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Proposed Rule

Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports, (2003 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

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 April 14, 2003.

ADDRESSES:

Interested persons are invited to submit written comments Start Printed Page 12311concerning 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 $0.00862 per kilogram of imported cotton. The proposed assessment is $0.008267, a decrease of $0.000353 or a 4.1 percent decrease. From January through December 2002 approximately $24 million was collected. Should the volume of cotton products imported into the U.S. remain at the same level in 2003, one could expect the decreased assessment to generate approximately $23 million or a 4.1 percent decrease from 2002.

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 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 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 (67 FR 36793) on May 28, 2002, for the purpose of calculating supplemental assessments on imported cotton is $.8422 per kilogram. This number was calculated using the annual weighted average price received by farmers for Upland cotton during the calendar year 2001 which was $0.382 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 2002, which is $0.35 per pound, the new value of imported cotton is $0.7716 per kilogram. The proposed value is Start Printed Page 12312$.0706 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 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 2002 calendar year weighted average price received by producers for Upland cotton is $0.35 per pound or $0.7716 per kg. (0.35 x 2.2046).

Five tenths of one percent of the average price in kg. equals $0.003858 per kg. (0.7716 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 $0.003858 per kg. which equals $0.008267 per kg.

The current assessment on imported cotton is $0.008620 per kilogram of imported cotton. The proposed assessment is $0.008267, a decrease of $0.000353 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 2002.

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.

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.

End Authority

2. In § 1205.510, paragraph (b)(2) and the table in paragraph (b)(3)(ii) are revised to read as follows:

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 $0.8267 per kilogram.

(3) * * *

(ii) * * *

Import Assessment Table

[Raw Cotton Fiber]

