HS Code:
The 'Purchased and entered pursuant to the Secretary of Agriculture's Special Cotton Import Quota Announcement Number 5' category pertains to specific cotton imports under a special quota system managed by the U.S. Department of Agriculture (USDA). This quota facilitates the importation of cotton under specific conditions to balance domestic supply and demand while protecting local producers. It typically falls under various Harmonized System (HS) codes related to cotton, such as 5201 (cotton, not carded or combed) or related subcategories, depending on the specific product type. This category is critical for countries exporting cotton to the U.S. under controlled conditions, often tied to trade agreements or emergency supply needs.
Total Trade Volume
Approximately 50,000 metric tons
Data from 2022
Source
U.S. International Trade Commission (USITC) and USDA Reports
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
5,000 metric tons
10% of total trade of total trade
Decreasing
3,000 metric tons
6% of total trade of total trade
Stable
Average Rate
4.4 cents per kilogram (specific duty for upland cotton under quota)
Highest Rate
Out-of-quota rate: 31.4 cents per kilogram (for non-preferential origins)
Lowest Rate
0% (under specific trade agreements like CAFTA-DR or for in-quota volumes)
Increased demand for sustainable cotton
Countries with certified sustainable cotton production (like Brazil and Australia) are gaining larger shares of the quota allocation due to U.S. market preferences for environmentally friendly products.
2021-2022
Fluctuations in U.S. domestic cotton production
Weather-related disruptions in U.S. cotton production have led to periodic increases in special quota announcements, benefiting exporters like India and Brazil.
2020-2022
Shift towards automation in cotton processing
Exporters with advanced processing capabilities are more competitive, as the U.S. prioritizes high-quality, machine-ready cotton under quotas.
2019-2022
The USDA issued an updated Special Cotton Import Quota Announcement Number 5 in mid-2022, increasing the quota volume by 10% to address domestic supply shortages caused by drought in key U.S. cotton-producing regions.
July 2022
This adjustment provided immediate market access for exporters like Brazil and India, boosting their trade volumes under the quota system.
A renewed bilateral agreement between the U.S. and Brazil ensures preferential access for Brazilian cotton under special quotas, reinforcing Brazil's position as the top supplier.
March 2023
This agreement stabilizes Brazil's market share while potentially limiting opportunities for other exporters like Turkey.
The U.S. introduced stricter sustainability and traceability requirements for cotton imports under special quotas, aligning with global environmental standards.
January 2023
Countries with established sustainability certifications (e.g., Australia) are likely to benefit, while others may face challenges in compliance.