Background

The Office of the U.S. Trade Representative is requesting public comments no later than July 7 on specific eligibility criteria in the definition of the term “specialty sugar” in the regulations concerning the issuance of specialty sugar certificates for the tariff-rate quota on imports of sugars, syrups, and molasses.

The Department of Agriculture establishes the aggregate levels of the World Trade Organization TRQ for refined sugars each fiscal year and may reserve a quantity for specialty sugar imports. This specialty sugar TRQ is administered globally on a first-come, first-served basis, and USTR has established regulations setting forth the terms and conditions under which certificates will be issued to U.S. importers for importing specialty sugars from source countries.

In a 1990 interim rule the definition of “specialty sugar” included the criterion that such sugar require no further refining, processing, or other preparation prior to consumption, other than incorporation as an ingredient in human food. However, a 1996 final rule did not clearly indicate whether this criterion had been maintained or eliminated, and it was not reflected in the amended definition published in the regulations.

USTR is now asking for input on whether the original criterion should be retained, how the federal government could best enforce compliance with it, how it would improve or harm the operation of the specialty sugar TRQ, and how it would impact U.S. imports of sugar and U.S. sugar prices.

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