View Rule

The regulations governing the Dairy Tariff-Rate Quota Import Licensing program, 7 CFR 6.206.36, are designed to fulfill our World Trade Organization obligations and facilitate the import of certain dairy products under tariff-rate quotas (TRQs) as set forth in certain notes in chapter 4 of the Harmonized Tariff Schedule of the United States. Under these TRQs, a low tariff rate applies to imports of certain dairy products up to a specified quantity. A higher tariff rate applies to any imports in excess of that amount. Under the licensing program regulations, the Foreign Agricultural Service (FAS) issues three types of annual licenses: historical, nonhistorical (lottery), and designated. The three license types are used in the same manner but are obtained under different circumstances. No license is required to import products at the over-quota tariff rate. The proposed rule removes the section on license transfers, strengthens the suspension and revocation provisions, and moves forward the surrender date to permit earlier reallocation of surrendered quantities.