HS Code:
The 'Purchased and Entered Pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 23' category pertains to specific cotton imports allowed under a special quota system managed by the U.S. Department of Agriculture. This quota facilitates the importation of cotton under specific conditions to balance domestic supply and demand while protecting local producers. It typically includes raw cotton or cotton products that meet the criteria set forth in the announcement, often tied to specific Harmonized System (HS) codes related to cotton (e.g., HS 5201 for raw cotton). This mechanism is part of broader U.S. agricultural trade policies aimed at stabilizing markets and ensuring fair competition.
Total Trade Volume
Approximately 50,000 metric tons
Data from 2022
Source
U.S. Department of Agriculture (USDA) and International Trade Centre (ITC)
Average Rate
0% (under quota limits); 4.8 cents/kg (above quota)
Highest Rate
Up to 31.4 cents/kg for out-of-quota imports under specific conditions
Lowest Rate
0% within quota allocations
Increased demand for sustainable cotton
Countries with certified sustainable cotton production (e.g., Brazil and Australia) are gaining larger shares under the quota system due to U.S. consumer and regulatory preferences.
2021-2022
Fluctuations in global cotton prices
Price volatility in 2022 led to higher reliance on quota imports to stabilize U.S. domestic supply without oversaturating the market.
2022
Shift in supply chains post-COVID-19
Disruptions in traditional supply chains have increased imports from Latin American countries like Brazil over Asian suppliers due to proximity and trade agreements.
2020-2022
The USDA announced an adjustment to the Special Cotton Import Quota under Announcement Number 23, increasing the allowable import volume by 10% to address domestic shortages caused by adverse weather impacting U.S. cotton yields.
March 2023
Expected to benefit exporting countries like Brazil and India, potentially increasing their trade volumes by 5-7% in 2023.
Negotiations between the U.S. and Brazil have led to a bilateral understanding to prioritize Brazilian cotton under the special quota system in exchange for reduced tariffs on U.S. agricultural exports to Brazil.
June 2022
Strengthens Brazil's position as the leading exporter under this category, potentially impacting market shares of other countries like Turkey.
The USDA introduced a requirement for imported cotton under special quotas to comply with sustainability certifications starting in 2023, aligning with broader U.S. environmental goals.
January 2023
May restrict imports from countries with less developed certification systems, while benefiting exporters like Australia with established sustainable practices.