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June 8, 2010
On May 4, 2010, the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture issued a notice in the Federal Register that it is withdrawing the proposed rule that was published five years ago on January 21, 2005, at 70 FR 3150 relating to the Sugar Re-Export Program. Simply stated, the Re-Export Program permits the entry of raw sugar to be imported into the U.S. for refining and re-export in a refined form or in sugar-containing products. In addition, the refined product can be substituted for domestically produced raw cane sugar that has been or will be exported.
The proposed rule, among other things, would have prohibited refiners from claiming program credits for exports of domestically produced sugar that had not been reported to the Farm Service Agency as having been marketed during periods when marketing allotments are in effect. In addition, the proposed rule would have allowed third-party exports as well as toll refining.
The FAS indicated that the proposed rule was withdrawn because market conditions have changed since January 1, 2008, when sugar became quota and duty free with respect to Mexico. Since that time the U.S. and Mexican sugar markets have been increasingly integrated.
In the May 4, 2010, notice, the FAS indicated that it intends to publish an advanced notice of proposed rulemaking under the Sugar Re-Export Program with Mexico and will request comments from the public. FAS further indicated that the upcoming proposed rule would cover issues not fully addressed in the 2005 proposed rule.
If you have any questions with regard to this newsletter or any issues therein, please contact Steve Spraitzar at (415) 288-0427 or via email at steve.spraitzar@tuttlelaw.com.
Stephen Spraitzar, is an attorney with the Law Offices of George R. Tuttle in San Francisco.
The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.
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