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CBP Notices on Guatemala Agricultural/Sugar CAFTA-DR TRQs

U.S. Customs and Border Protection (CBP) has issued two notices on the CAFTA-DR tariff rate quotas (TRQs) that are in effect for the July 1, 2006 - December 31, 2006 period for certain "qualifying" agricultural products (including sugar) from Guatemala.

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These Guatemala TRQs opened on July 3, 2006 at 1:00 EDT or its equivalent in other time zones. CBP states that P is the primary SPI indicator.

Sugar TRQ - "In-Quota" Limit

CBP's notice on the sugar TRQ for Guatemala lists the in-quota quantity as 32,000,000 kilograms. CBP states that this sugar TRQ is provided for in HTS 9822.05.20 and described in HTS Chapter 98, Subchapter XXII, U.S. Note 25. In addition, no certificate of quota eligibility is required for imports under this TRQ.

Other TRQs - "In-Quota" Limit, "Over-Quota" Limit, and "Safeguard" Duty Rates

According to another CBP notice, most of the agricultural CAFTA-DR TRQs (except sugar) for Guatemala each have an aggregate in-quota (duty free) quantity limit, an aggregate over-quota (high duty) quantity limit, as well as a safeguard (high) duty rate for quantities in excess of the aggregate over-quota limit.

CBP also lists certain of these TRQs as only having an aggregate over-quota (high duty) quantity limit and a safeguard (high) duty rate for quantities in excess of the aggregate over-quota limit.

Aggregate "In-Quota" and "Over-Quota" limits for each U.S. Note.CBP states that the DR-CAFTA agricultural TRQs for July 1, 2006 - December 31, 2006 applicable to Guatemala are in U.S. Notes 5, 8, 10, and 14 of HTS Chapter 99, Subchapter XV.

For the 2006 time period, the aggregate "in-quota" and "over-quota" quantity limits for Guatemala under each listed note are as follows (See CBP notice for all applicable HTS Chapter 99 and HTS Chapter 1-97 tariff numbers; CBP's notice does not list the safeguard duty rates; also there are no quantity limits for any of the safeguard duty rates):

Note Number In-Quota Over-Quota Safeguard

U.S. NOTE 5

Guatemala 305,596 L 91,679 L

U.S. NOTE 8

Guatemala 250,000 kg 75,000 kg

U.S. NOTE 10

Guatemala 500,000 kg 150,000 kg

U.S. NOTE 14

Guatemala 194,174 L 58,252 L

TRQ Products are "Qualifying Goods" and Require a SPI P

CBP states that DR-CAFTA provides quantitative limits associated with a reduced duty rate for agricultural products that meet the requirements for a "qualifying good." A qualifying good is one that meets the product specific rule of origin; however, U.S. materials or inputs are considered to be of a non-Party; in other words, U.S. materials are considered non-originating. P is the primary SPI indicator.

(See CBP notice for Chapter 1 - 97, and Chapter 99 tariff numbers applicable to Guatemala for each U.S. Note. See July 1, 2006 HTS (Supplement 1) for current TRQ in-quota, over-quota and safeguard duty rates, and annual TRQ quantities. See Presidential Proclamation 8034 for applicable over-quota and safeguard duty rates for each year.)

CBP contact: Christine Kegley (202) 344-2319

CBP QBT-06-532 (agricultural TRQs except sugar, dated 07/06/06), available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2006/06_532.ctt/06_532.doc.

CBP QBT-06-533 (sugar TRQ, dated 07/06/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2006/06_533.ctt/06_533.doc.