Background

The Department of Agriculture’s Foreign Agricultural Service has announced that it will charge a $324 fee (up from $290) for the 2022 tariff-rate quota year for each license it issues to a person or firm authorizing the importation of certain dairy articles that are subject to TRQs set forth in the Harmonized Tariff Schedule of the United States. These articles (which include butter, dried milk, and various cheeses) may only be entered into the U.S. at the in-quota tariff rates by or for the account of a person or firm to whom such licenses have been issued and only in accordance with the terms and conditions of the regulation. Licenses are issued on a calendar year basis and each license authorizes the holder to import a specified quantity and type of dairy article from a specified country of origin.

Separately, the USDA has issued a notice that sets forth the revised appendices to the dairy TRQ licensing regulation for the 2021 quota year reflecting the cumulative annual transfers for certain dairy product import licenses permanently surrendered by licensees or revoked by the licensing authority. Whenever a historical license (Appendix 1) is not issued to an applicant or is permanently surrendered or revoked, the amount of that license must be transferred to the list of non-historical licenses in Appendix 2.

These appendices have also been adjusted to reflect changes to United Kingdom and European Union country allocations for certain TRQs and other changes made in response to the UK’s withdrawal from, and Croatia’s accession to, the EU, which will go into effect for the 2022 quota year.

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