FY 1998 TARIFF-RATE QUOTAS FOR REFINED, SPECIALTY, AND RAW-CANE SUGAR s

WASHINGTON, Sept. 15, 1997--Agriculture Secretary Dan Glickman today announced the fiscal year (FY) 1998 tariff-rate quotas (TRQs) for refined, specialty, and raw-cane sugar.

USDA received approximately 40 responses to the July 9, 1997, USDA press release No. 0222.97 soliciting comments regarding the FY 1998 administrative approach. After considering those comments and, with the intent to administer the sugar legislation in a manner that is fair and transparent for domestic growers and other segments of the sugar industry, USDA will initially make available 1,200,000 metric tons raw value (1,322,774 short tons raw value) for entry into the U.S. Customs Territory under the FY 1998 raw cane sugar TRQ. If the stocks-to-use ratio reported in the January 1998 World Agricultural Supply and Demand Estimates (WASDE) report is less than or equal to 15.5 percent (rounded to the nearest tenth), an additional 200,000 metric tons (220,462 short tons raw value) will be available for entry. If the ratio is greater than 15.5 percent, the 200,000 tons being held in reserve will not be made available. The same process will occur with the March and May WASDE reports.

Certificates of Quota Eligibility (CQEs) will be issued to allow Brazil, the Dominican Republic, and the Philippines to ship up to 25 percent of each country's allocation at the low-tier tariff during each quarter of FY 1998. Argentina, Australia, Colombia, El Salvador, Guatemala, Nicaragua, Panama, Peru, and South Africa will be allowed to ship up to 50 percent of their initial allocations in the first six months of FY 1998. Unentered allocations, during any quarter or six- month period, may be entered in any subsequent period. For all other countries, CQEs corresponding to each country's allocation may be entered at the low-tier tariff at any time during the fiscal year. Should country allocations result from the January, March, and May stocks-to-use trigger, they may be entered subsequent to their allocation by the U.S. Trade Representative.

During the TRQ period, USDA will continue to monitor the import requirements necessary to meet U.S. domestic demand and may, at any time, increase the size of the TRQ to ensure sufficient sugar supplies in the U.S. market. Further TRQ increases, if necessary, will be made on the basis of the most reliable supply and use information available. Any additional increase will not affect the stocks-to-use percentage trigger or any remaining allocations or cancellations of the originally announced TRQ.

USDA has established the size of the refined and specialty sugar TRQs. The refined sugar TRQ is set at 50,000 metric tons (55,116 short tons) for entry of sugar, of which the content of sucrose by weight, in the dry state, corresponds to a polarimeter reading of 99.5 degrees or more. The specialty sugar TRQ, which is a subset of the refined sugar TRQ, is established at 4,656 metric tons raw value (5,132 short tons raw value). For entry into the U.S. Customs Territory, specialty sugar must have a polarity of at least 99.5 degrees and be accompanied by a specialty sugar certificate.

Conversion factor: 1 metric ton = 1.10231125 short tons