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Dairy TRQ Information Collections Under Review

Wednesday, April 26, 2017
Sandler, Travis & Rosenberg Trade Report

The Department of Agriculture’s Foreign Agricultural Service is accepting comments through May 26 on the proposed extension of information collections associated with the regulation that governs the administration of the import licensing system applicable to most dairy products subject to tariff-rate quotas.

Imports of nearly all cheeses made from cow’s milk and certain non-cheese dairy articles (including butter and dried milk) are subject to TRQs and must be accompanied by an import license issued by USDA to enter at the lower tariff. Importers without licenses may enter these dairy articles but are required to pay the higher tariff.

Each quota year, all applicants must submit form FAS 923, which requires them to (1) certify that they are an importer, manufacturer, or exporter of certain dairy products, (2) certify that they meet the eligibility requirements, and (3) submit required documentation as proof of eligibility for import licenses. Applicants for non-historical licenses must submit forms FAS 923-A (cheese) and/or FAS 923-B (non-cheese dairy products), which require applicants to request licenses in descending order of preference for specific products and countries listed on the form.

After licenses are issued, licensees must surrender by Oct. 1 on form FAS 924-A any license amount that they do not intend to enter that year. These amounts are reallocated, to the extent practicable, to existing licensees for the remainder of that year based on requests submitted on form FAS 924-B. Forms 924-A and 924-B require the licensee to complete a table listing the surrendered amount by license number or listing the additional amounts requested by dairy article and supplying country in descending order of preference.

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