[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Proposed Rules]
[Pages 14478-14484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6403]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 6

RIN 0551-AA59


Licensing for Certain Sugar-Containing Products Under Tariff-Rate 
Quota

AGENCY: Office of the Secretary, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule provides for licensing of imports of sugar-
containing products which enter under the tariff-rate quota (TRQ) 
provided for in Additional U.S. Note 8 to chapter 17 of the Harmonized 
Tariff Schedule of the United States (HTS).

[[Page 14479]]


DATES: Comments should be received on or before April 17, 2000 to be 
assured of consideration.

ADDRESSES: Comments should be mailed or delivered to Diana Wanamaker, 
Import Policies and Programs Division, Foreign Agricultural Service, 
1400 Independence Avenue SW, STOP 1021, U.S. Department of Agriculture, 
Washington, DC 20250-1021. Comments received may be inspected between 
10 a.m. and 4 p.m. at room 5541-S, 1400 Independence Avenue SW, 
Washington, DC 20250-1021.

FOR FURTHER INFORMATION CONTACT: Diana Wanamaker at the address above, 
or telephone at 202-720-2916, or e-mail at [email protected].

SUPPLEMENTARY INFORMATION:  

Executive Order 12866

    This proposed rule has been classified as ``not significant.'' In 
conformity with this designation, except for requirements under the 
Paperwork Reduction Act of 1995, the rule has not been reviewed by the 
Office of Management (OMB). The provisions of this proposed rule would 
not: (1) Result in an annual effect on the economy of $100 million or 
more; (2) adversely affect, in a material way, the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; or (3) regulate issues of human health, human safety, or 
the environment.
    Furthermore, the proposed rule would not: (1) Create a serious 
inconsistency or otherwise interfere with an action taken or planned by 
another agency; (2) materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs, or the rights and 
obligations of recipients; or (3) raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or the 
principles set forth in Executive Order 12866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act ensures that regulatory and 
information requirements are tailored to the size and nature of small 
businesses, small organizations, and small governmental jurisdictions. 
This proposed rule will not have a significant economic impact on a 
substantial number of small entities. Participation in the programs is 
voluntary. Direct and indirect costs are likely to be very small as a 
percentage of revenue and in terms of absolute costs. The minimal 
regulatory requirements impact large and small businesses equally, and 
the licensing program should improve small businesses' cash flow and 
liquidity.

Paperwork Reduction Act

    The paperwork and record keeping requirements must be approved by 
the Office of Management and Budget (OMB) pursuant to the Paperwork 
Reduction Act of 1995. A Paperwork Reduction Act submission has been 
prepared for the proposed rule and copies of the information collection 
may be obtained from Kimberly Chisley, the Agency Information 
Collection Coordinator, at (202) 720-2568 or e-mail at 
[email protected].
    The information collection is necessary to enable FAS to implement 
and administer the licensing system that will be established by the 
proposed rule. The proposed rule will require eligible applicants for 
historical or nonhistorical licenses to submit a letter of application 
to the Department for each TRQ year that a license is being requested. 
All applicants shall provide the standard business information set 
forth in Sec. 6.53 (e.g., address, fax number). For applicants for 
historical licenses, Sec. 6.53(c)(8) also requires that: (1) Importers 
of sugar-containing products entered in retail size containers, submit 
either U.S. Customs Service Forms 7501 to document entries during the 
representative period, or submit a summary listing of such import 
entries; and (2) buyers of imports in bulk form which were packaged or 
processed in the United States by or for the account of an applicant, 
submit supporting documentation (e.g., purchase orders) that provides a 
record of the quantities of bulk imports that were entered during the 
representative period for processing or packaging in the United States. 
In addition, all applicants for historical licenses shall submit a 
notarized certification statement that the information submitted is 
true and accurate.
    The estimated public reporting burden for the information 
collection for the three years period for which OMB approval is being 
requested is indicated in following table:

