Sugar Re-Export Program Waivers Issued (January 14, 2002)

Formal Notification of Waiver

Sugar Re-Export Program
Sugar-containing Products Re-export
Program Polyhydric Alcohol Program

On January 14, 2002 the Foreign Agricultural Service announced three waivers to the Refined Sugar Re-export Program. These waivers were issued to ensure that U.S. sugar-containing product exports remain competitively priced in the world market and that the U.S. sugar industry can continue its effective use of the USDA sugar re-export programs.  

Companies licensed to participate in the Refined Sugar Re-Export Program, the Sugar-Containing Products Re-Export Program and the Polyhydric Alcohol Program are benefiting from these waivers.  These waivers are in effect until further notice.

1) Definition of Refined Sugar                

The following provision of 7 CFR 1530.101 is waived immediately pursuant to the Licensing Authority's authority under Sec. 1530.113.

  • Definition of refined sugar as sugar refined from raw cane sugar.

Henceforth, refined sugar means sugar whose content of sucrose by weight, in a dry state, corresponds to a polarimeter reading of 99.5 degrees or more, or any brown sugar regardless of polarity manufactured from refined sugar.

2) Toll Refining

To permit toll refining of raw cane sugar under the Refined Sugar Re-export Program, the Sugar Containing Products Re-export Program and the Polyhydric Alcohol Program, the following provisions of 7 CFR 1530 are waived immediately pursuant to the Licensing Authority's authority under Secs. 1530.105(m) and 1530.113.

  • Paragraph (I) of Sec. 1530.105: A refiner's license may not be "assigned" without the written permission of the Licensing Authority.
  • Definitions of “transfer” and “date of transfer” in Sec 1530.101: A transfer of program sugar requires the transfer of legal title of the program sugar from a licensed refiner to a licensed manufacturer.

With this waiver, licensed manufacturers of sugar-containing products and producers of polyhydric alcohol may purchase raw cane sugar in foreign markets and import it using a refiner's license under the Refined Sugar Re­ export Program. The manufacturer or polyhydric alcohol producer may maintain legal title of the imported sugar throughout the entire process, from importation as raw cane sugar, through refining, and final transfer to the license of the manufacturer or polyhydric alcohol producer.

3) Third Party Exporters

To permit exports of sugar and sugar-containing products by third parties under the Refined Sugar Re-export Program and the Sugar-Containing Products Re-export Program, the following provision of 7 CFR 1530 is waived immediately pursuant to the Licensing Authority's authority under Secs.1530.105(m) and 1530.113.

  • The requirement in paragraph (k) of Sec. 1530.105 that a licensee must retain ownership for the product until exported from the U.S. Customs Territory.

With this waiver refiners and manufacturers may sell sugar and sugar-containing products to a U.S. order party (broker, wholesaler/distributor), who has arranged for the sale and export of the merchandise to a foreign buyer, or to a foreign entity in the United States, who has purchased the merchandise for export. The U.S. order party or foreign entity shall be listed as the "principal party In interest" (exporter) on the Shippers Export Declaration or Automated Export System record. No more than one transfer of title to the merchandise shall be permitted prior to export for the program licensee to receive credit for the export of program sugar. This waiver does not relieve the licensee of responsibility for the export of the sugar and sugar containing-products pursuant to Sec.1530.105(k) for credits to be claimed.

To use this waiver, current licensees must renegotiate their documentation agreements with the Licensing Authority.  Participants currently in the process of being re-licensed, who desire to use this waiver, should advise the Licensing Authority when negotiating their initial documentation agreement.