[Federal Register: March 17, 2000 (Volume 65, Number 53)]
[Proposed Rules]
[Page 14478-14484]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17mr00-24]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 6
RIN 0551-AA59
Licensing for Certain Sugar-Containing Products Under Tariff-Rate
Quota
AGENCY: Office of the Secretary, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule provides for licensing of imports of sugar-
containing products which enter under the tariff-rate quota (TRQ)
provided for in Additional U.S. Note 8 to chapter 17 of the Harmonized
Tariff Schedule of the United States (HTS).
[[Page 14479]]
DATES: Comments should be received on or before April 17, 2000 to be
assured of consideration.
ADDRESSES: Comments should be mailed or delivered to Diana Wanamaker,
Import Policies and Programs Division, Foreign Agricultural Service,
1400 Independence Avenue SW, STOP 1021, U.S. Department of Agriculture,
Washington, DC 20250-1021. Comments received may be inspected between
10 a.m. and 4 p.m. at room 5541-S, 1400 Independence Avenue SW,
Washington, DC 20250-1021.
FOR FURTHER INFORMATION CONTACT: Diana Wanamaker at the address above,
or telephone at 202-720-2916, or e-mail at Wanamaker@fas.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been classified as ``not significant.'' In
conformity with this designation, except for requirements under the
Paperwork Reduction Act of 1995, the rule has not been reviewed by the
Office of Management (OMB). The provisions of this proposed rule would
not: (1) Result in an annual effect on the economy of $100 million or
more; (2) adversely affect, in a material way, the economy, a sector of
the economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; or (3) regulate issues of human health, human safety, or
the environment.
Furthermore, the proposed rule would not: (1) Create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency; (2) materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs, or the rights and
obligations of recipients; or (3) raise novel legal or policy issues
arising out of legal mandates, the President's priorities, or the
principles set forth in Executive Order 12866.
Regulatory Flexibility Act
The Regulatory Flexibility Act ensures that regulatory and
information requirements are tailored to the size and nature of small
businesses, small organizations, and small governmental jurisdictions.
This proposed rule will not have a significant economic impact on a
substantial number of small entities. Participation in the programs is
voluntary. Direct and indirect costs are likely to be very small as a
percentage of revenue and in terms of absolute costs. The minimal
regulatory requirements impact large and small businesses equally, and
the licensing program should improve small businesses' cash flow and
liquidity.
Paperwork Reduction Act
The paperwork and record keeping requirements must be approved by
the Office of Management and Budget (OMB) pursuant to the Paperwork
Reduction Act of 1995. A Paperwork Reduction Act submission has been
prepared for the proposed rule and copies of the information collection
may be obtained from Kimberly Chisley, the Agency Information
Collection Coordinator, at (202) 720-2568 or e-mail at
Chisley@fas.usda.gov.
The information collection is necessary to enable FAS to implement
and administer the licensing system that will be established by the
proposed rule. The proposed rule will require eligible applicants for
historical or nonhistorical licenses to submit a letter of application
to the Department for each TRQ year that a license is being requested.
All applicants shall provide the standard business information set
forth in Sec. 6.53 (e.g., address, fax number). For applicants for
historical licenses, Sec. 6.53(c)(8) also requires that: (1) Importers
of sugar-containing products entered in retail size containers, submit
either U.S. Customs Service Forms 7501 to document entries during the
representative period, or submit a summary listing of such import
entries; and (2) buyers of imports in bulk form which were packaged or
processed in the United States by or for the account of an applicant,
submit supporting documentation (e.g., purchase orders) that provides a
record of the quantities of bulk imports that were entered during the
representative period for processing or packaging in the United States.
In addition, all applicants for historical licenses shall submit a
notarized certification statement that the information submitted is
true and accurate.
The estimated public reporting burden for the information
collection for the three years period for which OMB approval is being
requested is indicated in following table:
Estimated Annual Reporting Burden
------------------------------------------------------------------------
3 year
Year 1 Year 2 Year 3 average
------------------------------------------------------------------------
Number of respondents........ 20 20 20 20
Responses per respondent..... 1 1 1 1
------------------------------------------------------------------------
Total annual burden in 91.25 5.00 5.00 33.75
hours...................
