§8737 — Title 7 Agriculture | U.S. Code

Summary

The President must run a cotton import quota program through July 31, 2013. If the Secretary finds that the four-week (Friday–Thursday) average price for the lowest-priced U.S. upland cotton of Middling (M) 13/32-inch, delivered to a major international market, is higher than the world price, a special import quota starts right away. That quota equals one week’s domestic mill consumption, measured by the seasonally adjusted average of the most recent three months. Cotton under this quota must be bought within 90 days of the Secretary’s announcement and entered into the United States within 180 days. A special quota can overlap another special quota, but not if a quota under the other rule below is in effect. Cotton entered under this quota counts as “in-quota” for sections 2703(d), 3203, and 2463(d) of title 19 and for General Note 3(a)(iv) of the Harmonized Tariff Schedule. In any marketing year, cotton entered under these special quotas cannot total more than the equivalent of 10 weeks’ domestic mill consumption (seasonally adjusted average of the three months before the first special quota). Definitions: “supply” = carry-over at the start of the marketing year (adjusted to 480-pound bales) plus current production and imports; “demand” = the seasonally adjusted 3-month average of domestic mill use plus the larger of six-year average exports or current exports plus outstanding export sales; “limited global import quota” = imports not subject to the over-quota tariff rate. If the Secretary finds that the monthly average price of base-quality upland cotton in the designated markets is more than 130% of its 36-month average, a limited global import quota begins. That quota equals 21 days of domestic mill consumption (seasonally adjusted 3-month average). If a quota under this rule ran in the last 12 months, the next quota is the smaller of 21 days’ consumption or the amount needed to raise supply to 130% of demand. Cotton under this quota is treated as in-quota for the same four tariff references and may be entered during the 90-day period after the quota is set. A quota under this rule may not overlap any existing quota or a special quota under the first rule.

Title 7, §8737

Agriculture — Source: USLM XML via OLRC

(a)(1)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)(A)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)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)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)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)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)The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—

(A)section 2703(d) of title 19;

(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)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)(1)In this subsection:

(A)The term “supply” means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury—

(i)the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

(ii)production of the current crop; and

(iii)imports to the latest date available during the marketing year.

(B)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.

(C)The term “limited global import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

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

(i)section 2703(d) of title 19;

(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)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)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