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USDA Adjusts Dairy Licensing Appendices for 2018 TRQ Year

The U.S. Department of Agriculture revised the appendices to its Dairy Tariff-Rate Import Quota Licensing Regulation for the 2018 tariff-rate quota year, in a final rule that takes effect Aug. 27. USDA is making the changes to reflect the cumulative annual transfers from Appendix 1 to Appendix 2 for certain dairy product import licenses permanently surrendered by licensees or revoked by the Foreign Agricultural Service.

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(The dairy TRQ licensing regulation provides for the issuance of licenses to import certain dairy articles under TRQs as set forth in the Harmonized Tariff Schedule. These dairy articles may only be entered into the U.S. at the low-tier tariff by a licensed person or firm. Licenses are issued for each calendar year, and each license authorizes the license holder to import a specified quantity and type of dairy article from a specified country of origin.)

Rule’s Appendices List Historical, Non-Historical and Designated Licenses

The revised Appendices in the final rule include:

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.

Appendices 3 and 4 -- 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. Appendices 3 and 4 license quantities only change pursuant to negotiations on a multilateral basis.

​When Historical Licenses are Surrendered, Etc., Amount Is Transferred to Appendix 2

USDA said that whenever a historical license (in 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 the non-historical licenses (of Appendix 2).

Revised Appendices List Cheese, Non-Cheese Dairy Products and Quantities for 2018 TRQ Year

The revised appendices for the 2018 TRQ year list subject cheese and non-cheese dairy articles and their HTS Chapter 4 Additional U.S. Note (AUSN) number. In addition, the quantities (if any) for each TRQ are listed, as well as the sublevels for specified countries or country groups.

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