
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC7236]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
    SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                           DEFICIENCY PAYMENTS
 
Sec. 7236. Special marketing loan provisions for upland cotton


(a) Cotton user marketing certificates

                            (1) Issuance

        During the period ending July 31, 2003, the Secretary shall 
    issue marketing certificates or cash payments, at the option of the 
    recipient, to domestic users and exporters for documented purchases 
    by domestic users and sales for export by exporters made in the week 
    following a consecutive 4-week period in which--
            (A) the Friday through Thursday average price quotation for 
        the lowest-priced United States growth, as quoted for Middling 
        (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
        exceeds the Northern Europe price by more than 1.25 cents per 
        pound; and
            (B) the prevailing world market price for upland cotton 
        (adjusted to United States quality and location) does not exceed 
        134 percent of the loan rate for upland cotton established under 
        section 7232 of this title.

                (2) Value of certificates or payments

        The value of the marketing certificates or cash payments shall 
    be based on the amount of the difference (reduced by 1.25 cents per 
    pound) in the prices during the 4th week of the consecutive 4-week 
    period multiplied by the quantity of upland cotton included in the 
    documented sales.

            (3) Administration of marketing certificates

        (A) Redemption, marketing, or exchange

            The Secretary shall establish procedures for redeeming 
        marketing certificates for cash or marketing or exchange of the 
        certificates for agricultural commodities owned by the Commodity 
        Credit Corporation or pledged to the Commodity Credit 
        Corporation as collateral for a loan in such manner, and at such 
        price levels, as the Secretary determines will best effectuate 
        the purposes of cotton user marketing certificates, including 
        enhancing the competitiveness and marketability of United States 
        cotton. Any price restrictions that would otherwise apply to the 
        disposition of agricultural commodities by the Commodity Credit 
        Corporation shall not apply to the redemption of certificates 
        under this subsection.

        (B) Designation of commodities and products

            To the extent practicable, the Secretary shall permit owners 
        of certificates to designate the commodities and products, 
        including storage sites, the owners would prefer to receive in 
        exchange for certificates.

        (C) Transfers

            Marketing certificates issued to domestic users and 
        exporters of upland cotton may be transferred to other persons 
        in accordance with regulations issued by the Secretary.

(b) Special import quota

                          (1) Establishment

        (A) In general

            The President shall carry out an import quota program during 
        the period ending July 31, 2003, as provided in this subsection.

        (B) Program requirements

            Except as provided in subparagraph (C), whenever the 
        Secretary determines and announces that for any consecutive 4-
        week period, the Friday through Thursday average price quotation 
        for the lowest-priced United States growth, as quoted for 
        Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
        Europe, adjusted for the value of any certificate issued under 
        subsection (a) of this section, exceeds the Northern Europe 
        price by more than 1.25 cents per pound, there shall immediately 
        be in effect a special import quota.

        (C) Tight domestic supply

            During any month for which the Secretary estimates the 
        season-ending United States upland cotton stocks-to-use ratio, 
        as determined under subparagraph (D), to be below 16 percent, 
        the Secretary, in making the determination under subparagraph 
        (B), shall not adjust the Friday through Thursday average price 
        quotation for the lowest-priced United States growth, as quoted 
        for Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
        Europe, for the value of any certificates issued under 
        subsection (a) of this section.

        (D) Season-ending United States stocks-to-use ratio

            For the purposes of making estimates under subparagraph (C), 
        the Secretary shall, on a monthly basis, estimate and report the 
        season-ending United States upland cotton stocks-to-use ratio, 
        excluding projected raw cotton imports but including the 
        quantity of raw cotton that has been imported into the United 
        States during the marketing year.

                            (2) Quantity

        The quota shall be equal to 1 week's consumption of upland 
    cotton by domestic mills at the seasonally adjusted average rate of 
    the most recent 3 months for which data are available.

                           (3) Application

        The quota shall apply to upland cotton purchased not later than 
    90 days after the date of the Secretary's announcement under 
    paragraph (1) and entered into the United States not later than 180 
    days after the date.