------------------------------------------------------------------------
The estimated burden hours in the first TRQ year is higher than in
the second and third TRQ years because the supporting documentation
required to establish eligibility for a historical license will be
compiled and submitted in that TRQ year. Once eligibility for a
historical license is established, applicants will be required only to
submit the standard business information and certification statement.
During the first TRQ year, it is estimated that: (1) Five
applicants will apply for a historical license to import from Canada,
and 10 applicant will apply for a historical license to import from
other countries, and the information collection will take an estimated
6 hours per applicant (total 90 hours); (2) five applicants will apply
for a nonhistorical license and the information collection will take an
estimated 15 minutes per applicant (total 1.25 hours). During the
second and third TRQ years, it is estimated that 20 applicants will
apply for either renewal of a historical licenses or issuance of a
nonhistorical license. The information collection will take an
estimated 15 minutes per applicant (total 5 hours).
The total average hourly burden for the three TRQ years will be
33.75 hours. The total estimated average cost associated with the
information collection, based on costs of preparing similar information
collections, for the three TRQ years will be $1,012.50.
The Department requests comments on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the
[[Page 14480]]
quality, utility and clarity of the information to be collected; and
(d) ways to minimize the burden of collection of information to those
who are to respond, including through use of appropriate automated,
electronic, mechanical or other technological collection techniques or
other form of information technology. Comments on the information
collection should be sent to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Room 10202, New Executive
Office Building, Washington, DC 20503. Attention: Desk Officer for
USDA/FAS. Comments on the issues covered by the Paperwork Reduction Act
should be submitted no later than 60 days from the date of publication
to be assured of consideration.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988.
The provisions of this proposed rule would not have preemptive effect
with respect to any state or local laws, regulations, or policies which
conflict with such provision or which otherwise impede their full
implementation. The proposed rule would not have retroactive effect.
Administrative proceedings are not required before parties may seek
judicial review.
National Environmental Policy Act
The Secretary of Agriculture has determined that this action will
not have a significant affect on the quality of the human environment.
Therefore, neither an Environmental Assessment nor an Environmental
Impact Statement is necessary for this proposed rule.
Executive Orders 12372 and 12875, and the Unfunded Mandates Reform
Act (Pub. L. 104-4)
These Executive Orders and Public Law 104-4 require
intergovernmental review of programs. This proposed rule does not
impose an unfunded mandate or any other requirement on state, local or
tribal governments. Further, the program is national in scope and
involves a power delegated to the United States by the Constitution to
regulate international trade. Accordingly, these programs are not
subject to the provisions of Executive Order 12372, Executive Order
12875, or the Unfunded Mandates Reform Act.
Executive Order 12612
Executive Order 12612 requires implications of ``federalism'' be
considered in the development of regulations. The Secretary of
Agriculture certifies that this proposed rule has been reviewed in
light of Executive Order 12612 and that it is consistent with the
principles, criteria and requirements stated in sections 2 through 5 of
this Executive Order. The Secretary of Agriculture further certifies
that this proposed rule would impose no additional cost or burden on
the states, nor affect the state's abilities to discharge traditional
State governmental functions.
Executive Order 12606
Executive Order 12606 requires that government action include
consideration of maintaining stability and strengthening the family.
The Secretary of Agriculture has determined, under the principles and
criteria established in Executive Order 12606, that this proposed rule
will have no effect on the family.
Executive Order 12630
This Order requires careful evaluation of governmental actions that
interfere with constitutionally protected property rights. This
proposed rule would not interfere with any property rights and,
therefore, does not need to be evaluated on the basis of the criteria
outlined in Executive Order 12630.
Background
Previous Quotas
Presidential Proclamation 5294 of June 28, 1985 imposed absolute
quotas on imports of certain sugar-containing products pursuant to the
provisions of section 22 of the Agricultural Adjustment Act of 1933, as
amended (7 U.S.C. 624). Action was taken to restrict imports which were
entering the United States in circumvention of the absolute quota on
imports of raw sugar and were entering under such conditions and in
such quantities as to cause or threaten to cause material interference
with the price support program for sugar beets and sugar cane.
Presidential Proclamation 5340 of May 17, 1985, modified these section
22 quotas to limit their scope to imports containing over 10 percent by
dry weight of sugar, and to exclude ``articles not principally of
crystalline structure or not in dry amorphous form that are prepared
for marketing to the retail consumers in the identical form and package
in which imported.''
