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Proposed Rule

2001 Proposed Amendment to Cotton Board Rules and Regulations Adjusting Supplemental Assessment on Imports

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble

AGENCY:

Agricultural Marketing Service, USDA.

ACTION:

Proposed rule.

SUMMARY:

The Agricultural Marketing Service (AMS) is proposing to amend the Cotton Board Rules and Regulations by raising the value assigned to imported cotton for the purpose of calculating supplemental assessments collected for use by the Cotton Research and Promotion Program. An adjustment is required on an annual basis to ensure that the assessments collected on imported cotton and the cotton content of imported products remain similar to those paid on domestically produced cotton.

DATE:

Comments must be received on or before September 12, 2001.

ADDRESSES:

Interested persons are invited to submit written comments concerning this proposed rule. Comments may be mailed to USDA, AMS, Cotton Program, STOP 0224, 1400 Independence Avenue, SW, Washington, DC 20250-0224 or Email cottoncomments@usda.gov. Comments should reference the docket number and the date and page number of this issue of the Federal Register and will be available for public inspection at this address during the hours of 8:00 a.m. to 4:00 p.m., Monday through Friday.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Whitney Rick, (202) 720-2259.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule has been determined to be “not significant” for purposes of Executive Order 12866, and, therefore, has not been reviewed by the Office of Management and Budget.

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This proposed rule would not preempt any state or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.

The Cotton Research and Promotion Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under Section 12 of the Act, any person subject to an order may file with the Secretary a petition stating that the order, any provision of the plan, or any obligation imposed in connection with the order is not in accordance with law and requesting a modification of the order or to be exempted therefrom. Such person is afforded the opportunity for a hearing on the petition. After the hearing, the Secretary would rule on the petition. The Act provides that the District Court of the United States in any district in which the person is an inhabitant, or has his principal place of business, has jurisdiction to review the Secretary's ruling, provided a complaint is filed within 20 days from the date of the entry of ruling.

Regulatory Flexibility Act

Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) AMS has considered the economic impact of this action on small entities and has determined that its implementation will not have a significant economic impact on a substantial number of small businesses.Start Printed Page 42465

There are an estimated 10,000 importers who are presently subject to rules and regulations issued pursuant to the Cotton Research and Promotion Order. This proposed rule would affect importers of cotton and cotton-containing products. The majority of these importers are small businesses under the criteria established by the Small Business Administration. This proposed rule would raise the assessments paid by the importers under the Cotton Research and Promotion Order. Even though the assessment would be raised, the increase is small and will not significantly affect small businesses.

The current assessment on imported cotton is $0.009833 per kilogram of imported cotton. The proposed assessment is $0.009965, an increase of $0.000132 or a 1.34 percent increase from the current assessment. From January through December 2000 approximately $20 million was collected at the $0.009833 per kilogram rate. Should the volume of cotton products imported into the U.S. remain at the same level in 2001, one could expect the increased assessment to generate approximately $20.2 million or a 1.34 percent increase from 2000.

Paperwork Reduction

In compliance with Office of Management and Budget (OMB) regulations (5 CFR Part 1320) which implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.) the information collection requirements contained in the regulation to be amended have been previously approved by OMB and were assigned control number 0581-0093.

Background

The Cotton Research and Promotion Act Amendments of 1990 enacted by Congress under Subtitle G of Title XIX of the Food, Agriculture, Conservation and Trade Act of 1990 on November 28, 1990, contained two provisions that authorized changes in the funding procedures for the Cotton Research and Promotion Program.

These provisions are: (1) The assessment of imported cotton and cotton products; and (2) termination of the right of cotton producers to demand a refund of assessments.

An amended Cotton Research and Promotion Order was approved by producers and importers voting in a referendum held July 17-26, 1991, and the amended Order was published in the Federal Register on December 10, 1991, (56 FR 64470). Proposed rule implementing the amended Order were published in the Federal Register on December 17, 1991, (56 FR 65450). Implementing rules were published on July 1 and 2, 1992, (57 FR 29181) and (57 FR 29431), respectively.

