[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR335.6]

[Page 54-55]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
 CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 335_IMPORTS OF WORSTED WOOL FABRIC--Table of Contents
 
Sec.  335.6  Surrender, reallocation and license utilization requirement.

    (a) Not later than September 30 of each Tariff Rate Quota Year, a 
Licensee that will not import the full quantity granted in a license 
during the Tariff Rate Quota Year shall surrender the allocation that 
will not be used to the Department for purposes of reallocation through 
a written or electronic notice to the Department, including the license 
control number and the amount being surrendered. The surrender shall be 
final, and shall apply only to that Tariff Rate Quota Year.
    (b) For purposes of this section, ``unused allocation'' means the 
amount by which the quantity set forth in a license, including any 
additional amount received pursuant to paragraph (d) of this section, 
exceeds the quantity entered under the license, excluding any amount 
surrendered pursuant to paragraph (a) of this section.
    (c) The Department will notify Licensees of any amount surrendered 
and the application period for requests for reallocation. A Licensee 
that has imported, or intends to import, a quantity of Worsted Wool 
Fabric exceeding the quantity set forth in its license may apply to 
receive additional allocation from the amount to be reallocated. The 
application shall state the maximum amount of additional allocation the 
applicant will be able to use.
    (d) The amount surrendered will be reallocated to Licensees that 
have applied for reallocation. The entire amount surrendered will be 
reallocated pro-rata among applicants based on the applicant's share of 
the annual allocation, but will not exceed the amount set forth in the 
reallocation application as the maximum amount able to be used.
    (e) A Licensee whose unused allocation in a Tariff Rate Quota Year 
exceeds five percent of the quantity set forth in its license shall be 
subject to having its allocation reduced in the subsequent Tariff Rate 
Quota Year. The subsequent Tariff Rate Quota Year allocation will be 
reduced from the quantity such Licensee would otherwise have received by 
a quantity equal

[[Page 55]]

to 25 percent of its unused allocation from the prior year. A Licensee 
whose unused allocation in two consecutive Tariff Rate Quota Years 
exceeds five percent of the quantity set forth in its license shall have 
its allocation reduced in the subsequent Tariff Rate Quota Year by a 
quantity equal to 50 percent of its unused allocation from the prior 
year.
    (f) No penalty will be imposed under paragraph (e) of this section 
if the Licensee demonstrates to the satisfaction of the Department that 
the unused allocation resulted from breach by a carrier of its contract 
of carriage, breach by a supplier of its contract to supply the fabric, 
act of God, or force majeure.