CFR Title 7

Code of Federal Regulations
Title 7 - AgricultureVolume: 10
Date: 2012-01-01
Original Date: 2012-01-01
Title: PART 1530 - THE REFINED SUGAR RE-EXPORT PROGRAM, THE SUGAR CONTAINING
PRODUCTS RE-EXPORT PROGRAM, AND THE POLYHYDRIC ALCOHOL PROGRAM
Context: Title 7 - Agriculture. Subtitle B - Regulations of the Department of Agriculture (Continued). CHAPTER
XV - FOREIGN AGRICULTURAL SERVICE, DEPARTMENT OF AGRICULTURE.
Pt. 1530
PART 1530—THE REFINED SUGAR RE-EXPORT PROGRAM, THE SUGAR CONTAINING PRODUCTS REEXPORT PROGRAM, AND THE POLYHYDRIC ALCOHOL PROGRAM
Sec.
1530.100 General statement. 1530.101 Definitions. 1530.102 Nature of the license. 1530.103 License eligibility.
1530.104 Application for a license. 1530.105 Terms and conditions. 1530.106 License charges and credits.
1530.107 Bond or letter of credit requirements. 1530.108 Revocation or surrender of licenses. 1530.109 Reporting.
1530.110 Records, certification, and documentation. 1530.111 Enforcement and penalties. Code of Federal
Regulations / Title 7 - Agriculture / Vol. 10 / 2012-01-011000
1530.112 Administrative appeals. 1530.113 Waivers. 1530.114 Implementation. 1530.115 Paperwork Reduction
Act assigned number. Authority: Additional U.S. note 6 to chapter 17 of the Harmonized Tariff Schedule of the
United States (19 U.S.C. 1202); 19 U.S.C. 3314; Proc. 6641, 58 FR 66867, 3 CFR, 1994 Comp., p. 172; Proc. 6763,
60 FR 1007, 3 CFR, 1995 Comp., p. 146.Source:64 FR 7062, Feb. 12, 1999, unless otherwise noted. §1530.100
General statement.
This part provides regulations for the Refined Sugar Re-Export Program, the Sugar Containing Products Re-Export
Program, and the Polyhydric Alcohol Program. Under these provisions, refiners may enter raw sugar unrestricted by
the quantitative limit established for the raw sugar tariff-rate quota or the requirements of certificates of quota
eligibility provided for in 15 CFR part 2011, as long as licensees under the programs export an equivalent quantity
of refined sugar, either as refined sugar or as an ingredient in sugar containing products, or use the refined sugar in
the production of certain polyhydric alcohols. §1530.101
Definitions.
Affiliated persons means two or more persons where one or more of said persons directly or indirectly controls or
has the power to control the other(s), or, a third person controls or has the power to control the others. Indications of
control include, but are not limited to: interlocking management or ownership, identity of interests among family
members, shared facilities and equipment, and common use of employees.
Agent means a person who represents the licensee in any program transaction. An agent shall not, at any time, own
any of the products produced by the program licensee. Agents may include brokers, shippers, freight forwarders,
expediters, and co-packers.

Bond or letter of credit means an insurance agreement pledging surety for the entry of foreign sugar without the
required re-export within the program guidelines.
Certain polyhydric alcohols means any polyhydric alcohol, except polyhydric alcohol produced by distillation or
polyhydric alcohol used as a substitute for sugar as a sweetener in human food.
Co-packer means a person who adds value to a licensed manufacturer's product, or produces a product for export by
a licensed manufacturer.
Date of entry means the date raw sugar enters the U.S. Customs Territory.
Date of export means the date refined sugar or sugar containing products are exported from the U.S. Customs
Territory, or, if exported to a restricted foreign trade zone, the date shown on the U.S. Customs Service form
designating the product as restricted for export.
Date of transfer means the date that ownership of program sugar is conveyed from a refiner to a manufacturer or
producer licensee.
Day means calendar day. When the day for complying with an obligation under this part falls on a weekend or
Federal holiday, the obligation may be completed on the next business day.
Documentation agreement means a signed and notarized letter from a licensee specifying certain documentation that
the licensee shall obtain and maintain on file before said licensee requests from USDA updating of a license balance.
Enter or entry means importation into the U.S. Customs Territory, or withdrawal from warehouse for consumption,
as those terms are used by the U.S. Customs Service.
Export means the conveyance (shipment) of sugar or a sugar containing product from a licensee under this part to a
country outside the U.S. Customs Territory, or to a restricted foreign trade zone.
Licensing Authority means a person designated by the Director, Import Policies and Programs Division, Foreign
Agricultural Service, USDA.
Manufacturer means a person who produces or causes to be produced on their behalf a sugar containing product for
export under the provisions of this part.
Person means any individual, partnership, corporation, association, estate, trust, or any other business enterprise or
legal entity.
Program sugar means sugar that has been charged or credited to the license of a licensee in conformity with the
provisions of this part.
Program transaction means an appropriate entry, transfer, use, or export of program sugar.
Refined sugar means any product that is produced by a refiner by refining raw cane sugar and that can be marketed
as commercial, industrial or retail sugar.
Refiner means any person in the U.S. Customs Territory that refines raw cane sugar through affination or defecation,
clarification, and further purification by absorption or crystallization.
Sugar containing product means any product, other than those products normally marketed by cane sugar refiners
that is produced from refined sugar or to which refined sugar has been added as an ingredient.

