TITLE 7--AGRICULTURE
PART 1530--SUGAR IMPORT LICENSING--Table of Contents
Subpart C--Sugar for the Production of Polyhydric Alcohol

Sec. 1530.300 Definitions.

For purposes of this subpart, unless the context indicates otherwise, the following words and phrases have the meanings ascribed to them:

(a) Additional U.S. note 3 means paragraph (c) of additional U.S. note 3 to chapter 17 of the HTS.

(b) Agent means a licensed customs house broker, freight forwarder, or other person authorized to act on behalf of the licensee.

(c) Date of entry is the date when the U.S. Customs Service entry form is properly executed and deposited, together with any estimated duties and special import fees and any related documents required by law or regulation to be filed with such form at the time of entry with the appropriate customs official.

(d) Drawback and drawback entry have the meanings ascribed to them in 19 CFR part 191.

(e) Enter or entry, with respect to sugar imported into customs territory of the United States, refers to sugar that is entered or withdrawn from warehouse for consumption.

(f) HTS means the Harmonized Tariff Schedule of the United States.

(g) License means a license, issued by the Secretary of Agriculture, through the Licensing Authority, which permits the entry, in accordance with the provisions of this subpart, of raw cane sugar described in subheading 1701.11.02 of the HTS for the sole purpose of producing (other than by distillation) polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption.

(h) Licensee means a manufacturer to whom a license has been issued pursuant to the provisions of this subpart.

(i) Licensing Authority means the Team Leader, Import Quota Programs, Import Policies and Trade Analysis Division, Foreign Agricultural Service, U.S. Department of Agriculture, or the Team Leader's designee.

(j) Manufacturer means a person who is engaged in the production (other than by distillation) of polyhydric alcohols from sugar.

(k) Number 11 contract price means the daily closing price per pound of raw sugar for the nearby Number 11 contract of the New York Coffee, Sugar and Cocoa Exchange.

(l) Number 14 contract price means the daily closing price per pound of raw sugar for the nearby Number 14 contract of the New York Coffee, Sugar and Cocoa Exchange.

(m) Person means any individual, partnership, corporation, association, estate, trust or any other business enterprise or legal entity.

(n) Program means the licensing program provided for in the regulations in this subpart and includes the requirements and limitations of HTS subheading 1701.11.02 and additional U.S. note 3.

(o) Sugar means raw cane sugar described in subheading 1701.11.02 of the HTS.

Sec. 1530.301 Application for a license.

(a) An applicant for a license must apply in writing to the Licensing Authority. The letter of application shall contain as a minimum the following information:

(1) The name and address of the applicant and of the facility or facilities at which imported sugar will be used to produce polyhydric alcohols;

(2) The license amount requested, not to exceed the anticipated requirements of the manufacturer on an annual basis;

(3) The name of the person that will establish a performance bond in favor of the United States Government on behalf of the applicant;

(4) The anticipated requirements of the manufacturer for sugar to be used in the production (other than by distillation) of polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, on an annual basis; and

(5) The total quantity of polyhydric alcohol produced (other than by distillation), except polyhydric alcholols for use as a substitute for sugar in human food consumption, by the manufacturer during the previous 12-month period, and the total quantity of polyhydric alcohol produced by the manufacturer during the previous 12-month period.

(b) An application for a license shall contain a certification that the manufacturer shall use the quantity of sugar entered under a license solely for the production (other than by distillation) of polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, and that the manufacturer shall notify the Licensing Authority, within 95 days of the exportation of any polyhydric alcohols, if such exportation has resulted in, or has been used as the basis of a claim by the licensee or any other person for, a refund, as drawback, of any duties paid on the importation of any sugars, syrups or molasses described in subheadings 1701.11.03, 1701.12.02, 1701.91.92, 1701.99.02, 1702.90.32, 1806.10.42, or 2106.90.12 of the HTS and the amount of such refund.

(c) A licensee shall promptly notify the Licensing Authority if any of the information described in paragraph (a) of this section has changed and shall submit an amended application upon the request of the Licensing Authority.

(d) The Licensing Authority may waive any provisions of this section for good cause if it is determined that such a waiver will not adversely affect the purposes of this program.

Sec. 1530.302 Issuance of a license.

(a) The Secretary of Agriculture, through the Licensing Authority, may issue a license to a manufacturer under which the manufacturer, in accordance with the provisions of this program, may enter raw cane sugar described in subheading 1701.11.02 of the HTS for the sole purpose of producing (other than by distillation) polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption. The license shall state the maximum amount of sugar which may be imported under the license. The license may contain such additional conditions, limitations or restrictions as the Licensing Authority determines to be appropriate for the purposes of this program.

