[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Rules and Regulations]
[Pages 26783-26785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12807]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

15 CFR Part 2011


Implementation of Tariff-Rate Quota for Imports of Sugar

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Final rule.

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SUMMARY: This rule makes final the interim final rule published on 
October 4, 1990 in the Federal Register governing certificates of quota 
eligibility for imports of sugar, specialty sugar, and allocations for 
``Other Specified Countries and Areas'', with a change responding to 
comments received on that interim final rule and with conforming 
changes to reflect the entry into force of the Agreement Establishing 
the World Trade Organization (WTO).

EFFECTIVE DATE: May 29, 1996.

ADDRESSES: Office of the United States Trade Representative, Office of 
Agricultural Affairs, 600 17th Street NW., Washington, DC 20506.

FOR FURTHER INFORMATION CONTACT:
Thomas Perkins, Senior Economist for Agricultural Affairs, Room 421, 
Office of the United States Trade Representative, Washington, DC 20506; 
telephone: (202) 395-6127.

SUPPLEMENTARY INFORMATION: As a result of the Uruguay Round Agreements, 
approved by the Congress in section 101 of the Uruguay Round Agreements 
Act (URAA) (Pub. L. 103-465), the United States has replaced the 
previous tariff-rate quota (TRQ) for imports of certain sugars, syrups, 
and molasses with a new tariff-rate quota provided in Schedule XX--
United States of America annexed to the Marrakesh Protocol to the 
General Agreement on Tariffs and Trade 1994 (GATT 1994). Pursuant to 
section 111 of the URAA, the President proclaimed a number of changes 
to the Harmonized Tariff Schedule of the United States (HTS) to 
implement the new sugar TRQ (President Proclamation No. 6763 of 
December 23, 1994). The changes include, among other things, changes in 
the HTS item numbers for imports of sugar, the deletion of notes to the 
HTS, and the proclaiming of new notes to the HTS.
    A number of conforming changes need to be made to the sugar 
regulations issued by the United States Trade Representative (USTR) to 
reflect these changes to the HTS. This rule makes those conforming 
changes, as well as some technical and clerical amendments. Those 
conforming changes include correcting the references to the HTS to 
reflect the new HTS item numbers and removing subpart C as unnecessary 
in light of the fact that the allocations under the new TRQ will be 
announced annually.
    In addition, when the United States Trade Representative 
promulgated the current rule on October 4, 1990 (55 FR 40648), it did 
so as an interim rule and invited public comments. This rule includes 
an amendment to the definition of specialty sugar in response to the 
comments received.

Summary of Issues Raised by Public Comments

    Four public comments were received.

Specialty Sugars

    One commenter requested that certain edible sugar decorations be 
added to the list of products eligible for potential treatment as 
``specialty sugars.'' Pursuant to this public comment, this final rule 
adds to that list sugar decorations. Two informal comments that were 
received after the December 4, 1990, deadline requested that various 
other specified sugar products be added to the list of products 
eligible for treatment as ``specialty sugars.'' The Office of the 
United States Trade Representative, responding to these written 
comments, has added to the list: golden granulated sugar, muscovado, 
molasses sugar and sugar cubes. The United States Trade Representative 
has determined that these specific items are appropriate because they 
represent specialty sugars within the normal commerce of the United 
States.
    The United States Trade Representative also has determined that it 
is appropriate to provide in the definition for other forms of sugar 
determined by the United States Trade Representative to be specialty 
sugar products within the normal commerce of the United States.
    Another commenter requested that rock candy be removed from the 
list of products which are eligible for potential treatment as 
specialty sugar. The commenter's suggestion was not adopted primarily 
because rock candy appears to qualify as specialty sugar.

Reallocation of Quota Shortfalls

    Finally, a commenter suggested that the rule contain a provision 
that if a country were not fully utilizing its allocation under the 
tariff-rate quota, then that country's allocation would be 
automatically reallocated to other countries. The commenter's 
suggestion was not adopted in the final rule because a general 
provision to that effect is unnecessary given alternative means by 
which unused allocations may be reallocated on a case-by-case bais when 
appropriate. Moreover, the HTS authorizes the USTR, in consultation 
with the Secretaries of State and Agriculture, to modify or suspend a 
country's allocation for the remainder of a quota year whenever he or 
she determines that a country will not be filling such allocation and 
he or she finds that such action is appropriate to carry out the rights 
or obligations of the United States under any international agreement 
to which the United States is a party or is appropriate to promote the 
economic interests of the United States.

