AD/CVD message 0029405 - Termination of 2017 Amendment to the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico (C-201-846)

0029405
Jan 29, 2020
Active

Effective Date: Dec 07, 2019

Period Covered: 10/01/2017 to 12/07/2019

Cite as: 84 FR 67719 • Cite date: Dec 11, 2019

Category: Countervailing • Type: Information Notice • Sub type: SUSAGR • Reference messages: 4364303 5086305 5338301 • Cases: C-201-846

1. The U.S. Department of Commerce (Commerce) published in the Federal Register on 12/29/2014 (79 FR 78044) the notice of "Sugar from Mexico: Suspension of Countervailing Duty Investigation," effective 12/19/2014. Imports of sugar from Mexico are subject to the terms and conditions of the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico (the 2014 CVD Agreement) between Commerce and the Government of Mexico. See Message Numbers 4364303, dated 12/30/2014; 5086305, dated 03/27/2015; and 5338301, dated 12/04/2015.

2. On 07/11/2017, Commerce published in the Federal Register (82 FR 31942), an amendment to the CVD Agreement signed by Commerce and the Government of Mexico (2017 CVD Amendment and, collectively, the Amended CVD Agreement). The Amended CVD Agreement applied to all contracts for Sugar from Mexico on or after 10/01/2017 through 09/30/2018 and to all contracts for Sugar from Mexico exported from Mexico on or after 10/01/2017 through the termination date of the 2017 CVD Amendment (see 79 FR 78044 and 82 FR 31942).

3. Subsequently, consistent with a ruling from the Court of International Trade (CIT), Commerce published in the Federal Register (84 FR 67718, 12/11/2019), notice of the termination of the 2017 CVD Amendment, with an applicable date of 12/07/2019. As a result, as of 12/07/2019, the CVD Agreement (see 79 FR 78044) is in effect and applies to all contracts entered into after 12/07/2019.

4. The merchandise covered by the CVD Agreement is raw and refined sugar of all polarimeter readings derived from sugar cane or sugar beets. The chemical sucrose gives sugar its essential character. Sucrose is a nonreducing disaccharide composed of glucose and fructose linked by a glycosidic bond via their anomeric carbons. The molecular formula for sucrose is C12H22O11; the International Union of Pure and Applied Chemistry (IUPAC) International Chemical Identifier (InChl) for sucrose is 1S/C12H22O11/c13-l-4-6(16)8(18)9(19)11(21-4)23-12(3-15)10(20)7(17)5(2-14)22-12/h4-11,13-20H,1-3H2/t4-,5-,6-,7-,8+,9-,10+,11-,12+/m1/s1; the InChl Key for sucrose is CZMRCDWAGMRECN-UGDNZRGBSA-N; the U.S. National Institutes of Health PubChem Compound Identifier (CID) for sucrose is 5988; and the Chemical Abstracts Service (CAS) Number of sucrose is 57-50-1.
Sugar described in the previous paragraph includes products of all polarimeter readings described in various forms, such as raw sugar, estandar or standard sugar, high polarity or semi-refined sugar, special white sugar, refined sugar, brown sugar, edible molasses, desugaring molasses, organic raw sugar, and organic refined sugar. Other sugar products, such as powdered sugar, colored sugar, flavored sugar, and liquids and syrups that contain 95 percent or more sugar by dry weight are also within the scope of the CVD Agreement.

The scope of the CVD Agreement does not include (1) sugar imported under the Refined Sugar Re-Export Programs of the U.S. Department of Agriculture (This exclusion applies to sugar imported under the Refined Sugar Re-Export Program, the Sugar-Containing Products Re-Export Program, and the Polyhydric Alcohol Program administered by the U.S. Department of Agriculture); (2) sugar products produced in Mexico that contain 95 percent or more sugar by dry weight that originated outside of Mexico; (3) inedible molasses (other than inedible desugaring molasses noted above); (4) beverages; (5) candy; (6) certain specialty sugars; and (7) processed food products that contain sugar (e.g., cereals). Specialty sugars excluded from the scope of the CVD Agreement are limited to the following: caramelized slab sugar candy, pearl sugar, rock candy, dragees for cooking and baking, fondant, golden syrup, and sugar decorations.

Merchandise covered by the CVD Agreement is typically imported under the following headings of the HTSUS: 1701.12.1000, 1701.12.5000, 1701.13.1000, 1701.13.5000, 1701.14.1000, 1701.14.5000, 1701.91.1000, 1701.91.3000, 1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010, 1701.99.5025, 1701.99.5050, and 1702.90.4000. The tariff classification is provided for convenience and customs purposes; however, the written description of the scope of the CVD Agreement is dispositive.

5. In accordance with the terms of the CVD Agreement, and consistent with paragraph 5 of Message Number 4364303 (dated 12/30/2014) and with Message Number 5338301 (dated 12/04/2015), shipments of sugar from Mexico entered into the United States, or withdrawn from warehouse, for consumption on or after 12/07/2019, shall continue to be permitted only upon presentation to CBP of a valid export license issued by the Government of Mexico. An export license must be presented to CBP as a condition of entry of all Mexican sugar covered by the CVD Agreement. CBP will prohibit the entry of any subject merchandise not accompanied by a valid export license issued by the Government of Mexico. Importers must include the export license number on the entry summary form 7501, in box number 33(D).

6. If there are any questions by the importing public regarding this message, please contact the Call Center for the Office of AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce at (202) 482-0984. CBP ports should submit their inquiries through authorized CBP channels only. (This message was generated by BAU: DC)

7. There are no restrictions on the release of this information.

Alexander Amdur