                    Estimated Annual Reporting Burden
------------------------------------------------------------------------
                                                                3 year
                                Year 1    Year 2    Year 3     average
------------------------------------------------------------------------
Number of respondents........        20        20        20           20
Responses per respondent.....         1         1         1            1
------------------------------------------------------------------------
    Total annual burden in        91.25      5.00      5.00        33.75
     hours...................
------------------------------------------------------------------------

    The estimated burden hours in the first TRQ year is higher than in 
the second and third TRQ years because the supporting documentation 
required to establish eligibility for a historical license will be 
compiled and submitted in that TRQ year. Once eligibility for a 
historical license is established, applicants will be required only to 
submit the standard business information and certification statement.
    During the first TRQ year, it is estimated that: (1) Five 
applicants will apply for a historical license to import from Canada, 
and 10 applicant will apply for a historical license to import from 
other countries, and the information collection will take an estimated 
6 hours per applicant (total 90 hours); (2) five applicants will apply 
for a nonhistorical license and the information collection will take an 
estimated 15 minutes per applicant (total 1.25 hours). During the 
second and third TRQ years, it is estimated that 20 applicants will 
apply for either renewal of a historical licenses or issuance of a 
nonhistorical license. The information collection will take an 
estimated 15 minutes per applicant (total 5 hours).
    The total average hourly burden for the three TRQ years will be 
33.75 hours. The total estimated average cost associated with the 
information collection, based on costs of preparing similar information 
collections, for the three TRQ years will be $1,012.50.
    The Department requests comments on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the

[[Page 14480]]

quality, utility and clarity of the information to be collected; and 
(d) ways to minimize the burden of collection of information to those 
who are to respond, including through use of appropriate automated, 
electronic, mechanical or other technological collection techniques or 
other form of information technology. Comments on the information 
collection should be sent to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Room 10202, New Executive 
Office Building, Washington, DC 20503. Attention: Desk Officer for 
USDA/FAS. Comments on the issues covered by the Paperwork Reduction Act 
should be submitted no later than 60 days from the date of publication 
to be assured of consideration.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988. 
The provisions of this proposed rule would not have preemptive effect 
with respect to any state or local laws, regulations, or policies which 
conflict with such provision or which otherwise impede their full 
implementation. The proposed rule would not have retroactive effect. 
Administrative proceedings are not required before parties may seek 
judicial review.

National Environmental Policy Act

    The Secretary of Agriculture has determined that this action will 
not have a significant affect on the quality of the human environment. 
Therefore, neither an Environmental Assessment nor an Environmental 
Impact Statement is necessary for this proposed rule.

Executive Orders 12372 and 12875, and the Unfunded Mandates Reform 
Act (Pub. L. 104-4)

    These Executive Orders and Public Law 104-4 require 
intergovernmental review of programs. This proposed rule does not 
impose an unfunded mandate or any other requirement on state, local or 
tribal governments. Further, the program is national in scope and 
involves a power delegated to the United States by the Constitution to 
regulate international trade. Accordingly, these programs are not 
subject to the provisions of Executive Order 12372, Executive Order 
12875, or the Unfunded Mandates Reform Act.

Executive Order 12612

    Executive Order 12612 requires implications of ``federalism'' be 
considered in the development of regulations. The Secretary of 
Agriculture certifies that this proposed rule has been reviewed in 
light of Executive Order 12612 and that it is consistent with the 
principles, criteria and requirements stated in sections 2 through 5 of 
this Executive Order. The Secretary of Agriculture further certifies 
that this proposed rule would impose no additional cost or burden on 
the states, nor affect the state's abilities to discharge traditional 
State governmental functions.

Executive Order 12606

    Executive Order 12606 requires that government action include 
consideration of maintaining stability and strengthening the family. 
The Secretary of Agriculture has determined, under the principles and 
criteria established in Executive Order 12606, that this proposed rule 
will have no effect on the family.

