USDA Increases the Domestic Sugar Overall Allotment Quantity,
Reassigns Domestic Cane Sugar Allotments, and Increases the Fiscal Year
2011 Raw Sugar Tariff-Rate Quota

AGENCY: Office of the Secretary, USDA.

ACTION: Notice.

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SUMMARY: The Secretary of Agriculture today announced an increase in
the domestic sugar Overall Allotment Quantity (OAQ); a reassignment of
surplus sugar under domestic cane sugar allotments of 120,000 short
tons raw value (STRV) to imports; and an increase in the fiscal year
(FY) 2011 raw sugar tariff-rate quota (TRQ) of the same amount.

DATES: Effective: June 22, 2011.

FOR FURTHER INFORMATION CONTACT: Angel F. Gonzalez, Import Policies and
Export Reporting Division, Foreign Agricultural Service, AgStop 1021,
U.S. Department of Agriculture, Washington, DC 20250-1021; or by
telephone (202) 720-2916; or by fax to (202) 720-0876; or by e-mail to
angel.f.gonzalez@fas.usda.gov.

SUPPLEMENTARY INFORMATION: USDA's Commodity Credit Corporation (CCC)
today announces an increase in the FY 2011 (October 1, 2010-September
30, 2011) OAQ under the Sugar Marketing Allotment Program to 9,400,000
STRV

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and a reassignment of surplus cane sugar allotment to imports. The OAQ
was increased due to an increase in estimated sugar demand since the FY
2011 OAQ was established in August 2010. The beet sugar allotment is
now 5,108,900 STRV, and the cane sugar allotment is 3,366,100 STRV. The
FY 2011 cane sector allotment and cane state allotments after the OAQ
increase were larger than could be fulfilled by domestically-produced
cane sugar; so the surplus was reassigned to raw sugar imports, as
required by law. Upon review of the domestic sugarcane processors'
sugar marketing allocations relative to their FY 2011 expected raw
sugar supplies, CCC determined that all sugarcane processors had
surplus allocation. Therefore, all sugarcane states' sugar marketing
allotments are reduced with this reassignment. The new cane state
allotments are Florida, 1,464,666 STRV; Louisiana, 1,526,050 STRV;
Texas, 147,138 STRV; and Hawaii, 228,246 STRV. The FY 2011 sugar
marketing allotment program will not prevent any domestic sugarcane
processors from marketing all of their FY 2011 sugar supply.

    On August 5, 2010, USDA established the FY 2011 TRQ for raw cane
sugar at 1,231,497 STRV (1,117,195 metric tons raw value, MTRV*), the
minimum to which the United States is committed under the World Trade
Organization (WTO) Uruguay Round Agreements. On April 11, 2011, USDA
announced a reassignment of surplus sugar under domestic cane sugar
allotments of 325,000 STRV (294,835 MTRV) to imports, and increased the
FY 2011 raw sugar TRQ by the same amount. Pursuant to Additional U.S.
Note 5 to Chapter 17 of the U.S. Harmonized Tariff Schedule (HTS) and
Section 359k of the Agricultural Adjustment Act of 1938, as amended,
the Secretary of Agriculture today further increased the quantity of
raw cane sugar imports of the HTS subject to the lower tier of duties
during FY 2011 by 120,000 STRV (108,862 MTRV). With this increase, the
overall FY 2011 raw sugar TRQ is now 1,676,497 STRV (1,520,892 MTRV).
Raw cane sugar under this quota must be accompanied by a certificate
for quota eligibility and may be entered under subheading 1701.11.10 of
the HTS until September 30, 2011. The Office of the U.S. Trade
Representative will allocate this increase among supplying countries
and customs areas.

    This action is being taken after a determination that additional
supplies of raw cane sugar are required in the U.S. market. USDA will
closely monitor stocks, consumption, imports and all sugar market and
program variables on an ongoing basis, and may make further program
adjustments during FY 2011 if needed.

    * Conversion factor: 1 metric ton = 1.10231125 short tons.

Dated: June 16, 2011.
Michael T. Scuse,
Acting Under Secretary, Farm and Foreign Agricultural Services and
Acting President, Commodity Credit Corporation.
[FR Doc. 2011-15521 Filed 6-21-11; 8:45 am]
BILLING CODE 3410-10-P