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 Department of Agriculture Foreign Agricultural Service
 AGENCY: Foreign Agricultural Service, USDA.
 ACTION: Notice.
 SUMMARY: This notice announces the transfer of amounts for certain dairy articles from the historical license category (Appendix 1) to the lottery (nonhistorical) license category (Appendix 2) pursuant to the Dairy Tariff-Rate Quota Import Licensing regulations for the 2021 quota year. In addition, adjustments have been made to the Appendices to reflect changes to United Kingdom (UK) and European Union (EU) country allocations for certain tariff rate quotas (TRQs) and other changes to the Harmonized Tariff Schedule of the United States (HTSUS) made by the U.S. Trade Representative in response to the withdrawal of the UK from the EU and the accession of Croatia to the EU, which will go into effect for the 2022 quota year. Appendices 1 and 2 for the EU-27 for Additional U.S. Note 16 to Chapter 4 have also been adjusted to account for a clerical error in last year's Appendices 1 and 2 published amounts. This correction does not increase the overall quantity allotted to the EU-27 and the UK.
 DATES: September 2, 2021.
 FOR FURTHER INFORMATION CONTACT: Abdelsalam El-Farra, (202) 720-9439; 
                        *abdelsalam.el-farra@fas.usda.gov.*


SUPPLEMENTARY INFORMATION: The Foreign Agricultural Service, under a delegation of authority from the Under Secretary for Trade and Foreign Agricultural Affairs, administers the Dairy Tariff-Rate Quota Import Licensing regulation codified at 7 CFR 6.20 through 6.36 that provides for the issuance of licenses to import certain dairy articles under TRQs as set forth in the HTSUS. These dairy articles may only be entered into the United States at the low-tier tariff by or for the account of a person or firm to whom such licenses have been issued and only in accordance with the terms and conditions of the regulation. Licenses are issued on a calendar year basis, and each license authorizes the license holder to import a specified quantity and type of dairy article from a specified country of origin. The Imports Program, Foreign Agricultural Service, U.S. Department of Agriculture, issues these licenses and, in conjunction with U.S. Customs and Border Protection, U.S. Department of Homeland Security, monitors their use. The regulation at 7 CFR 6.34(a) states that whenever a historical license (Appendix 1) is permanently surrendered, revoked by the Licensing Authority, or not issued to an applicant pursuant to the provisions of § 6.23, then the amount of such license will be transferred to Appendix 2. Section 6.34(b) provides that the cumulative annual transfers will be published by notice in the 
                    **Federal Register**
                    . Accordingly, this document sets forth the revised Appendices in the table below. The quantities for designated licenses (Appendix 3 and Appendix 4) are also included in the table below for completeness. In addition, the Appendices have been revised to reflect modified EU and UK country allocations under certain TRQs in Chapter 4 of the HTSUS made by the U.S. Trade Representative in response to the withdrawal of the UK from the EU and to acknowledge the accession of Croatia to the EU. On July 6, 2021, the U.S. Trade Representative announced, 
                    *inter alia,*
                     that: (1) The TRQs allocated to the EU under Additional U.S. Notes 6, 16, 17, and 18 to Chapter 4 will be allocated between the EU and the UK according to the average percentage of in-quota imports for the 2013-2015 period; and (2) the UK would have access to a specific in-quota quantity under these notes. Specifically, the U.S. Trade Representative announced that, effective with respect to articles entered for consumption, or withdrawn from warehouse for consumption, on or after January 1, 2022: 1. Additional U.S. Note 2 to Chapter 4 of the HTSUS is modified by: (a) Inserting “Croatia,” into the list of countries in alphabetical order; and (b) deleting “the Slovak Republic, Sweden or the United Kingdom” and inserting “the Slovak Republic or Sweden” in lieu thereof. 2. With respect to the published in-quota quantity of 96,161 kilograms allocated to the EU 27 for the TRQ in Additional U.S. Note 6 to Chapter 4 of the HTSUS, the UK shall have access to a quantity of not less than 14,062 kilograms and the EU 27 shall have access to a quantity of not less than 82,099 kilograms. 3. Additional U.S. Note 16 to Chapter 4 of the HTSUS is modified by: (a) Inserting “United Kingdom” into the list of countries in alphabetical order; (b) inserting a quota quantity of “2,213,374” in the Quantity (kg) column for the United Kingdom; (c) deleting the quantity “27,846,224” in the Quantity (kg) column for the EU27; and (d) 
