---
kind: "section"
citation: "7 U.S.C. § 1359kk"
title: "7"
title_heading: "Agriculture"
number: "1359kk"
heading: "Administration of tariff rate quotas"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/1359kk"
units:
  - "Chapter 35 — Agricultural Adjustment Act of 1938"
  - "Subchapter II — Loans, Parity Payments, Consumer Safeguards, Marketing Quotas, and Marketing Certificates"
  - "Part B — Marketing Quotas"
  - "Subpart vii — flexible marketing allotments for sugar"
---

# §1359kk. Administration of tariff rate quotas

- (a) **Establishment—**
  - (1) **In general—** Except as provided in [paragraph (2)](#a-2) and notwithstanding any other provision of law, at the beginning of the quota year, the [Secretary](/usc/7/1301.md?p=a-7) shall establish the tariff-rate quotas for raw cane sugar and refined sugars at the minimum level necessary to comply with obligations under international trade agreements that have been approved by Congress.
  - (2) **Exception—** [Paragraph (1)](#a-1) shall not apply to specialty sugar.
- (b) **Adjustment—**
  - (1) **Before April 1—** Before April 1 of each fiscal year, for the sole purpose of responding directly to an emergency shortage of sugar in the [United States](/usc/7/1359aa.md?p=6) [market](/usc/7/1359aa.md?p=3-A) that is caused by a war, flood, hurricane, or other natural disaster, or other similar event as determined by the [Secretary](/usc/7/1301.md?p=a-7)—
    - (A) the [Secretary](/usc/7/1301.md?p=a-7) shall take action to increase the supply of sugar in accordance with sections [1359cc(b)(2)](/usc/7/1359cc.md?p=b-2) and [1359ee(b)](/usc/7/1359ee.md?p=b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and
    - (B) if there is still a shortage of sugar in the [United States](/usc/7/1359aa.md?p=6) [market](/usc/7/1359aa.md?p=3-A), and [marketing](/usc/7/1301.md?p=b-6-B) of domestic sugar has been maximized, and domestic raw cane sugar refining capacity has been maximized, the [Secretary](/usc/7/1301.md?p=a-7) may increase the tariff-rate quota for refined sugars sufficient to accommodate the supply increase, if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under [section 7272 of this title](/usc/7/7272.md).
  - (2) **On or after April 1—** On or after April 1 of each fiscal year—
    - (A) the [Secretary](/usc/7/1301.md?p=a-7) may take action to increase the supply of sugar in accordance with sections [1359cc(b)(2)](/usc/7/1359cc.md?p=b-2) and [1359ee(b)](/usc/7/1359ee.md?p=b) of this title, including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and
    - (B) if there is still a shortage of sugar in the [United States](/usc/7/1359aa.md?p=6) [market](/usc/7/1359aa.md?p=3-A), and [marketing](/usc/7/1301.md?p=b-6-B) of domestic sugar has been maximized, the [Secretary](/usc/7/1301.md?p=a-7) may increase the tariff-rate quota for raw cane sugar if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under [section 7272 of this title](/usc/7/7272.md).
- (c) **Reallocation—**
  - (1) **Initial reallocation—** Subject to [paragraph (3)](#c-3), following the establishment of the tariff-rate quotas under [subsection (a)](#a) for a quota year, the [Secretary](/usc/7/1301.md?p=a-7) shall—
    - (A) determine which countries do not intend to fulfill their allocation for the quota year; and
    - (B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable.
  - (2) **Subsequent reallocation—** Subject to [paragraph (3)](#c-3), not later than March 1 of a quota year, the [Secretary](/usc/7/1301.md?p=a-7) shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under [subsection (a)(1)](#a-1) for that quota year.
  - (3) **Cessation of effectiveness—** Paragraphs [(1)](#c-1) and [(2)](#c-2) shall cease to be in effect if—
    - (A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and
    - (B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 ([19 U.S.C. 1671](/usc/19/1671.md) et seq.) is in effect with respect to sugar from Mexico.
- (d) **Refined sugar—**
  - (1) **Definition of domestic sugar industry—** In this subsection, the term “domestic sugar industry” means domestic—
    - (A) sugar beet producers and processors;
    - (B) producers and processors of sugar cane; and
    - (C) refiners of raw cane sugar.
  - (2) **Study required—**
    - (A) **In general—** Not later than 180 days after July 4, 2025, the [Secretary](/usc/7/1301.md?p=a-7) shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate.
    - (B) **Elements—** In conducting the study under [subparagraph (A)](#d-2-A), the [Secretary](/usc/7/1301.md?p=a-7) shall examine the following:
      - (i) The need for—
        - (I) defining “refined sugar” as having a minimum polarization of 99.8 degrees or higher;
        - (II) establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis;
        - (III) prescribing specifications for packaging type for refined sugar;
        - (IV) prescribing specifications for transportation modes for refined sugar;
        - (V) requiring evidence that sugar imported as refined sugar will not undergo further refining in the [United States](/usc/7/1359aa.md?p=6);
        - (VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and
        - (VII) establishing other definitions, terms and conditions, or other requirements.
      - (ii) The potential impact of modifications described in each of subclauses [(I)](#d-2-B-i-I) through [(VII)](#d-2-B-i-VII) of clause (i) on the domestic sugar industry.
      - (iii) Whether, based on the needs described in [clause (i)](#d-2-B-i) and the impact described in [clause (ii)](#d-2-B-ii), the establishment of additional terms and conditions is appropriate.
    - (C) **Consultation—** In conducting the study under [subparagraph (A)](#d-2-A), the [Secretary](/usc/7/1301.md?p=a-7) shall consult with representatives of the domestic sugar industry and users of refined sugar.
    - (D) **Report—** Not later than 1 year after July 4, 2025, the [Secretary](/usc/7/1301.md?p=a-7) shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under [subparagraph (A)](#d-2-A).
  - (3) **Establishment of additional terms and conditions permitted—**
    - (A) **In general—** Based on the findings in the report submitted under [paragraph (2)(D)](#d-2-D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the [Secretary](/usc/7/1301.md?p=a-7) may issue regulations in accordance with [subparagraph (B)](#d-3-B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.
    - (B) **Promulgation of regulations—** The [Secretary](/usc/7/1301.md?p=a-7) may issue regulations under [subparagraph (A)](#d-3-A) if the regulations—
      - (i) do not have an adverse impact on the domestic sugar industry; and
      - (ii) are consistent with the requirements of this part, [section 7272 of this title](/usc/7/7272.md), and obligations under international trade agreements that have been approved by Congress.

