USDA, CBP Announce Limited Global Import Quota for Upland Cotton
The Department of Agriculture has announced a limited global market quota that will allow additional U.S. imports of up to 47,291,415 kilograms (104,259,811 pounds) of Strict Low Middling (SLM) upland cotton.
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Average Price for SLM was 242.8% Above Average Price from April 2008 -- March 2011
The Agricultural Act of 1949, as amended, requires the President to establish a limited global import quota whenever the Secretary of Agriculture determines and announces that the average price of the base quality of upland cotton in the designated spot markets for a month exceeded 130% of the average price of such quality of cotton in such markets for the preceding 36 months.
In April 2011, the average spot market price for SLM 1-1/16 inch (leaf grade 4, micronaire 3.5-3.6 and 4.3-4.9, strength 24-25 grams per tex) upland cotton was 181.98 cents per pound, which is 242.8% of the April 2008 through March 2011 average price.
CBP Issues Memo on Quota Opening
U.S. Customs and Border Protection has also issued a memorandum announcing the opening of this special import quota. According to CBP, the quota is provided for in HTS Chapter 99, Subchapter III, U.S. Note 6 and the subject cotton should be entered under HTS 9903.52.00. CBP notes that this quantity is not subject to the TRQs in Chapter 52 Additional U.S. Notes 5 through 10.
The quota period is May 3 -- July 31, 2011. To be counted under this quota, the cotton must be imported during this period. The opening date is May 3, 2011.
(Note that the last opening of a special import quota for upland cotton was on November 4, 2010. See ITT’s Online Archives or 11/04/10 news, 10110342, for BP summary.)
USDA press release is available here.
CBP memo (QBT-11-508) is available here.