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In the September 21, 2007 Federal Register, the U.S. Department of Agriculture (USDA) published a final rule that sets forth the revised Appendices to the dairy tariff-rate import quota licensing regulation for the 2007 quota year reflecting the cumulative annual transfers from Appendix 1 to Appendix 2 for certain dairy product import licenses permanently surrendered by licensees or revoked by the Licensing Authority.

USDA’s Import Regulation states that whenever a historical license (Appendix 1) is not issued to an applicant, is permanently surrendered or is revoked by the Licensing Authority, the amount of such license will be transferred to Appendix 2. The cumulative annual transfers are required to be published in the Federal Register.

In 2007, a total of 38,847 kgs of the non-cheese articles subject to tariff-rate quotas (TRQ) was transferred from Appendix 1 to Appendix 2. This total consists almost entirely of 38,305 kgs. of dried buttermilk/whey (HTS Additional U.S. Note 12) from New Zealand as a result of the imposition of the license surrender penalty.

In 2007, a total of 754,408 kgs. of cheese subject to TRQs was transferred from Appendix 1 to Appendix 2, primarily as a result of the imposition of the license surrender penalty of 7 CFR §6.25(b). In 2006, a total of 1,648,221 kgs. of cheese TRQs was transferred from Appendix 1 to Appendix 2. Once again, the TRQ which was hit the hardest was Swiss/Emmenthaler Cheese (HTS Additional U.S. Note 25) from the European Union (EU) which had 631,872 kgs. transferred from Appendix 1 (historical licenses) to Appendix 2 (non-historical licenses), representing 83.4% of all the cheese articles which were transferred in 2007. Attached is the following chart that sets forth the amount transferred from Appendix 1 to Appendix 2 for each article of cheese subject to TRQs.

PDF Chart (5 K)