Executive Order 12630

    This Order requires careful evaluation of governmental actions that 
interfere with constitutionally protected property rights. This 
proposed rule would not interfere with any property rights and, 
therefore, does not need to be evaluated on the basis of the criteria 
outlined in Executive Order 12630.

Background

Previous Quotas

    Presidential Proclamation 5294 of June 28, 1985 imposed absolute 
quotas on imports of certain sugar-containing products pursuant to the 
provisions of section 22 of the Agricultural Adjustment Act of 1933, as 
amended (7 U.S.C. 624). Action was taken to restrict imports which were 
entering the United States in circumvention of the absolute quota on 
imports of raw sugar and were entering under such conditions and in 
such quantities as to cause or threaten to cause material interference 
with the price support program for sugar beets and sugar cane. 
Presidential Proclamation 5340 of May 17, 1985, modified these section 
22 quotas to limit their scope to imports containing over 10 percent by 
dry weight of sugar, and to exclude ``articles not principally of 
crystalline structure or not in dry amorphous form that are prepared 
for marketing to the retail consumers in the identical form and package 
in which imported.''

Uruguay Round Commitment on TRQs

    On April 15, 1994, the President entered into trade agreements 
resulting from the Uruguay Round of multilateral trade negotiations 
(``Uruguay Round Agreements''). As part of those agreements, countries 
agreed that all systems of absolute quotas for all agricultural 
products would be eliminated and converted to TRQs, including imports 
of certain sugar-containing products containing over 10 percent dry 
weight of sugar. In section 101(a) of the Uruguay Round Agreements Act 
(the URAA) (Pub. L. 103-65; 108 Stat. 4809), Congress approved the 
Uruguay Round Agreements, including the General Agreement on Tariffs 
and Trade 1994. Presidential Proclamation 6763 of December 23, 1994, 
implemented the Uruguay Round Agreements (URAA). The Proclamation 
terminated section 22 quotas; proclaimed TRQs for such articles; and 
modified the HTS accordingly. Under the HTS, Additional U.S. Note 3 to 
chapter 17 defines the term sugar-containing products containing over 
10 percent by dry weight of sugar. Additional U.S. Note 8 to chapter 17 
provides that the aggregate quantity of articles described in 
Additional U.S. Note 3 which are entered under 10 specific HTS numbers 
are subject to a TRQ which limits imports entered from October 1 
through September 30 to 64,709 metric tons. Imports from Mexico are not 
permitted entry under this TRQ.

Bilateral Agreement

    Subsequent to the Uruguay Round, the United States and Canada 
entered into a bilateral agreement (September 4, 1997). As a result of 
that agreement, the United States Trade Representative announced on 
September 16, 1998, (effective October 1, 1998) an allocation of 59,250 
metric tons to Canada for certain sugar-containing products entered 
under the TRQ set forth in U.S. Additional Note 8 of chapter 17 of the 
HTS. This allocation was based on Canada's historical exports to the 
United States. In addition, an allocation to other countries (excluding 
Canada) of 5,459 metric tons became effective on October 1, 1998.
    The United States and Canada also signed a Record of Understanding 
Regarding Areas of Agricultural Trade (December 4, 1998) which requires 
export permits issued by the Canadian Government to accompany imports 
of articles containing more than 10 percent by dry weight of sugar as a 
condition of entry under this TRQ, effective February 4, 2000. On June 
11, 1999, the Canadian Government issued the Notice to Exporters No. 
117 pursuant to the Export and Import Permits Act which governs the 
issuance of export permits for each shipment of sugar-containing 
products covered by the U.S. TRQ. For each of three years beginning in 
1999/2000, six percent of each licensee's bulk shipment allocation will 
be converted to

[[Page 14481]]

a retail packaged allocation or moved to a retail packaged allocation 
pool. This proposed rule is intended to establish a U.S. import 
licensing system to ensure that the opportunity to fill this TRQ 
continues to be based on customer requirements.