Uruguay Round Commitment on TRQs
On April 15, 1994, the President entered into trade agreements
resulting from the Uruguay Round of multilateral trade negotiations
(``Uruguay Round Agreements''). As part of those agreements, countries
agreed that all systems of absolute quotas for all agricultural
products would be eliminated and converted to TRQs, including imports
of certain sugar-containing products containing over 10 percent dry
weight of sugar. In section 101(a) of the Uruguay Round Agreements Act
(the URAA) (Pub. L. 103-65; 108 Stat. 4809), Congress approved the
Uruguay Round Agreements, including the General Agreement on Tariffs
and Trade 1994. Presidential Proclamation 6763 of December 23, 1994,
implemented the Uruguay Round Agreements (URAA). The Proclamation
terminated section 22 quotas; proclaimed TRQs for such articles; and
modified the HTS accordingly. Under the HTS, Additional U.S. Note 3 to
chapter 17 defines the term sugar-containing products containing over
10 percent by dry weight of sugar. Additional U.S. Note 8 to chapter 17
provides that the aggregate quantity of articles described in
Additional U.S. Note 3 which are entered under 10 specific HTS numbers
are subject to a TRQ which limits imports entered from October 1
through September 30 to 64,709 metric tons. Imports from Mexico are not
permitted entry under this TRQ.
Bilateral Agreement
Subsequent to the Uruguay Round, the United States and Canada
entered into a bilateral agreement (September 4, 1997). As a result of
that agreement, the United States Trade Representative announced on
September 16, 1998, (effective October 1, 1998) an allocation of 59,250
metric tons to Canada for certain sugar-containing products entered
under the TRQ set forth in U.S. Additional Note 8 of chapter 17 of the
HTS. This allocation was based on Canada's historical exports to the
United States. In addition, an allocation to other countries (excluding
Canada) of 5,459 metric tons became effective on October 1, 1998.
The United States and Canada also signed a Record of Understanding
Regarding Areas of Agricultural Trade (December 4, 1998) which requires
export permits issued by the Canadian Government to accompany imports
of articles containing more than 10 percent by dry weight of sugar as a
condition of entry under this TRQ, effective February 4, 2000. On June
11, 1999, the Canadian Government issued the Notice to Exporters No.
117 pursuant to the Export and Import Permits Act which governs the
issuance of export permits for each shipment of sugar-containing
products covered by the U.S. TRQ. For each of three years beginning in
1999/2000, six percent of each licensee's bulk shipment allocation will
be converted to
[[Page 14481]]
a retail packaged allocation or moved to a retail packaged allocation
pool. This proposed rule is intended to establish a U.S. import
licensing system to ensure that the opportunity to fill this TRQ
continues to be based on customer requirements.
Implementation of TRQs
Section 404(a) of the URAA, 19 U.S.C. 3601(a), directs the
President to take such action as may be necessary in implementing
Uruguay Round TRQs (set forth in Schedule XX--United States of America,
annexed to the Marrakesh Protocol to the General Agreement on Tariffs
and Trade 1994) to ensure that imports of agricultural products do not
disrupt the orderly marketing of commodities in the United States.
Presidential Proclamation 6763 delegated authority under the
statutes cited in the proclamation, including section 404(a), to the
Secretary of Agriculture, the Secretary of the Treasury, and the United
States Trade Representative, as necessary to perform functions assigned
to them to implement the proclamation.
Presidential Proclamation 7235 of October 7, 1999, delegated
authority under section 404(a) to administer the TRQs relating to
agricultural products to the United States Trade Representative and
delegated authority to the Secretary of Agriculture to issue licenses
governing the importation of such products under the applicable TRQs.
The Secretary of Agriculture exercises such licensing authority in
consultation with the United States Trade Representative.
Proposed Rule
This proposed rule specifies which sugar-containing products may be
entered only by or for the account of a person to whom a license has
been issued. Licenses issued pursuant to the provisions of this subpart
will permit a license holder to import quantities of the subject
articles into the United States at the applicable TRQ rate of duty.
Imports may enter without an import license (with certain exceptions)
at the applicable high-tier rate of duty.
