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📦 Specialty sugars as provided for in additional U.S. note 5 to chapter 17, subject to the quantitative limits specified in U.S. note 38 to this subchapter

Specialty sugars as provided for in additional U.S. note 5 to chapter 17, subject to the quantitative limits specified in U.S. note 38 to this subchapter

HS Code:

📦

Overview

Specialty sugars, as provided for in additional U.S. note 5 to chapter 17 of the Harmonized Tariff Schedule (HTS), refer to specific types of sugars such as organic sugar, specialty refined sugar, and other niche sugar products that meet certain criteria outlined in the note. These sugars are subject to quantitative limits specified in U.S. note 38 to the subchapter, which governs the import quotas and tariff-rate quotas (TRQs) for these products. This category is critical in the context of U.S. agricultural trade policy, as it balances domestic production protection with international trade commitments under agreements like the WTO and regional trade pacts.

Total Trade Volume

Approximately 40,000 metric tons

Data from 2022

Source

U.S. International Trade Commission (USITC) and U.S. Customs and Border Protection (CBP)

Tariff Analysis

Average Rate

5.1% ad valorem under TRQ limits; significantly higher (up to 35.74 cents/kg + 5.1%) for over-quota imports

Highest Rate

35.74 cents/kg + 5.1% (over-quota rate)

Lowest Rate

Duty-free under specific trade agreements (e.g., USMCA for Mexico)

Common Restrictions

  • Tariff-rate quotas (TRQs) limiting import quantities
  • Country-specific allocations under U.S. note 38
  • Certification requirements for specialty sugar designation
  • Seasonal restrictions on import timing

Market Trends

Rising demand for organic and specialty sugars

Increased imports within TRQ limits, especially from countries with organic certification standards recognized by the U.S.

2021-2022

Shift towards sustainable sourcing

Countries with strong sustainability practices (e.g., Brazil) gaining market share due to consumer and regulatory pressures.

2020-2022

Fluctuations in global sugar prices

Volatility in global prices affects over-quota import costs, influencing sourcing decisions by U.S. importers.

2019-2022

Recent Developments

Adjustment of TRQ Allocations for Specialty Sugars

The U.S. Department of Agriculture (USDA) announced an increase in the specialty sugar TRQ for FY 2023, allowing an additional 1,500 metric tons under specific conditions.

October 2022

Provides limited relief to importers facing high over-quota tariffs, potentially increasing imports from allocated countries like Brazil and Mexico.

USMCA Implementation Updates

Refined sugar and specialty sugar trade under the USMCA agreement saw updated rules for Mexico, ensuring continued duty-free access within quota limits.

July 2022

Strengthens Mexico's position as a key supplier of specialty sugars to the U.S. market, maintaining stable trade volumes.

WTO Consultations on Sugar Quotas

Several countries initiated consultations with the U.S. at the WTO regarding the administration of sugar TRQs, including specialty sugars, citing restrictive allocation practices.

March 2023

Potential changes to quota administration could affect future trade patterns and tariff applications for specialty sugars.