Ethyl Alcohol for Fuel Use: Determination of the Base Quantity of Imports

요약

Section 423(c) of the Tax Reform Act of 1986, as amended (19 U.S.C. 2703 note), requires the United States International Trade Commission to determine annually the amount (expressed in gallons) that is equal to 7 percent of the U.S. domestic market for fuel ethyl alcohol during the 12-month period ending on the preceding September 30. This determination is to be used to establish the "base quantity" of imports of fuel ethyl alcohol with a zero percent local feedstock requirement that can be imported from U.S. insular possessions or CBERA-beneficiary countries. The base quantity to be used by U.S. Customs and Border Protection in the administration of the law is the greater of 60 million gallons or 7 percent of U.S. consumption, as determined by the Commission. For the 12-month period ending September 30, 2008, the Commission has determined the level of U.S. consumption of fuel ethyl alcohol to be 8.88 billion gallons; 7 percent of this amount is 621.5 million gallons (these figures have been rounded). Therefore, the base quantity for 2009 should be 621.5 million gallons.