License Eligibility--Eligibility for either a historical or
nonhistorical license requires that a person have a business office in
the United States, be doing business in the United States, and have an
agent for service of process. Eligibility for a historical license also
requires that an applicant, during the representative base period, must
have imported sugar-containing products under the TRQ and have been
either: (1) An importer of sugar-containing products in retail size
packages; or (2) a buyer of sugar-containing products entered in bulk
form for processing or packaging in the United States by, or for, the
account of such person.
License Applications--The annual period begins on May 1 of each TRQ
year. Applicants will be requested to submit applications by August 30
in order for licenses to be issued by October 1. An application for a
nonhistorical license must provide the standard business information
required in Sec. 6.53(b). An application for a historical license must
provide the standard business information required in Sec. 6.53(c), and
the supporting documentation and certification statement required in
Sec. 6.53(c)(8) with respect to transactions during the representative
base period. In subsequent TRQ years, historical licenses may be
renewed for the same quantity from the same country without re-
submission of supporting documentation. An applicant issued a
historical license is not eligible for a nonhistorical license.
License Issuance--Of the total TRQ quantity of 64,709 metric tons,
59,250 metric tons will be issued for licenses to import from Canada
and 5,459 metric tons will be issued to import from other countries.
All licenses will specify a quantity and the country of origin.
Historical license quantities will be based on an applicant's
supporting documentation submitted under Sec. 6.53(c)(8). Nonhistorical
license quantities will be based on the TRQ quantities not allocated to
historical licenses and the number of applicants for nonhistorical
licenses. Once licenses are issued, licensees will be responsible for
maintaining records on license usage.
The Secretary of Agriculture has determined that this subpart will,
to the fullest extent practicable, result in fair and equitable
allocation of the right to import articles subject to such TRQ. The
subpart will also maximize utilization of the TRQ for such articles,
taking due account of any special factors which may have affected or
may be affecting the trade in the articles concerned.
The Department invites comments on all aspects of the proposed rule
including the: eligibility and performance requirements for historical
licenses; representative historical period; percentage of the total TRQ
that should be set aside for new entrants to establish themselves in
the sugar-containing products business; minimum license sizes for
nonhistorical licenses for imports in bulk and retail size packages;
costs and unintended market consequences of the licensing requirement
to importers, buyers and consumers; and less restrictive alternatives
to licensing that would address concerns that Canada's export permit
system does not alter trade flows (e.g., continuing not to require the
submission to the U.S. Customs Service of export permits from the
Government of Canada).
List of Subjects in 7 CFR Part 6
Agricultural commodities, Agricultural trade, Exports, Imports,
Sugar.
Accordingly, the regulations at 7 CFR part 6 are proposed to be
amended by adding a new subpart, Licensing for Certain Sugar-Containing
Products Under Tariff-Rate Quota, to read as follows:
Subpart --Licensing for Certain Sugar-Containing Products Under
Tariff-Rate Quota
Sec.
6.50 Definitions.
6.51 Requirements for a license.
6.52 Eligibility for a license.
6.53 Application for a license.
6.54 Allocation of licenses.
6.55 Surrender and reallocation.
6.56 License use and license expiration.
6.57 Debarment and suspension.
6.58 Globalization or suspension of licenses.
6.59 License fee.
Subpart --Licensing for Certain Sugar-Containing Products Under
Tariff-Rate Quota
Authority: Proc. 7235 of October 7, 1999, 64 FR 55609;
Additional U.S. Note 8 to chapter 17 of the Harmonized Tariff
Schedule of the United States and General Note 15 of the Harmonized
Tariff Schedule of the United States (19 U.S.C. 1202), Pub. L. 97-
258, 96 Stat. 1051, as amended (31 U.S.C. 9701); Pub. L. 103-465,
secs. 103, 104, 108 Stat. 4819 (19 U.S.C. 3513, 3601).
Sec. 6.50 Definitions.
As used in this subpart, the following terms mean:
Agent for service of process. A person upon whom legal papers can
be served.
Article or sugar-containing article. Any sugar-containing products
described in Additional U.S. Note 3 to chapter 17 of the Harmonized
Tariff Schedule of the United States (HTS) and listed in Additional
U.S. Note 8 to chapter 17 of the HTS.
