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2012 Agricultural/Surplus Sugar DR-CAFTA TRQs Opened Jan 3

U.S. Customs and Border Protection has posted a memorandum announcing the 2012 tariff rate quotas (TRQs) for agricultural products (including trade surplus sugar) described in HTS Chapter 98, Subchapter XXII, U.S. Notes 24 and 25 and HTS Chapter 99, Subchapter XV, U.S. Notes 4 through 14 with respect to the U.S.-Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).

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(CBP explains that the DR-CAFTA contains quantitative restraints associated with a reduced duty rate for agricultural products that meet the requirements for a "qualifying good." A qualifying good is one that meets the product specific rule of origin; however, any U.S. materials or inputs are considered non-originating.

Most or all of these TRQs have a duty-free in-quota limit. Some also have an over-quota (high-duty) limit, while others additionally have a safeguard (high-duty rate) once that over-quota limit is filled. Affected products include sugar, sugar-containing products, beef, peanuts, peanut butter, cheese, milk powder, butter, other dairy products, ice cream, milk, cream, sour cream, and ethyl alcohol. Note that U.S. materials are considered non-originating.)

The following DR-CAFTA TRQs opened on January 3, 2012:

Trade surplus sugar/syrup/products. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) TRQ amounts of sugar, sugar syrup, and sugar-containing products, as provided for in HTS Chapter 98 Subchapter XXII, U.S. Note 25:

In-Quota
Costa Rica12,320,000 kg
Dominican Republic*
El Salvador29,680,000 kg
Guatemala39,220,000 kg
Honduras8,960,000 kg
Nicaragua24,640,000 kg

CBP notes that all raw cane sugar must be sampled in accordance with Customs Directive 3820-001b (available here).

*Amended from 11,200,000 kg per a Federal Register Notice dated 12/27/11 (available here). The notice states that during calendar year 2010, Dominican Republic imports of such goods exceeded its exports by 48,700,000 kg. The USTR determined that the Dominican Republic's trade surplus is negative, and therefore, such goods are not eligible to enter the U.S. duty-free under subheading 9822.05.20 in calendar year 2012.

Sugar/sugar goods/sugar containing products. The below-listed DR-CAFTA country has access to the following in-quota (duty-free) TRQ amount of sugar, sugar goods, and sugar containing products as provided for in HTS Chapter 98 Subchapter XXII, U.S. Note 24:

In-Quota
Costa Rica2,000,000 kg

Certain bovine meat (e.g. beef). The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) TRQ amounts of bovine meat (e.g. beef) as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 4:

In-Quota
Costa Rica13,548,000 kg
Dominican Republic2,040,000 kg
El Salvador135,000 kg
Honduras675,000 kg
Nicaragua13,500,000 kg

CBP states that these quantities shall be available only after the quantity allocated to "Other Countries or areas" under HTS Chapter 2, Additional U.S. Note 3 has been filled for the year.

Certain milk, cream, and sour cream. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of milk, cream, and sour cream as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 5:

In-QuotaOver-Quota
Costa Rica546,037 L163,811 L
El Salvador491,433 L147,430 L
Guatemala409,528 L122,858 L
Honduras750,801 L225,240 L
Nicaragua341,273 L102,382 L

Certain milk, cream, sour cream, butter, butter substitutes, etc. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of milk and cream, sour cream, butter, butter substitutes, etc. as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 6:

In-QuotaOver-Quota
Costa Rica67,000 kg
El Salvador80,000 kg24,000 kg
Honduras134,000 kg40,000 kg

Certain dried milk products, animal feeds. The below-listed DR-CAFTA country has access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amount of certain dried milk products and animal feeds containing milk or milk derivatives as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 7:

In-QuotaOver-Quota
Costa Rica67,000 kg20,000 kg

Certain milk, cream, yogurt, whey, confectionery, food preparations, infant preparations, mixes and dough, etc. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of milk, cream, yogurt, whey, confectionery, food preparations, infant preparations, mixes and dough, etc. as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 8:

In-QuotaOver-Quota
Costa Rica201,000 kg60,000 kg
Dominican Republic170,000 kg51,000 kg
El Salvador161,000 kg48,000 kg
Guatemala335,000 kg100,000 kg
Nicaragua134,000 kg40,000 kg

Certain milk and cream. The below-listed DR-CAFTA country has access to the following in-quota (duty-free) TRQ amount of milk and cream as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 9:

In-Quota
Dominican Republic340,000 kg

Certain cheese and curd, including mixtures. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of cheese and curd, including mixtures, as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 10:

In-QuotaOver-Quota
Costa Rica402,000 kg121,000 kg
Dominican Republic638,000 kg191,000 kg
El Salvador603,000 kg181,000 kg
Guatemala670,000 kg201,000 kg
Honduras469,000 kg141,000 kg
Nicaragua838,000 kg251,000 kg

Certain cheese and curd, including mixtures. The below-listed DR-CAFTA country has access to the following in-quota (duty-free) TRQ amount of cheese and curd, including mixtures, as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 11:

In-Quota
Nicaragua335,000 kg

Certain peanuts. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of peanuts as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 12:

In-QuotaOver-Quota
El Salvador650,000 kg195,000 kg
Nicaragua12,000,000 kg3,600,000 kg

Certain peanut butter and paste. The below-listed DR-CAFTA country has access to the following in-quota (duty-free) TRQ amount of peanut butter and paste as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 13:

In-QuotaOver-Quota
Nicaragua448,000 kg134,000 kg

Certain ice cream. The below-listed DR-CAFTA countries have access to the following in-quota (duty-free) and over-quota (high-duty) TRQ amounts of ice cream as provided for in HTS Chapter 99 Subchapter XV, U.S. Note 14:

In-QuotaOver-Quota
Costa Rica130,100 L39,032 L
Dominican Republic247,572 L74,272 L
El Salvador104,085 L31,226 L
Guatemala260,212 L78,064 L
Honduras65,053 L19,516 L
Nicaragua357,791 L107,337 L

CBP notes that "P+" should be used as the primary special program indicator (SPI). Entry type code 02, 06, 07, 12, 23, 32, 38, or 52 should be used.

(QBT-11-577, dated 12/19/11, amended 12/29/11)