                             (4) Overlap

        A special quota period may be established that overlaps any 
    existing quota period if required by paragraph (1), except that a 
    special quota period may not be established under this subsection if 
    a quota period has been established under subsection (c) of this 
    section.

                  (5) Preferential tariff treatment

        The quantity under a special import quota shall be considered to 
    be an in-quota quantity for purposes of--
            (A) section 2703(d) of title 19;
            (B) section 3203 of title 19;
            (C) section 2463(d) of title 19; and
            (D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

                (6) ``Special import quota'' defined

        In this subsection, the term ``special import quota'' means a 
    quantity of imports that is not subject to the over-quota tariff 
    rate of a tariff-rate quota.

                           (7) Limitation

        The quantity of cotton entered into the United States during any 
    marketing year under the special import quota established under this 
    subsection may not exceed the equivalent of 5 week's consumption of 
    upland cotton by domestic mills at the seasonally adjusted average 
    rate of the 3 months immediately preceding the first special import 
    quota established in any marketing year.

(c) Limited global import quota for upland cotton

                           (1) In general

        The President shall carry out an import quota program that 
    provides that whenever the Secretary determines and announces that 
    the average price of the base quality of upland cotton, as 
    determined by the Secretary, in the designated spot markets for a 
    month exceeded 130 percent of the average price of such quality of 
    cotton in the markets for the preceding 36 months, notwithstanding 
    any other provision of law, there shall immediately be in effect a 
    limited global import quota subject to the following conditions:

        (A) Quantity

            The quantity of the quota shall be equal to 21 days of 
        domestic mill consumption of upland cotton at the seasonally 
        adjusted average rate of the most recent 3 months for which data 
        are available.

        (B) Quantity if prior quota

            If a quota has been established under this subsection during 
        the preceding 12 months, the quantity of the quota next 
        established under this subsection shall be the smaller of 21 
        days of domestic mill consumption calculated under subparagraph 
        (A) or the quantity required to increase the supply to 130 
        percent of the demand.

        (C) Preferential tariff treatment

            The quantity under a limited global import quota shall be 
        considered to be an in-quota quantity for purposes of--
                (i) section 2703(d) of title 19;
                (ii) section 3203 of title 19;
                (iii) section 2463(d) of title 19; and
                (iv) General Note 3(a)(iv) to the Harmonized Tariff 
            Schedule.

        (D) Definitions

            In this subsection:
            (i) Supply

                The term ``supply'' means, using the latest official 
            data of the Bureau of the Census, the Department of 
            Agriculture, and the Department of the Treasury--
                    (I) the carry-over of upland cotton at the beginning 
                of the marketing year (adjusted to 480-pound bales) in 
                which the quota is established;
                    (II) production of the current crop; and
                    (III) imports to the latest date available during 
                the marketing year.
            (ii) Demand

                The term ``demand'' means--
                    (I) the average seasonally adjusted annual rate of 
                domestic mill consumption during the most recent 3 
                months for which data are available; and
                    (II) the larger of--
                        (aa) average exports of upland cotton during the 
                    preceding 6 marketing years; or
                        (bb) cumulative exports of upland cotton plus 
                    outstanding export sales for the marketing year in 
                    which the quota is established.
            (iii) Limited global import quota

                The term ``limited global import quota'' means a 
            quantity of imports that is not subject to the over-quota 
            tariff rate of a tariff-rate quota.

        (E) Quota entry period

            When a quota is established under this subsection, cotton 
        may be entered under the quota during the 90-day period 
        beginning on the date the quota is established by the Secretary.

                           (2) No overlap

        Notwithstanding paragraph (1), a quota period may not be 
    established that overlaps an existing quota period or a special 
    quota period established under subsection (b) of this section.

(Pub. L. 104-127, title I, Sec. 136, Apr. 4, 1996, 110 Stat. 909; Pub. 
L. 105-86, title VII, Sec. 731, Nov. 18, 1997, 111 Stat. 2108; Pub. L. 
105-277, div. A, Sec. 101(a) [title VII, Sec. 762], Oct. 21, 1998, 112 
Stat. 2681, 2681-36; Pub. L. 106-78, title VIII, Sec. 806, Oct. 22, 
1999, 113 Stat. 1179.)

