Over the past two months, USMEF has cautioned exporters about the possibility of the 12,050 metric ton quarterly allocation of the European Union’s duty-free high-quality beef quota being filled prior to Sept. 30.
The quota is deemed “critical” when 90 percent of the available quantity is utilized, at which point importers must open a guarantee with EU customs for 100 percent of the full duty for each container presented. Based on current import volumes, the quarterly allocation could reach the critical phase early next week. Importers would then either have to open a bank guarantee or wait until the next quarter begins on Oct. 1 to clear the product.
In July, USMEF prepared a detailed explanation of the processes triggered when the quota reaches its critical phase. This explanation is available online. Exporters with further questions about this situation may email Thad Lively or call 303-623-6328.