((a)) ** Cotton user marketing certificates**

((1)) ** Issuance** During the period ending , the Secretary shall issue marketing certificates or cash payments, at the option of the recipient, to domestic users and exporters for documented purchases by domestic users and sales for export by exporters made in the week following a consecutive 4-week period in which—

((A)) the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound; and

((B)) the prevailing world market price for upland cotton (adjusted to United States quality and location) does not exceed 134 percent of the loan rate for upland cotton established under .

((2)) ** Value of certificates or payments** The value of the marketing certificates or cash payments shall be based on the amount of the difference (reduced by 1.25 cents per pound) in the prices during the 4th week of the consecutive 4-week period multiplied by the quantity of upland cotton included in the documented sales.

((3)) ** Administration of marketing certificates**

((A)) ** Redemption, marketing, or exchange** The Secretary shall establish procedures for redeeming marketing certificates for cash or marketing or exchange of the certificates for agricultural commodities owned by the Commodity Credit Corporation or pledged to the Commodity Credit Corporation as collateral for a loan in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates, including enhancing the competitiveness and marketability of United States cotton. Any price restrictions that would otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this subsection.

((B)) ** Designation of commodities and products** To the extent practicable, the Secretary shall permit owners of certificates to designate the commodities and products, including storage sites, the owners would prefer to receive in exchange for certificates.

((C)) ** Transfers** Marketing certificates issued to domestic users and exporters of upland cotton may be transferred to other persons in accordance with regulations issued by the Secretary.

((b)) ** Special import quota**

((1)) ** Establishment**

((A)) ** In general** The President shall carry out an import quota program during the period ending , as provided in this subsection.July 31, 20032003-07-31

((B)) ** Program requirements** Except as provided in subparagraph (C), whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under subsection (a), exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.3

((C)) ** Tight domestic supply** During any month for which the Secretary estimates the season-ending United States upland cotton stocks-to-use ratio, as determined under subparagraph (D), to be below 16 percent, the Secretary, in making the determination under subparagraph (B), shall not adjust the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1⁄-inch cotton, delivered C.I.F. Northern Europe, for the value of any certificates issued under subsection (a).3

((D)) ** Season-ending United States stocks-to-use ratio** For the purposes of making estimates under subparagraph (C), the Secretary shall, on a monthly basis, estimate and report the season-ending United States upland cotton stocks-to-use ratio, excluding projected raw cotton imports but including the quantity of raw cotton that has been imported into the United States during the marketing year.

((2)) ** 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.

((3)) ** Application** The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (1) and entered into the United States not later than 180 days after the date.

((4)) ** Overlap** A special quota period may be established that overlaps any existing quota period if required by paragraph (1), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (c).

((5)) ** Preferential tariff treatment** The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—

((A)) ;

((B)) ;

((C)) ; and

((D)) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

((6)) ** “Special import quota” defined** 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.

((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 5 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.

((c)) ** Limited global import quota for upland cotton**

((1)) ** In general** The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of such 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 consumption of upland cotton at the seasonally adjusted 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 consumption 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 quota shall be considered to be an in-quota quantity for purposes of—

((i)) ;

((ii)) ;

((iii)) ; and

((iv)) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

((D)) ** Definitions** In this subsection:

((i)) ** 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 (adjusted to 480-pound bales) in which the quota is established;

((II)) production of the current crop; and

((III)) imports to the latest date available during the marketing year.

((ii)) ** Demand** The term “demand” means—

((I)) the average seasonally adjusted annual rate of domestic mill consumption during the most recent 3 months for which data are available; and

((II)) the larger of—

((aa)) average exports of upland cotton during the preceding 6 marketing years; or

((bb)) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

((iii)) ** 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.

((E)) ** Quota entry period** When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

((2)) ** No overlap** Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (b).