The Licensing Authority may add or modify such conditions, limitations or restrictions at such time and in such manner as the Licensing Authority, in his or her discretion, determines to be necessary or appropriate for the purposes of this program.

(b) The total quantity of sugar imported under a license must be used or the sole purpose of producing (other than by distillation) polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, within 180 days of the date of entry of such sugar.

(c) The maximum amount of sugar which may be imported under the license will be the requirements of the manufacturer for sugar to be used in the production (other than by distillation) of polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, during the 12-month period following the effective date of the license, as determined by the Licensing Authority. Quantities of sugar imported under the license will be charged to the license and quantities of sugar used for the sole purpose of producing (other than by distillation) polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, will be credited to the license as provided in Sec. 1530.306. At no time may the charges to the license exceed the maximum license amount specified in the license.

(d) The licensee shall reserve all rights, if any, to claim drawback refunds with respect to the exportation of polyhydric alcohols under this program. No credit on a license shall be made if any refund, as drawback, of any duties paid on the importation of any sugars, syrups or molasses described in subheadings 1701.11.03, 1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32, 1806.10.42, or 2106.90.12 of the HTS is claimed or received on the basis, or as a result, of the exportation of such polyhydric alcohols.

(e) If a licensee has made a full settlement of the balance on a license, the licensee may surrender the license on terms and conditions acceptable to the Licensing Authority. A licensee may not transfer a license to any other person. Any attempt to transfer or assign a license shall be null and void and shall be grounds for the revocation of the license by the Licensing Authority.

(f) The licensee may utilize an agent to enter imported sugar. The licensee must provide to the Licensing Authority a copy of a written authorization designating such person to act as an agent for the purpose of entering sugar, and the agent shall produce such authorization for inspection by the appropriate U.S. Customs Service official at the time of entry. If the licensee uses an agent to export polyhydric alcohol, the licensee shall notify the Licensing Authority in writing of the agent's identity.

Sec. 1530.303 Bond requirements.

(a) Unless the licensee has posted a performance bond with the U.S. Customs Service which is satisfactory to the Licensing Authority with respect to the requirements of this program, the licensee shall post a performance bond, which meets the requirements of this section, with the Licensing Authority.

(b) A bond may cover entries made either during the period of time specified in the bond (term bond) or for a specified entry (single entry bond).

(c) Only the licensee who will use the sugar may be the principal on a bond to cover such sugar to be imported. The surety or sureties shall be among those listed by the Secretary of the Treasury as acceptable on Federal bonds.

(d) The obligation under the bond shall be made effective as of the date of entry of the sugar.

(e) The amount of the bond shall be equal to 20 cents per pound of sugar imported under the license.

(f) The appropriate customs official or the Licensing Authority, as appropriate, will release the obligation under the bond by 20 cents per pound for the quantity of sugar used in the production of polyhydric alcohols and credited to the license in accordance with Sec. 1530.306, as determined by the Licensing Authority.

(g) If the licensee fails to qualify for a credit to the license within 95 days of the date of production of polyhydric alcohols in a quantity sufficient to offset the charge to the license for the imported sugar used for producing such polyhydric alcohols, or if such a credit initially granted is subsequently revoked, payment will be made to the United States of America under the bond of a monetary amount equal to the difference between the Number 11 contract price and the Number 14 contract price, per pound of raw sugar, in effect on the last market day before the date of entry of the sugar or the last market day before the end of the period during which production of polyhydric alcohol was required, whichever difference is greater, times the quantity of raw sugar that should have been, but was not, used in the production of polyhydric alcohol in timely compliance with the requirements of this subpart. In the event no Number 11 contract price or Number 14 contract price is reported by the New York Coffee, Sugar and Cocoa Exchange, for the relevant market day, the Licensing Authority may estimate such price as he or she deems appropriate.

(h) Within 10 business days of the date of issuance of a license, the licensee shall submit to the Licensing Authority a copy of the performance bond.

[55 FR 41489, Oct. 12, 1990, as amended at 56 FR 30866, July 8, 1991]

Sec. 1530.304 Entry of sugar.

(a) The licensee shall be permitted to enter imported sugar under subheading 1701.11.02 of the HTS in conformity with the conditions, limitations and restrictions of the license, the provisions of this subpart and additional U.S. note 3, and any other procedures specified by the Licensing Authority.

(b) The licensee must present the license to the appropriate U.S. Customs Service official at the time of entry. Such customs official will mark on the license:

(1) The quantity of sugar entered;

(2) The date of entry; and

(3) The customs entry number.

(c) The licensee shall submit to the Licensing Authority a copy of the license, as marked by the customs official, within 10 business days after each entry of sugar.

Last modified: Friday, November 18, 2005