This proposed rule would increase the value assigned to imported cotton in the Cotton Board Rules and Regulations (7 CFR 1205.510(b)(2)). This value is used to calculate supplemental assessments on imported cotton and the cotton content of imported products. Supplemental assessments are the second part of a two-part assessment. The first part of the assessment is levied on the weight of cotton produced or imported at a rate of $1 per bale of cotton which is equivalent to 500 pounds or $1 per 226.8 kilograms of cotton.

Supplemental assessments are levied at a rate of five-tenths of one percent of the value of domestically produced cotton, imported cotton, and the cotton content of imported products. The agency has adopted the practice of assigning the calendar year weighted average price received by U.S. farmers for Upland cotton to represent the value of imported cotton. This is done so that the assessment on domestically produced cotton and the assessment on imported cotton and the cotton content of imported products remain similar. The source for the average price statistic is “Agricultural Prices”, a publication of the National Agricultural Statistics Service (NASS) of the Department of Agriculture. Use of the weighted average price figure in the calculation of supplemental assessments on imported cotton and the cotton content of imported products yields an assessment that approximates assessments paid on domestically produced cotton in the prior calendar year.

The current value of imported cotton as published in the Federal Register (65 FR 25236) on May 1, 2000, for the purpose of calculating supplemental assessments on imported cotton is $1.0847 per kilogram. This number was calculated using the annual weighted average price received by farmers for Upland cotton during the calendar year 1999 which was $0.492 per pound and multiplying by the conversion factor 2.2046. Using the Average Weighted Price Received by U.S. farmers for Upland cotton for the calendar year 2000, which is $0.504 per pound, the new value of imported cotton is $1.1111 per kilogram. The proposed value is $.0264 per kilogram more than the previous value.

An example of the complete assessment formula and how the various figures are obtained is as follows:

One bale is equal to 500 pounds.

One kilogram equals 2.2046 pounds.

One pound equals 0.453597 kilograms.

One Dollar Per Bale Assessment Converted to Kilograms

A 500 pound bale equals 226.8 kg. (500 x .453597).

$1 per bale assessment equals $0.002000 per pound (1 ÷ 500) or $0.004409 per kg. (1 ÷ 226.8).

Supplemental Assessment of 5/10 of One Percent of the Value of the Cotton Converted to Kilograms.

The 2000 calendar year weighted average price received by producers for Upland cotton is $0.504 per pound or $1.1111 per kg. (0.504 x 2.2046) = 1.1111.

Five tenths of one percent of the average price in kg. equals $0.005556 per kg. (1.1111 x .005).

Total Assessment

The total assessment per kilogram of raw cotton is obtained by adding the $1 per bale equivalent assessment of $0.004409 per kg. and the supplemental assessment $0.005556 per kg. which equals $0.009965 per kg.

The current assessment on imported cotton is $0.009833 per kilogram of imported cotton. The proposed assessment is $0.009965, an increase of $0.000132 per kilogram. This increase reflects the increase in the Average Weighted Price of Upland Cotton Received by U.S. Farmers during the period January through December 2000.

Since the value of cotton is the basis of the supplemental assessment calculation and the figures shown in the right hand column of the Import Assessment Table 1205.510(b)(3) are a result of such a calculation, the figures in this table have been revised. These figures indicate the total assessment per kilogram due for each Harmonized Tariff Schedule (HTS) number subject to assessment.

