[Federal Register Volume 71, Number 153 (Wednesday, August 9, 2006)]
[Notices]
[Pages 45588-45589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12891]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Revised Fiscal Year 2006 Tariff-Rate Quota Additional Allocations 
for Refined and Specialty Sugar; Initial Fiscal Year 2007 Tariff-Rate 
Quota Allocations for Raw Cane Sugar, Refined Sugar, Specialty Sugar, 
and Sugar-Containing Products; and Notice of Agreement Between the 
United States and Mexico on Market Access for Sweeteners

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice of additional allocations of the in-quota quantity of 
the tariff-rate quotas for imported refined sugar and specialty sugar 
for the period October 1, 2005 through September 30, 2006 (FY 2006). 
USTR is also providing notice of country-by-country allocations of the 
FY 2007 in-quota quantity of the tariff-rate quota for imported raw 
cane sugar, refined sugar, specialty sugar and sugar-containing 
products. In addition, USTR is providing notice of Agreement between 
the United States and Mexico on Market Access for Sweeteners.

EFFECTIVE DATE: August 9, 2006.

ADDRESSES: Inquiries may be mailed or delivered to Leslie O'Connor, 
Director of Agricultural Affairs, Office of Agricultural Affairs, 
Office of the United States Trade Representative, 600 17th Street, NW., 
Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Leslie O'Connor, Office of 
Agricultural Affairs, telephone: 202-395-6127 or facsimile: 202-395-
4579.

SUPPLEMENTARY INFORMATION: Pursuant to Additional U.S. Note 5 to 
chapter 17 of the Harmonized Tariff Schedule of the United States 
(HTS), the United States maintains a tariff-rate quota for imports of 
raw cane sugar and refined sugar.
    Section 404(d)(3) of the Uruguay Round Agreements Act (19 U.S.C. 
3601(d)(3)) authorizes the President to allocate the in-quota quantity 
of a tariff-rate quota for any agricultural product among supplying 
countries or customs areas. The President delegated this authority to 
the United States Trade Representative under Presidential Proclamation 
6763 (60 FR 1007).

FY 2006

    On July 27, 2006, the Secretary of Agriculture increased the in-
quota quantity of the tariff-rate quota for refined sugar for FY 2006 
by 90,719 metric tons raw value, none of which is for specialty sugars. 
USTR is allocating a total of 26,681 metric tons raw value to Mexico. 
The remaining 64,038 metric tons raw value of the in-quota quantity may 
be supplied by any country on a first-come, first-served basis, subject 
to any other provision of law. The certificate of quota eligibility is 
required for sugar entering under the tariff-rate quota for refined 
sugar that is the product of a country that has been allocated a share 
of the tariff-rate quota for refined sugar.
    Also on July 27, 2006, the Secretary of Agriculture increased the 
in-quota quantity of the tariff-rate quota for specialty sugar for FY 
2006 by 9,000 metric tons raw value. This quantity may be supplied by 
any country on a first-come, first-served basis, subject to any other 
provision of law.

FY 2007

    On July 27, 2006, the Secretary of Agriculture announced the sugar

[[Page 45589]]

program provisions for fiscal year (FY) 2007 (Oct. 1, 2006, through 
Sept. 30, 2007). The in-quota quantity of the tariff-rate quota for raw 
cane sugar for FY 2007 is 1,343,992 metric tons* raw value, which is 
226,797 metric tons above the minimal amount to which the United States 
is committed under the World Trade Organization (WTO) Uruguay Round 
Agreements. The FY 2007 raw sugar tariff-rate quota will be allowed 
early entry beginning August 7, 2006 and no shipping patterns will be 
established. USTR is allocating this quantity. The total quantity of 
the raw cane sugar allocations of 1,343,992 metric tons raw value is 
being allocated to the following countries:

------------------------------------------------------------------------
                                                            FY 2007 raw
                                                            cane sugar
                         Country                            allocations
                                                           (metric tons
                                                            raw value)
------------------------------------------------------------------------
Argentina...............................................          55,112
Australia...............................................         106,378
Barbados................................................           8,972
Belize..................................................          14,098
Bolivia.................................................          10,253
Brazil..................................................         185,841
Colombia................................................          30,760
Congo...................................................           7,258
Costa Rica..............................................          19,225
Cote d'Ivoire...........................................           7,258
Dominican Republic......................................         225,573
Ecuador.................................................          14,098
El Salvador.............................................          33,323
Fiji....................................................          11,535
Gabon...................................................           7,258
Guatemala...............................................          61,520
Guyana..................................................          15,380
Haiti...................................................           7,258
Honduras................................................          12,817
India...................................................          10,253
Jamaica.................................................          14,098
Madagascar..............................................           7,258
Malawi..................................................          12,817
Mauritius...............................................          15,380
Mexico..................................................           7,258
Mozambique..............................................          16,662
Nicaragua...............................................          26,915
Panama..................................................          37,168
Papua New Guinea........................................           7,258
Paraguay................................................           7,258
Peru....................................................          52,548
Philippines.............................................         173,025
South Africa............................................          29,478
St. Kitts & Nevis.......................................           7,258
Swaziland...............................................          20,507
Taiwan..................................................          15,380
Thailand................................................          17,943
Trinidad & Tobago.......................................           8,972
Uruguay.................................................           7,258
Zimbabwe................................................          15,380
------------------------------------------------------------------------

