WASHINGTON, DC -- A decision by the U.S. Court
of Appeals on Thursday will help stop the flood of stuffed
molasses into the United States.
The decision came against the Heartland By-Products Corp.
in the Court of Appeals for the Federal Circuit in Washington,
D.C. The court upheld a U.S. Customs Service ruling that
blends of sugar and molasses imported through Canada are
subject to the quota limitations on sugar imported into the
United States.
Stuffed molasses occurs when companies purchase sugar at
the world price in Canada and then process it into molasses.
The companies then transport the molasses into the United
States, remove the sugar, sell it and displace sugar that is
grown by American producers or that has entered the country
legally.
"It's about time," said Idaho Congressman Mike
Simpson, a member of the House Agriculture Committee.
"The decision today in the Heartland case is a great
victory for Idaho's sugar producers and confirms what we have
been saying all along. Stuffed molasses is a circumvention of
trade agreements and has a harmful impact on U.S. sugar
producers. I've worked with Idaho's sugar producers against
stuffed molasses for the last two years and I know how big of
an issue this is for them. I am relieved that the appeals
court has ruled in our favor and remain hopeful that the
resolution of this issue will have a positive impact on the
price Idaho's sugar producers are receiving for their hard
work and dedication."
In the 106th Congress, Simpson authored legislation that
would give the U.S. Customs Service authority to stop molasses
dumping, without going through costly and bureaucratic
procedures that leave U.S. farmers suffering from low prices. |