One HTS number subject to assessment pursuant to this regulation and found in the assessment table has been changed. In order to maintain consistency between the HTS and the assessment table, the changes to this one number have been incorporated into the assessment table. The last two digits of this number were changed to provide for statistical reporting purposes and involve no physical change to the products they represent. The assessment rate for the one number has been applied to each of the new replacement numbers in the assessment table. The following table represents the changes:Start Printed Page 42466

Old No.New No.Conversion factorAssessment cents/kg.
630391000063039100100.64290.6406
63039100200.64290.6406

A thirty day comment period is provided to comment on the changes to the Cotton Board Rules and Regulations proposed herein. This period is deemed appropriate because this proposal would slightly raise the assessments paid by importers under the Cotton Research and Promotion Order and would ensure that the measurements collected for imported cotton content products remain similar to those paid on domestically produced cotton. Accordingly, the change proposed in this rule, if adopted, should be implemented as soon as possible.

Start List of Subjects

List of Subjects in 7 CFR Part 1205

End List of Subjects

For the reasons set forth in the preamble, it is proposed that 7 CFR Part 1205 be amended as follows:

Start Part

PART 1205—COTTON RESEARCH AND PROMOTION

1. The authority citation for Part 1205 continues to read as follows:

Start Authority

Authority: 7 U.S.C. 2101-2118. 2. In § 1205.510, paragraph (b)(2) and the table in paragraph (b)(3)(ii) are revised to read as follows:

End Authority
Levy of assessments.
* * * * *

(b) * * *

(2) The 12-month average of monthly weighted average prices received by U.S. farmers will be calculated annually. Such weighted average will be used as the value of imported cotton for the purpose of levying the supplemental assessment on imported cotton and will be expressed in kilograms. The value of imported cotton for the purpose of levying this supplemental assessment is $0.9965 per kilogram.

(3) * * *

(ii) * * *

Import Assessment Table

[Raw Cotton Fiber]

