7 U.S.C. § 8737: Special marketing loan…

Summary

The President must run an import quota program through July 31, 2013, that can open special import quotas for upland cotton when U.S. prices are above world prices, and a separate limited global import quota when U.S. prices jump a lot. For the special import quota, the Secretary checks a 4-week Friday-to-Thursday average of the lowest-priced U.S. cotton (Middling 13/32-inch) in a major international market. If that average is higher than the world price, a special quota starts right away. Each special quota equals one week’s domestic mill consumption based on the seasonally adjusted average of the most recent 3 months. Cotton must be bought within 90 days of the Secretary’s announcement and entered into the U.S. within 180 days. No more than the equivalent of 10 weeks’ consumption may enter under special quotas in a marketing year. A special quota cannot be set if the limited global quota (below) is already in effect. The limited global import quota starts when the monthly average price of base-quality upland cotton is over 130% of the 36-month average. That quota equals 21 days of domestic mill consumption or, if a quota was set in the prior 12 months, the smaller amount needed to raise supply to 130% of demand. Cotton entered under this quota may be brought in during the 90 days after the Secretary sets it. Definitions (one line each): special import quota — imports not charged the higher over-quota tariff; limited global import quota — same idea for the global trigger; supply — carry-over, current production, and imports using latest official data; demand — recent 3-month domestic mill use plus export measures.

Title 7, §8737

Agriculture, Source: USLM XML via OLRC

(a)Special import quota

(1)Definition of special import quota

In this subsection, the term “special import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(2)Establishment

(A)In general

The President shall carry out an import quota program during the period beginning on the date of enactment of this Act through July 31, 2013, as provided in this subsection.

(B)Program requirements

Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13⁄32-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.

(3)Quantity

The quota shall be equal to 1 week’s consumption of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.

(4)Application

The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into the United States not later than 180 days after that date.

(5)Overlap

A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).

(6)Preferential tariff treatment

The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of— (A)

(B)section 3203 of title 19;

(C)section 2463(d) of title 19; and

(D)General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(7)Limitation

The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.

(b)Limited global import quota for upland cotton

(1)Definitions

In this subsection: (A) Supply

(B)Demand (C) Limited global import quota

The term “demand” means—

(i)the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which data are available; and

(ii)the larger of—

(I)average exports of upland cotton during the preceding 6 marketing years; or

(II)cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

(2)Program

The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

(A)Quantity

The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which data are available or as estimated by the Secretary.

(B)Quantity if prior quota

If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.

(C)Preferential tariff treatment

The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of— (i)

(ii)section 3203 of title 19;

(iii)section 2463(d) of title 19; and

(iv)General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(D)Quota entry period

When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

(3)No overlap

Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of this Act, referred to in subsec. (a)(2)(A), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. The Harmonized Tariff Schedule, referred to in subsecs. (a)(6)(D) and (b)(2)(C)(iv), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of Title 19, Customs Duties. 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.

Amendments

2018—Subsec. (c). Pub. L. 115–334 struck out subsec. (c) which related to economic adjustment assistance to users of upland cotton.

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.

§8737 Special Marketing Loan Provisions for Upland Cotton