Implementation of TRQs

    Section 404(a) of the URAA, 19 U.S.C. 3601(a), directs the 
President to take such action as may be necessary in implementing 
Uruguay Round TRQs (set forth in Schedule XX--United States of America, 
annexed to the Marrakesh Protocol to the General Agreement on Tariffs 
and Trade 1994) to ensure that imports of agricultural products do not 
disrupt the orderly marketing of commodities in the United States.
    Presidential Proclamation 6763 delegated authority under the 
statutes cited in the proclamation, including section 404(a), to the 
Secretary of Agriculture, the Secretary of the Treasury, and the United 
States Trade Representative, as necessary to perform functions assigned 
to them to implement the proclamation.
    Presidential Proclamation 7235 of October 7, 1999, delegated 
authority under section 404(a) to administer the TRQs relating to 
agricultural products to the United States Trade Representative and 
delegated authority to the Secretary of Agriculture to issue licenses 
governing the importation of such products under the applicable TRQs. 
The Secretary of Agriculture exercises such licensing authority in 
consultation with the United States Trade Representative.

Proposed Rule

    This proposed rule specifies which sugar-containing products may be 
entered only by or for the account of a person to whom a license has 
been issued. Licenses issued pursuant to the provisions of this subpart 
will permit a license holder to import quantities of the subject 
articles into the United States at the applicable TRQ rate of duty. 
Imports may enter without an import license (with certain exceptions) 
at the applicable high-tier rate of duty.
    License Eligibility--Eligibility for either a historical or 
nonhistorical license requires that a person have a business office in 
the United States, be doing business in the United States, and have an 
agent for service of process. Eligibility for a historical license also 
requires that an applicant, during the representative base period, must 
have imported sugar-containing products under the TRQ and have been 
either: (1) An importer of sugar-containing products in retail size 
packages; or (2) a buyer of sugar-containing products entered in bulk 
form for processing or packaging in the United States by, or for, the 
account of such person.
    License Applications--The annual period begins on May 1 of each TRQ 
year. Applicants will be requested to submit applications by August 30 
in order for licenses to be issued by October 1. An application for a 
nonhistorical license must provide the standard business information 
required in Sec. 6.53(b). An application for a historical license must 
provide the standard business information required in Sec. 6.53(c), and 
the supporting documentation and certification statement required in 
Sec. 6.53(c)(8) with respect to transactions during the representative 
base period. In subsequent TRQ years, historical licenses may be 
renewed for the same quantity from the same country without re-
submission of supporting documentation. An applicant issued a 
historical license is not eligible for a nonhistorical license.
    License Issuance--Of the total TRQ quantity of 64,709 metric tons, 
59,250 metric tons will be issued for licenses to import from Canada 
and 5,459 metric tons will be issued to import from other countries. 
All licenses will specify a quantity and the country of origin. 
Historical license quantities will be based on an applicant's 
supporting documentation submitted under Sec. 6.53(c)(8). Nonhistorical 
license quantities will be based on the TRQ quantities not allocated to 
historical licenses and the number of applicants for nonhistorical 
licenses. Once licenses are issued, licensees will be responsible for 
maintaining records on license usage.
    The Secretary of Agriculture has determined that this subpart will, 
to the fullest extent practicable, result in fair and equitable 
allocation of the right to import articles subject to such TRQ. The 
subpart will also maximize utilization of the TRQ for such articles, 
taking due account of any special factors which may have affected or 
may be affecting the trade in the articles concerned.
    The Department invites comments on all aspects of the proposed rule 
including the: eligibility and performance requirements for historical 
licenses; representative historical period; percentage of the total TRQ 
that should be set aside for new entrants to establish themselves in 
the sugar-containing products business; minimum license sizes for 
nonhistorical licenses for imports in bulk and retail size packages; 
costs and unintended market consequences of the licensing requirement 
to importers, buyers and consumers; and less restrictive alternatives 
to licensing that would address concerns that Canada's export permit 
system does not alter trade flows (e.g., continuing not to require the 
submission to the U.S. Customs Service of export permits from the 
Government of Canada).