Transfer means the transfer of legal title of program sugar from a licensed refiner to a licensed manufacturer of a
sugar containing product or a licensed producer of certain polyhydric alcohols for the production of sugar containing
products or the production of certain polyhydric alcohols.
Unique number means a tracking number established by a licensee for a transaction (entry, transfer, export, or use).
A unique number is established for a transaction to or from a specific country or licensee. The unique number is
also assigned by the licensee to a file that contains all of the supporting documentation for the transaction for which
it was established. The unique number is the means by which program transactions will be tracked.
§1530.102 Nature of the license.
(a) A person who wishes to participate in the Refined Sugar Re-export Program, the Sugar Containing Products Reexport Program, or the Polyhydric Alcohol Program must first obtain a license from the USDA, through the
Licensing Authority.
(b) A license under the Refined Sugar Re-export Program permits a refiner to enter raw cane sugar under
subheading 1701.11.20 of the HTS, and export an equivalent quantity of refined sugar onto the world market or
transfer an equivalent quantity of refined sugar to licensees under the Sugar Containing Products Re-export Program
or the Polyhydric Alcohol Program.
(c) A license under the Sugar Containing Products Re-export Program or Polyhydric Alcohol Program permits
licensees to receive transfers and export an equivalent quantity of sugar as an ingredient in sugar containing
products, or use an equivalent quantity of sugar in the production of certain polyhydric alcohols.
(d) All refining, manufacturing, and production shall be accomplished in the U.S. Customs Territory, and within
time-frames and quantity limitations prescribed in this part. Program sugar and non-program sugar are substitutable.
(e) A licensee must establish a bond or a letter of credit in favor of the U.S. Department of Agriculture to charge
program sugar in anticipation of the export or transfer of refined sugar, the export of sugar in sugar containing
products, or the production of certain polyhydric alcohols.
§ 1530.103 License eligibility.
(a) A raw cane sugar refiner, a manufacturer of sugar containing products, or a producer of certain polyhydric
alcohols, that owns and operates a facility within the U.S. Customs Territory, is eligible for a license to participate in
the Refined Sugar Re-export Program, the Sugar Containing Products Re-export Program, or the Polyhydric Alcohol
Program, respectively.
(b) No person may apply for or hold more than one license, including a license held by an affiliated person.
(c) Notwithstanding paragraph (b) of this section, a person who owns one or more wholly-owned subsidiary
corporations manufacturing sugar containing products or producing certain polyhydric alcohols, which would
otherwise qualify for an individual license, is eligible for a consolidated license to cover the program transactions
and other program activities of both the parent corporation and the subsidiary corporation(s). The program
transactions and other program activities of the subsidiary corporation(s) covered by a consolidated license shall be
treated as the activities of the corporation holding the consolidated license.
(d) Notwithstanding paragraph (c) of this section, each wholly-owned subsidiary manufacturing sugar containing
products or producing certain polyhydric alcohols may establish a license for program activities instead of the parent
corporation establishing a consolidated license. The sum total of license limits for the parent corporation and its
wholly-owned subsidiary corporation(s) shall not exceed the quantitative limits established in §1530.105 of this part.