Commercial entry. Any entry except those made by or for the account
of the United States Government or for a foreign government, for the
personal use of the importer or for sampling, taking orders, research,
or the testing of equipment.
Country. Country of origin as determined in accordance with Customs
rules and regulations (19 CFR chapter I).
[[Page 14482]]
Department. The United States Department of Agriculture.
Licensee. A person to whom a license has been issued under this
subpart.
Licensing authority. The person designated by the Director of the
Import Policies and Programs Division (or its successor organization)
of the Foreign Agricultural Service to administer the licensing
program.
Other countries. Countries other than Canada.
Person. An individual, firm, corporation, partnership, association,
trust, estate or other legal entity.
Representative base period. October 1, 1996 through September 30,
1999, inclusive.
Tariff-rate quota quantity or TRQ quantity. The aggregate quantity
of sugar-containing products provided for in Additional U.S. Note 8 of
chapter 17 of the HTS.
TRQ year. The 12-month period beginning on October 1 of any year
through September 30 of the following year, inclusive.
United States. The Customs Territory of the United States, which is
limited to the 50 states, the District of Columbia, and Puerto Rico.
Sec. 6.51 Requirement for a license.
(a) General rule. Except as provided in paragraph (b) of this
section, a person who seeks to enter into the Customs Territory of the
United States sugar-containing products subject to the TRQ established
by Additional U.S. Note 8 to chapter 17 of the HTS shall obtain a
license in TRQ year 2001 and subsequent TRQ years in accordance with
this subpart. Such license shall be presented to the U.S. Customs
Service at the time and place of importation of such sugar containing
products.
(b) Exceptions. Licenses are not required if:
(1) The article is imported by or for the account of any agency of
the U.S. Government;
(2) The article is imported for the personal use of the importer,
provided that the net weight does not exceed five kilograms in any one
shipment;
(3) The article imported will not enter the commerce of the United
States and is imported as a sample for taking orders, for exhibition,
for display or sampling at a trade fair, for research, for testing of
equipment; or for use by embassies of foreign governments. Written
approval of the Licensing Authority shall be obtained prior to entry,
and the importer of record (or a broker or agent acting on its behalf)
shall provide to the Licensing Authority, prior to the release of such
articles, the appropriate Customs documentation identifying the
article, quantity to be imported, its location, intended use, an entry
number and the importer of record. The Licensing Authority may also
require as a condition of import that the article be destroyed or re-
exported after such use; or
(4) Such person importing the article pays the applicable high-tier
rate of duty.
Sec. 6.52 Eligibility for a license.
(a) Eligibility to apply for a nonhistorical license. A person may
apply for a license for each TRQ year provided such person has:
(1) A business office, and is doing business, in the United States,
and
(2) An agent in the United States for service of process.
(b) Eligibility to apply for a historical license. In addition to
meeting the requirements of paragraph (a) of this section, a person may
apply for a historical license provided such person was either:
(1) A buyer of sugar-containing products that were imported in bulk
form during the representative base period under the TRQ set forth in
Additional U.S. Note 8 to chapter 17 of the HTS and were processed or
packaged in the United States by, or for the account of such person; or
(2) An importer of record of imports of retail size packaged sugar-
containing products entered during the representative base period under
the TRQ set forth in Additional U.S. Note 8 to chapter 17 of the HTS.
(3) Eligibility for a historical license for imports from Canada
and/or from other countries requires that the criteria of paragraphs
(b)(1) or (2) of this section be met for Canada and/or other countries,
respectively.
(c) Exceptions. (1) Any licensee that fails in a TRQ year to enter
at least 95 percent of the amount permitted under a license, shall not
be eligible to receive a license for the next TRQ year. For purposes of
this paragraph, the amount permitted entry under a license will exclude
any license amount surrendered pursuant to Sec. 6.55(a), but will
include an additional amount received pursuant to Sec. 6.55(c). Failure
to meet the 95 percent license utilization requirement for a historical
license will result in cancellation of that license and the transfer of
that license amount to nonhistorical licenses.
(2) Paragraph (c)(1) of this section will not apply where the
licensee demonstrates to the satisfaction of the Licensing Authority
that the failure resulted from breach by a carrier of its contract of
carriage, breach by a supplier of its contract to supply the articles,
act of God, or force majeure.
Sec. 6.53 Application for a license.