Review

    This rule has been determined to be a ``significant regulatory 
action'' under Executive Order 12866.
    Pursuant to the Unfunded Mandates Reform Act of 1995, USTR has 
assessed the effects of this rulemaking action on state, local, and 
tribal governments, and the private sector. This action does not compel 
the expenditure of $100 million or more by any state, local, or tribal 
government, or by anyone in the private sector, and therefore a 
statement under section 202 of the Act is not required.
    Pursuant to the Paperwork Reduction Act of 1980, the Office of 
Management and Budget has approved the information collection 
requirements imposed by this rule under Office of Management and Budget 
control number 0551-0014. Comments on any burden resulting from the 
information collection requirements of this regulation may be forwarded 
to: Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503. These 
programs are not subject to the provisions of Executive Order 12372 
which required intergovernmental consultation with State and local 
officials.
    No regulatory flexibility analysis is required for this rule since 
neither 5 U.S.C. 553 nor any other provision of law requires 
publication of a general notice of proposed rulemaking with respect to 
this rule. However, the United States Trade Representative has also 
determined that the rule will not have

[[Page 26784]]

a significant economic impact on a substantial number of small 
entities.

List of Subjects in 15 CFR Part 2011

    Certificates of quota eligibility, imports, specialty sugars, 
sugar.

    Accordingly, the interim rule amending 15 CFR part 2011 which 
published at 55 FR 40648 (October 4, 1990) is adopted as a final rule 
with the following changes:

PART 2011--ALLOCATION OF TARIFF-RATE QUOTA ON IMPORTED SUGARS, 
SYRUPS AND MOLASSES

    1. The authority citation for part 2011 is revised to read as 
follows:

    Authority: 19 U.S.C. 3601, Presidential Proclamation No. 6763, 
Additional U.S. note 5 to chapter 17 of the Harmonized Tariff 
Schedule of the United States.

    Section 2011.101 is revised to read as follows:


Sec. 2011.101  General.

    This subpart sets forth the terms and conditions under which 
certificates of quota eligibility will be issued to foreign countries 
that have been allocated a share of the U.S. sugar tariff-rate quota. 
Except as otherwise provided in this subpart, sugar imported from a 
foreign country may not be entered unless such sugar is accompanied by 
a certificate of quota eligibility. This subpart applies only to the 
ability to enter sugar at the in-quota tariff rates of the quota 
(subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 
1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall 
affect the ability to enter articles at the over-quota tariff rate 
(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50, 
1702.90.20, 2106.90.46).
    3. Section 2011.102 is amended by redesignating paragraphs (g) 
through (m) as paragraph (h) through (n) respectively, adding a new 
paragraph (g), and revising paragraphs (a), (c), (e), (f), (j), (k), 
(l), and (n) (as so redesignated) to read as follows:


Sec. 2011.102  Definitions.

* * * * *
    (a) ``Additional U.S. Note 5'' means additional U.S. Note 5 to 
chapter 17 of the HTS, including any amendments thereto.
* * * * *
    (c) ``Certificate of quota eligibility'' or ``certificate'' means a 
certificate issued by the Secretary to a foreign country that, when 
duly executed and issued by the certifying authority of such foreign 
country, authorizes the entry into the United States of sugar produced 
in such country.
* * * * *
    (e) ``Enter'' or ``Entry'' means to enter or withdraw from 
warehouse, or the entry or withdrawal from warehouse, for consumption 
in the customs territory of the United States.
    (f) ``Foreign country'' means, for any quota period, any foreign 
country or area with which an agreement or arrangement described in 
section 2011.106 is in effect for that quota period and to which the 
United States Trade Representative has allocated a particular quantity 
of the quota.
    (g) ``HTS'' means the Harmonized Tariff Schedule of the United 
States.
* * * * *
    (j) ``Quota'' means the tariff-rate quota on imports of sugar 
provided in additional U.S. Note 5.
    (k) ``Quota period'' means the period October 1 of a calendar year 
through September 30 of the following calendar year.
    (1) ``Raw value'' has the meaning provided in additional U.S. Note 
5.
* * * * *
    (n) ``Sugar'' means sugars, syrups, and molasses described in 
subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10, 
and 2106.90.44 of the HTS, but does not include for any foreign country 
for any quota period specialty sugars as defined in subpart B of this 
part if a quantity of the quota for that quota period has been reserved 
for specialty sugars and an amount of that quota quantity has been 
allocated to that country.
    4. Section 2011.103 is amended by revising paragraphs (a) and 
(b)(3) to read as follows:


Sec. 2011.103  Entry into the United States.

