U.S. note 6(b)
(b) Upland Cotton Import Quota Based on Spot Market Prices.--
(i) Whenever the Secretary of Agriculture 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 such markets for the preceding 36 months, there shall immediately be in effect a limited global import quota 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. An announcement under this clause shall be known as a Limited Global Cotton Import Quota Announcement. For purposes of this subdivision, a Limited Global Cotton Import Quota means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota contained in chapter 52 of the tariff schedule.
(ii) Quantity if prior quota.--If a quota has been established under this paragraph during the preceding 12 months, the quantity of the quota next established under this paragraph shall be the smaller of 21 days of domestic mill consumption, calculated as set forth in clause (i), or the quantity required to increase the supply to 130 percent of the demand.
(iii) Definitions.--As used in clause (ii):
(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 (adjusted to 480-pound bales) in which the special quota is established; plus
(II) production of the current crop; plus
(III) imports to the latest date available during the marketing year.
(B) Demand.--The term " demand " means--
(I) the average seasonally adjusted annual rate of domestic mill consumption in the most recent 3 months for which data are available; plus
(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 special quota is established.
(iv) Quota entry period.--When a quota is established under this paragraph, cotton may be entered under the quota during the 90-day period beginning on the effective date of the Secretary of Agriculture's announcement of such quota.
(v) No overlap.--Notwithstanding clauses (i) through (iv), a quota period may not be established under this paragraph that overlaps an existing quota period established under this paragraph or a quota period established under paragraph (a) of this note.
(vi) The Secretary of Agriculture shall inform the Secretary of the Treasury of the establishment of any import quota under this paragraph and shall file a notice of such quota with the Federal Register .