7 U.S. Code § 7937 - Special marketing loan provisions for upland cotton
(b) Special import quota
(A) In general
The President shall carry out an import quota program during the period beginning on May 13, 2002, through July 31, 2008, as provided in this subsection.
(B) Program requirements
Except as provided in subparagraph (C), 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 C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.
(C) Tight domestic supply
During any month for which the Secretary estimates the season-ending United States upland cotton stocks-to-use ratio, as determined under subparagraph (D), to be below 16 percent, the Secretary, in making the determination under subparagraph (B), shall not adjust the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13/32-inch cotton, delivered C.I.F. Northern Europe.
(D) Season-ending United States stocks-to-use ratio
For the purposes of making estimates under subparagraph (C), the Secretary shall, on a monthly basis, estimate and report the season-ending United States upland cotton stocks-to-use ratio, excluding projected raw cotton imports but including the quantity of raw cotton that has been imported into the United States during the marketing year.
The quota shall be equal to one week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the most recent three months for which data are available.
The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (1) and entered into the United States not later than 180 days after the date.
A special quota period may be established that overlaps any existing quota period if required by paragraph (1), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (c) of this section.
(5) Preferential tariff treatment
The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—
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.
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 5 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.
(c) Limited global import quota for upland cotton
(1) In general
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 such 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:
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.
(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—
In this subsection:
(i) Supply 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) Demand The term “demand” means—
(I) the average seasonally adjusted annual rate of domestic mill consumption during the most recent 3 months for which data are available; and
Source(Pub. L. 107–171, title I, § 1207,May 13, 2002, 116 Stat. 161; Pub. L. 109–171, title I, § 1103(a),Feb. 8, 2006, 120 Stat. 5.)
References in Text
The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D) and (c)(1)(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.
2006—Subsec. (a). Pub. L. 109–171, § 1103(a)(1), struck out subsec. (a), which related to cotton user marketing certificates.
Subsec. (b)(1)(B). Pub. L. 109–171, § 1103(a)(2)(A), struck out “, adjusted for the value of any certificate issued under subsection (a) of this section,” after “C.I.F. Northern Europe”.
Subsec. (b)(1)(C). Pub. L. 109–171, § 1103(a)(2)(B), struck out “, for the value of any certificates issued under subsection (a) of this section” before period at end.
Effective Date of 2006 Amendment