HS Code:
The 'Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 3' category pertains to specific cotton imports allowed under a special quota system established by the U.S. Department of Agriculture. This quota facilitates the importation of upland cotton under certain conditions to balance domestic supply and demand, often triggered by price or market conditions as determined by the Secretary of Agriculture. It falls under specific Harmonized System (HS) codes related to cotton, typically within Chapter 52 (Cotton). This category is critical for countries exporting cotton to the U.S. under quota exemptions or special conditions, ensuring market stability and fair trade practices.
Total Trade Volume
Approximately 45,000 metric tons
Data from 2022
Source
U.S. Customs and Border Protection, International Trade Commission (ITC) DataWeb
Average Rate
0% (quota-exempt under special announcement)
Highest Rate
4.4 cents/kg (outside quota limits for certain countries)
Lowest Rate
0% (within quota limits)
Increased demand for U.S. cotton imports under special quotas due to domestic production shortfalls
Higher export opportunities for countries like Brazil and India, with potential price stabilization in the U.S. market
2022
Fluctuations in global cotton prices influencing quota activation
Special quotas are triggered more frequently during high-price periods, benefiting exporters with quota access
2021-2022
Shift toward sustainable cotton production
Countries with certified sustainable cotton practices gaining preference in quota allocations
2020-2022
The U.S. Secretary of Agriculture announced a new special import quota under Announcement Number 3 for upland cotton, allowing an additional 50,000 metric tons to enter duty-free to address domestic supply shortages.
March 2023
Expected to boost exports from key suppliers like Brazil and India, while stabilizing U.S. cotton prices for textile manufacturers.
Negotiations between the U.S. and Brazil led to an increased allocation under the special quota system, reflecting Brazil's growing role as a key cotton supplier.
October 2022
Strengthens Brazil's market share in U.S. cotton imports, potentially displacing smaller exporters.
The USDA introduced stricter sustainability and traceability requirements for cotton imports under special quotas, aligning with global environmental standards.
January 2023
May limit access for exporters lacking certification but incentivizes sustainable practices in the long term.