International Egg and Poultry Review
By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the Central America Poultry Export Quota.
Central America Poultry Export Quota
The U.S. Congress passed the U.S-Dominican Republic-Central
American Free Trade Agreement (DR-CAFTA) in July 2005 and
President Bush signed the legislation to implenent the DR-CAFTA in
August, 2005. Under the agreement, each country was to provide
immediate duty-free access on chicken leg quarters through countryspecific
tariff-rate quotas (TRQs) that expand annually as duties are
eliminated over a 17 to 20 year period. El Salvador, Guatemala,
Honduras and Nicaragua were to establish a total initial regional TRQ
of 21,810 MT. For the first two years, exports will be restricted to
Guatemala and any chicken leg quarters over quota will face a 164
percent tariff.
On January 30, 2006, the U.S. Department of Commerce issued an
Export Trade Certificate of Review to Central America Poultry Export
Quota, Inc, (CA-PEQ). CA-PEQ was formed jointly by the USA Poultry
and Egg Export Council (USAPEEC) on behalf of the U.S. poultry
industry; by Asociacion Nacional de Avicultores de Guatemala (“ANAVI”)
on behalf of the Guatemalan poultry industry; by Asociacion Nacional
de Avicultores de El Salvador (“AVES”) on behalf of the Salvadoran
poultry industry; and by Asociacion Nacional de Avicultores y Productores
de Alimentos de Nicaragua (“ANAPA”) on behalf of the Nicaraguan
poultry industry. This Certificate protects CA-PEQ, members, and their
directors, officers, and employees from certain private actions and
from government criminal and civil suits under U.S. federal and state
antitrust laws for the export conduct specified in the Certificate.
CA-PEQ will contract with a neutral third party Administrator who is not
engaged in the production, sale, distribution or export of poultry or
poultry products and who will bear responsibility for administering the
TRQ System, subject to general supervision and oversight by the Board
of Directors of CA-PEQ. At least three times each year, CA-PEQ will
offer TRQ Certificates for duty-free shipments of chicken leg quarters
exclusively through an open tender process with certificates awarded
to the highest bidders. The award will be determined solely by the
Administrator in accordance with Section I of the Terms and Conditions
of Certificate, without any participation by the Board of Directors. The
certificate covers chicken leg quarters, (or parts of chicken leg quarters,
including legs or thighs), fresh, chilled or frozen, seasoned or
unseasoned, marinated or not marinated, classifiable under HTS
0207.13.99, 0207.14.99 and 1602.32.00, for export to El Salvador,
Guatemala, Honduras and Nicaragua.
A notice of each open tender process will be published in the Journal
of Commerce and, at the discretion of the Administrator, in other
publications in general circulation within the U.S. poultry industry. The
Notice will specify the total amount (in metric tons), the shipment
period, the date and time by which all bids must be received, and a
minimum bid amount per ton, as established by the Board of Directors,
to ensure the costs to administer the auction are covered. The bidder
must submit a performance bond in the amount of $50,000 with each
bid, or the total value of the bid, whichever is less.
After the issuance of the all TRQ Certificates from an open tender, the
Administrator will publicly disclose the total tonnage for which TRQ
Certificates were awarded and the lowest price per metric ton of all
successful bids. The TRQ Certificates are transferable except that
such intention must be published on a Web site maintained by the
Administrator at least three business days prior to any sale and the
TRQ holder must provide the Administrator with a copy of the
transaction.
The Administer will pay all operation expenses from the tender
proceeds and half of any funds remaining at the end of the year will be
distributed to fund export market development and other projects to
benefit the U.S. poultry industry and the other half will be distributed to
fund export market development and other projects to benefit the poultry
industries of El Salvador, Guatemala, Honduras and Nicaragua.
Source: Federal Register, US Trade Representative, USDA/FAS, US
State Department USINFO, news wires
To view the full report, including tables please click here
Source: USDA's Agricultural Marketing Service - 21st February 2006