HTS No.Conv. fact.Cents/kg.
520100050000.9965
520100120000.9965
520100140000.9965
520100180000.9965
520100220000.9965
520100240000.9965
520100280000.9965
520100340000.9965
520100380000.9965
52041100001.11111.1072
52042000001.11111.1072
52051110001.11111.1072
52051120001.11111.1072
52051210001.11111.1072
52051220001.11111.1072
52051310001.11111.1072
52051320001.11111.1072
52051410001.11111.1072
52052100201.11111.1072
52052100901.11111.1072
52052200201.11111.1072
52052200901.11111.1072
52052300201.11111.1072
52052300901.11111.1072
52052400201.11111.1072
52052400901.11111.1072
52053100001.11111.1072
52053200001.11111.1072
52053300001.11111.1072
52053400001.11111.1072
52054100201.11111.1072
52054100901.11111.1072
52054200201.11111.1072
52054200901.11111.1072
52054400201.11111.1072
52054400901.11111.1072
52061200000.55560.5537
52061300000.55560.5537
52061400000.55560.5537
52062200000.55560.5537
52062300000.55560.5537
52062400000.55560.5537
52063100000.55560.5537
52071000001.11111.1072
52079000000.55560.5537
52081120201.14551.1415
52081120401.14551.1415
52081120901.14551.1415
52081140201.14551.1415
52081140601.14551.1415
52081140901.14551.1415
52081180901.14551.1415
52081240201.14551.1415
52081240401.14551.1415
52081240901.14551.1415
52081260201.14551.1415
52081260401.14551.1415
52081260601.14551.1415
52081260901.14551.1415
52081280201.14551.1415
52081280901.14551.1415
52081300001.14551.1415
52081920201.14551.1415
52081920901.14551.1415
52081940201.14551.1415
52081940901.14551.1415
52081960201.14551.1415
52081960901.14551.1415
52082240401.14551.1415
52082240901.14551.1415
52082260201.14551.1415
52082260601.14551.1415
52082280201.14551.1415
52082300001.14551.1415
52082920201.14551.1415
52082920901.14551.1415
52082940901.14551.1415
52082960901.14551.1415
52082980201.14551.1415
52083120001.14551.1415
52083210001.14551.1415
52083230201.14551.1415
52083230401.14551.1415
52083230901.14551.1415
52083240201.14551.1415
52083240401.14551.1415
52083250201.14551.1415
52083300001.14551.1415
52083920201.14551.1415
52083920901.14551.1415
52083940901.14551.1415
52083960901.14551.1415
52083980201.14551.1415
52084120001.14551.1415
52084160001.14551.1415
52084180001.14551.1415
52084210001.14551.1415
52084230001.14551.1415
52084240001.14551.1415
52084250001.14551.1415
52084300001.14551.1415
52084920001.14551.1415
52084940201.14551.1415
52084940901.14551.1415
52084960101.14551.1415
52084960901.14551.1415
52084980901.14551.1415
52085120001.14551.1415
52085160601.14551.1415
52085180901.14551.1415
52085230201.14551.1415
52085230451.14551.1415
52085230901.14551.1415
52085240201.14551.1415
52085240451.14551.1415
52085240651.14551.1415
52085250201.14551.1415
52085300001.14551.1415
52085920251.14551.1415
52085920951.14551.1415
52085940901.14551.1415
52085960901.14551.1415
52091100201.14551.1415
52091100351.14551.1415
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52091900201.14551.1415
52091900401.14551.1415
52091900601.14551.1415Start Printed Page 42467
52091900901.14551.1415
52092100901.14551.1415
52092200201.14551.1415
52092200401.14551.1415
52092900401.14551.1415
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52093130001.14551.1415
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52093200401.14551.1415
52093900201.14551.1415
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52093900601.14551.1415
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52093900901.14551.1415
52094130001.14551.1415
52094160201.14551.1415
52094160401.14551.1415
52094200201.03091.0273
52094200401.03091.0273
52094300301.14551.1415
52094300501.14551.1415
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52094900901.14551.1415
52095160351.14551.1415
52095160501.14551.1415
52095200201.14551.1415
52095900251.14551.1415
52095900401.14551.1415
52095900901.14551.1415
52101140200.68730.6849
52101140400.68730.6849
52101160200.68730.6849
52101160400.68730.6849
52101160600.68730.6849
52101180200.68730.6849
52101200000.68730.6849
52101920900.68730.6849
52102140400.68730.6849
52102160200.68730.6849
52102160600.68730.6849
52102180200.68730.6849
52103140200.68730.6849
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52103160200.68730.6849
52103180200.68730.6849
52104140000.68730.6849
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52104180000.68730.6849
52104980900.68730.6849
52105140400.68730.6849
52105160200.68730.6849
52105160400.68730.6849
52105160600.68730.6849
52111100900.68730.6849
52111200200.68730.6849
52111900200.68730.6849
52111900600.68730.6849
52112100250.68730.6849
52112100350.41650.415
52112100500.68730.6849
52112900900.68730.6849
52113200200.68730.6849
52113900400.68730.6849
52113900600.68730.6849
52114900200.68730.6849
