Special Program Provisions
Special Program Provisions
for Upland Cotton
Special marketing provisions are authorized to keep the U.S.
upland cotton spinning industry competitive. These provisions
include a special import quota, a limited global import quota, and
an economic adjustment assistance payment to users of upland
Special import quota.A special import quota is authorized when,
for any consecutive 4-week period, the weekly average of the
cheapest U.S. (Far Eastern) cotton price quotation exceeds the
world market price (the average of the cheapest five Far
Eastern price quotations).
The quota equals 1 week's domestic mill consumption of upland
cotton at the seasonally adjusted average consumption rate during
the most recent 3 months for which data are available. The quota
applies to upland cotton purchased within 90 days after quota
announcement and entered into the United States within 180 days
The quantity imported under this special import quota during any
marketing year (August 1-July 31) is limited to 10 week's domestic
mill consumption of upland cotton as established in the first
special import quota of any marketing year.
Limited global import quota.A limited import quota program is
authorized when the average monthly spot price of base-quality
upland cotton exceeds 130 percent of the average spot price during
the preceding 36 months. The quota equals 21 days of domestic mill
consumption of upland cotton at the seasonally adjusted average
rate during the most recent 3 months for which data are available.
The quota applies to upland cotton entered into the United States
within 90 days after quota announcement.
A special import quota cannot be established if a limited global
import quota is in effect; nor may a limited global import quota be
established if a special import quota is in effect. In addition,
the special import quota and the limited global import quota
quantities are considered to be "in quota" for purposes of
tariff-rate quota provisions of trade agreements, so they are not
subject to over-quota tariffs.
Economic adjustment assistance.On a monthly basis, economic
adjustment assistance payments are made to domestic users of upland
cotton (regardless of origin) for all documented use during the
The value of the assistance payments are 4 cents per pound
through July 2012, and 3 cents per pound thereafter. The assistance
can only be used to acquire, construct, install, modernize,
develop, convert, or expand land, plant, buildings, equipment,
facilities, or machinery. If assistance payments are used for other
purposes, the domestic user is liable to repay the amount plus
interest and is ineligible to receive the payments for 1 year.
Provisions for Extra-Long Staple Cotton
Special marketing provisions for U.S. extra-long staple (ELS)
cotton are authorized to maintain and expand its domestic use,
increase its exports, and ensure its competitiveness on the world
TheELS programissues payments to exporters and domestic mill
users of U.S. ELS cotton in a week following a consecutive 4-week
- The weekly average of the lowest foreign ELS cotton price
quotation (adjusted to U.S. quality and location) is less than the
average U.S. ELS cotton price quotation, and
- The lowest foreign quote is less than 134 percent of the U.S.
ELS loan rate.
Payments are made to domestic users on documented purchases of
raw cotton, and to exporters on documented sales for shipment of
raw cotton, at a payment rate equal to the difference between the
U.S. price and the foreign price during the fourth week of the