Understanding Import Sensitive Agricultural Product in Trade Law

Definition & Meaning

The term "import sensitive agricultural product" refers to specific agricultural goods that are subject to particular trade regulations. These products are defined under U.S. law as:

  • Products that, due to the Uruguay Round Agreements, had their duty rates reduced by the United States on January 1, 1995, to a level that was no less than 97.5 percent of the rate that applied on December 31, 1994.
  • Products that were subject to a tariff-rate quota as of the enactment date of the relevant legislation on August 6, 2002.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A U.S. importer brings in a type of cheese that was previously subject to high tariffs but received a significant reduction under the Uruguay Round Agreements. This product qualifies as an import sensitive agricultural product.

Example 2: A company imports sugar that is subject to a tariff-rate quota. This product also falls under the definition of an import sensitive agricultural product.

Comparison with related terms

Term Definition Key Differences
Tariff-rate quota A system that allows a set quantity of a product to be imported at a lower tariff rate. Import sensitive agricultural products may fall under this category but are defined by specific historical tariff reductions.
Import duty A tax imposed on goods when they are transported across international borders. Import sensitive agricultural products have unique duty rates based on historical agreements.

What to do if this term applies to you

If you are involved in importing agricultural products, it is crucial to determine whether your products qualify as import sensitive. You can:

  • Review the tariff classifications and historical rates for your products.
  • Consult legal resources or templates available through US Legal Forms to ensure compliance with regulations.
  • Seek professional legal advice if you encounter complex issues or uncertainties.

Quick facts

Attribute Details
Typical products Cheese, sugar, and other agricultural goods
Jurisdiction Federal trade regulations
Potential penalties Fines for non-compliance with tariff regulations

Key takeaways

Frequently asked questions

It is an agricultural product that has specific tariff reductions or is subject to a tariff-rate quota as defined by U.S. law.