HS Code:
The category 'Purchased and Entered Pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 21' pertains to specific cotton imports allowed under a special quota system managed by the U.S. Department of Agriculture (USDA). This quota facilitates the importation of cotton under particular conditions to balance domestic supply and demand, protect local producers, and meet international trade agreements. Typically, this category falls under specific Harmonized System (HS) codes related to raw cotton (e.g., HS 5201.00), though the exact code may vary based on the announcement specifics. It is designed to address shortfalls in domestic cotton production or spikes in demand, often tied to global market dynamics and trade policies such as the U.S.-China trade agreements or WTO commitments.
Total Trade Volume
Approximately 50,000 metric tons
Data from 2022
Source
U.S. Department of Agriculture (USDA) and U.S. International Trade Commission (USITC)
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
Decreasing
7,000 metric tons
14% of total trade of total trade
Increasing
5,000 metric tons
10% of total trade of total trade
Stable
Average Rate
0% (quota-based exemption, subject to conditions)
Highest Rate
4.4 cents per kg (if quota exceeded, depending on country of origin)
Lowest Rate
0% (within quota limits under trade agreements)
Increased demand for sustainable cotton
Countries like Brazil and Australia are gaining market share due to certifications in sustainable farming practices, influencing quota allocations.
2021-2022
Fluctuations in U.S. domestic cotton production
Weather-related disruptions in the U.S. (e.g., droughts in Texas) have led to higher reliance on special import quotas to meet textile industry demands.
2020-2022
Geopolitical trade tensions
U.S.-China trade disputes have shifted cotton import sources to other countries like Brazil and India under special quotas.
2019-2022
The USDA released a new special import quota under Announcement Number 21 to address a projected shortfall in U.S. cotton supply for the 2023 season, allowing an additional 40,000 metric tons of imports.
October 2022
Expected to stabilize cotton prices for U.S. textile manufacturers while benefiting exporting countries like Brazil and Australia.
Negotiations between the U.S. and Brazil have led to an increased allocation within the special quota system, reinforcing Brazil's position as the top exporter under this category.
March 2022
Strengthens bilateral trade ties and ensures a steady supply of high-quality cotton to the U.S. market.
Ongoing global supply chain issues, including port delays and shipping cost increases, have affected the timely delivery of cotton under special quotas, prompting calls for quota deadline extensions.
July 2022
Potential short-term supply shortages for U.S. manufacturers and increased costs passed on to consumers.