CSMS Message: 17-000739

Requirements for the Importation of Other Sugar from Mexico into the Customs Territory of the United States in accordance with Amendments to the Agreements Suspending the AD/CVD Investigations on Sugar from Mexico.

The Department of Commerce (Commerce) published in the Federal Register on 12/29/2014 (79 FR 78039) the notice of “Sugar From Mexico: Suspension of Antidumping Investigation”, effective 12/19/2014. Imports of sugar from Mexico are subject to the terms and conditions of the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico (the AD Agreement) between Commerce and signatory producers or exporters of sugar from Mexico. See Commerce AD/CVD instructions to U.S. Customs and Border Protection (CBP) in message numbers 4365304 dated 12/31/2014 and 5086304 dated 03/27/2015.

In addition, Commerce published in the Federal Register on 12/29/2014 (79 FR 78044) the notice of “Sugar From Mexico: Suspension of Countervailing 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 CVD Agreement) between Commerce and the Government of Mexico. See Commerce AD/CVD message numbers 4364303 dated 12/30/2014, 5086305 dated 03/27/2015, and 5338301 dated 12/04/2015.

On July 11, 2017, Commerce published in the Federal Register, an amendment to the AD agreement (collectively, the amended AD Agreement, 82 FR 31945) signed by Commerce and the signatory producers and exporters of sugar from Mexico and an amendment to the CVD agreement (collectively, the amended CVD Agreement, 82 FR 31942) signed by Commerce and the Government of Mexico. The amended AD and CVD agreements apply to all contracts for Sugar from Mexico for the October 1, 2017 through September 30, 2018 Export Limit Period (as defined in the amended CVD Agreement), and to all contracts for Sugar from Mexico (regardless of Export Limit Period) exported from Mexico on or after October 1, 2017.

In accordance with the amended CVD Agreement, presentation to CBP of a valid export license issued by the Government of Mexico continues to be a condition of entry for shipments of sugar from Mexico covered by the amended agreement and entered, or withdrawn from warehouse, for consumption on or after 02/17/2015. See Message 7219308, dated 08/07/2017. In addition, importers must report the Mexican sugar export license with the Entry Summary data.

In accordance with newly-added Section VII.C.6 of the amended AD Agreement, Commerce, in message number 7216303 dated 08/04/2017, requested that CBP inform the importing public of the following requirements for the importation of Other Sugar from Mexico (as defined in the amended AD Agreement and the amended CVD Agreement), as follows:

Other Sugar may enter the Customs territory of the United States if the following conditions are met:

1. Exporters of Other Sugar are required to ensure, through inclusion of obligations in their sales contracts or otherwise, that:
a. importers of record of such Other Sugar agree to ensure that Other Sugar is tested for polarity by a laboratory approved by CBP upon entry into the United States, with samples drawn in accordance with CBP standards, and;

b. the importers of record agree to report the polarity test results for each entry to the Department of Commerce within 30 days of entry.

2. Such polarity test reports must be filed on the official Commerce records for both the AD Agreement and the CVD Agreement.

3. For clarity, sampling will be done in accordance with CBP standards (e.g., CBP Directive No. 3820-001B), or its successor directive as agreed by Commerce and the signatory producers and exporters of sugar from Mexico, including the CBP requirement that the polarity level of an entry will be the average of the samples from that entry.

Testing may be completed by CBP Laboratories & Scientific Services (CBP Labs), a federal government laboratory system, which supports the enforcement of U.S. trade laws. The CBP Labs can accept raw sugar samples from importations if sampled and submitted in accordance with CBP Directive 3820-001B, however the CBP Labs cannot issue reports directly to importers of record. The CBP Lab reports can only be issued to the port of entry or the CBP Import Specialist assigned to the entry. If an importer wishes to receive a copy of a CBP Lab report regarding their entry, the importer must request the report from the port of entry or the Import Specialist assigned to the entry.

In the interest of satisfying the Department of Commerce requirements and timelines for importations of other sugars from Mexico, it is recommended that samples be sent to the lone CBP Accredited Laboratory for the analysis of sugar, R. Markey & Sons, Inc. in New York, which will be able to issue their laboratory reports directly to the importer who submits the sugar sample. Their accreditation status allows their reports to be used for customs purposes and are sufficient for meeting the Commerce requirement “that importers of record of such Other Sugar agree to ensure that Other Sugar is tested for polarity by a laboratory approved by U.S. Customs and Border Protection (CBP).”

For a list of all CBP accredited labs please see: https://www.cbp.gov/document/forms/cbp-approved-gaugers-and-accredited-laboratories-list.

For Further Information, see the Federal Register notices at 82 FR 31942 and 82 FR 31945, July 11, 2017; Commerce AD/CVD message number 7216303 dated 08/04/2017 regarding the amended AD Agreement; and message numbers 7216304 dated 08/04/2017 and 7219308 dated 08/07/2017 regarding the amended CVD Agreement.

Commerce AD/CVD messages are available in ACE and on ADDCVD search on CBP.gov at http://adcvd.cbp.dhs.gov/adcvdweb/.