List of Subjects in 7 CFR Part 6

    Agricultural commodities, Agricultural trade, Exports, Imports, 
Sugar.
    Accordingly, the regulations at 7 CFR part 6 are proposed to be 
amended by adding a new subpart, Licensing for Certain Sugar-Containing 
Products Under Tariff-Rate Quota, to read as follows:
Subpart  --Licensing for Certain Sugar-Containing Products Under 
Tariff-Rate Quota
Sec.
6.50  Definitions.
6.51  Requirements for a license.
6.52  Eligibility for a license.
6.53  Application for a license.
6.54  Allocation of licenses.
6.55  Surrender and reallocation.
6.56  License use and license expiration.
6.57  Debarment and suspension.
6.58  Globalization or suspension of licenses.
6.59  License fee.
Subpart  --Licensing for Certain Sugar-Containing Products Under 
Tariff-Rate Quota

    Authority: Proc. 7235 of October 7, 1999, 64 FR 55609; 
Additional U.S. Note 8 to chapter 17 of the Harmonized Tariff 
Schedule of the United States and General Note 15 of the Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), Pub. L. 97-
258, 96 Stat. 1051, as amended (31 U.S.C. 9701); Pub. L. 103-465, 
secs. 103, 104, 108 Stat. 4819 (19 U.S.C. 3513, 3601).


Sec. 6.50  Definitions.

    As used in this subpart, the following terms mean:
    Agent for service of process. A person upon whom legal papers can 
be served.
    Article or sugar-containing article. Any sugar-containing products 
described in Additional U.S. Note 3 to chapter 17 of the Harmonized 
Tariff Schedule of the United States (HTS) and listed in Additional 
U.S. Note 8 to chapter 17 of the HTS.
    Commercial entry. Any entry except those made by or for the account 
of the United States Government or for a foreign government, for the 
personal use of the importer or for sampling, taking orders, research, 
or the testing of equipment.
    Country. Country of origin as determined in accordance with Customs 
rules and regulations (19 CFR chapter I).

[[Page 14482]]

    Department. The United States Department of Agriculture.
    Licensee. A person to whom a license has been issued under this 
subpart.
    Licensing authority. The person designated by the Director of the 
Import Policies and Programs Division (or its successor organization) 
of the Foreign Agricultural Service to administer the licensing 
program.
    Other countries. Countries other than Canada.
    Person. An individual, firm, corporation, partnership, association, 
trust, estate or other legal entity.
    Representative base period. October 1, 1996 through September 30, 
1999, inclusive.
    Tariff-rate quota quantity or TRQ quantity. The aggregate quantity 
of sugar-containing products provided for in Additional U.S. Note 8 of 
chapter 17 of the HTS.
    TRQ year. The 12-month period beginning on October 1 of any year 
through September 30 of the following year, inclusive.
    United States. The Customs Territory of the United States, which is 
limited to the 50 states, the District of Columbia, and Puerto Rico.


Sec. 6.51  Requirement for a license.