    (a) General. Except as otherwise provided in Secs. 2011.104, 
2011.109, and 2011.110, no sugar that is the product of a foreign 
country may be permitted entry unless at the time of entry the person 
entering such sugar presents to the appropriate customs official a 
valid and properly executed certificate of quota eligibility for such 
sugar.
    (b) * * *
    (3) This paragraph (b) shall not affect the manner in which the 
amount of sugar (raw value) entered is determined fo purposes of 
administering the quota.
    5. Section 2011.104(a) is revised to read as follows:


Sec. 2011.104  Waiver.

    (a) General. The Secretary may waive, with respect to individual 
shipments, any or all of the requirements of this subpart if he or she 
determines that a waiver will not impair the proper operation of the 
sugar quota system, that it will not have the effect of modifying the 
allocation of sugar made pursuant to the provisions of subdivision (b) 
of additional U.S. Note 5, and that such waiver is justified by 
unusual, unavoidable, or otherwise appropriate circumstances. Such 
circumstances include, but are not limited to, loss or destruction of 
the certificate, unavoidable delays in transmittal of the certificate 
to the port of entry, and clerical errors in the execution or issuance 
of the certificate.
* * * * *
    6. Section 2011.105(b) is revised to read as follows:


Sec. 2011.105  Form and applicability of certificate.

* * * * *
    (b) Other limitations. The Secretary may attach such other terms, 
limitations, or conditions to individual certificates of quota 
eligibility as he or she determines are appropriate to carry out the 
purposes of this subpart, provided that such other terms, limitations, 
or conditions will not have the effect of modifying the allocation of 
sugar made pursaunt to the provisions of subdivision (b) of additional 
U.S. Note 5. Such terms, limitations, or conditions may include, but 
are not limited to, maximum quantities per certificate and a specified 
period of time during which the certificate shall be valid. In no event 
shall the maximum quantity per certificate exceed 10,000 short tons.
* * * * *
    7. Section 2011.107(b) introductory text is revised to read as 
follows:


Sec. 2011.107  Issuance of certificates to foreign countries.

* * * * *
    (b) Adjustments. The Secretary may adjust the amount of 
certificates issued to a certifying authority for any quota period, 
provided that such adjustment will not have the effect of modifying the 
allocation of sugar made pursaunt to the provisions of subdivision (b) 
of additional U.S. Note 5 to reflect:
* * * * *
    8. Section 2011.109(a) is revised to read as follows:


Sec. 2011.109  Suspension or revocation of individual certificates.

    (a) Suspension or revocation. The Secretary may suspend, revoke, 
modify or add further limitations to any certificate if the Secretary 
determines that such action or actions is necessary to ensure the 
effective operation of the import quota system for sugar and that

[[Page 26785]]

such suspension, revocation, modification or addition of further 
limitations will not have the effect of modifying the allocation of 
sugar made pursuant to the provisions of subdivision (b) of additional 
U.S. Note 5.
* * * * *
    9. Section 2011.201 is revised to read as follows:


Sec. 2011.201  General.

    This subpart sets forth the terms and conditions under which 
certificates will be issued to U.S. importers for importing specialty 
sugars from specialty sugar source countries. Specialty sugars imported 
from specialty sugar source countries may not be entered unless 
accompanied by a specialty sugar certificate. This subpart applies only 
to the ability to enter specialty sugar at the in-quota tariff rates of 
the quota (subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 
1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall 
affect the ability to enter articles at the over-quota tariff rate 
(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50, 
1702.90.20, 2106.90.46).
    10. Section 2011.202 is amended by removing paragraph (g), 
redesignating paragraphs (h) through (j) as paragraphs (g) through (i), 
respectively, revising paragraphs (b), (c), (f), (g), and (i), as 
redesignated, and adding a new paragraph (j) as follows:


Sec. 2011.202  Definitions.

