CBP Clarifies the New Reporting Requirements for HTS 1701.11.2000 Sugar

HTS 1701.11.2000 provides for other sugar to be used for the production (other than by distillation) of polyhydric alcohols, except polyhydric alcohols for use as a substitute for sugar in human food consumption, or to be refined and re-exported in refined form or in sugar-containing products, or to be substituted for domestically produced raw cane sugar that has been or will be exported.

According to U.S. government sources, most of the sugar entered under this provision is for re-export, hence HTS 1701.11.2000 sugar is referred to as "re-export sugar."

(CBP notes that imports of sugar under HTS 1701.11.2000 are permitted only for those importers who hold a license issued by the U.S. Department of Agriculture (USDA)).

CBP & USDA Have Automated the "Re-Export Sugar" Program

CBP explains that currently importers who hold a license issued by the USDA are required to file a Summary of Transaction, FAS-947 with their entry documents when entering re-export sugar under HTS 1701.11.2000. The FAS-947 provides a cumulative listing of all entries filed by that importer. Each entry is noted on the FAS-947 and requires the signature of a CBP officer prior to release. The FAS-947 is then mailed to the USDA Sugar Licensing Authority who updates license transactions, and then returns the FAS-947 to the importer (license holder).

According to CBP, CBP and USDA have automated the re-export sugar program and eliminated the need for a Summary of Transaction (FAS-947). Rather than submitting paper documents and manually decrementing the license, the broker/importer will provide the license number as part of the CF-7501 Entry Summary form. When the entry is processed through the quota module, the entered amount will automatically be deducted from the license. CBP states that the process will work similar to the imported products subject to the Dairy Import License Program.

Effective June 23, 2004, Re-Export License Must be Provided as Part of Entry Summary Information

CBP states that, effective June 23, 2004, imports of sugar under HTS 1701.11.2000 will require the re-export license number be provided on the CF-7501 in Column 34. For filers using the Automated Broker Interface (ABI), the re-export license for sugar will be reported in the Agriculture License field that is indicated in the Entry Summary Section of the CATAIR, record identifier 51 (input) record, positions 38-47.

CBP explains that sugar classified under HTS 1701.11.2000 will continue to be entered using entry type code "2" and input in the quota module. CBP states that non-ABI entries must be manually input in the quota module. The re-export sugar license number will be input in the agriculture license field of the QSUP screen.

According to CBP and USDA sources, USDA has issued new license numbers to sugar refiners which will replace the current license numbers, effective June 23, 2004. CBP adds that USDA will monitor imports of re-export sugar.

(A recent CBP administrative message states that the format of the license for HTS 1701.11.20XX sugar (currently only HTS 1701.11.2000) is similar to the agricultural license format that is required for dairy products, and will be reported in the agricultural license field that is indicated in the entry summary section of the CATAIR, record identifier 51 (input) record, positions 38 - 47.

(Valid formats are N-AA-NNN-N or N-AB-NNN-N, including hyphens, where 'N' is numeric, 'A' is alphabetic, and 'B' is a space filler. See Adm: 04-1326 for further format details.)

(See ITT's Online Archives or 06/14/04 news, 04061410, for BP summary of Adm: 04-1436, which announced the June 23, 2004 effective date for this reporting requirement. See ITT's Online Archives or 05/25/04 news, 04052510, for BP summary of Adm: 04-1326, for further formatting details.)

CBP Contacts - Michael Hankin (202) 720-9439 (Agriculture Licensing System)

Christine De Riso (202) 927-5385 (questions about QBT-04-518)

Local Ports (questions about QBT-04-518)

USDA Contact - Ron Lord (202) 720-2916

CBP notice (QBT-04-518, dated 06/10/04) available athttp://www.cbp.gov/ImageCache/cgov/content/import/textiles/qbt/qbt2004/2004_2d518_2edoc/v1/2004_2d518.doc