Drilling Down Through Quotas In Int'l Trade

On Aug 21, 2014, at 6:41 PM, Steve wrote:

Dear John,

I was reading chapter 21 of the HTS schedule and I found this statement:

"The aggregate quantity of mixed condiments and mixed seasonings described in additional U.S. note 3 to this chapter and entered under

subheading 2103.90.74 during the 12-month period from October 1 in any year to the following September 30, inclusive, shall not exceed

689 metric tons (articles the product of Mexico shall not be permitted or included in the aforementioned quantitative limitation and no

such articles shall be classifiable therein)."

Here's how I am interpreting this. The US is limiting imports of 'mixed condiments' and such by a certain amount (689 metric tons).

***Yes, but those are usually country specific, can you tell if this is the case, or is it all countries (excepting Mexico).?***

Which means that if things were to go well with me working with supplier/customer regarding a sauce import I would probably want this to happen October 1st and closer to the first half of this 'year' to guarantee that my import of sauce would not be held up at a port and disallowed entry into US. 

***Well, as I understand it, most of these ar epolitical grandstanding, they never fill...  Some do, the day they open...  so it could be on Oct 1, customs entires for 1000 metric tones are submitted, USCustoms rejects them all and permits each to resubmit at 68.9% of their original application...  (1000 MT applied for, 689 allowed, reject and let various resubmit at 68.9%...

What you have to do is inquire of the manager at customs on this particular number to find out how the game is played currently, or if there is evena  game to play.***

However, since I really am not focusing on import but export, I am not necessarily concerned at this limitation. Yet, it raises my alert to the fact that whatever country that I may want to export a BBQ sauce into may have responded politically to the US limit. 

***Perzactly!***

Therefore, this becomes important to me for my awareness and timing of import/export. Additionally, Mexico has been excluded from this limitation. 

***Politics...***

The US continues... "Of the quantitative limitations provided for in this note, the countries listed below shall have access to not less than the quantities

specified below:

Quantity

(liters)

Belgium 922,315

Denmark 13,059

Jamaica 3,596

Netherlands 104,477

New Zealand  58 9,312"

***The mind boggles...***

So, If I were to import from the forementioned countries, there is a guaranteed minimum allowance out of the overall 689 metric tons which means that there is a protected import of products already from these countries based on some diplomatic arrangements between countries. These may prove to be items worth researching if I seek to become an expert in this HTS area as it may impact BBQ sauces.

***Yes... another reason for specialization...  ***

Am I correct in my assessment? Anything that I should really watch out in regard to this that I am missing or may miss?

*** You can never know the whole picture nor have all of your permits...  you simply manage risk by doing many small shipments.... and search and learn...***

Also, In the research stage of this item (BBQ Sauce), what may be some places that I could research the diplomatic arrangements. I know I can google it, but are there any websites that you routinely find provide valuable information/news that directly speaks of export?

***Probably ask the person inside USA customs (and he may refer you on to someone at USITC)  that manages this HTS number...  the info will be fairly arcane and probably obscure.  This is the "immersion" thing, the part where your joy in working on the particular problem that causes you passion (suffering), gives you the advantage....

You know you are on the right project when you find you love this stuff, it gives you joy to immerse yourself...

Everyone has been assigned passions and the joy behind it...

John

Feel free to forward this by email to three of your friends.

Bookmark this post --- Email this post