                    ( print page 49290)
                    “25,632,850” in the Quantity (kg) column for the EU27 in lieu thereof. 4. Additional U.S. Note 17 to Chapter 4 of the HTSUS is modified by: (a) Inserting “United Kingdom” into the list of countries in alphabetical order; (b) inserting a quota quantity of “23,617”' in the Quantity (kg) column for the United Kingdom; (c) deleting the quantity “2,829,000” in the Quantity (kg) column for the EU27; and (d) inserting “2,805,383” in the Quantity (kg) column for the EU27 in lieu thereof. 5. Additional U.S. Note 18 to Chapter 4 of the HTSUS is modified by: (a) Inserting “United Kingdom” into the list of countries in alphabetical order; (b) inserting a quota quantity of “895,948” in the Quantity (kg) column for the United Kingdom; (c) deleting the quantity “1,31,000” in the Quantity (kg) column for the EU27; and (d) inserting “417,052” in the Quantity (kg) column for the EU27 in lieu thereof. For U.S. TRQs under Additional U.S. Notes 19 to 23 and 25 to Chapter 4, the UK otherwise will be eligible to export under the in-quota quantities allocated to “other countries or areas.” 
                    *See*
                     Modification of U.S. Tariff-Rate Quotas and the Harmonized Tariff Schedule of the United States (86 FR 35560 (July 6, 2021)). Accordingly, the Licensing Authority has divided the amounts allocated to the EU under Additional U.S. Notes 6, 16, 17, and 18 in Appendices 1, 2, 3 and 4, as applicable, between the EU and the UK by directly applying the percentages used by the U.S. Trade Representative to allocate the overall TRQs under those notes. Entities that currently hold EU-27 historical licenses for TRQs under Additional U.S. Notes 6, 16, 17, and 18 that wish to retain their EU-27 historical licenses and/or obtain UK historical licenses under these TRQs for the 2022 TRQ year and that otherwise qualify for carry over of such EU-27 historical licenses will be instructed to apply to carry over the EU-27 historical license and/or to obtain a UK historical license. The quantities of the new EU-27 license and/or UK license for the 2022 TRQ year that will be issued under these TRQs will be determined by allocating the original EU-27 license quantity between the two new licenses applying the same ratio that USTR used to split the applicable overall TRQ. Any discrepancies in quantities at the individual license level are due to rounding. Notice of this action and specific instructions on how to apply for the 2022 TRQ year for EU-27 and UK historical licenses under these TRQs are being provided to all current holders of EU-27 historical licenses for TRQs under Additional U.S. Notes 6, 16, 17, and 18. The notice and instructions are also posted on USDA Foreign Agricultural Service's Dairy Import Licensing Program's website at: 
                    *https://www.fas.usda.gov/​programs/​dairy-import-licensing-program*
                     and also in the Community Notices section of the Agricultural Trade License Administration System (ATLAS). Finally, with regard to Additional U.S. Note 16, Cheese and Substitutes for Cheese, the quantity in Appendix 1 for EU-27 historical licenses includes an additional 21,768 kg and the quantity for EU-27 lottery licenses in Appendix 2 includes a reduction of 21,768 kg. This corrects a clerical error in the previously published quantities for Appendices 1 and 2. The correction does not change the overall quantity allotted to the EU-27 or the UK under Additional U.S. Note 16. Lori Tortora, Licensing Authority.
  Articles Subject to Dairy Import Licenses (Kilograms) 1
Historical
                             licenses 
                             
                                (Appendix 1) 2
Lottery licenses (Appendix 2) 3
Sum of
                             
                                Appendix 1 & 2 4
Designated
                             licenses 
                             (Tokyo 
                             round, 
                             
                                Appendix 3) 4
Designated
                             licenses 
                             (Uruguay 
                             round, 
                             