(a) A person seeking a license shall apply in writing to the
Licensing Authority. An application for a license should be submitted
between May 1 and August 30 in order for the Licensing Authority to
issue licenses by October 1. However, applications may be submitted at
any time during the TRQ year, and licenses may be issued based on TRQ
quantities remaining unallocated.
(b) Nonhistorical license. A person meeting the eligibility
requirements of Sec. 6.52(a) may apply for a nonhistorical license. The
letter of application shall state the:
(1) Name of the applicant and the firm;
(2) Address of the firm;
(3) Name of agent for service of process;
(4) Telephone and fax numbers for the firm;
(5) IRS number under which the applicant is conducting business;
(6) Whether a license is being requested for entry of product only
for Canada, other countries, or both; and
(7) License quantity being requested.
(c) Historical license. A person meeting the eligibility
requirements of Sec. 6.52(a) and (b) may apply for a historical
license. The letter of application shall state the:
(1) Name of the applicant;
(2) Address of the applicant;
(3) Name of agent for service of process;
(4) Telephone and fax numbers for the applicant;
(5) IRS number under which the applicant is conducting business;
(6) Whether a license is being requested for entry of product only
from Canada, other countries, or both;
(7) License quantity being requested; and
(8) For a first time historical license, provide the information in
paragraphs (c)(8)(i) and (ii) of this section. For renewal of a
historical license share in subsequent TRQ years, submission of
information in paragraph (c)(8)(i) is not required. The information to
be provided is:
(i) The total quantity of imports from Canada and from other
countries for each of the TRQ years in the representative base period
(October 1, 1996 through September 30, 1999) that was imported in bulk
form and packaged or processed in the United States by or for the
account of the applicant, or imported in retail size packages by, or
for, the account of the
[[Page 14483]]
applicant. Where the applicant seeks to establish eligibility on the
basis of imports of sugar-containing products entered in retail size
containers, the application shall include either Customs Form 7501 to
document entries from Canada and from other countries during the
representative base period, or include a summary listing of import
entry numbers, the quantity entered under the entry number, and date of
entry for imports during the representative base period. Where the
applicant seeks to establish eligibility on the basis of imports of
sugar-containing products entered in bulk form, the application shall
include supporting documentation that provides a record of those
quantities imported in bulk form from Canada and from other countries
to be packaged or processed in the United States by or for the account
of the applicant.
(ii) The applicant shall submit a notarized certification statement
that the applicant, or a duly authorized agent, was engaged in
importing, processing, or packaging sugar-containing products imported
under the TRQ set forth in Additional U.S. Note 8 to chapter 17 of the
HTS during the representative base period; the applicant meets the
eligibility requirements in Sec. 6.52; and that the reported quantities
of imports of sugar-containing products entered during the
representative base period for which the applicant was the importer,
packer, or processor is true and accurate.
Sec. 6.54 Allocation of licenses.
(a) Historical licenses. Allocation of historical licenses will be
based on documentation submitted under Sec. 6.53(c)(8). For each
applicant, a renewable historical share for Canada, other countries, or
both will be calculated on the basis that applicant's imports of sugar-
containing products entered under Additional U.S. Note 8 to chapter 17
during the representative base period for which the applicant was
either a buyer of sugar-containing products imported in bulk form which
were processed or packaged in the United States by, or for the account
of such person; or an importer of record of entries of sugar-containing
products entered in retail size packages. Once a renewable historical
share is determined, a person may apply for and be issued a historical
license for the same quantity from the same supplying country in
subsequent TRQ years. If an applicant requests, and is issued, a
historical license in any TRQ year which exceeds that person's
renewable historical share, that additional amount does not become part
of the renewable historical share. Any supplementary quantities added
to a historical license in any TRQ year will depend on TRQ quantities
available. A person issued a historical license will not be issued a
nonhistorical license.
(b) Nonhistorical licenses. Allocation of nonhistorical license
quantities will be based on the quantities remaining after TRQ
quantities have been allocated to historical licenses, license
quantities requested in the applications, and the number of applicants.
(c) Of the total TRQ quantity of 64,709 metric tons, import
licenses for 59,250 metric tons shall be allocated to Canada, and
import licenses for 5,459 metric tons shall be allocated to other
countries.
