7 U.S.C. § 7272
Section 7272 · Sugar program
Version as of May 13, 2002, with additions and removals from the October 28, 2000 version.
The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.
The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.
The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.
The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.
(1) Reduction required
(1) In general
(2) Extent of reduction
(2) Extent of reduction
The Secretary shall not reduce the loan rate under subsection (a) or (b) of this section below a rate that provides an equal measure of support to that provided by other major sugar growing, producing, and exporting countries, based on an examination of both domestic and export subsidies subject to reduction in the Agreement on Agriculture.
The Secretary shall not reduce the loan rate under subsection (a) or (b) of this section below a rate that provides an equal measure of support to that provided by other major sugar growing, producing, and exporting countries, based on an examination of both domestic and export subsidies subject to reduction in the Agreement on Agriculture.
(3) Announcement of reduction
(3) Announcement of reduction
The Secretary shall announce any loan rate reduction to be made under this subsection as far in advance as is practicable.
The Secretary shall announce any loan rate reduction to be made under this subsection as far in advance as is practicable.
(4) Definitions
(4) Definitions
In this subsection:
In this subsection:
(A) Agreement on Agriculture
(A) Agreement on Agriculture
(B) Major sugar countries
(B) Major sugar countries
The term “major sugar growing, producing, and exporting countries” means—
The term “major sugar growing, producing, and exporting countries” means—
(i) the countries of the European Union; and
(i) the countries of the European Union; and
(1) In general
(1) In general
A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—
A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—
(A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or
(A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or
(B) the end of the fiscal year in which the loan is made.
(B) the end of the fiscal year in which the loan is made.
(2) Supplemental loans
(2) Supplemental loans
In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall—
In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall—
(A) be made at the loan rate in effect at the time the second loan is made; and
(A) be made at the loan rate in effect at the time the second loan is made; and
(B) mature in 9 months less the quantity of time that the first loan was in effect.
(B) mature in 9 months less the quantity of time that the first loan was in effect.
(1) Nonrecourse loans
(1) Nonrecourse loans
The Secretary shall carry out this section through the use of nonrecourse loans.
The Secretary shall carry out this section through the use of nonrecourse loans.
(2) Processor assurances
(2) Processor assurances
(A) In general
(1) Sugarcane
Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal year 1996, 1.1 percent of the loan rate established under subsection (a) of this section per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing); and
(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.375 percent of the loan rate established under subsection (a) of this section per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing).
(2) Sugar beets
Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal year 1996, 1.1794 percent of the loan rate established under subsection (a) of this section per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.47425 percent of the loan rate established under subsection (a) of this section per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed.
(3) Collection
(A) Timing
A marketing assessment required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed.
(B) Manner
Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.
(4) Penalties
If any person fails to remit the assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying—
(A) the quantity of cane sugar or beet sugar involved in the violation; by
(B) the loan rate for the applicable crop of sugarcane or sugar beets.
(5) Enforcement
The Secretary may enforce this subsection in a court of the United States.
(B) Minimum payments
A penalty shall be assessed on the forfeiture of any sugar pledged as collateral for a nonrecourse loan under this section.
(2) Cane sugar
The penalty for cane sugar shall be 1 cent per pound.
(3) Beet sugar
The penalty for beet sugar shall bear the same relation to the penalty for cane sugar as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane.
Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph.
(ii) Limitation
In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor.
Any payments owed producers by a processor that forfeits any sugar pledged as collateral for a nonrecourse loan shall be reduced in proportion to the loan forfeiture penalty incurred by the processor.
The Secretary may not bar a beet sugar processor from eligibility to obtain a loan under this section because of the failure of the processor to provide the appropriate minimum payment established under this subsection if the failure—
(I) occurred during a crop year prior to May 13, 2002; and
(II) was related, at least in part, to the effects of a natural disaster, including damage from freeze.
(3) Administration
The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan.
(1) Definition of in-process sugars and syrups
In this subsection, the term “in-process sugars and syrups” does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b) of this section.
(2) Availability
The Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop.
(3) Loan rate
The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups.
(4) Further processing on forfeiture
(A) In general
As a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b) of this section.
(B) Transfer to Corporation
Once the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation.
(C) Payment to processor
On transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multiplying—
(i) the difference between—
(I) the loan rate for raw cane sugar or refined beet sugar, as appropriate; and
(II) the loan rate the processor received under paragraph (3); by
(ii) the quantity of sugar transferred to the Secretary.
(5) Loan conversion
If the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) of this section for the raw cane sugar or refined beet sugar, as appropriate.
(6) Term of loan
The term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in-process sugars and syrups, may not exceed 9 months, consistent with subsection (d) of this section.
(1) In general
Subject to subsection (e)(3) of this section, to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation.
(2) Inventory disposition
(A) In general
To carry out paragraph (1), the Commodity Credit Corporation may accept bids to obtain raw cane sugar or refined beet sugar in the inventory of the Commodity Credit Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (acting in conjunction with the producers of the sugarcane or sugar beets processed by the processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate.
(B) Additional authority
The authority provided under this paragraph is in addition to any authority of the Commodity Credit Corporation under any other law.
(1) Duty of processors and refiners to report
(1) Duty of processors and refiners to report
A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
(2) Duty of producers to report
(A) Proportionate share States
As a condition of a loan made to a processor for the benefit of a producer, the Secretary shall require each producer of sugarcane located in a State (other than the Commonwealth of Puerto Rico) in which there are in excess of 250 producers of sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane of the producer.
(B) Other States
The Secretary may require each producer of sugarcane or sugar beets not covered by subparagraph (A) to report, in a manner prescribed by the Secretary, the yields of, and acres planted to, sugarcane or sugar beets, respectively, of the producer.
(3) Duty of importers to report
(A) In general
Except as provided in subparagraph (B), the Secretary shall require an importer of sugars, syrups, or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption to report, in the manner prescribed by the Secretary, the quantities of the products imported by the importer and the sugar content or equivalent of the products.
(B) Tariff-rate quotas
Subparagraph (A) shall not apply to sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are subject to the lower rate of duties.
Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.
Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.
For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States and the reexport programs and polyhydric alcohol program administered by the Secretary, all refined sugars (whether derived from sugar beets or sugarcane) produced by cane sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under those programs.