HS Code:
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)
15,000 metric tons
37.5% of total trade of total trade
Increasing
10,000 metric tons
25.0% of total trade of total trade
Stable
5,000 metric tons
12.5% of total trade of total trade
Decreasing
4,000 metric tons
10.0% of total trade of total trade
Stable
3,000 metric tons
7.5% of total trade of total trade
Increasing
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)
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
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.
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.
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.