(d) Any TRQ amount not allocated by October 1 may be allocated by
the Licensing Authority in any manner deemed equitable.
Sec. 6.55 Surrender and reallocation.
(a) If a licensee determines that it will not enter the entire
amount of an article permitted under its license, such licensee should
surrender its licensee right to enter the amount that it does not
intend to enter. Surrender shall be made to the Licensing Authority in
writing not later than July 1. Any surrender shall be final and shall
be only for that TRQ year. The amount of the license not surrendered
shall be subject to the license utilization requirement of
Sec. 6.52(c)(1).
(b) For each TRQ year, the Licensing Authority will, to the extent
practicable, reallocate any amounts surrendered.
(c) Any person who has been issued a license for a TRQ year may
apply to receive an additional license, or an addition to an existing
license for a portion of the amount being reallocated. The Licensing
Authority will issue a notice to licensees after July 1 advising
licensees of the application period. Any new license issued shall be
subject to the license utilization requirement of Sec. 6.52(c)(1). For
existing licenses, the combined total of a license amount plus any
addition to that license shall be subject to the license utilization
requirement of Sec. 6.52(c)(1).
Sec. 6.56 License use and license expiration.
(a) All articles entered under a license shall meet country of
origin requirements.
(b) An article entered or withdrawn from warehouse for consumption
under a license must be entered in the name of the licensee as the
importer of record by the licensee or its agent.
(c) Nothing in this subpart shall prevent the use of immediate
delivery in accordance with the provisions of U.S. Customs Service
regulations relating to tariff-rate quotas.
(d) A licensee shall not obtain or use a license for speculation,
brokering, or offering for sale, or permit any other person to use the
license for profit.
(e) A licensee shall not transfer a license to another person.
(f) If a licensee sells, transfers, or conveys its business
involving sugar-containing products covered by this subpart, the
license will expire.
Sec. 6.57 Debarment and suspension.
The Government-wide Debarment and Suspension (Nonprocurement)
regulations and Government Requirements for Drug-Free Workplace
(Grants), 7 CFR part 3017--Subparts A through E, apply to this subpart.
Sec. 6.58 Globalization or suspension of licenses.
(a) If the Licensing Authority determines that entries of sugar-
containing products are likely to fall short of a country's allocated
quantity, the Licensing Authority may permit, with the approval of the
Office of the United States Trade Representative, the applicable
licensees to enter the remaining balance of their license from any
country during the remainder of the TRQ year. Requests for
consideration of such adjustments shall be submitted to the Licensing
Authority no later than July 1 of any TRQ year.
(b) If the Licensing Authority determines that entries of sugar-
containing products under all import licenses have been less than 85
percent of the aggregate TRQ quantity, due to the failure of the
licensees to make good faith efforts to procure substantially the full
quantity of articles covered by their licenses, the Licensing Authority
may suspend the import licensing system with the approval of the Office
of the United States Trade Representative.
(c) If the Licensing Authority determines that for overriding
economic reasons the licensing system should be suspended during any
TRQ year, the Licensing Authority may temporarily suspend the import
licensing system with the approval of the Office of the United States
Trade Representative.
Sec. 6.59 License fee.
(a) A fee shall be assessed each TRQ year for each historical
license and nonhistorical license issued to defray the Department's
costs of administering the licensing system. To the extent practicable,
the fee will be announced by the Licensing Authority in a notice
published in the Federal Register no later than May 1 of the year
preceding TRQ year for which the fee is assessed.
[[Page 14484]]
(b) The license fee for each license issued is due and payable in
full by mail, postmarked no later than 60 days after issuance of a
license for which the fee is assessed. Fee payments shall be made by
certified check or money order payable to the Treasurer of the United
States.
(c) If the license fee is not paid by the final payment date, a
hold will be placed on the use of the license and no further articles
will be permitted entry under that license until the fee has been paid.
The Licensing Authority shall send a warning letter by certified mail,
return receipt requested, advising the licensee that if payment is not
mailed within 21 days from the date of the letter, that the license
will be permanently revoked.
Signed at Washington, D.C. on March 9, 2000.
Timothy J. Galvin,
Administrator, Foreign Agricultural Service.
[FR Doc. 00-6403 Filed 3-16-00; 8:45 am]
BILLING CODE 3410-10-P
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