USDA ANNOUNCES SPECIAL IMPORT QUOTA #16 FOR UPLAND COTTON

Gary Strickland and Randy Boman analyze cotton bolls in southwestern Oklahoma. (Photo by Everett Brazil, III)

The Department of Agriculture’s Commodity Credit Corporation today announced a special
import quota for upland cotton that permits importation of a quantity of upland cotton equal to
one week’s domestic mill use. The quota will be established on August 16, 2018, allowing
importation of 13,673,800 kilograms (62,803 bales) of upland cotton.

This action is being carried out under the authority of PL 113-79, enacted February 7, 2014,
which requires that a special import quota be determined and announced immediately if, for any
consecutive 4-week period, the U.S. Far East price exceeds the prevailing world market price.
This condition was met during the consecutive 4-week period ending today.

Quota number 16 will be established as of August 16, 2018, and will apply to upland cotton
purchased not later than November 13, 2018, and entered into the U.S. not later than February 11
2019. The quota is equivalent to one week’s consumption of cotton by domestic mills at the
seasonally-adjusted average rate for the period March 2018 through May 2018, the most recent
three months for which data are available.

Today’s announced quota is established under Presidential Proclamation 6301 dated June 7,
1991, and Presidential Proclamation 6948 dated Oct. 29, 1996, and will be referenced as the
Secretary of Agriculture’s Special Cotton Import Quota Announcement Number 16 in chapter
99, subchapter III, subheading 9903.52.16 of the Harmonized Tariff Schedule (HTS). The quota
is not divided by staple length or by country of origin, and does not apply to Extra Long Staple
(ELS) cotton. The quota identifies a quantity of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota. The quota does not affect existing tariff rates or phytosanitary
regulations. Future quotas, in addition to the quantity announced today, will be established if
price conditions warrant.