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USDA Announces Upland Cotton Special Import Quota #5

Posted November 26, 2020


The U.S. Department of Agriculture’s Commodity Credit Corporation recently announced special import quota #5 for upland cotton. Effective November 26, this allows for the importation of upland cotton equal to one week’s domestic mill use or 8,108,926 kilograms.
USDA Seal w/ Cotton Plants
The quota applies to upland cotton purchased by February 23, 2021 and entered into the United States by May 24, 2021. Entries under this quota can be entered under 9903.52.05.

Note: The quota is not divided by staple length or by country of origin and does not apply to Extra Long Staple cotton.

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Background


The special import quota is one of several provisions authorized in the Food and Agriculture Act of 1977 (P.L. 95-113) that aim to keep the U.S. cotton spinning industry competitive. In accordance with this legislation, the administration is required to establish an import quota when, for any consecutive 4-week period, the weekly average of the cheapest U.S. (Far Eastern) cotton price quotation exceeds the prevailing world market price (the average of the cheapest five Far Eastern price quotations).

The quota is equivalent to one week’s domestic mill consumption of upland cotton at the seasonally adjusted average consumption rate during the most recent 3 months for which data are available. The quota applies to upland cotton purchased within 90 days after the quota announcement and entered into the United States within 180 days after the announcement.

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Reminder: Upcoming Reduction in Importer Cotton Assessment Fee


Pursuant to a final rule recently issued by the USDA’s Agricultural Marketing Service, effective December 4, the fee paid by importers of cotton and cotton-containing products under the Cotton Research and Promotion Order will be reduced from $0.012222 per kg to $0.011562 per kg.

Note: This levy reflects the weighted average price received by U.S. farmers for Upland cotton in 2019 and is supplemental to the $1 per bale of cotton (equal to 226.8 kg of cotton) assessed on imported cotton and cotton-containing products. 

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More Information
 

Should you have any questions about the USDA’s cotton import quota programs, don’t hesitate to contact one of our knowledgeable trade experts.

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