(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR 
NONINSURED CROP ASSISTANCE.—A 2008 through 2012 
crop of wheat, barley, oats, or triticale planted on acreage 
that a producer elects, in the agreement required by sub-
section (a), to use for the grazing of livestock in lieu of any 
other harvesting of the crop shall not be eligible for an in-
demnity under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) or noninsured crop assistance under section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In 
this subsection, the term ‘‘special import quota’’ 
means a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN
GENERAL.—The President shall 
carry out an import quota program during the 
period beginning on the date of the enactment of 
this Act through July 31, 2013, as provided in 
this subsection. 
(B) PROGRAM
REQUIREMENTS.—Whenever 
the Secretary determines and announces that for 
VerDate Aug 31 2005 
04:05 Jul 24, 2007
Jkt 059200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6203
E:\BILLS\H2419.RH
H2419
cprice-sewell on PRODPC60 with BILLS
any consecutive 4-week period, the Friday 
through Thursday average price quotation for the 
lowest-priced United States growth, as quoted for 
Middling (M) 13⁄32-inch cotton, delivered C/F 
Far East, exceeds the Far East price there shall 
immediately be in effect a special import quota. 
(3) QUANTITY.—The quota shall be equal to 1 
week’s consumption of upland cotton by domestic 
mills at the seasonally adjusted average rate of the 
most recent 3 months for which data are available. 
(4) APPLICATION.—The quota shall apply to up-
land cotton purchased not later than 90 days after the 
date of the Secretary’s announcement under para-
graph (1) and entered into the United States not later 
than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL
TARIFF
TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
VerDate Aug 31 2005 
04:05 Jul 24, 2007
Jkt 059200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6203
E:\BILLS\H2419.RH
H2419
cprice-sewell on PRODPC60 with BILLS
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 1974 
(19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton entered 
into the United States during any marketing year 
under the special import quota established under this 
subsection may not exceed the equivalent of 10 week’s 
consumption of upland cotton by domestic mills at 
the seasonally adjusted average rate of the 3 months 
immediately preceding the first special import quota 
established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(1) DEFINITIONS.—In this subsection: 
(A) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Bureau of the 
Census, the Department of Agriculture, and the 
Department of the Treasury— 
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
VerDate Aug 31 2005 
04:05 Jul 24, 2007
Jkt 059200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6203
E:\BILLS\H2419.RH
H2419
cprice-sewell on PRODPC60 with BILLS
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; and 
(iii) imports to the latest date avail-
able during the marketing year. 
(B) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption dur-
ing the most recent 3 months for which data 
are available; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or 
(II) cumulative exports of upland 
cotton plus outstanding export sales for 
the marketing year in which the quota 
is established. 
(C) LIMITED GLOBAL IMPORT QUOTA.—The 
term ‘‘limited global import quota’’ means a 
quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(2) PROGRAM.—The President shall carry out an 
import quota program that provides that whenever 
VerDate Aug 31 2005 
04:05 Jul 24, 2007
Jkt 059200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6203
E:\BILLS\H2419.RH
H2419
cprice-sewell on PRODPC60 with BILLS
the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot 
markets for a month exceeded 130 percent of the aver-
age price of the quality of cotton in the markets for 
the preceding 36 months, notwithstanding any other 
provision of law, there shall immediately be in effect 
a limited global import quota subject to the following 
conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which data are available. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota 
has been established under this subsection during 
the preceding 12 months, the quantity of the 
quota next established under this subsection shall 
be the smaller of 21 days of domestic mill con-
sumption calculated under subparagraph (A) or 
the quantity required to increase the supply to 
130 percent of the demand. 
(C) PREFERENTIAL TARIFF TREATMENT.— 
The quantity under a limited global import 
VerDate Aug 31 2005 
04:05 Jul 24, 2007
Jkt 059200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6203
E:\BILLS\H2419.RH
H2419
cprice-sewell on PRODPC60 with BILLS