USDA Adjusts Dairy Licensing Appendices for the 2010 TRQ Year

The Appendices included in the USDA final rule are:

• Appendix 1 -- Historical licenses. These licenses are renewable. A person with a historical license in one year may ask for a license for the same product from the same country for the next year. A new license will be issued as long as that person has met the requirements of the regulation.
• Appendix 2 -- Non-historical licenses. These licenses cannot be renewed. A person may reapply for an identical non-historical license for the next year, but the application may or may not be granted because these licenses are issued through a lottery.
• Appendix 3 -- Designated licenses. These cheese import licenses are issued to importers who have met the regulations' qualification standards and have been designated by the government of the exporting country to receive a license. Not all exporting countries participate in the designation process. USDA sources have previously stated that Appendix 3 license quantities only change pursuant to negotiations on a multilateral basis.

When Historical Licenses are Surrendered, Etc. Amount is Transferred

USDA states that licenses are issued on a calendar year basis, and each license authorizes the license holder to import a specified quantity and type of dairy article from a specified country of origin. Pursuant to 7 CFR 6.34(a) whenever a historical license (Appendix 1) is not issued to an applicant pursuant to the provisions of 7 CFR 6.23, is permanently surrendered, or is revoked, the amount of such license is transferred to Appendix 2 (non-historical license).

(See ITT’s Online Archives or 10/07/08 news, (Ref: 08100740), for BP summary of an October 2008 USDA final rule suspending the historical license reduction provisions of the dairy TRQ import licensing program based on surrenders of unused quantities, until 2011.)

Revised Appendices List Cheese and Non-Cheese Dairy Products & Quantities for 2010 TRQ Year

Revised Appendices 1, 2, and 3 of the USDA's Dairy Tariff-Rate Import Quota Licensing Regulation for the 2010 TRQ year lists subject cheese and non-cheese dairy articles and their HTS Chapter 4 Additional U.S. Note (AUSN) number. In addition, the Appendix 1, 2 and 3 quantities (if any) for each TRQ are listed, as well as the sublevels for specified countries or country groups.

(According to a 2008 USDA fact sheet, for dairy products subject to this TRQ licensing system, an import license from USDA's FAS is generally required to bring in items at the low-tier tariff rate. No license is required to import subject products at the high-tier rate; to import dairy products for an agency of the U.S. Government; or to bring in products for personal use, as long as net weight does not exceed 5 kilograms (approximately 11 pounds) in any one shipment.

USDA further explains that certain dairy products may be imported without a license, such as soft-ripened cow's-milk cheeses, such as Brie, or products from 100% sheep's or goat's milk (except for blue cheese made from or containing sheep's or goat's milk).

Certain dairy products may also be imported without a license under a "first-come, first-served" system. This means these products may be brought in at the low-tier tariff rate until a specified TRQ is filled. The USDA states that the items covered under the "first-come, first-served" system include: dairy products imported under a free trade agreement (FTA), certain cheddar cheese from Canada, fluid milk or cream (fresh or sour), milk or cream (condensed or evaporated and in airtight containers), and dried buttermilk or whey, etc.)

USDA contact -- Abdelsalam El-Farra (202) 720-9439 or abdelsalam.elfarra@fas.usda.gov