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sugars and syrups, may not exceed 9 months, con-
sistent with subsection (c). 
‘‘(f) AVOIDING FORFEITURES; CORPORATION INVEN-
TORY DISPOSITION.— 
‘‘(1) IN
GENERAL.—Subject to subsection 
(d)(3), to the maximum extent practicable, the Sec-
retary shall operate the program established under 
this section at no cost to the Federal Government by 
avoiding the forfeiture of sugar to the Commodity 
Credit Corporation. 
‘‘(2) INVENTORY DISPOSITION.— 
‘‘(A) IN
GENERAL.—To carry out para-
graph (1), the Commodity Credit Corporation 
may accept bids to obtain raw cane sugar or re-
fined beet sugar in the inventory of the Com-
modity Credit Corporation from (or otherwise 
make available such commodities, on appro-
priate terms and conditions, to) processors of 
sugarcane and processors of sugar beets (acting 
in conjunction with the producers of the sugar-
cane or sugar beets processed by the proc-
essors) in return for the reduction of production 
of raw cane sugar or refined beet sugar, as ap-
propriate. 
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‘‘(B) BIOENERGY
FEEDSTOCK.—If a re-
duction in the quantity of production accepted 
under subparagraph (A) involves sugar beets or 
sugarcane that has already been planted, the 
sugar beets or sugarcane so planted may not be 
used for any commercial purpose other than as 
a bioenergy feedstock. 
‘‘(C) ADDITIONAL
AUTHORITY.—The au-
thority provided under this paragraph is in ad-
dition to any authority of the Commodity Credit 
Corporation under any other law. 
‘‘(g) INFORMATION REPORTING.— 
‘‘(1) DUTY OF PROCESSORS AND REFINERS TO 
REPORT.—A sugarcane processor, cane sugar re-
finer, and sugar beet processor shall furnish the Sec-
retary, on a monthly basis, such information as the 
Secretary may require to administer sugar pro-
grams, including the quantity of purchases of sugar-
cane, sugar beets, and sugar, and production, impor-
tation, distribution, and stock levels of sugar. 
‘‘(2) DUTY OF PRODUCERS TO REPORT.— 
‘‘(A) PROPORTIONATE SHARE STATES.—As 
a condition of a loan made to a processor for 
the benefit of a producer, the Secretary shall 
require each producer of sugarcane located in a 
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State (other than the Commonwealth of Puerto 
Rico) in which there are in excess of 250 pro-
ducers of sugarcane to report, in the manner 
prescribed by the Secretary, the sugarcane 
yields and acres planted to sugarcane of the 
producer. 
‘‘(B) OTHER STATES.—The Secretary may 
require each producer of sugarcane or sugar 
beets not covered by subparagraph (A) to re-
port, in a manner prescribed by the Secretary, 
the yields of, and acres planted to, sugarcane or 
sugar beets, respectively, of the producer. 
‘‘(3) DUTY OF IMPORTERS TO REPORT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall require 
an importer of sugars, syrups, or molasses to be 
used for human consumption or to be used for 
the extraction of sugar for human consumption 
to report, in the manner prescribed by the Sec-
retary, the quantities of the products imported 
by the importer and the sugar content or equiv-
alent of the products. 
‘‘(B) 
TARIFF-RATE
QUOTAS.—Subpara-
graph (A) shall not apply to sugars, syrups, or 
molasses that are within the quantities of tariff- 
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rate quotas that are subject to the lower rate 
of duties. 
‘‘(4) COLLECTION OF INFORMATION ON MEX-
ICO.— 
‘‘(A) COLLECTION.—The Secretary shall 
collect— 
‘‘(i) information on the production, 
consumption, stocks and trade of sugar in 
Mexico, including United States exports of 
sugar to Mexico; and 
‘‘(ii) publicly available information on 
Mexican production, consumption, and 
trade of high fructose corn syrups, includ-
ing United States exports of high fructose 
corn syrups to Mexico. 
‘‘(B) PUBLICATION.—The data collected 
under subparagraph (A) shall be published in 
each edition of the World Agricultural Supply 
and Demand Estimates. 
‘‘(5) PENALTY.—Any person willfully failing or 
refusing to furnish the information required to be 
reported by paragraph (1), (2), or (3), or furnishing 
willfully false information, shall be subject to a civil 
penalty of not more than $10,000 for each such vio-
lation. 
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‘‘(6) MONTHLY REPORTS.—Taking into consid-
eration the information received under this sub-
section, the Secretary shall publish on a monthly 
basis composite data on production, imports, dis-
tribution, and stock levels of sugar. 
‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For pur-
poses of Additional U.S. Note 6 to chapter 17 of the Har-
monized Tariff Schedule of the United States and the re-
export programs and polyhydric alcohol program adminis-
tered by the Secretary, all refined sugars (whether derived 
from sugar beets or sugarcane) produced by cane sugar 
refineries and beet sugar processors shall be fully substi-
tutable for the export of sugar and sugar-containing prod-
ucts under those programs. 