    (a) General rule. Except as provided in paragraph (b) of this 
section, a person who seeks to enter into the Customs Territory of the 
United States sugar-containing products subject to the TRQ established 
by Additional U.S. Note 8 to chapter 17 of the HTS shall obtain a 
license in TRQ year 2001 and subsequent TRQ years in accordance with 
this subpart. Such license shall be presented to the U.S. Customs 
Service at the time and place of importation of such sugar containing 
products.
    (b) Exceptions. Licenses are not required if:
    (1) The article is imported by or for the account of any agency of 
the U.S. Government;
    (2) The article is imported for the personal use of the importer, 
provided that the net weight does not exceed five kilograms in any one 
shipment;
    (3) The article imported will not enter the commerce of the United 
States and is imported as a sample for taking orders, for exhibition, 
for display or sampling at a trade fair, for research, for testing of 
equipment; or for use by embassies of foreign governments. Written 
approval of the Licensing Authority shall be obtained prior to entry, 
and the importer of record (or a broker or agent acting on its behalf) 
shall provide to the Licensing Authority, prior to the release of such 
articles, the appropriate Customs documentation identifying the 
article, quantity to be imported, its location, intended use, an entry 
number and the importer of record. The Licensing Authority may also 
require as a condition of import that the article be destroyed or re-
exported after such use; or
    (4) Such person importing the article pays the applicable high-tier 
rate of duty.


Sec. 6.52  Eligibility for a license.

    (a) Eligibility to apply for a nonhistorical license. A person may 
apply for a license for each TRQ year provided such person has:
    (1) A business office, and is doing business, in the United States, 
and
    (2) An agent in the United States for service of process.
    (b) Eligibility to apply for a historical license. In addition to 
meeting the requirements of paragraph (a) of this section, a person may 
apply for a historical license provided such person was either:
    (1) A buyer of sugar-containing products that were imported in bulk 
form during the representative base period under the TRQ set forth in 
Additional U.S. Note 8 to chapter 17 of the HTS and were processed or 
packaged in the United States by, or for the account of such person; or
    (2) An importer of record of imports of retail size packaged sugar-
containing products entered during the representative base period under 
the TRQ set forth in Additional U.S. Note 8 to chapter 17 of the HTS.
    (3) Eligibility for a historical license for imports from Canada 
and/or from other countries requires that the criteria of paragraphs 
(b)(1) or (2) of this section be met for Canada and/or other countries, 
respectively.
    (c) Exceptions. (1) Any licensee that fails in a TRQ year to enter 
at least 95 percent of the amount permitted under a license, shall not 
be eligible to receive a license for the next TRQ year. For purposes of 
this paragraph, the amount permitted entry under a license will exclude 
any license amount surrendered pursuant to Sec. 6.55(a), but will 
include an additional amount received pursuant to Sec. 6.55(c). Failure 
to meet the 95 percent license utilization requirement for a historical 
license will result in cancellation of that license and the transfer of 
that license amount to nonhistorical licenses.
    (2) Paragraph (c)(1) of this section will not apply where the 
licensee demonstrates to the satisfaction of the Licensing Authority 
that the failure resulted from breach by a carrier of its contract of 
carriage, breach by a supplier of its contract to supply the articles, 
act of God, or force majeure.


Sec. 6.53  Application for a license.

    (a) A person seeking a license shall apply in writing to the 
Licensing Authority. An application for a license should be submitted 
between May 1 and August 30 in order for the Licensing Authority to 
issue licenses by October 1. However, applications may be submitted at 
any time during the TRQ year, and licenses may be issued based on TRQ 
quantities remaining unallocated.
    (b) Nonhistorical license. A person meeting the eligibility 
requirements of Sec. 6.52(a) may apply for a nonhistorical license. The 
letter of application shall state the:
    (1) Name of the applicant and the firm;
    (2) Address of the firm;
    (3) Name of agent for service of process;
    (4) Telephone and fax numbers for the firm;
    (5) IRS number under which the applicant is conducting business;
    (6) Whether a license is being requested for entry of product only 
for Canada, other countries, or both; and
    (7) License quantity being requested.
    (c) Historical license. A person meeting the eligibility 
requirements of Sec. 6.52(a) and (b) may apply for a historical 
license. The letter of application shall state the:
    (1) Name of the applicant;
    (2) Address of the applicant;
    (3) Name of agent for service of process;
    (4) Telephone and fax numbers for the applicant;
    (5) IRS number under which the applicant is conducting business;
    (6) Whether a license is being requested for entry of product only 
from Canada, other countries, or both;
    (7) License quantity being requested; and
    (8) For a first time historical license, provide the information in 
paragraphs (c)(8)(i) and (ii) of this section. For renewal of a 
historical license share in subsequent TRQ years, submission of 
information in paragraph (c)(8)(i) is not required. The information to 
be provided is:
    (i) The total quantity of imports from Canada and from other 
countries for each of the TRQ years in the representative base period 
(October 1, 1996 through September 30, 1999) that was imported in bulk 
form and packaged or processed in the United States by or for the 
account of the applicant, or imported in retail size packages by, or 
for, the account of the

