(d)
Loan type; processor assurances
(1)
Nonrecourse loans
The Secretary shall carry out this section through the use of nonrecourse loans.
(2)
Processor assurances
(A)
In general
The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor.
(B)
Minimum payments
(i)
In general
Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph.
(ii)
Limitation
In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor.
(3)
Administration
The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan.
(e)
Loans for in-process sugar
(1)
Definition of in-process sugars and syrups
In this subsection, the term “in-process sugars and syrups” does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b).
(2)
Availability
The Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop.
(3)
Loan rate
The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups.
(4)
Further processing on forfeiture
(A)
In general
As a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b).
(B)
Transfer to corporation
Once the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation.
(C)
Payment to processor
On transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multiplying—
(i)
the difference between—
(I)
the loan rate for raw cane sugar or refined beet sugar, as appropriate; and
(II)
the loan rate the processor received under paragraph (3); by
(ii)
the quantity of sugar transferred to the Secretary.
(5)
Loan conversion
If the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) for the raw cane sugar or refined beet sugar, as appropriate.
(6)
Term of loan
The term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in-process sugars and syrups, may not exceed 9 months, consistent with subsection (c).
(g)
Information reporting
(1)
Duty of processors and refiners to report
A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
(2)
Duty of producers to report
(A)
Proportionate share States
As a condition of a loan made to a processor for the benefit of a producer, the Secretary shall require each producer of sugarcane located in a State (other than the Commonwealth of Puerto Rico) in which there are in excess of 250 producers of sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane of the producer.
(B)
Other States
The Secretary may require each producer of sugarcane or sugar beets not covered by subparagraph (A) to report, in a manner prescribed by the Secretary, the yields of, and acres planted to, sugarcane or sugar beets, respectively, of the producer.
(3)
Duty of importers to report
(A)
In general
Except as provided in subparagraph (B), the Secretary shall require an importer of sugars, syrups, or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption to report, in the manner prescribed by the Secretary, the quantities of the products imported by the importer and the sugar content or equivalent of the products.
(B)
Tariff-rate quotas
Subparagraph (A) shall not apply to sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are subject to the lower rate of duties.
(4)
Collection of information on Mexico
(A)
Collection
The Secretary shall collect—
(i)
information on the production, consumption, stocks, and trade of sugar in Mexico, including United States exports of sugar to Mexico; and
(ii)
publicly available information on Mexican production, consumption, and trade of high fructose corn syrups.
(B)
Publication
The data collected under subparagraph (A) shall be published in each edition of the World Agricultural Supply and Demand Estimates.
(5)
Penalty
Any person willfully failing or refusing to furnish the information required to be reported by paragraph (1), (2), or (3), or furnishing willfully false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.
(6)
Monthly reports
Taking into consideration the information received under this subsection, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.
(h)
Substitution of refined sugar
For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States and the reexport programs and polyhydric alcohol program administered by the Secretary, all refined sugars (whether derived from sugar beets or sugarcane) produced by cane sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under those programs.