§1530.104 Application for a license.
(a) A person seeking a license shall apply in writing to the Licensing Authority and shall submit the following
information:
(1) The name and address of the applicant;
(2) The address at which the applicant will maintain the records required under §1530.110;
(3) The address(es) of the applicant's processing plant(s), including any wholly-owned subsidiary(s) and plant(s) in
the case of a consolidated license, and including those of any co-packer(s);
(4) In the case of a refined sugar product, the polarity of the product and the formula proposed by the refiner for
calculating the refined sugar in the product;
(5) In the case of a sugar containing product, the percentage of refined sugar (100 degree polarity), on a dry weight
basis, contained in such product(s);
(6) In the case of polyhydric alcohol, the quantity of refined sugar used producing certain polyhydric alcohols; and
(7) A certification explaining that the applicant is not affiliated with any other licensee or explaining any affiliations,
should they exist.
(b) A documentation agreement must be concluded with the Licensing Authority.
(c) If any of the information required by paragraph (a) of this section changes, the licensee shall promptly apply to
the Licensing Authority to amend the application to include such changes.
§1530.105 Terms and conditions.
(a) A licensed refiner (refiner) shall, not later than 90 days after entering a quantity of raw cane sugar under
subheading 1701.11.20 of the HTS, export or transfer an equivalent quantity of refined sugar if the entry results in a
positive license balance.
(b) A licensed sugar containing products manufacturer (manufacturer) or a licensed polyhydric alcohol producer
(producer) shall, not later than 18 months from the date of transfer of a quantity of refined sugar from a refiner,
export an equivalent quantity of refined sugar as an ingredient in a sugar containing product if the transfer results in
a positive license balance, or use an equivalent quantity of refined sugar in the production of certain polyhydric
alcohols if the transfer results in a positive license balance, respectively.
(c) Notwithstanding paragraphs (a) and (b) of this section, licensees may receive credit for the exportation or
transfer of refined sugar, the exportation of a sugar containing product, or the production of certain polyhydric
alcohols prior to the corresponding date of entry of raw cane sugar the date of transfer of refined sugar.
(d) Licensees are encouraged to submit monthly program transaction reports, but shall report no later than 90 days
from the date of entry, transfer, export, or use.
(e) A refiner may enter raw sugar, or a manufacturer or producer may receive a transfer of refined sugar, in
anticipation of the transfer or export of refined sugar (refiner), the export of sugar in sugar containing products
(manufacturer) or the production of a polyhydric alcohol (producer) not to exceed the value of a bond or letter of
credit, which must be established pursuant to §1530.107 of this part. The value of a bond or letter of credit shall not
exceed the license limits established in this section.

(f) A refiner shall not exceed a license balance of 50,000 metric tons, raw value for the sum of all charges and
credits.
(g) A refiner may enter raw sugar from Mexico and re-export, within 30 days of entry, refined sugar to Mexico
without a charge against the refiner's license balance. If the refined sugar is not re-exported to Mexico within 30
days of entry, the license shall be charged the quantity that has not been re-exported.
(h) A manufacturer or a producer shall not exceed a license balance of 10,000 short tons, refined value for the sum
of all charges and credits.
(i) A manufacturer's or a producer's consolidated license balance, or the sum of a parent company and wholly-owned
subsidiary license balances if held separately, shall not exceed a license balance of 25,000 short tons, refined value
for the sum of all charges and credits.
(j) For the purposes of the programs governed by this part, sugar is fully substitutable. The refined sugar
transferred, exported, or used does not need to be the same sugar produced by refining raw sugar entered under
subheading 1701.11.20 of the HTS.
(k) A licensee may use an agent to carry out the requirements of participation in the program. The licensee must
retain ownership of and responsibility for the product until exported from the U.S. Customs Territory, to a restricted
foreign trade zone, or used in the production of certain polyhydric alcohols, and must establish and maintain
sufficient documentation, as agreed in the documentation agreement pursuant to §1530.110, to substantiate export of
the product or the production of certain polyhydric alcohols.
(l) A license may be assigned only with the written permission of the Licensing Authority and subject to such terms
and conditions as the Licensing Authority may impose.
(m) The Licensing Authority may impose such conditions, limitations or restrictions in connection with the use of a
license at such time and in such manner as the Licensing Authority, at his or her discretion, determines to be
necessary or appropriate to achieve the purposes of the relevant program.
§1530.106 License charges and credits.
(a) A license shall be charged or credited for the quantity of sugar entered, transferred, exported, or used, adjusted to
a dry weight basis. Refiner quantities shall be adjusted to raw value, using the formulas set forth in paragraphs (a)
(1), (2), and (3) of this section. Manufacturer and producer quantities shall be adjusted to 100 degrees polarity on a
dry weight basis.
(1) To adjust the raw value for sugar with a polarization of less than 92 degrees, divide the total sugar content by
0.972 (polarization × outturn weight/.972).
(2) To adjust the raw value for sugar with polarization of 92 degrees or above, multiply the polarization times
0.0175, subtract 0.68, and multiply the difference by the outturn weight (((polarization × 0.0175)-0.68) × outturn
weight).
(3) To determine the quantity of refined sugar that must be transferred or exported to equal a corresponding quantity
of entered raw sugar charged to a license, divide the quantity of entered raw sugar by 1.07 (raw quantity/1.07).
(b) [Reserved]

