7 U.S.C. § 7937 — Special marketing loan provisions for upland cotton
submitted 24 years ago by Pub. L. 107-171 to r/title-7-AGRICULTURE · 1,014 words · no verdicts yet
Subsection (a) has been repealed and no longer applies. The President must run a special cotton import quota when U.S. prices are much higher than world prices. The President must also run a separate global import quota when U.S. cotton prices spike compared to recent history.
(a) Repealed. This subsection was repealed by a later law (Public Law 109-171, section 1103(a)(1), enacted February 8, 2006). It no longer has any legal effect.
(b) Special import quota. (1) Establishment: (A) From May 13, 2002 through July 31, 2008, the President must run an import quota program as described here. (B) Normally, whenever the Secretary* determines that for four straight weeks the average U.S. cotton price quoted for delivery to Northern Europe is more than 1.25 cents per pound above the comparable "Northern Europe price" (the average of the five lowest-priced growths worldwide), a special import quota kicks in immediately. (C) Exception for tight supply: during any month when the Secretary estimates the season-ending U.S. upland cotton stocks-to-use ratio is below 16%, the Secretary skips adjusting the U.S. price quotation when making that comparison. (D) The Secretary must estimate and report that stocks-to-use ratio every month, counting cotton already imported but not projected future imports. (E) Through July 31, 2006, the Secretary ignores the 1.25-cent threshold entirely when doing this calculation.
(2) Quantity: the quota equals one week of domestic mill cotton use, based on the recent three-month average.
(3) Application: the quota covers cotton bought within 90 days of the Secretary's announcement and brought into the U.S. within 180 days of that announcement.
(4) Overlap: a new special quota period can overlap an existing one if the trigger requires it, but not if a quota under subsection (c) is already running.
(5) Tariff treatment: quota cotton counts as "in-quota" for several tariff law provisions (19 U.S.C. 2703(d), 3203, 2463(d), and a tariff schedule note).
(6) Definition: a "special import quota" is an amount of imports not subject to the higher over-quota tariff.
(7) Limit: total cotton entered under this special quota in any marketing year cannot exceed five weeks' worth of domestic mill consumption, based on the three months before the year's first special quota.
(c) Limited global import quota. (1) The President must also run a separate quota program: whenever the Secretary finds that the average price of base-quality upland cotton for a month is more than 130% of the average price over the preceding 36 months, a global import quota starts immediately, no matter what other law says. (A) Quantity: 21 days of domestic mill consumption, based on the recent three-month average. (B) If a quota under this subsection already ran in the past 12 months, the next one is capped at the smaller of that same 21-day amount or whatever amount would bring supply up to 130% of demand. (C) Tariff treatment: same tariff-law sections apply as in subsection (b)(5). (D) Definitions: "Supply" means U.S. cotton carry-over at the start of the marketing year, plus new production, plus imports so far, using Census, USDA, and Treasury data. "Demand" means recent average domestic mill use plus the larger of average exports over the past six years or this year's exports-plus-outstanding-sales. A "limited global import quota" is, again, an amount not subject to the higher tariff. (E) Cotton can enter under the quota for 90 days after the Secretary establishes it.
(2) No overlap: a quota under this subsection cannot overlap an existing quota period, including one from subsection (b).
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.
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.
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.
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.
Through July 31, 2006, the Secretary shall make the calculation under subparagraph (B) without regard to the 1.25 cent threshold provided under that subparagraph.
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).
The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—
General Note 3(a)(iv) to the Harmonized Tariff Schedule.
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.
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.
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.
The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—
General Note 3(a)(iv) to the Harmonized Tariff Schedule.
In this subsection:
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—
the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;
production of the current crop; and
imports to the latest date available during the marketing year.
The term “demand” means—
the average seasonally adjusted annual rate of domestic mill consumption during the most recent 3 months for which data are available; and
the larger of—
average exports of upland cotton during the preceding 6 marketing years; or
cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.
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.
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.
Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (b).
Source credit: (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.)
- 2002Enacted · Pub. L. 107-171 · 116 Stat. 161
- 2006Amended · Pub. L. 109-171 · 120 Stat. 5
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-171 on 2002-05-13.
all 0 arguments · sorted by: best
no arguments yet — make the first case