7 U.S. Code § 1359kk - Administration of tariff rate quotas

(a) Establishment

(1) In general

Except as provided in paragraph (2) and notwithstanding any other provision of law, at the beginning of the quota year, the Secretary shall establish the tariff-rate quotas for raw cane sugar and refined sugars at the minimum level necessary to comply with obligations under international trade agreements that have been approved by Congress.

(2) Exception

Paragraph (1) shall not apply to specialty sugar.

(b) Adjustment

(1) Before April 1

Before April 1 of each fiscal year, for the sole purpose of responding directly to an emergency shortage of sugar in the United States market that is caused by a war, flood, hurricane, or other natural disaster, or other similar event as determined by the Secretary—

(A) the Secretary shall take action to increase the supply of sugar in accordance with sections 1359cc(b)(2) and 1359ee(b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, and domestic raw cane sugar refining capacity has been maximized, the Secretary may increase the tariff-rate quota for refined sugars sufficient to accommodate the supply increase, if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 7272 of this title.

(2) On or after April 1

On or after April 1 of each fiscal year—

(A) the Secretary may take action to increase the supply of sugar in accordance with sections 1359cc(b)(2) and 1359ee(b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, the Secretary may increase the tariff-rate quota for raw cane sugar if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 7272 of this title.

(c) Reallocation

(1) Initial reallocation

Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall—

(A) determine which countries do not intend to fulfill their allocation for the quota year; and

(B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable.

(2) Subsequent reallocation

Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year.

(3) Cessation of effectiveness

Paragraphs (1) and (2) shall cease to be in effect if—

(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and

(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico.

(d) Refined sugar

(1) Definition of domestic sugar industry

In this subsection, the term “domestic sugar industry” means domestic—

(A) sugar beet producers and processors;

(B) producers and processors of sugar cane; and

(C) refiners of raw cane sugar.

(2) Study required

(A) In general

Not later than 180 days after July 4, 2025, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate.

(B) Elements

In conducting the study under subparagraph (A), the Secretary shall examine the following:

(i) The need for—

(I) defining “refined sugar” as having a minimum polarization of 99.8 degrees or higher;

(II) establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis;

(III) prescribing specifications for packaging type for refined sugar;

(IV) prescribing specifications for transportation modes for refined sugar;

(V) requiring evidence that sugar imported as refined sugar will not undergo further refining in the United States;

(VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and

(VII) establishing other definitions, terms and conditions, or other requirements.

(ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry.

(iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate.

(C) Consultation

In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar.

(D) Report

Not later than 1 year after July 4, 2025, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A).

(3) Establishment of additional terms and conditions permitted

(A) In general

Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.

(B) Promulgation of regulations

The Secretary may issue regulations under subparagraph (A) if the regulations—

(i) do not have an adverse impact on the domestic sugar industry; and

(ii) are consistent with the requirements of this part, section 7272 of this title, and obligations under international trade agreements that have been approved by Congress.

(Feb. 16, 1938, ch. 30, title III, § 359k, as added Pub. L. 110–234, title I, § 1403(j), May 22, 2008, 122 Stat. 988, and Pub. L. 110–246, § 4(a), title I, § 1403(j), June 18, 2008, 122 Stat. 1664, 1717; amended Pub. L. 119–21, title I, § 10312(d), (e), July 4, 2025, 139 Stat. 97, 99.)

Editorial Notes

References in Text

The Tariff Act of 1930, referred to in subsec. (c)(3)(B), is act June 17, 1930, ch. 497, 46 Stat. 590. Subtitle A of title VII of the Act is classified generally to part I (§ 1671 et seq.) of subtitle IV of chapter 4 of Title 19, Customs Duties. For complete classification of this Act to the Code, see section 1654 of Title 19 and Tables.

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.

Prior Provisions

A prior section 1359kk, act Feb. 16, 1938, ch. 30, title III, § 359k, as added Pub. L. 107–171, title I, § 1403, May 13, 2002, 116 Stat. 204, related to reallocation of sugar quota import shortfalls in 2002 through 2007 calendar years, prior to repeal by Pub. L. 110–234, title I, § 1403(i), May 22, 2008, 122 Stat. 988; Pub. L. 110–246, § 4, title I, § 1403(i), June 18, 2008, 122 Stat. 1664, 1716, effective May 22, 2008.

Amendments

2025—Subsec. (b)(1). Pub. L. 119–21, § 10312(e), substituted “for the sole purpose of responding directly to an” for “if there is an” in introductory provisions.

Subsecs. (c), (d). Pub. L. 119–21, § 10312(d), added subsecs. (c) and (d).

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.