FAS Asks for Comments on Possible Changes to Dairy TRQ License Program
The Foreign Agricultural Service is asking for comments on potential changes to its dairy tariff-rate quota licensing regime. The agency is considering changing dairy TRQ provisions on license issuance procedures, historical licenses, license fee assessments, and reallocations. Comments are due by April 8.
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Comments on any part of the dairy TRQ regulation at 7 CFR 6.20-6.37 are welcome, FAS said. The agency also identified the following areas for comment, some in response to requests from stakeholders:
Historical licenses. Under the current regulation, any historical licensee who surrenders more than 50 percent of the license amount for the same item from the same country for three of the past five years will be issued a license in the amount of the average imported for the previous five years. The provision is currently suspended until 2015. FAS is considering either eliminating these license amount reductions, or revising or permanently suspending them.
Timelines and deadlines. FAS is considering revising timelines and deadlines, including for surrender and reallocation. Some stakeholders have requested that reallocation be done before Oct. 1 each year, to provide more time to identify supplies and arrange shipping and handling for entry.
Annual fees. Some stakeholders have asked FAS to review its method for calculating the annual fee. Fees are currently levied per license, but could be levied in other ways, including per kilogram, the agency said.
Other areas for comment. In addition to issues raised by stakeholders, FAS is more generally asking for comment on the following questions:
- Does the historical and nonhistorical license system still serve a purpose?
- Should any provisions of the current regulation be modified in light of significant advances in technology and telecommunications?
- Should methods be developed for issuing licenses that would increase competition among importers?
- Should licenses be auctioned or issued on another basis?
FAS Contact: Abdelsalam El-Farra -- (202) 720-9439