                                Appendix 4) 4
Total 4*NON-CHEESE ARTICLES,**Notes 6, 7, 8, 12, 14 (Appendix 1 reduction)*:BUTTER (NOTE 6, Commodity Code G) (−19,466 kg)
4,205,995
2,771,005
6,977,000


6,977,000EU-27 5
53,445
28,654
82,099


82,099The United Kingdom
9,154
4,908
14,062


14,062New Zealand
76,503
74,090
150,593Other Countries
35,382
38,553
73,935Any Country (−19,466 kg)
4,031,511
2,624,800
6,656,311DRIED SKIM MILK (NOTE 7, Commodity Code K)
0
5,261,000
5,261,000


5,261,000Australia
0
600,076
600,076Canada
0
219,565
219,565Any Country
0
4,441,359
4,441,359DRIED WHOLE MILK (NOTE 8, Commodity Code H)
0
3,321,300
3,321,300


3,321,300New Zealand
0
3,175
3,175Any Country
0
3,318,125
3,318,125DRIED BUTTERMILK/WHEY (NOTE 12, Commodity Code M)
0
224,981
224,981


224,981Canada
0
161,161
161,161New Zealand
0
63,820
63,820BUTTER SUBSTITUTES CONTAINING OVER 45 PERCENT OF BUTTERFAT AND/OR BUTTER OIL (NOTE 14, Commodity Code SU)
0
6,080,500
6,080,500


6,080,500Any Country
0
6,080,500
6,080,500TOTAL: NON-CHEESE ARTICLES (−19,466 kg)
4,205,995
17,658,786
21,864,781


21,864,781*CHEESE ARTICLES**(Notes 16, 17, 18, 19, 20, 21, 22, 23, 25)**(Appendix 1 reduction)*:CHEESE AND SUBSTITUTES FOR CHEESE (NOTE 16, Commodity Code OT (−648,520 kg)
17,021,404
14,448,327
31,469,731
9,661,128
7,496,000
48,626,859Argentina
0
7,690
7,690
92,310

100,000Australia (−522,506 kg)
13,122
528,048
541,170
758,830
1,750,000
3,050,000Canada (−54,507 kg)
895,655
245,345
1,141,000


1,141,000Costa Rica
0
0
0

1,550,000
1,550,000EU-27 (not including Portugal) (−34,573 kg)
12,769,952
8,505,615
21,275,567
835,707
3,168,576
25,279,850Portugal
65,838
63,471
129,309
223,691

353,000( print page 49291)The United Kingdom
1,118,071
744,709
1,862,780
73,170
277,424
2,213,374Israel
79,696
0
79,696
593,304

673,000Iceland
29,054
264,946
294,000
29,000

323,000New Zealand (−18,155 kg)
1,332,845
3,482,627
4,815,472
6,506,528

11,322,000Norway
122,860
27,140
150,000


150,000Switzerland
512,184
159,228
671,412
548,588
500,000
1,720,000Uruguay
0
0
0

250,000
250,000Other Countries (−18,779)
82,127
119,508
201,635


201,635Any Country
0
300,000
300,000


300,000BLUE-MOLD CHEESE (NOTE 17, Commodity Code B) (−2,300 kg)
1,930,826
550,175
2,481,001

430,000
2,911,001Argentina
2,000
0
2,000


2,000EU-27 (−2,300 kg)
1,912,724
545,581
2,458,305

347,078
2,805,383The United Kingdom
16,102
4,593
20,695

2,922
23,617Chile
0
0
0

80,000
80,000Other Countries
0
1
1


1CHEDDAR CHEESE (NOTE 18, Commodity Code C) (−9,324 kg)
2,286,995
1,996,861
4,283,856
519,033
7,620,000
12,422,889Australia
881,894
102,605
984,499
215,501
1,250,000
2,450,000Chile

0
0

220,000
220,000EU-27
16,645
66,892
83,537

333,515
417,052The United Kingdom
35,759
143,704
179,463

716,485
895,948New Zealand
1,265,070
1,531,398
2,796,468
303,532
5,100,000
8,200,000Other Countries (−9,324 kg)
87,627
52,262
139,889


