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Proposed Rule

Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports, (2002 Amendments)

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 Start Printed Page 15495

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 lowering 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.

DATES:

Comments must be received on or before May 2, 2002.

ADDRESSES:

Interested persons are invited to submit written comments concerning this proposed rule to Whitney Rick, Chief, Research and Promotion Staff, Cotton Program, Agricultural Marketing Service, USDA, STOP 0224, Washington, DC 20250-0224. Comments should be submitted in triplicate. Comments may also be submitted electronically to: cottoncomments@usda.gov. All comments should reference the docket number and the date and page number of this issue of the Federal Register. All comments received will be made available for public inspection at Cotton Program, AMS, USDA, Room 2641-S, 1400 Independence Ave., SW., Washington, DC 20250 during regular business hours. A copy of this notice may be found at: www.ams.usda.gov/​cotton/​rulemaking.htm.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Whitney Rick, Chief, Research and Promotion Staff, Cotton Program, AMS, USDA, Stop 0224, 1400 Independence Ave., SW., Washington, DC 20250-0224, telephone (202) 720-2259, facsimile (202) 690-1718, or e-mail at whitney.rick@usda.gov.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget has waived the review process required by Executive Order 12866 for this action.

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.

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 lower the assessments paid by the importers under the Cotton Research and Promotion Order. Even though the assessment would be lowered, the decrease is small and will not significantly affect small businesses. The current assessment on imported cotton is $0.009965 per kilogram of imported cotton. The proposed assessment is $0.00862, a decrease of $0.001345 or a 13.5 percent decrease. From January through December 2001 approximately $22 million was collected. Should the volume of cotton products imported into the U.S. remain at the same level in 2002, one could expect the decreased assessment to generate approximately $19 million or a 13.5 percent decrease from 2001.

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). A proposed rule implementing the amended Order was published in the Federal Register on Start Printed Page 15496December 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 decrease 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 (66 FR 58051) on November 20, 2001, for the purpose of calculating supplemental assessments on imported cotton is $1.1111 per kilogram. This number was calculated using the annual weighted average price received by farmers for Upland cotton during the calendar year 2000 which was $0.504 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 2001, which is $0.382 per pound, the new value of imported cotton is $0.8422 per kilogram. The proposed value is $.2689 per kilogram less 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 × .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 2001 calendar year weighted average price received by producers for Upland cotton is $0.382 per pound or $0.8422 per kg. (0.382 × 2.2046).

Five tenths of one percent of the average price in kg. equals $0.004211 per kg. (0.8422 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 $0.004211 per kg. which equals $0.00862 per kg.

The current assessment on imported cotton is $0.009965 per kilogram of imported cotton. The proposed assessment is $0.00862, a decrease of $0.001345 per kilogram. This decrease reflects the decrease in the Average Weighted Price of Upland Cotton Received by U.S. Farmers during the period January through December 2001.

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.

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 lower the assessments paid by importers under the Cotton Research and Promotion Order. Accordingly, the change proposed in this rule, if adopted, should be implemented as soon as possible.

Several changes in the harmonized tariff schedule numbering have occurred. Modifications to the harmonized tariff schedule were published in the December 26, 2001, Federal Register at 66 FR 66549 (Proclamation 7515 of December 18, 2001, by the President of the United States of America). These changes are as follows:

Numbers changed:

Old No.New No(s).Conversion factorAssessment cents/kg
560790200056079090000.88890.7662
600220300060032030000.86810.7483
600220600060033060000.28940.2495
6003406000
60024200060052100000.86810.7483
6005220000
6005220000
6005230000
6005240000
600243001060053100100.28940.2495
6005320010
6005330010
6005340010
6005410010
6005420010
6005430010
6005440010
600243008060053100800.28940.2495
6005320080
6005330080Start Printed Page 15497
6005340080
6005410080
6005420080
6005430080
6005440080
600292100060062110001.15740.9977
6006221000
6006231000
6006241000
600293004060063100400.11570.0997
6006320040
6006330040
6006340040
600293008060063100800.11570.0897
6006320080
6006330080
6006340080
6006410085
6006420085
6006430085
6006440085
Start List of Subjects

List of Subjects in 7 CFR Part 1205

End List of Subjects

For the reasons set forth in the preamble 7 CFR part 1205 is proposed to 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 $0.862 per kilogram.