[[Page 14483]]

applicant. Where the applicant seeks to establish eligibility on the 
basis of imports of sugar-containing products entered in retail size 
containers, the application shall include either Customs Form 7501 to 
document entries from Canada and from other countries during the 
representative base period, or include a summary listing of import 
entry numbers, the quantity entered under the entry number, and date of 
entry for imports during the representative base period. Where the 
applicant seeks to establish eligibility on the basis of imports of 
sugar-containing products entered in bulk form, the application shall 
include supporting documentation that provides a record of those 
quantities imported in bulk form from Canada and from other countries 
to be packaged or processed in the United States by or for the account 
of the applicant.
    (ii) The applicant shall submit a notarized certification statement 
that the applicant, or a duly authorized agent, was engaged in 
importing, processing, or packaging sugar-containing products imported 
under the TRQ set forth in Additional U.S. Note 8 to chapter 17 of the 
HTS during the representative base period; the applicant meets the 
eligibility requirements in Sec. 6.52; and that the reported quantities 
of imports of sugar-containing products entered during the 
representative base period for which the applicant was the importer, 
packer, or processor is true and accurate.


Sec. 6.54  Allocation of licenses.

    (a) Historical licenses. Allocation of historical licenses will be 
based on documentation submitted under Sec. 6.53(c)(8). For each 
applicant, a renewable historical share for Canada, other countries, or 
both will be calculated on the basis that applicant's imports of sugar-
containing products entered under Additional U.S. Note 8 to chapter 17 
during the representative base period for which the applicant was 
either a buyer of sugar-containing products imported in bulk form which 
were processed or packaged in the United States by, or for the account 
of such person; or an importer of record of entries of sugar-containing 
products entered in retail size packages. Once a renewable historical 
share is determined, a person may apply for and be issued a historical 
license for the same quantity from the same supplying country in 
subsequent TRQ years. If an applicant requests, and is issued, a 
historical license in any TRQ year which exceeds that person's 
renewable historical share, that additional amount does not become part 
of the renewable historical share. Any supplementary quantities added 
to a historical license in any TRQ year will depend on TRQ quantities 
available. A person issued a historical license will not be issued a 
nonhistorical license.
    (b) Nonhistorical licenses. Allocation of nonhistorical license 
quantities will be based on the quantities remaining after TRQ 
quantities have been allocated to historical licenses, license 
quantities requested in the applications, and the number of applicants.
    (c) Of the total TRQ quantity of 64,709 metric tons, import 
licenses for 59,250 metric tons shall be allocated to Canada, and 
import licenses for 5,459 metric tons shall be allocated to other 
countries.
    (d) Any TRQ amount not allocated by October 1 may be allocated by 
the Licensing Authority in any manner deemed equitable.


Sec. 6.55  Surrender and reallocation.