§1530.107 Bond or letter of credit requirements.
(a) The licensee may charge program sugar in anticipation of the transfer or export of refined sugar, the export of
sugar in sugar containing products, or the production of certain polyhydric alcohols, if the licensee establishes a
performance bond or a letter of credit with the U.S. Department of Agriculture, which meets the criteria set forth in
this section.
(b) The bond or letter of credit may cover entries made either during the period of time specified in the bond (a term
bond) or for a specified entry (a single entry bond).
(c) Only the licensee who will refine the sugar, manufacture the sugar containing product, or produce certain
polyhydric alcohols may be the principal on the bond or letter of credit covering such sugar to be re-exported or
used in the production of certain polyhydric alcohols. The surety or sureties shall be among those listed by the
Secretary of the Treasury as acceptable on Federal bonds.
(d) The obligation under the bond or letter of credit shall be made effective no later than the date of entry of the
sugar for refiners or the date of transfer of the corresponding sugar for manufacture into a sugar containing product
or certain polyhydric alcohols.
(e) The amount of the bond or letter of credit shall be equal to 20 cents per pound of sugar to be entered under the
license.
(f) If a licensee fails to qualify for credit to a license within the specified time period of the date of export or use of
corresponding sugar in an amount sufficient to offset the charge to the license for that corresponding sugar, payment
shall be made to the U.S. Treasury. The payment shall be equal to the difference between the Number 11 contract
price and the Number 14 contract price (New York Coffee, Sugar and Cocoa Exchange) in effect on the last market
day before the date of entry of the sugar or the last market day before the end of the period during which export or
use was required, whichever difference is greater. The difference shall be multiplied by the quantity of refined
sugar, converted to raw value that should have been exported in compliance with this part. If there was not a
Number 11, or a Number 14 contract price for the relevant market day, the Licensing Authority may estimate such
price as he or she deems appropriate.
§1530.108 Revocation or surrender of licenses.
(a) A license may be revoked upon written notice by the Licensing Authority.
(b) A licensee may surrender a license when the sum of all credits is equal to or greater than the sum of all charges.
§1530.109 Reporting.
(a) A licensee may submit as often as monthly for charges and credits against a license balance, but must submit at
least a quarterly report to the Licensing Authority not later than 90 days after the earliest transaction in the report for
which credits or charges are being submitted. The licensee need not report when there have not been transactions
during the reporting period.
(b) Reports may be submitted by e-mail, U.S. mail, private courier, or in person, but must be in an integrated
database format acceptable to the Licensing Authority. A copy of this format may be obtained from the Licensing
Authority. Applicants unable to submit a report in the specified electronic format may seek a temporary waiver to
permit them to submit the report on paper.

(c) The reports must include the following for all program transactions:
(1) A unique number associated with the transaction;
(2) The date of the entry, transfer (only a refiner shall report transfers to the Licensing Authority), export, or use;
(3) The quantity of program sugar entered, transferred, exported as refined sugar, or used in the production of certain
polyhydric alcohols;
(4) The licensee's license number, or if a transfer is being reported, the licensee's license number as well as the
transfer recipient's license number;
(5) The country of origin (entry of raw sugar) or final destination (refined exports), using the exact country code
designated in the HTS; and
(6) The initial and final polarization, and final weight (when available) for entries of raw sugar.
(d) Licensees have an affirmative and continuing duty to maintain the accuracy of the information contained in
previously submitted reports.
(1) The licensee shall immediately notify the Licensing Authority and promptly request that previously claimed
credits be charged back upon discovery that previously claimed exports of refined sugar, refined sugar in sugar
containing products, or refined sugar used in the production of polyhydric alcohol were re-entered into the U.S.
Customs Territory without substantial transformation, not used in the production of certain polyhydric alcohols,
made under a false underlying proof of export, or made but previously submitted exports do not otherwise satisfy the
requirements of regulations or the documentation agreement.
(2) Charge backs shall be as of the date of the erroneously claimed credit.
§1530.110 Records, certification, and documentation.
(a) A licensee shall establish a documentation agreement with the Licensing Authority before submitting for credit
against a license. The licensee shall propose to the Licensing Authority a list of documents to substantiate entries,
transfers, exports, or use as appropriate. The Licensing Authority shall consider the licensee's proposal to assure
that it provides that a program transaction is fully substantiated, and shall then respond in writing to the licensee in a
timely fashion outlining any deficiencies. Once agreed, the licensee shall submit a notarized letter specifying the
documents to be maintained on file and certifying that the charges and credits made pursuant to §1530.106 will be
kept on file, identifiable by a unique number, and available for inspection pursuant to §1530.110.
(b) For all transactions, the documentation shall:
(1) Substantiate the information required in §1530.109 (c), and the completion of the reported transaction;
(2) Establish the buyer and seller specifications for a transaction;
(3) Include all U.S. Customs forms submitted in the entry or export process;
(4) Provide the correct telephone numbers and addresses of any agents, consignees, foreign purchasers, and nonvessel operating common carriers used in completing the transaction;
(5) Indicate the port of entry or export for the program transaction;
(6) Provide the percentage of sugar in a sugar containing product or certain polyhydric alcohols; and