(3) * * *

(ii) * * *

Import Assessment Table

[Raw cotton fiber]

HTS No.Conv. fact.Cents/ kg.
520100050000.8620
520100120000.8620
520100140000.8620
520100180000.8620
520100220000.8620
520100240000.8620
520100280000.8620
520100340000.8620
520100380000.8620
52041100001.11110.9578
52042000001.11110.9578
52051110001.11110.9578
52051120001.11110.9578
52051210001.11110.9578
52051220001.11110.9578
52051310001.11110.9578
52051320001.11110.9578
52051410001.11110.9578
52052100201.11110.9578
52052100901.11110.9578
52052200201.11110.9578
52052200901.11110.9578
52052300201.11110.9578
52052300901.11110.9578
52052400201.11110.9578
52052400901.11110.9578
52053100001.11110.9578
52053200001.11110.9578
52053300001.11110.9578
52053400001.11110.9578
52054100201.11110.9578
52054100901.11110.9578
52054200201.11110.9578
52054200901.11110.9578
52054400201.11110.9578
52054400901.11110.9578
52061200000.55560.4789
52061300000.55560.4789
52061400000.55560.4789
52062200000.55560.4789
52062300000.55560.4789
52062400000.55560.4789
52063100000.55560.4789
52071000001.11110.9578
52079000000.55560.4789
52081120201.14550.9874
52081120401.14550.9874
52081120901.14550.9874
52081140201.14550.9874
52081140601.14550.9874
52081140901.14550.9874
52081180901.14550.9874
52081240201.14550.9874
52081240401.14550.9874
52081240901.14550.9874
52081260201.14550.9874
52081260401.14550.9874
52081260601.14550.9874
52081260901.14550.9874
52081280201.14550.9874
52081280901.14550.9874
52081300001.14550.9874
52081920201.14550.9874
52081920901.14550.9874
52081940201.14550.9874
52081940901.14550.9874
52081960201.14550.9874
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52082240401.14550.9874
52082240901.14550.9874
52082260201.14550.9874
52082260601.14550.9874
52082280201.14550.9874
52082300001.14550.9874
52082920201.14550.9874
52082920901.14550.9874
52082940901.14550.9874
52082960901.14550.9874
52082980201.14550.9874
52083120001.14550.9874
52083210001.14550.9874
52083230201.14550.9874
52083230401.14550.9874
52083230901.14550.9874
52083240201.14550.9874
52083240401.14550.9874
52083250201.14550.9874 Start Printed Page 15498
52083300001.14550.9874
52083920201.14550.9874
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52083960901.14550.9874
52083980201.14550.9874
52084120001.14550.9874
52084160001.14550.9874
52084180001.14550.9874
52084210001.14550.9874
52084230001.14550.9874
52084240001.14550.9874
52084250001.14550.9874
52084300001.14550.9874
52084920001.14550.9874
52084940201.14550.9874
52084940901.14550.9874
52084960101.14550.9874
52084960901.14550.9874
52084980901.14550.9874
52085120001.14550.9874
52085160601.14550.9874
52085180901.14550.9874
52085230201.14550.9874
52085230451.14550.9874
52085230901.14550.9874
52085240201.14550.9874
52085240451.14550.9874
52085240651.14550.9874
52085250201.14550.9874
52085300001.14550.9874
52085920251.14550.9874
52085920951.14550.9874
52085940901.14550.9874
52085960901.14550.9874
52091100201.14550.9874
52091100351.14550.9874
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52091900201.14550.9874
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52092900901.14550.9874
52093130001.14550.9874
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52093160351.14550.9874
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52093160901.14550.9874
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52093900601.14550.9874
52093900801.14550.9874
52093900901.14550.9874
52094130001.14550.9874
52094160201.14550.9874
52094160401.14550.9874
52094200201.03090.8886
52094200401.03090.8886
52094300301.14550.9874
52094300501.14550.9874
52094900201.14550.9874
52094900901.14550.9874
52095160351.14550.9874
52095160501.14550.9874
52095200201.14550.9874
52095900251.14550.9874
52095900401.14550.9874
52095900901.14550.9874
52101140200.68730.5925
52101140400.68730.5925
52101160200.68730.5925
52101160400.68730.5925
52101160600.68730.5925
52101180200.68730.5925
52101200000.68730.5925
52101920900.68730.5925
52102140400.68730.5925
52102160200.68730.5925
52102160600.68730.5925
52102180200.68730.5925
52103140200.68730.5925
52103140400.68730.5925
52103160200.68730.5925
