§9037 — Title 7 Agriculture | U.S. Code

Summary

Creates two kinds of import quotas for upland cotton and a monthly cash help program for U.S. users. Definitions (one line each): "special import quota" — an amount of cotton that avoids the higher over‑quota tariff; "limited global import quota" — the same kind of tariff treatment for a different trigger; "demand" — a short measure of how much cotton mills use and exports; "supply" — carryover stock, current crop, and recent imports. The President must start the import quota program on August 1, 2014. A special import quota starts right away if the Secretary finds that, for any 4-week stretch, the Friday‑to‑Thursday average price of the lowest‑priced U.S. upland cotton quoted for Middling (M) 13/32‑inch delivered to a major international market is higher than the world price. That quota equals one week of mill consumption based on the recent 3‑month seasonal average. Cotton must be bought within 90 days and entered into the U.S. within 180 days after the announcement. A marketing‑year cap limits imports under special quotas to the equivalent of 10 weeks’ consumption measured from the 3 months before the first special quota that year. Quotas are treated as in‑quota under the tariff rules named in the law. A limited global import quota starts if the monthly base quality price in designated markets is over 130% of the 36‑month average. Its usual size is 21 days of mill consumption; if one was set in the prior 12 months, the next one is the smaller of 21 days or enough to raise supply to 130% of demand. Limited‑quota cotton may be entered during the 90 days after the quota is set, and quota periods may not overlap. The Secretary must also pay monthly economic adjustment aid to domestic users for documented cotton use in the prior month. The payment rate is 3 cents per pound from August 1, 2013, through July 31, 2025, and 5 cents per pound beginning August 1, 2025. Recipients must certify the money will be used only to buy, build, upgrade, or expand land, plants, buildings, equipment, facilities, or machinery. The Secretary can review or audit records. If the aid was not used as certified, the user must repay the money with interest and cannot get these payments for 1 year after the finding.

Title 7, §9037

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 beginning on August 1, 2014, 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 the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.

(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 weeks’ 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 “demand” means—

(i)the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary; 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.

(B)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.

(C)The term “supply” means, using the latest official data of the Department of Agriculture—

(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.

(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 official data of the Department of Agriculture are available or, in the absence of sufficient data, 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).

(c)(1)Subject to paragraph (2), the Secretary shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.

(2)The value of the assistance provided under paragraph (1) shall be—

(A)for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and

(B)beginning on August 1, 2025, 5 cents per pound.

(3)Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.

(4)The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.

(5)If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be—

(A)liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and

(B)ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.

Notes & Related Subsidiaries

Editorial Notes

References in Text

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.

Amendments

2025—Subsec. (c)(2). Pub. L. 119–21 added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “Effective beginning on August 1, 2013, the value of the assistance provided under paragraph (1) shall be 3 cents per pound.” 2018—Subsec. (c). Pub. L. 115–334 substituted “Economic adjustment assistance for textile mills” for “Economic adjustment assistance to users of upland cotton” in heading.

§9037 Special Marketing Loan Provisions for Upland Cotton