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U.S. Court rules against stuffed molasses
Ag Weekly
September 4, 2001
 
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.