‘‘(i) EFFECTIVE PERIOD.—This section shall be ef-
fective only for the 2008 through 2012 crops of sugar 
beets and sugarcane.’’. 
(b) TRANSITION.—The Secretary of Agriculture shall 
make loans for raw cane sugar and refined beet sugar 
available for the 2007 crop year on the terms and condi-
tions provided in section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272), 
as in effect on the day before the date of the enactment 
of this Act. 
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SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTER-
NATIONAL SUGAR ORGANIZATION. 
The Secretary of Agriculture shall work with the Sec-
retary of State to restore United States membership in 
the International Sugar Organization within one year 
after the date of enactment of this Act. 
SEC. 
1303. 
FLEXIBLE 
MARKETING 
ALLOTMENTS 
FOR 
SUGAR. 
(a) DEFINITION OF HUMAN CONSUMPTION.—Section 
359a of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359aa) is amended— 
(1) by redesignating paragraphs (1) through 
(4) as paragraphs (2) through (5), respectively; and 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) 
HUMAN
CONSUMPTION.—The 
term 
‘human consumption’, when used in the context of a 
reference to sugar (whether in the form of sugar, in- 
process sugar, syrup, molasses, or in some other 
form) for human consumption, includes sugar for 
use in human food, beverages, or similar products.’’. 
(b) SUGAR ALLOTMENTS.—Section 359b of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is 
amended to read as follows: 
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‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR 
SUGAR. 
‘‘(a) SUGAR ESTIMATES.— 
‘‘(1) IN GENERAL.—Not later than August 1 
before the beginning of each of the 2008 through 
2012 crop years for sugarcane and sugar beets, the 
Secretary shall estimate— 
‘‘(A) the quantity of sugar that will be 
subject to human consumption in the United 
States during the crop year; 
‘‘(B) the quantity of sugar that would pro-
vide for reasonable carryover stocks; 
‘‘(C) the quantity of sugar that will be 
available from carry-in stocks for human con-
sumption in the United States during the crop 
year; 
‘‘(D) the quantity of sugar that will be 
available from the domestic processing of sugar-
cane, sugar beets, and in-process beet sugar; 
and 
‘‘(E) the quantity of sugars, syrups, and 
molasses that will be imported for human con-
sumption or to be used for the extraction of 
sugar for human consumption in the United 
States during the crop year, whether such arti-
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cles are under a tariff-rate quota or are in ex-
cess or outside of a tariff-rate quota. 
‘‘(2) EXCLUSION.—The estimates under this 
subsection shall not apply to sugar imported for the 
production of polyhydric alcohol or to any sugar re-
fined and reexported in refined form or in products 
containing sugar. 
‘‘(3) REESTIMATES.—The Secretary shall make 
reestimates of sugar consumption, stocks, produc-
tion, and imports for a crop year as necessary, but 
no later than the beginning of each of the second 
through fourth quarters of the crop year. 
‘‘(b) SUGAR ALLOTMENTS.— 
‘‘(1) ESTABLISHMENT.—By the beginning of 
each crop year, the Secretary shall establish for that 
crop year appropriate allotments under section 359c 
for the marketing by processors of sugar processed 
from sugar cane or sugar beets or in-process beet 
sugar (whether such sugar beets or in-process beet 
sugar was produced domestically or imported) at a 
level sufficient to maintain raw and refined sugar 
prices above forfeiture levels so that there will be no 
forfeitures of sugar to the Commodity Credit Cor-
poration under the loan program for sugar estab-
lished under section 156 of the Federal Agriculture 
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Improvement and Reform Act of 1996 (7 U.S.C. 
7272). 
‘‘(2) MINIMUM.—The level of allotments estab-
lished under paragraph (1) may not be less than 85 
percent of the estimated quantity of sugar for do-
mestic human consumption for the crop year. 
‘‘(3) PRODUCTS.—The Secretary may include 
sugar products, whose majority content is sucrose, in 
the allotments established under paragraph (1) if 
the Secretary determines that the inclusion of such 
sugar products is appropriate for controlling the 
supply of sugar for human consumption. 
‘‘(c) COVERAGE OF ALLOTMENTS.— 
‘‘(1) IN GENERAL.—The marketing allotments 
provided for in this part shall apply to the mar-
keting by processors of sugar intended for domestic 
human consumption that has been processed from 
sugar cane or sugar beets or in-process beet sugar 
(whether such sugar beets or in-process beet sugar 
was produced domestically or imported). 