HTS No.Conv. fact.Cents/kg.
520100050000.8267
520100120000.8267
520100140000.8267
520100180000.8267
520100220000.8267
520100240000.8267
520100280000.8267
520100340000.8267
520100380000.8267
52041100001.11110.9185
52042000001.11110.9185
52051110001.11110.9185
52051120001.11110.9185
52051210001.11110.9185
52051220001.11110.9185
52051310001.11110.9185
52051320001.11110.9185
52051410001.11110.9185
52052100201.11110.9185
52052100901.11110.9185
52052200201.11110.9185
52052200901.11110.9185
52052300201.11110.9185
52052300901.11110.9185
52052400201.11110.9185
52052400901.11110.9185
52053100001.11110.9185
52053200001.11110.9185
52053300001.11110.9185
52053400001.11110.9185
52054100201.11110.9185
52054100901.11110.9185
52054200201.11110.9185
52054200901.11110.9185
52054400201.11110.9185
52054400901.11110.9185
52061200000.55560.4593
52061300000.55560.4593
52061400000.55560.4593
52062200000.55560.4593
52062300000.55560.4593
52062400000.55560.4593
52063100000.55560.4593
52071000001.11110.9185
52079000000.55560.4593
52081120201.14550.9470
52081120401.14550.9470
52081120901.14550.9470
52081140201.14550.9470
52081140601.14550.9470
52081140901.14550.9470
52081180901.14550.9470
52081240201.14550.9470
52081240401.14550.9470
52081240901.14550.9470
52081260201.14550.9470
52081260401.14550.9470
52081260601.14550.9470
52081260901.14550.9470
52081280201.14550.9470
52081280901.14550.9470
52081300001.14550.9470
52081920201.14550.9470
52081920901.14550.9470
52081940201.14550.9470
52081940901.14550.9470
52081960201.14550.9470
52081960901.14550.9470
52082240401.14550.9470
52082240901.14550.9470
52082260201.14550.9470
52082260601.14550.9470
52082280201.14550.9470
52082300001.14550.9470
52082920201.14550.9470
52082920901.14550.9470
52082940901.14550.9470
52082960901.14550.9470
52082980201.14550.9470
52083120001.14550.9470
52083210001.14550.9470
52083230201.14550.9470
52083230401.14550.9470
52083230901.14550.9470
52083240201.14550.9470
52083240401.14550.9470
52083250201.14550.9470
52083300001.14550.9470
52083920201.14550.9470
52083920901.14550.9470
52083940901.14550.9470
52083960901.14550.9470
52083980201.14550.9470
52084120001.14550.9470
52084160001.14550.9470
52084180001.14550.9470
52084210001.14550.9470
52084230001.14550.9470
52084240001.14550.9470
Start Printed Page 12313
52084250001.14550.9470
52084300001.14550.9470
52084920001.14550.9470
52084940201.14550.9470
52084940901.14550.9470
52084960101.14550.9470
52084960901.14550.9470
52084980901.14550.9470
52085120001.14550.9470
52085160601.14550.9470
52085180901.14550.9470
52085230201.14550.9470
52085230451.14550.9470
52085230901.14550.9470
52085240201.14550.9470
52085240451.14550.9470
52085240651.14550.9470
52085250201.14550.9470
52085300001.14550.9470
52085920251.14550.9470
52085920951.14550.9470
52085940901.14550.9470
52085960901.14550.9470
52091100201.14550.9470
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52092900401.14550.9470
52092900901.14550.9470
52093130001.14550.9470
52093160201.14550.9470
52093160351.14550.9470
52093160501.14550.9470
52093160901.14550.9470
52093200201.14550.9470
52093200401.14550.9470
52093900201.14550.9470
52093900401.14550.9470
52093900601.14550.9470
52093900801.14550.9470
52093900901.14550.9470
52094130001.14550.9470
52094160201.14550.9470
52094160401.14550.9470
52094200201.03090.8522
52094200401.03090.8522
52094300301.14550.9470
52094300501.14550.9470
52094900201.14550.9470
52094900901.14550.9470
52095160351.14550.9470
52095160501.14550.9470
52095200201.14550.9470
52095900251.14550.9470
52095900401.14550.9470
52095900901.14550.9470
52101140200.68730.5682
52101140400.68730.5682
52101160200.68730.5682
52101160400.68730.5682
52101160600.68730.5682
52101180200.68730.5682
52101200000.68730.5682
52101920900.68730.5682
52102140400.68730.5682
52102160200.68730.5682
52102160600.68730.5682
52102180200.68730.5682
52103140200.68730.5682
52103140400.68730.5682
52103160200.68730.5682
52103180200.68730.5682
52104140000.68730.5682
52104160000.68730.5682
52104180000.68730.5682
52104980900.68730.5682
52105140400.68730.5682
52105160200.68730.5682
52105160400.68730.5682
52105160600.68730.5682
52111100900.68730.5682
52111200200.68730.5682
52111900200.68730.5682
52111900600.68730.5682
52112100250.68730.5682
52112100350.41650.3443
52112100500.68730.5682
52112900900.68730.5682
52113200200.68730.5682
52113900400.68730.5682
52113900600.68730.5682
52114900200.68730.5682
52114900900.68730.5682
52115900250.68730.5682
52121460900.91640.7576
52121560200.91640.7576
52122160900.91640.7576
55095300300.55560.4593
55095300600.55560.4593
55131100200.40090.3314
55131100400.40090.3314
55131100600.40090.3314
55131100900.40090.3314
55131200000.40090.3314
55131300200.40090.3314
55132100200.40090.3314
55133100000.40090.3314
