HS Code:
The 'Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 20' category pertains to specific cotton imports allowed under a special quota system managed by the U.S. Department of Agriculture (USDA). This quota is designed to balance domestic cotton production with international trade needs, often triggered by market conditions such as price disparities or supply shortages. It falls under specific Harmonized System (HS) codes related to cotton (typically within Chapter 52, though exact HS code is not specified in the query). This category ensures that imported cotton meets certain criteria and is subject to quota limits and tariff regulations to protect domestic industries while addressing demand.
Total Trade Volume
Approximately 50,000 metric tons
Data from 2022
Source
U.S. Department of Agriculture (USDA) and International Trade Centre (ITC) Trade Map
20,000 metric tons
40% of total trade of total trade
Increasing
10,000 metric tons
20% of total trade of total trade
Stable
8,000 metric tons
16% of total trade of total trade
Increasing
7,000 metric tons
14% of total trade of total trade
Decreasing
5,000 metric tons
10% of total trade of total trade
Stable
Average Rate
4.3% ad valorem
Highest Rate
Up to 10% under specific conditions or for non-quota imports
Lowest Rate
0% for qualifying imports under trade agreements (e.g., USMCA)
Increased demand for sustainable cotton
Countries with certified sustainable cotton production (e.g., Brazil, Australia) are seeing higher export volumes under special quotas due to consumer and regulatory push for eco-friendly textiles.
2021-2022
Fluctuating global cotton prices
Price volatility has led to more frequent activation of special import quotas by the USDA to stabilize domestic supply and prices, impacting trade volumes from major exporters.
2022
Shift in sourcing due to geopolitical tensions
Reduced reliance on certain traditional suppliers due to trade disputes or sanctions has increased imports from alternative countries like Brazil and India under quota systems.
2020-2022
The USDA issued a new quota under Announcement Number 20, allowing an additional 10,000 metric tons of cotton imports to address domestic supply shortages caused by adverse weather conditions affecting U.S. cotton yields.
March 2023
Expected to increase trade volumes from key exporters like Brazil and India, providing short-term relief to U.S. textile manufacturers.
Updates to the USMCA agreement have facilitated duty-free cotton imports from Mexico under special quotas, aligning with Announcement Number 20 provisions.
July 2022
Strengthens Mexico's position as a key supplier under this category, potentially reducing reliance on non-NAFTA countries.
Several exporting countries under this quota system have joined global initiatives for sustainable cotton, influencing USDA quota allocations to prioritize certified sustainable imports.
October 2022
Favors countries with sustainable practices, potentially shifting trade patterns toward Brazil and away from non-compliant regions.