§1359kk — Title 7 Agriculture | U.S. Code

§1359kk Administration of tariff rate quotas

Title 7 › Chapter CHAPTER 35— - AGRICULTURAL ADJUSTMENT ACT OF 1938 › Subchapter SUBCHAPTER II— - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES › Part Part B— - Marketing Quotas › Subpart subpart vii— - flexible marketing allotments for sugar › § 1359kk

Last updated Apr 6, 2026|Official source

Summary

The Secretary must set the tariff-rate quotas for raw cane sugar and refined sugar at the smallest level needed to meet U.S. obligations under international trade agreements at the start of each quota year. Specialty sugar is not included. If an emergency shortage of sugar is caused by war, flood, hurricane, or a similar disaster, the Secretary may increase sugar supplies. Before April 1 in a fiscal year, the Secretary must raise the raw cane sugar quota to allow more imports and, if domestic marketing and raw-cane refining are already maxed out and a shortage remains, may also raise the refined sugar quota so long as doing so will not risk forfeiture of sugar pledged as collateral under section 7272. On or after April 1 the Secretary may increase raw cane quotas to address shortages, and may further increase raw cane quotas if marketing is maximized and the increase won’t cause forfeiture. After setting quotas, the Secretary must identify countries that won’t fill their allocations and reallocate expected shortfalls as soon as possible, and must reallocate additional forecasted shortfalls for raw cane sugar by March 1. Those reallocation rules stop if the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico (signed December 19, 2014) ends and no countervailing duty order on sugar from Mexico is in effect. “Domestic sugar industry” means sugar beet producers and processors, sugar cane producers and processors, and refiners of raw cane sugar. Not later than 180 days after July 4, 2025, the Secretary must study whether new terms for refined sugar imports are needed. The study must look at items such as defining “refined sugar” with a minimum polarization of 99.8 degrees, setting color or reflectance standards, packaging and transport rules, requiring proof that imported refined sugar will not be further refined in the United States, ways to prevent unlawful imports, and other related definitions or conditions, and must assess the impact on the domestic industry. The Secretary must consult industry and users, and must send a report to the House and Senate Agriculture Committees within 1 year after July 4, 2025. After notifying those committees, the Secretary may issue regulations based on the report if the rules do not harm the domestic sugar industry and follow this law, section 7272, and U.S. trade obligations approved by Congress.

Title 7, §1359kk

Agriculture — Source: USLM XML via OLRC

(a)(1)Except as provided in paragraph (2) and notwithstanding any other provision of law, at the beginning of the quota year, the Secretary shall establish the tariff-rate quotas for raw cane sugar and refined sugars at the minimum level necessary to comply with obligations under international trade agreements that have been approved by Congress.

(2)Paragraph (1) shall not apply to specialty sugar.

(b)(1)Before April 1 of each fiscal year, for the sole purpose of responding directly to an emergency shortage of sugar in the United States market that is caused by a war, flood, hurricane, or other natural disaster, or other similar event as determined by the Secretary—

(A)the Secretary shall take action to increase the supply of sugar in accordance with section 1359cc(b)(2) and 1359ee(b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

(B)if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, and domestic raw cane sugar refining capacity has been maximized, the Secretary may increase the tariff-rate quota for refined sugars sufficient to accommodate the supply increase, if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 7272 of this title.

(2)On or after April 1 of each fiscal year—

(A)the Secretary may take action to increase the supply of sugar in accordance with section 1359cc(b)(2) and 1359ee(b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

(B)if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, the Secretary may increase the tariff-rate quota for raw cane sugar if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 7272 of this title.

(c)(1)Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall—

(A)determine which countries do not intend to fulfill their allocation for the quota year; and

(B)reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable.

(2)Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year.

(3)Paragraphs (1) and (2) shall cease to be in effect if—

(A)the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and

(B)no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico.

(d)(1)In this subsection, the term “domestic sugar industry” means domestic—

(A)sugar beet producers and processors;

(B)producers and processors of sugar cane; and

(C)refiners of raw cane sugar.

(2)(A)Not later than 180 days after July 4, 2025, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate.

(B)In conducting the study under subparagraph (A), the Secretary shall examine the following:

(i)The need for—

(I)defining “refined sugar” as having a minimum polarization of 99.8 degrees or higher;

(II)establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis;

(III)prescribing specifications for packaging type for refined sugar;

(IV)prescribing specifications for transportation modes for refined sugar;

(V)requiring evidence that sugar imported as refined sugar will not undergo further refining in the United States;

(VI)prescribing appropriate terms and conditions to avoid unlawful sugar imports; and

(VII)establishing other definitions, terms and conditions, or other requirements.

(ii)The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry.

(iii)Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate.

(C)In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar.

(D)Not later than 1 year after July 4, 2025, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A).

(3)(A)Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.

(B)The Secretary may issue regulations under subparagraph (A) if the regulations—

(i)do not have an adverse impact on the domestic sugar industry; and

(ii)are consistent with the requirements of this part, section 7272 of this title, and obligations under international trade agreements that have been approved by Congress.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Tariff Act of 1930, referred to in subsec. (c)(3)(B), is act June 17, 1930, ch. 497, 46 Stat. 590. Subtitle A of title VII of the Act is classified generally to part I (§ 1671 et seq.) of subtitle IV of chapter 4 of Title 19, Customs Duties. For complete classification of this Act to the Code, see section 1654 of Title 19 and Tables. Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Prior Provisions

A prior section 1359kk, act Feb. 16, 1938, ch. 30, title III, § 359k, as added Pub. L. 107–171, title I, § 1403,

May 13, 2002, 116 Stat. 204, related to reallocation of sugar quota import shortfalls in 2002 through 2007 calendar years, prior to repeal by Pub. L. 110–234, title I, § 1403(i),

May 22, 2008, 122 Stat. 988; Pub. L. 110–246, § 4, title I, § 1403(i),

June 18, 2008, 122 Stat. 1664, 1716, effective

May 22, 2008.

Amendments

2025—Subsec. (b)(1). Pub. L. 119–21, § 10312(e), substituted “for the sole purpose of responding directly to an” for “if there is an” in introductory provisions. Subsecs. (c), (d). Pub. L. 119–21, § 10312(d), added subsecs. (c) and (d).

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.