    (a) If a licensee determines that it will not enter the entire 
amount of an article permitted under its license, such licensee should 
surrender its licensee right to enter the amount that it does not 
intend to enter. Surrender shall be made to the Licensing Authority in 
writing not later than July 1. Any surrender shall be final and shall 
be only for that TRQ year. The amount of the license not surrendered 
shall be subject to the license utilization requirement of 
Sec. 6.52(c)(1).
    (b) For each TRQ year, the Licensing Authority will, to the extent 
practicable, reallocate any amounts surrendered.
    (c) Any person who has been issued a license for a TRQ year may 
apply to receive an additional license, or an addition to an existing 
license for a portion of the amount being reallocated. The Licensing 
Authority will issue a notice to licensees after July 1 advising 
licensees of the application period. Any new license issued shall be 
subject to the license utilization requirement of Sec. 6.52(c)(1). For 
existing licenses, the combined total of a license amount plus any 
addition to that license shall be subject to the license utilization 
requirement of Sec. 6.52(c)(1).


Sec. 6.56  License use and license expiration.

    (a) All articles entered under a license shall meet country of 
origin requirements.
    (b) An article entered or withdrawn from warehouse for consumption 
under a license must be entered in the name of the licensee as the 
importer of record by the licensee or its agent.
    (c) Nothing in this subpart shall prevent the use of immediate 
delivery in accordance with the provisions of U.S. Customs Service 
regulations relating to tariff-rate quotas.
    (d) A licensee shall not obtain or use a license for speculation, 
brokering, or offering for sale, or permit any other person to use the 
license for profit.
    (e) A licensee shall not transfer a license to another person.
    (f) If a licensee sells, transfers, or conveys its business 
involving sugar-containing products covered by this subpart, the 
license will expire.


Sec. 6.57  Debarment and suspension.

    The Government-wide Debarment and Suspension (Nonprocurement) 
regulations and Government Requirements for Drug-Free Workplace 
(Grants), 7 CFR part 3017--Subparts A through E, apply to this subpart.


Sec. 6.58  Globalization or suspension of licenses.

    (a) If the Licensing Authority determines that entries of sugar-
containing products are likely to fall short of a country's allocated 
quantity, the Licensing Authority may permit, with the approval of the 
Office of the United States Trade Representative, the applicable 
licensees to enter the remaining balance of their license from any 
country during the remainder of the TRQ year. Requests for 
consideration of such adjustments shall be submitted to the Licensing 
Authority no later than July 1 of any TRQ year.
    (b) If the Licensing Authority determines that entries of sugar-
containing products under all import licenses have been less than 85 
percent of the aggregate TRQ quantity, due to the failure of the 
licensees to make good faith efforts to procure substantially the full 
quantity of articles covered by their licenses, the Licensing Authority 
may suspend the import licensing system with the approval of the Office 
of the United States Trade Representative.
    (c) If the Licensing Authority determines that for overriding 
economic reasons the licensing system should be suspended during any 
TRQ year, the Licensing Authority may temporarily suspend the import 
licensing system with the approval of the Office of the United States 
Trade Representative.


Sec. 6.59  License fee.

    (a) A fee shall be assessed each TRQ year for each historical 
license and nonhistorical license issued to defray the Department's 
costs of administering the licensing system. To the extent practicable, 
the fee will be announced by the Licensing Authority in a notice 
published in the Federal Register no later than May 1 of the year 
preceding TRQ year for which the fee is assessed.

[[Page 14484]]

    (b) The license fee for each license issued is due and payable in 
full by mail, postmarked no later than 60 days after issuance of a 
license for which the fee is assessed. Fee payments shall be made by 
certified check or money order payable to the Treasurer of the United 
States.
    (c) If the license fee is not paid by the final payment date, a 
hold will be placed on the use of the license and no further articles 
will be permitted entry under that license until the fee has been paid. 
The Licensing Authority shall send a warning letter by certified mail, 
return receipt requested, advising the licensee that if payment is not 
mailed within 21 days from the date of the letter, that the license 
will be permanently revoked.

    Signed at Washington, D.C. on March 9, 2000.
Timothy J. Galvin,
Administrator, Foreign Agricultural Service.
[FR Doc. 00-6403 Filed 3-16-00; 8:45 am]
BILLING CODE 3410-10-P