‘‘(2) EXCEPTIONS.—Consistent with the admin-
istration of marketing allotments during crop years 
2002 through 2007, the marketing allotments shall 
not apply to sugar sold— 
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‘‘(A) to facilitate the exportation of such 
sugar to a foreign country, except that such ex-
ports of sugar shall not be eligible to receive 
credits under re-export programs for refined 
sugar or sugar containing products adminis-
tered by the Secretary; 
‘‘(B) to enable another processor to fulfill 
an allocation established for such other proc-
essor, except that such sales must be made be-
fore May 1 and must be reported to the Sec-
retary; or 
‘‘(C) for uses other than domestic human 
consumption. 
‘‘(d) PROHIBITIONS.— 
‘‘(1) IN GENERAL.—During any crop year or 
portion thereof for which marketing allotments have 
been established, no processor of sugar beets or sug-
arcane shall market for domestic human consump-
tion a quantity of sugar in excess of the allocation 
established for such processor, except to enable an-
other processor to fulfill an allocation established for 
such other processor or to facilitate the exportation 
of such sugar. 
‘‘(2) CIVIL
PENALTY.—Any processor who 
knowingly violates paragraph (1) shall be liable to 
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the Commodity Credit Corporation for a civil penalty 
in an amount equal to 3 times the United States 
market value, at the time of the commission of the 
violation, of that quantity of sugar involved in the 
violation. 
‘‘(3) DEFINITION OF MARKET.—For purposes 
of this part, the term ‘market’ shall mean to sell or 
otherwise dispose of in commerce in the United 
States, including— 
‘‘(A) the forfeiture of sugar under the loan 
program for sugar under section 156 of the 
Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7272) and such forfeited 
sugar shall be deemed to have been marketed 
during the crop year in which the loan was 
made; 
‘‘(B) with respect to any integrated proc-
essor and refiner, the movement of raw cane 
sugar into the refining process; and 
‘‘(C) the sale of sugar for the production 
of ethanol or other bioenergy product, if such 
ethanol or bioenergy product is the subject of a 
payment under the feedstock flexibility program 
for bioenergy producers.’’. 
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(c) ESTABLISHMENT.—Section 359c of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359cc) is 
amended— 
(1) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) OVERALL ALLOTMENT QUANTITY.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish the overall quantity of sugar to be allotted for 
the crop year (in this part referred to as the ‘overall 
allotment quantity’) at a level sufficient to maintain 
raw and refined sugar prices above forfeiture levels 
to avoid the forfeiture of sugar to the Commodity 
Credit Corporation. 
‘‘(2) MINIMUM.—The overall allotment quantity 
established under paragraph (1) may not be less 
than 85 percent of the estimated quantity of sugar 
for domestic human consumption for the crop year. 
‘‘(3) ADJUSTMENT.—Subject to paragraphs (1) 
and (2), the Secretary shall adjust the overall allot-
ment quantity— 
‘‘(A) to maintain raw and refined sugar 
prices above forfeiture levels to avoid the for-
feiture of sugar to the Commodity Credit Cor-
poration; and 
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‘‘(B) to maintain adequate supplies of raw 
and refined sugar in the domestic market.’’; 
(2) in subsection (d)(2), by inserting before the 
period the following: ‘‘or in-process beet sugar’’; 
(3) in subsection (g)(1), by inserting at the end 
the following new sentence: ‘‘However, the overall al-
lotment quantity may not be reduced to a quantity 
less than 85 percent of the estimated quantity of 
sugar for domestic human consumption for the crop 
year.’’; and 
(4) by striking subsection (h). 
(d) ALLOCATION OF MARKETING ALLOTMENTS.— 
Section 359d(b) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359dd(b)) is amended— 
(1) in paragraph (1)(F), by striking ‘‘Except as 
otherwise provided in section 359f(c)(8), if’’ and in-
serting ‘‘If’’; and 
(2) in paragraph (2), by striking subparagraphs 
(H) and (I) and inserting the following new subpara-
graph: 
‘‘(H) NEW ENTRANTS STARTING PRODUC-
TION, REOPENING, OR ACQUIRING AN EXISTING 
FACTORY WITH PRODUCTION HISTORY.— 
‘‘(i) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS CONSTRUCTED A NEW 
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FACTORY OR REOPENED A FACTORY THAT 
WAS
NOT
OPERATING
SINCE
BEFORE 
1998.—If a New Entrant constructs a new 
sugar beet processing factory, or acquires 
and reopens a sugar beet processing fac-
tory that last processed sugar beets prior 
to the 1998 crop year and there is no allo-
cation currently associated with the fac-
tory, the Secretary shall— 
‘‘(I) assign an allocation for beet 
sugar to the New Entrant that pro-
vides a fair and equitable distribution 
of the allocations for beet sugar in 
order to enable the New Entrant to 
achieve a factory utilization rate com-
parable to the factory utilization rates 
of other similarly situated processors; 
and 
‘‘(II) reduce the allocations for 
beet sugar of all other processors on 
a pro rata basis to reflect the alloca-
tion to the New Entrant. 
‘‘(ii) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS ACQUIRED AN EXISTING 
FACTORY WITH A PRODUCTION HISTORY.— 
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