[Federal Register Volume 59, Number 85 (Wednesday, May 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10621]


[[Page Unknown]]

[Federal Register: May 4, 1994]


                                                    VOL. 59, NO. 85

                                             Wednesday, May 4, 1994

DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

7 CFR Part 1530

 

Sugar Import Licensing

ACTION: Advance Notice of Proposed Rulemaking.

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SUMMARY: The Foreign Agricultural Service (FAS) is requesting 
suggestions for revising the regulations and other program provisions 
for the sugar import licensing programs in order to improve program 
efficiency and compliance as well as to carry out relevant provisions 
of the North American Free Trade Agreement (NAFTA).

DATES: Interested persons are invited to submit written comments 
concerning the rules or administration of these programs. All written 
comments must be received on or before June 3, 1994, in order to be 
assured of consideration.

ADDRESSES: Comments should be mailed or delivered to the Team Leader, 
Import Quota Programs, Foreign Agriculture Service, room 5531, South 
Building, U.S. Department of Agriculture, Washington, DC 20250.

FOR FURTHER INFORMATION CONTACT:
Fred R. Kessel, (202) 720-5676.

SUPPLEMENTARY INFORMATION: Paragraphs 21 and 22 of Annex 703.2 of 
Chapter 7 of the NAFTA relate to the trade of sugar and sugar 
containing products which receive benefits under re-export programs. 
Paragraph 21 requires that the United States notify Mexico, in writing, 
of any export to Mexico is not obligated to grant NAFTA duty 
preferences for such products. However, paragraph 22(b) provides that 
Mexico shall accord duty-free treatment to imports of (i) U.S. raw 
sugar that will be refined in Mexico and re-exported to the United 
States, and (ii) refined sugar that has been refined in the United 
States from Mexican raw sugar. Moreover, imports qualifying for duty-
free treatment pursuant to paragraph 22(b) will not be subject to, or 
counted under, any tariff rate quota. Comments with respect to 
implementation of these provisions will be considered in drafting 
proposed regulations.
    Interested persons are encouraged to consider the rules relating to 
the maximum license sizes (7 CFR 1530.102(c) and 1530.202(c)) and 
provide comments supporting any change. FAS is considering having all 
programs conform to the metric system. This change would revise the 
maximum license sizes from short tons to metric tons.
    Another rule change being considered relates to changes in the 
notice of transfer submission to the Licensing Authority. The 
provisions at 7 CFR 1530.106(c) and 1530.204(c) relating to the 
original notice of transfer being submitted to the Licensing Authority 
within 10 days of the transfer date will be reviewed for possible 
changes. The agency is considering having the refiner licensee transmit 
to FAS the original notice of transfer within X days of the shipment 
date and then simply receive and store confirmations from the 
manufacturer licensees. Information concerning numerous transfers 
within an X-day period could be submitted to the Licensing Authority, 
either by mail or by electronic means.
    FAS is also considering modifying the rule concerning licensee 
certifications in 7 CFR 1530.105(b). The additional requirement the 
agency is considering is having the licensee provide certification to 
the Licensing Authority within 95 days of the date of export or last 
certification which ever comes first. An alternative could be to have 
periodic reports (e.g., weekly, monthly, or quarterly depending on the 
volume of license activity). This change would allow the Licensing 
Authority to establish greater compliance safeguards.
    Licensees in the Refined Sugar Re-export program have been informed 
by FAS that during the time domestic marketing allotments are in 
effect, licensees' sugar export shipments could not be certified to the 
Licensing Authority as being eligible for license credit except when 
any domestic sugar can be verified as being counted against marketing 
allotment allocations. FAS is interested in developing appropriate 
rules that would incorporate this limitation.
    FAS also is interested in comments addressing the creation of a 
program to provide for imports of raw cane sugar exempt from the 
tariff-rate quota on condition that an equivalent quantity of raw sugar 
is exported. Currently, subheading 1701.11.02 and additional U.S. note 
3(c) to chapter 17 of the Harmonized Tariff Schedule of the United 
States (HTS) authorizes the sugar licensing programs but provides only 
for imports of raw sugar ``to be used for the production (other than by 
distillation) of polyhydric alcohols, except polyhydric alcohols for 
use as a substitute for sugar in human food consumption, or to be 
refined and re-exported in refined form or in sugar-containing 
products.'' This provision would need to be amended to permit a raw 
sugar swap program.
    FAS is interested in comments relating to the implementation of an 
automated data system linking licensees with the Licensing Authority. 
Automated data processing procedures relating to the use of 
standardized forms for notices of transfer and certifications for 
export credit are of particular interest. Rule change suggestions for 
providing a structured data reporting format to enhance program 
administration and assist in verifying program compliance are also 
requested.
    FAS will give major consideration to the suggestions of 
manufacturer licensees in the sugar to be re-exported in sugar 
containing products program with respect to contractual manufacturing 
arrangements with co-packers. Comments should center on the control of 
quota-exempt sugar to prevent diversion onto the domestic market and 
the means by which manufacturer licensees would establish eligibility 
to receive credit for sugar containing product exports for products 
manufactured and exported by a co-packer.
    FAS is also considering changing the licenses used under the Sugar 
for the Production of Polyhydric Alcohol program from a license to 
import raw sugar to a license to receive transfers of refined sugar.
    Since this will be the best opportunity to modify program 
regulations, program participants should address any other issues that 
they deem appropriate.

    Signed at Washington, DC on March 31, 1994.
Richard B. Schroeter,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 94-10621 Filed 5-3-94; 8:45 am]
BILLING CODE 3410-10-M