See ITT's Online Archives or 08/03/04 news, 04080310, for BP summary of the Office of the U.S. Trade Representative (USTR) notice regarding the fiscal year 2005 TRQs, allocations for raw cane sugar, refined sugar (including specialty sugar), and sugar-containing products.)
QBT-04-551 (dated 10/19/04) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/QBT2004/2004_551.ctt/2004_551.doc.