139,889Any Country

100,000
100,000


100,000AMERICAN-TYPE CHEESE (NOTE 19, Commodity Code A) (−4,536 kg)
1,146,898
2,018,655
3,165,553
357,003
0
3,522,556Australia
753,578
127,420
880,998
119,002

1,000,000EU-27 (−4,536 kg)
131,539
222,461
354,000


354,000New Zealand
158,725
1,603,274
1,761,999
238,001

2,000,000Other Countries or Areas 6
103,056
65,500
168,556


168,556EDAM AND GOUDA CHEESE (NOTE 20, Commodity Code D) (−10,902 kg)
4,270,567
1,335,835
5,606,402
0
1,210,000
6,816,402Argentina
105,418
19,582
125,000

110,000
235,000EU-27 (−10,902 kg)
4,049,341
1,239,659
5,289,000

1,100,000
6,389,000Norway
111,046
55,954
167,000


167,000Other Countries or Areas 6
4,762
20,640
25,402


25,402ITALIAN-TYPE CHEESES (NOTE 21, Commodity Code D) (−232,929 kg)
5,867,429
1,653,118
7,520,547
795,517
5,165,000
13,481,064Argentina (−157,571 kg)
3,530,236
595,247
4,125,483
367,517
1,890,000
6,383,000EU-27 (−75,358 kg)
2,337,193
1,044,807
3,382,000

2,025,000
5,407,000Romania
0
0
0

500,000
500,000Uruguay
0
0
0
428,000
750,000
1,178,000Other Countries or Areas 6
0
13,064
13,064


13,064SWISS OR EMMENTHALER CHEESE (NOTE 22 Commodity Code GR)
4,228,895
2,422,419
6,651,314
823,519
380,000
7,854,833EU-27
2,979,351
2,172,643
5,151,994
393,006
380,000
5,925,000Switzerland
1,216,046
203,441
1,419,487
430,513

1,850,000Other Countries or Areas 6
33,498
46,335
79,833


79,833LOW FAT CHEESE (NOTE 23, Commodity Code LF)
1,173,766
3,251,142
4,424,908
1,050,000
0
5,474,908EU-27
1,173,766
3,251,141
4,424,907


4,424,907Israel
0
0
0
50,000

50,000New Zealand
0
0
0
1,000,000

1,000,000Other Countries or Areas 6
0
1
1


1SWISS OR EMMENTHALER CHEESE WITH EYE FORMATION (NOTE 25, Commodity Code SW) (−108,457 kg)
12,983,391
9,313,940
22,297,331
9,557,945
2,620,000
34,475,276Argentina
0
9,115
9,115
70,885

80,000Australia
209,698
0
209,698
290,302

500,000Canada
0
0
0
70,000

70,000EU-27 (−108,457 kg)
9,653,742
6,823,086
16,476,828
4,003,172
2,420,000
22,900,000Iceland
0
149,999
149,999
150,001

300,000Israel
27,000
0
27,000


27,000Norway
2,285,329
1,369,981
3,655,310
3,227,690

6,883,000Switzerland
759,369
924,736
1,684,105
1,745,895
200,000
3,630,000Other Countries or Areas 6
48,253
37,023
85,276


85,276TOTAL: CHEESE ARTICLES
50,910,171
36,990,472
87,900,643
22,764,145
24,921,000
135,585,788TOTAL: CHEESE & NON-CHEESE
55,116,166
54,649,258
109,765,424
22,764,145
24,921,000
157,450,5691
                         Source of the total TRQs is the U.S. Harmonized Tariff Schedule, Chapter 4, in the corresponding Additional U.S. Notes.2
                         Reduced from 2020 by total of −1,036,434 KG.3
                         Increased from 2020 by total of 1,036,434 KG.4
                         No change.5
                         The list of countries in Additional U.S. Note 2 to Chapter 4 now includes “Croatia” and omits “the United Kingdom.”6
                         For Additional U.S. Notes 19 to 23 and 25, the UK will be eligible to export under the in-quota quantities allocated to “other countries or areas.”


[FR Doc. 2021-19106 Filed 9-1-21; 8:45 am] BILLING CODE 3410-10-P