USTR Determines 4 DR-CAFTA Countries Are Eligible for 2007 Sugar/Products "Trade Surplus" TRQs (Morocco, Chile Are Not Eligible)
The Office of the U.S. Trade Representative (USTR) has issued an annual notice providing its determinations of the trade surplus in certain sugar and syrup goods and sugar-containing products of Chile, Morocco, El Salvador, Guatemala, Honduras, or Nicaragua.
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As described in USTR's notice, the level of a country's trade surplus (exports exceeding imports) in these goods relates to the quantity of sugar and syrup goods and sugar-containing products for which the U.S. grants preferential tariff treatment under the U.S.-Chile Free Trade Agreement (FTA), the U.S.-Morocco FTA, and the U.S.-Dominican Republic-Central America FTA (DR-CAFTA).
Each of Four DR-CAFTA Countries Has Trade Surplus, 2007 TRQ Amount
USTR states that El Salvador's, Guatemala's, Honduras', and Nicaragua's (members of the DR-CAFTA) exports of sugar and syrup goods and sugar-containing products each exceeded its imports of those goods in calendar year (CY) 20052. As a result, each of these countries has a trade surplus and is eligible to receive the following tariff-rate quota (TRQ) amounts to be entered duty-free under HTS 9822.05.203 in CY 20074:
| El Salvador | 24,480 metric tons |
| Guatemala | 32,640 metric tons |
| Honduras | 8,160 metric tons |
| Nicaragua | 22,440 metric tons |
Chile, Morocco Each Have Trade Deficit, Not Eligible for a 2007 TRQ Amount
According to the USTR, 2005 data1 indicates that Chile's and Morocco's imports of sugar and syrup goods and sugar-containing products exceeded its exports of those goods2, resulting in a trade deficit.Therefore, subject goods from Chile are not eligible to enter the U.S duty-free under HTS 9911.17.05 or at preferential tariff rates under 9911.17.10 through 9911.17.85 in CY2006 or CY2007. Subject goods from Morocco are not eligible to enter the U.S duty-free under HTS 9912.17.05 or at preferential tariff rates under 9912.17.10 through 9912.17.85 in CY 2006 or CY 2007.
TRQs for Trade Surplus Countries to Open on January 2, 2007
According to USTR sources, these TRQs will open on January 2, 2007; and, U.S. Customs, and Border Protection (CBP) is expected to soon issue a notice announcing the TRQs.
1 USTR's determinations were based on data from CY 2005, the most recent year for which data is available.
2 See USTR notice for the HTS Chapter 17 subheadings used to classify goods that were included in the calculation of the trade surplus for each of the above-listed DR-CAFTA countries.
3 According to HTS Chapter 98, Subchapter XXII, U.S. Note 23, goods that enter under 9822.05.20 must satisfy the requirements of HTS General Note 29(a), except that operations performed in, or material obtained from, the U.S. shall be considered as if the operations were performed in, and the material was obtained from, a country that is not a party to the FTA as defined in HTS General Note 29(a). For purposes of determining which country-specific TRQ applies to such a good, the nonpreferential rules of origin used in the normal course of trade shall be applied.
4 The above-listed DR-CAFTA countries are each eligible to receive TRQ amounts equal to the lesser of: (1) that country's trade surplus, or (2) the specific quantity set out in U.S. Note 25(b)(ii) to Subchapter XXII of HTS Chapter 98 for that country for that calendar year. Note that for CY 2007, the countries were given the HTS specific quantity.
USTR Contact - Leslie O'Connor (202) 395-6127
USTR Notice (FR Pub 12/21/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-21778.pdf