55141200200.40090.3314
55164200600.40090.3314
55169100600.40090.3314
55169300900.40090.3314
56012100101.14550.9470
56012100901.14550.9470
56013000001.14550.9470
56021090900.57270.4735
56022900001.14550.9470
56029060000.5260.4348
56049000000.55560.4593
56079090000.88890.7349
56089010001.11110.9185
56089023001.11110.9185
56090010001.11110.9185
56090040000.55560.4593
57011040000.05560.0460
57011090000.11110.0918
57019010101.04440.8634
57021090201.10.9094
57023120000.07780.0643
57024110000.07220.0597
57024120000.07780.0643
57024210000.07780.0643
57029130000.08890.0735
57029910101.11110.9185
57029910901.11110.9185
57039000000.44890.3711
58012100001.14550.9470
58012300001.14550.9470
58012500101.14550.9470
58012500201.14550.9470
58012600201.14550.9470
58021900001.14550.9470
58023000300.57270.4735
58042910001.14550.9470
58062000100.35340.2922
58062000900.35340.2922
58063100001.14550.9470
58064000000.42960.3552
58081070000.57270.4735
58089000100.57270.4735
58110020001.14550.9470
60011060001.14550.9470
60012100000.85910.7102
60012200000.28640.2368
60019100100.85910.7102
60019100200.85910.7102
60019200200.28640.2368
60019200300.28640.2368
60019200400.28640.2368
60032030000.86810.7177
60033060000.28940.2392
60034060000.28940.2392
60052100000.86810.7177
60052200000.86810.7177
60052300000.86810.7177
60052400000.86810.7177
60053100100.28940.2392
60053200100.28940.2392
60053300100.28940.2392
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60054100100.28940.2392
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60053100800.28940.2392
60053200800.28940.2392
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60053400800.28940.2392
60054100800.28940.2392
60054200800.28940.2392
60054300800.28940.2392
60054400800.28940.2392
60062110001.15740.9568
60062210001.15740.9568
60062310001.15740.9568
60062410001.15740.9568
60063100400.11570.0956
60063200400.11570.0956
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60063400400.11570.0956
60063100800.11570.0956
60063200800.11570.0956
60063300800.11570.0956
60063400800.11570.0956
60064100850.11570.0956
60064200850.11570.0956
60064300850.11570.0956
60064400850.11570.0956
61012000101.00940.8345
61012000201.00940.8345
Start Printed Page 12314
61022000101.00940.8345
61022000201.00940.8345
61034210200.88060.7280
61034210400.88060.7280
61034210500.88060.7280
61034210700.88060.7280
61034315200.25160.2080
61034315400.25160.2080
61034315500.25160.2080
61034315700.25160.2080
61042200400.90020.7442
61042200600.90020.7442
61043200000.92070.7611
61044200100.90020.7442
61044200200.90020.7442
61045200100.93120.7698
61045200200.93120.7698
61046220060.88060.7280
61046220110.88060.7280
61046220160.88060.7280
61046220210.88060.7280
61046220260.88060.7280
61046220280.88060.7280
61046220300.88060.7280
61046220600.88060.7280
61046320060.37740.3120
61046320110.37740.3120
61046320260.37740.3120
61046320280.37740.3120
61046320300.37740.3120
61046320600.37740.3120
61046920300.38580.3189
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61089100051.24451.0288
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61102020051.18370.9786
61102020101.18370.9786
61102020151.18370.9786
61102020201.18370.9786
61102020251.18370.9786
61102020301.18370.9786
61102020351.18370.9786
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61109090220.2630.2174
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61112010001.25811.0401
61112020001.25811.0401
61112030001.00640.8320
61112050001.00640.8320
61112060101.00640.8320
61112060201.00640.8320
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61121100500.75480.6240
61121200100.25160.2080
61121200300.25160.2080
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61121200500.25160.2080
61121200600.25160.2080
61123900101.13220.9360
61124900100.94350.7800
61142000050.90020.7442
61142000100.90020.7442
61142000150.90020.7442
61142000201.2861.0631
61142000400.90020.7442
61142000460.90020.7442
61142000520.90020.7442
61142000600.90020.7442
61143010100.25720.2126
61143010200.25720.2126
61143030300.25720.2126
61151980101.04170.8612
61159290001.04170.8612
61159360200.23150.1914
61161013000.36550.3022
61161017200.85280.7050
61169264201.09650.9065
61169264301.21831.0072
61169264401.09650.9065
61169288001.09650.9065
61178095100.97470.8058
61178095400.36550.3022
62011210000.9480.7837
62011220100.89530.7401
62011220500.68470.5660
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62011340300.26330.2177
62019210000.92670.7661
62019215001.15830.9576
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* * * * *
Start Signature

Dated: March 11, 2003.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing Service.

End Signature End Part End Supplemental Information

[FR Doc. 03-6164 Filed 3-13-03; 8:45 am]

BILLING CODE 3410-02-P