    These allocations are based on the countries' historical shipments 
to the United States. The allocations of the raw cane sugar tariff-rate 
quota to countries that are net importers of sugar are conditioned on 
receipt of the appropriate verifications of origin.
    On July 27, 2006, the Secretary of Agriculture established the FY 
2007 refined sugar tariff-rate quota 57,000 metric tons raw value for 
which the sucrose content, by weight in the dry state, must have a 
polarimeter reading of 99.5 degrees or more. This amount includes the 
minimum level to which the United States is committed under the WTO 
Uruguay Round Agreement (22,000 metric tons raw value of which 1,656 
metric tons raw value is specialty sugar) and an additional 35,000 
metric tons raw value for specialty sugars. USTR is allocating a total 
of 10,300 metric tons raw value to Canada, 2,954 metric tons raw value 
to Mexico, and 7,090 metric tons raw value to be administered on a 
first-come, first-served basis. This additional amount combined with a 
specialty sugar allocation of 1,656. The 36,656 metric tons raw value 
allocation of specialty sugar, which includes the additional 35,000 
metric tons raw value of specialty sugar and the specialty sugar 
allocation of 1,656 metric tons raw value included in the 22,000 metric 
tons raw value WTO minimum, will be administered on a first-come, 
first-served basis.
    With respect to the tariff-rate quota of 64,709 metric tons for 
certain sugar-containing products maintained under Additional U.S. Note 
to Chapter 17 to the Harmonized Tariff Schedule of the United States, 
59,250 metric tons is being allocated to Canada. The remainder of the 
sugar-containing products tariff-rate quota is available for other 
countries on a first-come, first-served basis.

Mexico

    As USDA noted in its press release of July 27, the United States 
and Mexico have determined jointly, in accordance with Annex 703.2 of 
North American Free Trade Agreement (NAFTA), that Mexico is projected 
to be a net surplus producer of sugar for FY 2007, and accordingly that 
Mexico will be permitted to enter up to 250,000 metric tons raw or 
refined sugar duty free in FY 2007. Quantities allocated to Mexico 
under WTO raw cane sugar tariff-rate quota, but not the WTO refined 
sugar tariff-rate quota, will be counted against this amount. 
Certificates for quota eligibility are required for entry of tariff-
rate quota sugar from Mexico.
    As also noted in the USDA press release, the United States and 
Mexico have reached an agreement on market access for sweeteners. That 
agreement, set forth in an exchange of letters dated July 27, 2006, 
provides Mexico duty-free access to the United States for 250,000 
metric tons raw value of raw or refined sugar in FY 2007 and at least 
175,000 metric tons raw value of raw or refined sugar for the first 
three months of FY 2008 (Oct. 1 through Dec. 31, 2007). Under the 
agreement, Mexico will provide reciprocal access for U.S. high fructose 
corn syrup (HFCS), including 250,000 metric tons in FY 2007 and at 
least 175,000 metric tons for the first three months of FY 2008 (Oct. 1 
through Dec. 31, 2007). Mexico also commits that effective January 1, 
2008 it will not impose duties on U.S. HFCS. The United States and 
Mexico confirm that on July 3, 2006 they submitted a joint letter to 
the WTO Dispute Settlement Body regarding the elimination of Mexico's 
soft drink and distribution taxes. Mexico will establish a duty-free 
quota for U.S. sugar of not less than 7,258 metric tons raw value for 
each of marketing years 2006, 2007, and 2008. The over-quota tariff on 
U.S. sugar will be eliminated effective January 1, 2008 as provided for 
in the NAFTA.
    For its part, Mexico announced on July 27 its actions to implement 
the July 27 agreement with respect to FY 2007 amounts. Mexico and the 
United States will consult before July 1, 2007 in order to set 
allocations for the first three months of FY 2008, which per the 
agreement may range from 175,000 metric tons raw value to 250,000 
metric tons raw value.

*Conversion factor: 1 metric ton = 1.10231125 short tons.

Susan C. Schwab,
United States Trade Representative.
 [FR Doc. E6-12891 Filed 8-8-06; 8:45 am]
BILLING CODE 3190-W6-P