Sugar Imports Under Tariff-Rate Quotas
The United States imports sugar under a system of
tariff-rate quotas (TRQ). A TRQ is a two-tiered tariff
for which the tariff rate charged depends on the volume
of imports. A low-tier (in-quota) tariff is charged on
imports within the quota volume. A high-tier (over-quota)
tariff is charged on imports in excess of the quota volume.
Almost all raw cane sugar, refined sugars and sugar syrups,
and sugar-containing products are imported under TRQs
for those products. (See the Policy
chapter for more information on TRQs.)
Yearly imports under the raw and refined sugar TRQs since fiscal
year (FY) 2000 have averaged 1.44 million short tons, raw value
(STRV). USDA has established TRQs at lower levels in recent years
to offset increasing domestic production. ERS projects that TRQ
imports through 2015 will continue mostly at levels that are consistent
with U.S. commitments under international agreements.
Most U.S. sugar imports are raw cane sugar. The raw cane sugar
TRQ is allocated to 40 countries based on patterns established during
the relatively unrestricted free trade period of 1975-81. The Dominican
Republic, Brazil, and the Philippines hold the largest shares, approximately
17, 14, and 13 percent, respectively. Declines in the overall quantity
of the quota have reduced imports from all suppliers with the exception
of the 10 small suppliers whose allocations are limited to 7,258
metric tons, raw value (MTRV), a quantity considered to be equal
to a minimum boatload of sugar.
As of January 1, 2008, sugar from Mexico enters the United States duty-free under the North American Free Trade Agreement (NAFTA) and is not subjecte to quota restrictions.
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Imports and Exports Under the Sugar Re-Export Programs
USDA administers two re-export programs to help U.S. sugar refiners
and manufacturers of sugar-containing products compete in world
markets. The Refined Sugar Re-Export Program establishes a license
against which a refiner can import world-priced sugar for refining
and export as refined sugar or for sale to licensed manufacturers
of sugar-containing products. The Sugar-Containing Products Re-Export
Program allows U.S. participants to buy sugar from any of the refiner
participants for use in products that will be exported onto the
world market. Imports under the two programs are not subject to
sugar TRQs.
USDA also administers the Polyhydric Alcohol Program, which provides
world-priced sugar to U.S. manufacturers of polyhydric alcohols.
Participating U.S. manufacturers purchase world-priced sugar from
licensed refiners or their agents for use in the production of polyhydric
alcohols, except polyhydric alcohols that are used as a substitute
for sugar in human food consumption. U.S. sugar imports under the
two Re-Export Programs and the Polyhydric Alcohol Program have averaged
412,000 STRV in the 2000s.
The Refined and Sugar-Containing Products Re-Export Programs are
the chief source of U.S. sugar exports. During the 2000s, the Refined
Sugar Re-Export Program has averaged 213,000 STRV of exports annually,
and deliveries to domestic food manufacturers under the Sugar-Containing
Products Re-Export Program have averaged 133,000 STRV a year.
For current data on imports and exports of sugar and sweeteners,
see the Sugar and Sweeteners Yearbook tables.
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