## Source credit

(Feb. 16, 1938, ch. 30, title III, § 359k, as added Pub. L. 110–234, title I, § 1403(j), May 22, 2008, 122 Stat. 988, and Pub. L. 110–246, § 4(a), title I, § 1403(j), June 18, 2008, 122 Stat. 1664, 1717; amended Pub. L. 119–21, title I, § 10312(d), (e), July 4, 2025, 139 Stat. 97, 99.)

## Notes

### Editorial Notes

### References in Text

The Tariff Act of 1930, referred to in subsec. (c)(3)(B), is act June 17, 1930, ch. 497, 46 Stat. 590. Subtitle A of title VII of the Act is classified generally to part I (§ 1671 et seq.) of subtitle IV of chapter 4 of Title 19, Customs Duties. For complete classification of this Act to the Code, see section 1654 of Title 19 and Tables.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Prior Provisions

A prior section 1359kk, act Feb. 16, 1938, ch. 30, title III, § 359k, as added Pub. L. 107–171, title I, § 1403, May 13, 2002, 116 Stat. 204, related to reallocation of sugar quota import shortfalls in 2002 through 2007 calendar years, prior to repeal by Pub. L. 110–234, title I, § 1403(i), May 22, 2008, 122 Stat. 988; Pub. L. 110–246, § 4, title I, § 1403(i), June 18, 2008, 122 Stat. 1664, 1716, effective May 22, 2008.

### Amendments

2025—Subsec. (b)(1). Pub. L. 119–21, § 10312(e), substituted “for the sole purpose of responding directly to an” for “if there is an” in introductory provisions.

Subsecs. (c), (d). Pub. L. 119–21, § 10312(d), added subsecs. (c) and (d).

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.