Cotton user marketing certificates
Issuance
Value of certificates or payments
The value of the marketing certificates or cash payments shall be based on the amount of the difference (reduced by 1.25 cents per pound) in the prices during the 4th week of the consecutive 4-week period multiplied by the quantity of upland cotton included in the documented sales.
Administration of marketing certificates
Redemption, marketing, or exchange
The Secretary shall establish procedures for redeeming marketing certificates for cash or marketing or exchange of the certificates for agricultural commodities owned by the Commodity Credit Corporation or pledged to the Commodity Credit Corporation as collateral for a loan in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates, including enhancing the competitiveness and marketability of United States cotton. Any price restrictions that would otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this subsection.
Designation of commodities and products
To the extent practicable, the Secretary shall permit owners of certificates to designate the commodities and products, including storage sites, the owners would prefer to receive in exchange for certificates.
Transfers
Marketing certificates issued to domestic users and exporters of upland cotton may be transferred to other persons in accordance with regulations issued by the Secretary.
Special import quota
Establishment
In general
The President shall carry out an import quota program during the period ending , as provided in this subsection.
Program requirements
332Except as provided in subparagraph (C), whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under subsection (a), exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.
Tight domestic supply
332During any month for which the Secretary estimates the season-ending United States upland cotton stocks-to-use ratio, as determined under subparagraph (D), to be below 16 percent, the Secretary, in making the determination under subparagraph (B), shall not adjust the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, for the value of any certificates issued under subsection (a).
Season-ending United States stocks-to-use ratio
For the purposes of making estimates under subparagraph (C), the Secretary shall, on a monthly basis, estimate and report the season-ending United States upland cotton stocks-to-use ratio, excluding projected raw cotton imports but including the quantity of raw cotton that has been imported into the United States during the marketing year.
Quantity
The quota shall be equal to 1 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.
Application
The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (1) and entered into the United States not later than 180 days after the date.
Overlap
A special quota period may be established that overlaps any existing quota period if required by paragraph (1), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (c).
Preferential tariff treatment
“Special import quota” defined
In this subsection, the term “special import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.
Limitation
The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 5 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.
Limited global import quota for upland cotton
In general
Quantity
The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which data are available.
Quantity if prior quota
If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.
Preferential tariff treatment
Definitions
Supply
Demand
Limited global import quota
The term “limited global import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.
Quota entry period
When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.
No overlap
Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (b).
Pub. L. 104–127, title I, § 136110 Stat. 909 Pub. L. 105–86, title VII, § 731111 Stat. 2108 Pub. L. 105–277, div. A, § 101(a) [title VII, § 762]112 Stat. 2681 Pub. L. 106–78, title VIII, § 806113 Stat. 1179 (, , ; , , ; , , , 2681–36; , , .)
Editorial Notes
References in Text
section 1202 of Title 19The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D) and (c)(1)(C)(iv), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under , Customs Duties.
Amendments
Pub. L. 106–78, § 806(a)(1)1999—Subsec. (a)(1). , substituted “or cash payments, at the option of the recipient,” for “or cash payments” in introductory provisions.
Pub. L. 106–78, § 806(a)(2)Subsec. (a)(1)(A), (2). , substituted “1.25 cents per pound” for “3 cents per pound”.
Pub. L. 106–78, § 806(a)(3)(A)Subsec. (a)(3)(A). , substituted “owned by the Commodity Credit Corporation or pledged to the Commodity Credit Corporation as collateral for a loan in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates, including enhancing the competitiveness and marketability of United States cotton” for “owned by the Commodity Credit Corporation in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates” in first sentence.
Pub. L. 106–78, § 806(a)(3)(B)Subsec. (a)(3)(B). , struck out at end “If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of the certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after the reasonable number of days and ending with the date of the presentation of the certificate to the Commodity Credit Corporation.”
Pub. L. 106–78, § 806(a)(4)Subsec. (a)(4). , struck out heading and text of par. (4). Text read as follows: “Total expenditures under this subsection shall not exceed $701,000,000 during fiscal years 1996 through 2002.”
Pub. L. 106–78, § 806(b)(1)332Subsec. (b)(1). , added par. (1) and struck out heading and text of former par. (1). Text read as follows: “The President shall carry out an import quota program that provides that, during the period ending , whenever the Secretary determines and announces that for any consecutive 10-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificates issued under subsection (a) of this section, exceeds the Northern Europe price by more than 3 cents per pound, there shall immediately be in effect a special import quota.”
Pub. L. 106–78, § 806(b)(2)Subsec. (b)(7). , added par. (7).
Pub. L. 105–2771998—Subsecs. (a)(1)(A), (2), (b)(1). substituted “3 cents” for “1.25 cents”.
Pub. L. 105–86, § 731(1)1997—Subsec. (a)(1). , in introductory provisions substituted “During” for “Subject to paragraph (4), during” and in subpar. (B) substituted “134” for “130”.
Pub. L. 105–86, § 731(2)332Subsec. (a)(4), (5). , (3) redesignated par. (5) as (4) and struck out heading and text of former par. (4). Text read as follows: “The Secretary shall not issue marketing certificates or cash payments under paragraph (1) if, for the immediately preceding consecutive 10-week period, the Friday through Thursday average price quotation for the lowest priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under this subsection, exceeds the Northern Europe price by more than 1.25 cents per pound.”
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Pub. L. 105–86, title VII, § 731111 Stat. 2108 , , , provided that the amendment made by that section is effective on .