§9037 Special marketing loan provisions for upland cotton

Summary

The President must run import-quota programs that allow some upland cotton to enter the United States without paying the higher tariff when certain U.S. cotton prices rise. A "special import quota" is extra cotton allowed in under the lower tariff. If, for any consecutive four-week period, the Friday‑through‑Thursday average price for the lowest‑priced U.S. growth (Middling (M) 13/32‑inch) in a major international market is higher than the world market price, a special import quota starts. The quota equals one week of domestic mill consumption based on the seasonally adjusted average of the most recent three months (or the Secretary’s estimate if data are lacking). Cotton under that quota must be bought within 90 days of the Secretary’s announcement and entered into the United States within 180 days. A marketing‑year cap limits special‑quota imports to the equivalent of 10 weeks’ consumption measured from the three months before the first special quota that year. A special quota can overlap another special quota but not a quota set under the other program below. The quantity counts as in‑quota for certain tariff laws (title 19 sections 2703(d), 3203, 2463(d) and HTS General Note 3(a)(iv)). A "limited global import quota" is a similar in‑quota amount under a different trigger. The President must start it when the Secretary finds the monthly average price of a base quality of upland cotton is more than 130% of its 36‑month average. The initial amount is 21 days of domestic mill consumption (seasonally adjusted over the most recent three months). If a quota under this rule was set in the past 12 months, the next quota is the smaller of 21 days’ consumption or the amount needed to raise supply to 130% of demand. "Demand" and "supply" are measured using recent USDA data (one‑line definitions: demand = recent mill use and exports; supply = beginning stocks, current crop, and imports). Cotton under a limited global quota may be entered during the 90 days after the quota is set and is treated as in‑quota for the same tariff rules. A limited global quota cannot overlap any existing quota period or a special quota period. Each month the Secretary must pay economic adjustment assistance to U.S. users of upland cotton for documented cotton use in the prior month. Payments are 3 cents per pound from August 1, 2013 through July 31, 2025, and 5 cents per pound starting August 1, 2025. Recipients must certify the money will be used only to buy, build, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery. The Secretary may audit records. If funds were not used as certified, the user must repay the money with interest and cannot get these payments for one year after the finding.