Import licensing is one of the tools FAS uses to administer the tariff-rate quota (TRQ) system for U.S. imports of dairy products.
Import licensing is one of the tools USDA uses to administer the tariff-rate quota (TRQ) system for U.S. imports of dairy products. For dairy products subject to TRQs, a license from FAS is generally required to import items at the low-tier tariff rate. Individuals must apply annually for a license between Sept. 1 and Oct. 15.
Under these TRQs, a low tariff rate, called the low-tier rate, applies to imports up to a specified quantity. A higher tariff rate, called the high-tier rate, applies to any imports in excess of that amount.
TRQs replaced Section 22 import quotas for dairy products on Jan. 1, 1995, as a result of the Uruguay Round Agreement. High-tier tariff rates were reduced by 15 percent in the six years after the agreement’s implementation in 1995, while quantities subject to low-tier rates were increased gradually over that same period. TRQ rates and quantities vary by product.
No license is required to import products at the high-tier rate, to import products for an agency of the U.S. government, or to import products for personal use, as long as net weight does not exceed 5 kilograms (11 pounds) in any one shipment.
| Globalization 2020 | ||||
| Date | Country | Commodity | Note | Percent Globalized |
| April, 2020 | Iceland | OT – NSPF | 16 | 100% |
| SW – Swiss Emmenthaler | 25 | 100% | ||
| May, 2020 | Israel | OT – NSPF | 16 | 100% |
| Low Fat | 23 | 100% | ||
| May, 2020 | Chile | Cheddar | 18 | 100% |
| Blue | 17 | 100% | ||
| June, 2020 | New Zealand | Cheddar | 18 | 100% |
| American Type | 19 | 100% | ||
| OT – NSPF | 16 | 100% | ||
| Low Fat | 23 | 100% | ||
| June, 2020 | Costa Rica | OT – NSPF | 16 | 100% |
Regulations
7 CFR Part 46, Subpart – Dairy Tariff-Rate Import Quota Licensing
Listing of Dairy License Recipients Under Regulation 1 (as of April 13, 2020)
Applying
Eligible individuals must apply annually for a license between September 1 and October 15. FAS issues licenses in late December for the following calendar year.