52114900900.68730.6849
52115900250.68730.6849
52121460900.91640.9132
52121560200.91640.9132
52122160900.91640.9132
55095300300.55560.5537
55095300600.55560.5537
55131100200.40090.3995
55131100400.40090.3995
55131100600.40090.3995
55131100900.40090.3995
55131200000.40090.3995
55131300200.40090.3995
55132100200.40090.3995
55133100000.40090.3995
55141200200.40090.3995
55164200600.40090.3995
55169100600.40090.3995
55169300900.40090.3995
56012100101.14551.1415
56012100901.14551.1415
56013000001.14551.1415
56021090900.57270.5707
56022900001.14551.1415
56029060000.5260.5242
56049000000.55560.5537
56079020000.88890.8858
56089010001.11111.1072
56089023001.11111.1072
56090010001.11111.1072
56090040000.55560.5537
57011040000.05560.055
57011090000.11110.1107
57019010101.04441.0407
57021090201.11.0962
57023120000.07780.078
57024110000.07220.072
57024120000.07780.078
57024210000.07780.078
57029130000.08890.089
57029910101.11111.1072
57029910901.11111.1072
57039000000.44890.4473
58012100001.14551.1415
58012300001.14551.1415
58012500101.14551.1415
58012500201.14551.1415
58012600201.14551.1415
58021900001.14551.1415
58023000300.57270.5707
58042910001.14551.1415
58062000100.35340.3522
58062000900.35340.3522
58063100001.14551.1415
58064000000.42960.4281
58081070000.57270.5707
58089000100.57270.5707
58110020001.14551.1415
60011060001.14551.1415
60012100000.85910.8561
60012200000.28640.2854
60019100100.85910.8561
60019100200.85910.8561
60019200200.28640.2854
60019200300.28640.2854
60019200400.28640.2854
60022030000.86810.8651
60022060000.28940.2884
60024200000.86810.8651
60024300100.28940.2884
60024300800.28940.2884
60029210001.15741.1533
60029300400.11570.1153
60029300800.11570.1153
61012000101.00941.0059
61012000201.00941.0059
61022000101.00941.0059
61022000201.00941.0059
61034210200.88060.8775
61034210400.88060.8775
61034210500.88060.8775
61034210700.88060.8775
61034315200.25160.2507
61034315400.25160.2507
61034315500.25160.2507
61034315700.25160.2507
61042200400.90020.897
61042200600.90020.897
61043200000.92070.9175
61044200100.90020.897
61044200200.90020.897
61045200100.93120.9279
61045200200.93120.9279
61046220060.88060.8775
61046220110.88060.8775
61046220160.88060.8775
61046220210.88060.8775
61046220260.88060.8775
61046220280.88060.8775
61046220300.88060.8775
61046220600.88060.8775
61046320060.37740.3761
61046320110.37740.3761
61046320260.37740.3761
61046320280.37740.3761
61046320300.37740.3761
61046320600.37740.3761
61046920300.38580.3844
61051000100.9850.9816
61051000200.9850.9816
61051000300.9850.9816
61052020100.30780.3067
61052020300.30780.3067
61061000100.9850.9816
61061000200.9850.9816
61061000300.9850.9816
61062020100.30780.3067
61062020300.30780.3067
61071100101.13221.1282
61071100201.13221.1282
61071200100.50320.5014
61072100100.88060.8775
61072200150.37740.3761
61072200250.37740.3761
61079100401.25811.2537
61082100101.24451.2401
61082100201.24451.2401
61083100101.12011.1162
61083100201.12011.1162
61083200100.24890.248
61083200150.24890.248
61083200250.24890.248
61089100051.24451.240
61089100151.24451.2401
61089100251.24451.2401
61089100301.24451.2401
61089200300.24890.248
61091000050.99560.9921Start Printed Page 42468
61091000070.99560.9921
61091000090.99560.9921
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61102020051.18371.1796
61102020101.18371.1796
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61143010200.25720.2563
61143030300.25720.2563
61151980101.04171.0381
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61161017200.85280.8498
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61169264301.21831.214
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62011340300.26330.2624
62019210000.92670.9235
62019215001.15831.1542
62019220101.02961.026
62019220211.28711.2826
62019220311.28711.2826
62019220411.28711.2826
62019220511.02961.026
62019220611.02961.026
62019310000.30890.3078
62019335110.25740.2565
62019335210.25740.2565
62019990600.25740.2565
62021210000.93720.9339
62021220101.10641.1025
62021220251.30171.2971
62021220500.84610.8431
62021220600.84610.8431
62021340050.26640.2655
62021340200.3330.3318
62029210001.04131.0377
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62029220261.30171.2971
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62029310000.31240.3113
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62029350210.26030.2594
62031220100.13020.1297
62032210001.30171.2971
62033220101.23661.2323
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* * * * *
Start Signature

Dated: August 7, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing Service.

End Signature End Part End Supplemental Information

[FR Doc. 01-20188 Filed 8-10-01; 8:45 am]

BILLING CODE 3410-02-P