Mexico Announces a New Sugar Tariff Rate Quota

A Lastest News about Agriculture and Animal Husbandry in Mexico

Last updated: 22 Nov 2011

The Secretariat of Economy (SE) published two announcements in the Diario Oficial, on October 20, 2011, for a sugar tariff-rate quota (TRQ) for 150,000 metric tons (MT) (159,000 metric tons raw value (MT-RV) for the purposes of balancing domestic sugar availability with imports and contributing to sugar price stabilization.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 10/25/2011 GAIN Report Number: MX1078 Mexico Post: Mexico Mexico Announces a New Sugar TRQ for MY 2011-12 Report Categories: Sugar Agriculture in the News Approved By: Dan Berman Prepared By: Dulce Flores Report Highlights: The Secretariat of Economy (SE) published two announcements in the Diario Oficial, on October 20, 2011, for a sugar tariff-rate quota (TRQ) for 150,000 metric tons (MT) (159,000 metric tons raw value (MT-RV) for the purposes of balancing domestic sugar availability with imports and contributing to sugar price stabilization. Ninety percent of the quota can be imported from any country (135,000 MT), but 10 percent of the quota must originate from Nicaragua (15,000 MT), at zero duty. General Information: Introduction: This report summarizes two announcements by the Secretariat of Economy (SE) published on October 20, 2011 to allow a total of 150,000 metric tons of sugar to be imported under a tariff rate-quota, of which 15,000 will come from Nicaragua. Disclaimer: This summary is based on a cursory review of the subject announcement and therefore should not, under any circumstances, be viewed as a definitive reading of the regulation in question, or of its implications for U.S. agricultural export trade interests. In the event of a discrepancy or discrepancies between this summary and the complete regulation or announcement as published in Spanish, the latter shall prevail. Title: Agreement that announces a sugar tariff rate-quota and allotment mechanism to import sugar in 2011 and January 2012. Agreement that announces a sugar tariff rate-quota and allotment mechanism to import sugar originating from the Republic of Nicaragua in 2011 and January 2012. Summary: The Secretariat of Economy (SE) announced in the Diario Oficial (Federal Register), on October 20, 2011 a sugar import tariff-quota (TRQ) for 150,000 MT. According to the announcements, 15,000 MT are allocated to Nicaragua on a duty free basis, and 135,000 MT of sugar can be imported from all countries, subject to the specific tariff listed below: Table 1. Mexico. Sugar Import Tariffs H.T. ITEM Tariff for all SYSTEM Countries Dollars/Kg 1701.11.01 Sugar whose content of sucrose by weight, in the dry state, has a polarimeter reading equal or higher to 99.4, but less than 99.5 degrees. 0.01448199 1701.11.02 Sugar with a dry sucrose content that has a polarization equal or higher to 96 but not exceeding 99.4 degrees ? With polarization equal or higher to 96.0 but not exceeding 96.99 degrees. ? With polarization equal or higher to 97.0 but not exceeding 97.99 degrees. 0.01377928 ? With polarization equal or higher to 98.0 but not exceeding 98.99 degrees. 0.01398596 ? With polarization equal or higher to 99.0 but not exceeding 99.09 d egrees. ? 0.01419264 With polarization equal or higher to 99.1 but not exceeding 99.19 degrees. ? With polarization equal or higher to 99.2 but not exceeding 99.29 0.01439932 degrees. ? With polarization equal or higher to 99.3 but not exceeding 99.39 0.01441999 degrees. 0.01444065. MX1078 Mexico Announces a New Sugar TRQ Page 2 0.01446132 1701.99.01 Sugar with a dry sucrose content that has polarization equal or higher of 99.5 but not exceeding 99.7 degrees With polarization equal or higher to 99.5 and lower or equal than 99 .59 degrees. With polarization equal or higher 0.03650266 to 99.6 and lower or equal than 99.69 degrees. 0.03652333 1701.99.02 Sugar, with a dry sucrose content that has polarization of 99.7 but not exceeding 99.9 degrees. With polarization equal or higher to 99.7 and lower or equal than 99 .79 degrees. With polarization equal or higher to 99.8 and lower or equal than 99.89 degrees. 0.03654400 0.03656466 1701.99.99 Sugar, others With polarization equal or higher to 99.9 and lower or equal than 0.03658533 99.99 degrees. With polarization equal or higher than 100 degrees. 0.03660600 The SE had determined by August (see MX1065) that demand for sugar would exceed available domestic supplies by the beginning of the 2011/12 sugar cycle (October 2011 through January 2012), reducing available inventories. Due to this situation and to try to reduce domestic prices for sugar that affect both the competitiveness of the productive sector that uses sugar as an input and the purchasing power of consumers, SE considered it necessary to establish an import TRQ to balance the sugar market. The mechanism to assign this quota is stipulating that half of the amount would be assigned to the industry using sugar as a raw material in production processes through a public tender. The other half of the quota would be assigned to industries or companies different from the ones importing the first half of the TRQ. The TRQ will be allocated through a public tender where: a) 75,000 MT (7,500 MT for Nicaragua) will be allocated to individuals and companies that use sugar in their production process (through IMMEX and PROSEC [i] programs) and, b) 75,000 MT (7,500 MT for Nicaragua) will be allocated to individuals and companies different from the ones above. The bidding process will be published in the Diario Oficial at least 20 days before the start of the registration period and will set the date when the tender information will be made available. The quota certificates to be issued will be nominative, transferable, and will be in force until January 31, 2012. Important Dates MX1078 Mexico Announces a New Sugar TRQ Page 3 1. Publication Date: October 20, 2011. 2. Effective Date: October 21, 2011 3. In Force: until January 31, 2012 FAS/Mexico Web Site: We are available at www.mexico-usda.com or visit the FAS headquarters' home page at www.fas.usda.gov for a complete selection of FAS worldwide agricultural reporting. FAS/Mexico YouTube Channel: Catch the latest videos of FAS Mexico at work http://www.youtube.com/user/ATOMexicoCity Other Relevant Reports Submitted by FAS/Mexico: Report Date Num Subject ber Submitted MX1065 Mexico to Consider Additional Sugar TRQs 8/15/2011 MX1048 Expected Tariff Rate Quota for Sugar 6/13/2011 MX 2011 Sugar Annual: Sugar and Sugar Cane Production Forecast Stable with HFCS 1029 C 4/15/2011 onsumption Grows MX0081 Sugar Reference Price 11/9/2010 MX0071 Mexico Formally Announces 100K MT Sugar TRQ 10/18/2010 MX0069 TRQ for Sugar Expected 10/4/2010 MX0068 Sugar, Sugar Cane, and HFCS Situation 10/4/2010 Useful Mexican Web Sites: Mexico's equivalent to the U.S. Department of Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx and Mexico?s equivalent to the U.S. Department of Commerce (SE) can be found at www.economia.gob.mx. These web sites are mentioned for the readers' convenience but USDA does NOT in any way endorse, guarantee the accuracy of, or necessarily concur with, the information contained on the mentioned sites. [i] IMMEX - Decree for the Development of the Manufacturing, Maquila and Export Services Industry. Mexican re-export program. PROSEC ? Decree to establish different Sector Promotion Programs. MX1078 Mexico Announces a New Sugar TRQ Page 4
Posted: 22 November 2011, last updated 22 November 2011

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