* * * * *
    (b) ``Certificate'' means a specialty sugar certificate issued by 
the Certifying Authority permitting the entry of specialty sugar.
    (c) ``Certifying Authority'' means the Team Leader, Import Quota 
Programs, Foreign Agricultural Service, U.S. Department of Agriculture, 
or his or her designee.
* * * * *
    (f) ``Person'' means any individual, partnership, corporation, 
association, estate, trust, or other legal entity, and, wherever 
applicable, any unit, instrumentality, or agency, of a government, 
domestic or foreign.
    (g) ``Quota'' means the tariff-rate quota on imports of sugar 
provided in additional U.S. Note 5 to chapter 17 of the Harmonized 
Tariff Schedule of the United States.
* * * * *
    (i) ``Specialty sugar'' means brown slab sugar (also known as slab 
sugar candy), pearl sugar (also known as perl sugar, perle sugar, and 
nibs sugar), vanilla sugar, rock candy, demerara sugar, dragees for 
cooking and baking, fondant (a creamy blend of sugar and glucose), ti 
light sugar (99.2% sugar with the residual comprised of the artificial 
sweeteners aspartame and acesulfame K), caster sugar, golden syrup, 
ferdiana granella grossa, golden granulated sugar, muscovado, molasses 
sugar, sugar decorations, sugar cubes, and other sugars, as determined 
by the United States Trade Representative, that would be considered 
specialty sugar products within the normal commerce of the United 
States, all of which in addition:
    (1) are sugars, syrups, or molasses described in subheading 
1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10, or 
2106.90.44 of the Harmonized Tariff Schedule of the United States,
    (2) are the product of a specialty sugar source country, and
* * * * *
    (j) ``Specialty sugar source country'' means any country or area to 
which the United States Trade Representative has allocated an amount of 
the quantity reserved for the importation of specialty sugars under 
additional U.S. Note 5 to chapter 17 of the Harmonized Tariff Schedule 
of the United States.
    11. Section 2011.203 is amended by revising paragraphs (a) and (c) 
to read as follows:


Sec. 2011.203  Issuance of specialty sugar certificates.

    (a) Specialty sugars imported into the United States from specialty 
sugar source countries may be entered only if such specialty sugars are 
accompanied by a certificate issued by the Certifying Authority.
* * * * *
    (c) Subject to quota availability, an unlimited number of complying 
shipments may enter under a given certificate and a given certificate 
may cover more than one type of specialty sugar. Issuance of a 
certificate does not guarantee the entry of any specific shipment of 
specialty sugar, but only permits entry of such sugar if the amount 
allocated to the specialty sugar source country is not already filled.
    12. Section 2011.204 is revised to read as follows:


Sec. 2011.204  Entry of specialty sugars.

    An importer or the importer's agent must present a certificate to 
the appropriate customs official at the date of entry of specialty 
sugars. Entry of specialty sugars shall be allowed only in conformity 
with the description of sugars and other conditions, if any, stated in 
the certificate.
    13. Section 2011.206 is amended by revising paragraph (c) to read 
as follows:


Sec. 2011.206  Suspension or revocation of individual certificates.

*  *  *  *  *
    (c) The determination of the Certifying Authority under paragraph 
(a) that the importer has failed to comply with the requirements of 
this subpart may be appealed to the Director, Import Policy and Trade 
Analysis Division, Foreign Agricultural Service (FAS), U.S. Department 
of Agriculture, Washington, D.C. 20250, within 30 days from the date of 
suspension or revocation. The request for reconsideration shall be 
presented in writing and shall specifically state the reason or reasons 
why such determination should not stand. The Director shall provide 
such person with an opportunity for an informal hearing on such matter. 
A further appeal may be made to the Administrator, FAS, U.S. Department 
of Agriculture, Washington, D.C. 20250, within five working days of 
receipt of the notification of the Director's decision. The Certifying 
Authority may take action under paragraph (b) during the pendency of 
any appeal.
    14. Section 2011.207(a) is revised to read as follows:


Sec. 2011.207  Suspension of the certificate system.

    (a) Suspension. The U.S. Trade Representative may suspend the 
provisions of this subpart whenever he or she determines that the quota 
is no longer in force or that this subpart is no longer necessary to 
implement the quota. Notice of such suspension and the effective date 
thereof shall be published in the Federal Register.
*  *  *  *  *
    15. Subpart B of part 2011 is amended by adding Sec. 2011.208 to 
read as follows:


Sec. 2011.208  Paperwork Reduction Act assigned number.

    The Office of Management and Budget (OMB) has approved the 
information collection requirements contained in the regulations in 
this subpart in accordance with 44 U.S.C. Chapter 25 and OMB control 
number 0551-0014 has been assigned with corresponding clearance 
effective through April 30, 1997.

Subpart C--[Removed]

    16. Subpart C of part 2011 is removed.

    Signed at Washington, D.C. on May 15, 1996.
Charlene Barshefsky
Acting United States Trade Representative
[FR Doc. 96-12807 Filed 5-28-96; 8:45 am]
BILLING CODE 3190-01-M