7 U.S.C. § 8737 — Special marketing loan provisions for upland cotton

(a) Special import quota. (1) Definition. A "special import quota" is a quantity of imports that does not have to pay the higher over-quota tariff rate that normally applies once a tariff-rate quota is used up. (2) Establishment. (A) In general. From enactment through July 31, 2013, the President must run an import quota program as described in this subsection. (B) Program requirements. Whenever the Secretary finds that, over any four straight weeks, the average Friday-through-Thursday price for the cheapest U.S.-grown Middling 1 3/32-inch cotton, delivered to a major international market, is higher than the prevailing world market price, a special import quota takes effect right away. (3) Quantity. The quota equals one week's worth of cotton use by domestic mills, based on the seasonally adjusted average rate of the most recent three months of data. (4) Application. The quota covers upland cotton bought no later than 90 days after the Secretary's announcement, and brought into the United States no later than 180 days after that announcement. (5) Overlap. A special quota period can overlap an existing quota period if paragraph (2) requires it, but a special quota period cannot start if a quota period is already running under subsection (b). (6) Preferential tariff treatment. The quota amount counts as an "in-quota" quantity for purposes of certain listed customs law sections and the Harmonized Tariff Schedule. (7) Limitation. In any one marketing year, the total cotton brought into the United States under this special quota cannot exceed 10 weeks' worth of mill use, based on the three months right before the year's first special import quota.

(b) Limited global import quota for upland cotton. (1) Definitions. (A) "Supply" means, using the latest official government data: the leftover upland cotton at the start of the marketing year (converted to 480-pound bales), plus the current crop's production, plus imports up to the latest available date. (B) "Demand" means the average seasonally adjusted mill use rate over the most recent three months, plus whichever is larger — the average exports over the past six marketing years, or the actual exports plus pending export sales for the current year. (C) "Limited global import quota" means an import quantity that skips the higher over-quota tariff. (2) Program. The President must run an import quota program where, whenever the Secretary finds that the average price of base-quality upland cotton, in designated markets, for a month was more than 130 percent of the average price over the previous 36 months, a limited global import quota takes effect immediately, despite any other law, under these rules: (A) Quantity. The quota equals 21 days of domestic mill cotton use, based on the recent three-month seasonally adjusted average or the Secretary's estimate. (B) Quantity if prior quota. If a quota was already set under this subsection in the past 12 months, the next quota is whichever is smaller: the 21-day amount from (A), or the amount needed to raise supply to 130 percent of demand. (C) Preferential tariff treatment. This quota amount also counts as "in-quota" for the same customs law provisions. (D) Quota entry period. Cotton may enter under this quota for 90 days starting on the day the Secretary sets the quota. (3) No overlap. A quota period under this subsection cannot be set if it would overlap an existing quota period or a special quota period from subsection (a).