                       References in Text

    The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D) 
and (c)(1)(C)(iv), is not set out in the Code. See Publication of 
Harmonized Tariff Schedule note set out under section 1202 of Title 19, 
Customs Duties.


                               Amendments

    1999--Subsec. (a)(1). Pub. L. 106-78, Sec. 806(a)(1), substituted 
``or cash payments, at the option of the recipient,'' for ``or cash 
payments'' in introductory provisions.
    Subsec. (a)(1)(A), (2). Pub. L. 106-78, Sec. 806(a)(2), substituted 
``1.25 cents per pound'' for ``3 cents per pound''.
    Subsec. (a)(3)(A). Pub. L. 106-78, Sec. 806(a)(3)(A), substituted 
``owned by the Commodity Credit Corporation or pledged to the Commodity 
Credit Corporation as collateral for a loan in such manner, and at such 
price levels, as the Secretary determines will best effectuate the 
purposes of cotton user marketing certificates, including enhancing the 
competitiveness and marketability of United States cotton'' for ``owned 
by the Commodity Credit Corporation in such manner, and at such price 
levels, as the Secretary determines will best effectuate the purposes of 
cotton user marketing certificates'' in first sentence.
    Subsec. (a)(3)(B). Pub. L. 106-78, Sec. 806(a)(3)(B), struck out at 
end ``If any certificate is not presented for redemption, marketing, or 
exchange within a reasonable number of days after the issuance of the 
certificate (as determined by the Secretary), reasonable costs of 
storage and other carrying charges, as determined by the Secretary, 
shall be deducted from the value of the certificate for the period 
beginning after the reasonable number of days and ending with the date 
of the presentation of the certificate to the Commodity Credit 
Corporation.''
    Subsec. (a)(4). Pub. L. 106-78, Sec. 806(a)(4), struck out heading 
and text of par. (4). Text read as follows: ``Total expenditures under 
this subsection shall not exceed $701,000,000 during fiscal years 1996 
through 2002.''
    Subsec. (b)(1). Pub. L. 106-78, Sec. 806(b)(1), added par. (1) and 
struck out heading and text of former par. (1). Text read as follows: 
``The President shall carry out an import quota program that provides 
that, during the period ending July 31, 2003, whenever the Secretary 
determines and announces that for any consecutive 10-week period, the 
Friday through Thursday average price quotation for the lowest-priced 
United States growth, as quoted for Middling (M) 1\3/32\-inch cotton, 
delivered C.I.F. Northern Europe, adjusted for the value of any 
certificates issued under subsection (a) of this section, exceeds the 
Northern Europe price by more than 3 cents per pound, there shall 
immediately be in effect a special import quota.''
    Subsec. (b)(7). Pub. L. 106-78, Sec. 806(b)(2), added par. (7).
    1998--Subsecs. (a)(1)(A), (2), (b)(1). Pub. L. 105-277 substituted 
``3 cents'' for ``1.25 cents''.
    1997--Subsec. (a)(1). Pub. L. 105-86, Sec. 731(1), in introductory 
provisions substituted ``During'' for ``Subject to paragraph (4), 
during'' and in subpar. (B) substituted ``134'' for ``130''.
    Subsec. (a)(4), (5). Pub. L. 105-86, Sec. 731(2), (3) redesignated 
par. (5) as (4) and struck out heading and text of former par. (4). Text 
read as follows: ``The Secretary shall not issue marketing certificates 
or cash payments under paragraph (1) if, for the immediately preceding 
consecutive 10-week period, the Friday through Thursday average price 
quotation for the lowest priced United States growth, as quoted for 
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
adjusted for the value of any certificate issued under this subsection, 
exceeds the Northern Europe price by more than 1.25 cents per pound.''


                    Effective Date of 1997 Amendment

    Section 731 of Pub. L. 105-86 provided that the amendment made by 
that section is effective Oct. 1, 1998.

                  Section Referred to in Other Sections

    This section is referred to in section 7234 of this title.