(7) Provide the name of export carrier, vessel name, and container number.
(c) The licensee shall maintain the documentation established in the documentation agreement for 5 years from the
date of such program transaction.
(d) Upon request, the licensee shall make the records, outlined by the documentation agreement and identified
(associated) by the unique number assigned by the licensee to the program transaction as reported to the Licensing
Authority for posting against a license balance, available for inspection and copying by the Licensing Authority, the
Compliance Review Staff of the Foreign Agricultural Service, and/or the Office of the Inspector General, USDA,
the U.S. Department of Justice, or any U.S. Government regulatory or investigative office.
§1530.111 Enforcement and penalties.
(a) The Licensing Authority may revoke credits granted on a license if the credits granted do not meet the
requirements set forth in the regulations of this part, or if the licensee does not voluntarily charge back credits
erroneously claimed in accordance with these regulations. The Licensing Authority may also recommend
revocation of a license, if the licensee has been in violation of §1530.109 (c) of this part.
(b) The Administrator of the Foreign Agricultural Service, USDA, may suspend or revoke a license upon
recommendation of the Licensing Authority. Suspension of a license will be governed by 7 CFR part 3017, subpart
D and debarment will be governed by 7 CFR part 3017, subpart C.
§1530.112 Administrative appeals.
(a) The licensee may appeal the Licensing Authority's determination by filing a written notice of appeal, signed by
the licensee or the licensee's agent, with the Director, Import Policies and Programs Division, Foreign Agricultural
Service (Director), or his or her designee. The decision on such an appeal shall be made by the Director, and will be
governed by §3017.515 of this title. The appeal must be filed not later than 30 days after the date of the Licensing
Authority's determination and shall contain the licensee's written argument.
(b) The licensee may request an informal hearing. The Director shall arrange a place and time for the hearing,
except that it shall be held within 30 days of the filing date of the notice of appeal if the licensee so requests.
(c) The licensee may be represented by counsel and shall have full opportunity to present any relevant evidence,
documentary, or testimonial. The Director may permit other individuals to present evidence at the hearing and the
licensee shall have an opportunity to question those witnesses.
(d) The licensee may request a verbatim transcript of the hearing, and shall be responsible for arranging for a
professional reporter and shall pay all attendant expenses.
(e) The Director shall make the determination on appeal, and may affirm, reverse, modify or remand the Licensing
Authority's determination. The Director shall notify the licensee in writing of the determination on appeal and of the
basis thereof. The determination on appeal exhausts the licensee's administrative remedies.
§1530.113 Waivers.
Upon written application of the licensee or at the discretion of the Licensing Authority, and for good cause, the
Licensing Authority may extend the period for transfer, export, or production, and/or may temporarily increase a
maximum license limit, may extend the period for submitting regularly scheduled reports, or may temporarily waive
or modify any other requirement imposed by this part if the Licensing Authority determines that such a waiver will
not undermine the purpose of the relevant program or adversely affect domestic sugar policy objectives. The

Licensing Authority may specify additional requirements or procedures in place of the requirements or procedures
waived or modified.
§1530.114 Implementation.
Current program participants may qualify under this rule upon concluding a documentation agreement with the
Licensing Authority, but must conclude a documentation agreement within 24 months of the effective date of this
rule. Participant license balances, as of the effective date of this rule, shall continue under this rule.
§1530.115 Paperwork Reduction Act assigned number.
Licensees are not required to respond to requests for information unless the form for collecting information displays
a currently valid Office of Management and Budget (OMB) control number. OMB has approved the information
collection requirements contained in this part in accordance with 44 U.S.C. Chapter 35. OMB number 0551-0015
has been assigned and will expire November 30, 1999.