52103180200.68730.5925
52104140000.68730.5925
52104160000.68730.5925
52104180000.68730.5925
52104980900.68730.5925
52105140400.68730.5925
52105160200.68730.5925
52105160400.68730.5925
52105160600.68730.5925
52111100900.68730.5925
52111200200.68730.5925
52111900200.68730.5925
52111900600.68730.5925
52112100250.68730.5925
52112100350.41650.3590
52112100500.68730.5925
52112900900.68730.5925
52113200200.68730.5925
52113900400.68730.5925
52113900600.68730.5925
52114900200.68730.5925
52114900900.68730.5925
52115900250.68730.5925
52121460900.91640.7899
52121560200.91640.7899
52122160900.91640.7899
55095300300.55560.4789
55095300600.55560.4789
55131100200.40090.3456
55131100400.40090.3456
55131100600.40090.3456
55131100900.40090.3456
55131200000.40090.3456
55131300200.40090.3456
55132100200.40090.3456
55133100000.40090.3456
55141200200.40090.3456
55164200600.40090.3456
55169100600.40090.3456
55169300900.40090.3456
56012100101.14550.9874
56012100901.14550.9874
56013000001.14550.9874
56021090900.57270.4937
56022900001.14550.9874
56029060000.5260.4534
56049000000.55560.4789
56079090000.88890.7662
56089010001.11110.9578
56089023001.11110.9578
56090010001.11110.9578
56090040000.55560.4789
57011040000.05560.0479
57011090000.11110.0958
57019010101.04440.9003
57021090201.10.9482
57023120000.07780.0671
57024110000.07220.0622
57024120000.07780.0671
57024210000.07780.0671
57029130000.08890.0766
57029910101.11110.9578
57029910901.11110.9578
57039000000.44890.3870
58012100001.14550.9874
58012300001.14550.9874
58012500101.14550.9874
58012500201.14550.9874
58012600201.14550.9874
58021900001.14550.9874
58023000300.57270.4937
58042910001.14550.9874
58062000100.35340.3046
58062000900.35340.3046
58063100001.14550.9874
58064000000.42960.3703
58081070000.57270.4937
58089000100.57270.4937
58110020001.14550.9874
60011060001.14550.9874
60012100000.85910.7405
60012200000.28640.2469
60019100100.85910.7405
60019100200.85910.7405
60019200200.28640.2469
60019200300.28640.2469
60019200400.28640.2469
60032030000.86810.7483
60033060000.28940.2495
60034060000.28940.2495
60052100000.86810.7483
60052200000.86810.7483
60052300000.86810.7483
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60053100100.28940.2495
60053200100.28940.2495
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60054200100.28940.2495
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60053100800.28940.2495
60053200800.28940.2495
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60053400800.28940.2495
60054100800.28940.2495
60054200800.28940.2495
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60062110001.15740.9977
60062210001.15740.9977
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60063100400.11570.0997
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61012000101.00940.8701
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61034210200.88060.7591
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61045200100.93120.8027
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61046220600.88060.7591
61046320060.37740.3253
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61083100101.12010.9655
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61089100051.24451.0728
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61099010600.31110.2682
61099010650.31110.2682
61099010900.31110.2682
61102020051.18371.0203
61102020101.18371.0203
61102020151.18371.0203
61102020201.18371.0203
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61102020301.18371.0203
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61109090220.2630.2267
61109090240.2630.2267
61109090300.39460.3401
61109090400.2630.2267
61109090420.2630.2267
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61113050400.25160.2169
61121100500.75480.6506
61121200100.25160.2169
61121200300.25160.2169
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* * * * *
Start Signature
Start Printed Page 15501

Dated: March 27, 2002.

A.J. Yates,

Administrator, Agricultural Marketing Service.

End Signature End Part End Supplemental Information

[FR Doc. 02-7919 Filed 4-1-02; 8:45 am]

BILLING CODE 3410-02-P