Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports, (2002 Amendments)
Federal RegisterMay 28, 2002
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[Doc # CN-02-002]
Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports, (2002 Amendments)
AGENCY:
Agricultural Marketing Service, USDA.
ACTION:
Final rule.
SUMMARY:
The Agricultural Marketing Service (AMS) is amending 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.
EFFECTIVE DATE:
June 27, 2002.
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 email at
whitney.rick@usda.gov.
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 rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This 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 rule will 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 rule will 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 new 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 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 rule will 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 amended 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 × .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 amended 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 proposed rule with request for comments was published in the
Federal Register
(67 FR 15495) on April 2, 2002. No comments were received during the period (April 2 through May 2, 2002).
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 factor
Assessment cents/kg
5607902000
5607909000
0.8889
0.7662
6002203000
6003203000
0.8681
0.7483
6002206000
6003306000
6003406000
0.2894
0.2495
600242000
6005210000
6005220000
6005220000
6005230000
6005240000
0.8681
0.7483
6002430010
6005310010
6005320010
6005330010
6005340010
6005410010
6005420010
6005430010
6005440010
0.2894
0.2495
6002430080
6005310080
6005320080
6005330080
6005340080
6005410080
6005420080
6005430080
6005440080
0.2894
0.2495
6002921000
6006211000
6006221000
6006231000
6006241000
1.1574
0.9977
6002930040
6006310040
6006320040
6006330040
6006340040
0.1157
0.0997
6002930080
6006310080
6006320080
6006330080
6006340080
6006410085
6006420085
6006430085
6006440085
0.1157
0.0997
List of Subjects in 7 CFR Part 1205
Advertising, Agricultural research, Cotton, Marketing agreements, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR Part 1205 is amended as follows:
PART 1205—COTTON RESEARCH AND PROMOTION
1. The authority citation for Part 1205 continues to read as follows:
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:
§ 1205.510
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.
5201000500
0
0.8620
5201001200
0
0.8620
5201001400
0
0.8620
5201001800
0
0.8620
5201002200
0
0.8620
5201002400
0
0.8620
5201002800
0
0.8620
5201003400
0
0.8620
5201003800
0
0.8620
5204110000
1.1111
0.9578
5204200000
1.1111
0.9578
5205111000
1.1111
0.9578
5205112000
1.1111
0.9578
5205121000
1.1111
0.9578
5205122000
1.1111
0.9578
5205131000
1.1111
0.9578
5205132000
1.1111
0.9578
5205141000
1.1111
0.9578
5205210020
1.1111
0.9578
5205210090
1.1111
0.9578
5205220020
1.1111
0.9578
5205220090
1.1111
0.9578
5205230020
1.1111
0.9578
5205230090
1.1111
0.9578
5205240020
1.1111
0.9578
5205240090
1.1111
0.9578
5205310000
1.1111
0.9578
5205320000
1.1111
0.9578
5205330000
1.1111
0.9578
5205340000
1.1111
0.9578
5205410020
1.1111
0.9578
5205410090
1.1111
0.9578
5205420020
1.1111
0.9578
5205420090
1.1111
0.9578
5205440020
1.1111
0.9578
5205440090
1.1111
0.9578
5206120000
0.5556
0.4789
5206130000
0.5556
0.4789
5206140000
0.5556
0.4789
5206220000
0.5556
0.4789
5206230000
0.5556
0.4789
5206240000
0.5556
0.4789
5206310000
0.5556
0.4789
5207100000
1.1111
0.9578
5207900000
0.5556
0.4789
5208112020
1.1455
0.9874
5208112040
1.1455
0.9874
5208112090
1.1455
0.9874
5208114020
1.1455
0.9874
5208114060
1.1455
0.9874
5208114090
1.1455
0.9874
5208118090
1.1455
0.9874
5208124020
1.1455
0.9874
5208124040
1.1455
0.9874
5208124090
1.1455
0.9874
5208126020
1.1455
0.9874
5208126040
1.1455
0.9874
5208126060
1.1455
0.9874
5208126090
1.1455
0.9874
5208128020
1.1455
0.9874
5208128090
1.1455
0.9874
5208130000
1.1455
0.9874
5208192020
1.1455
0.9874
5208192090
1.1455
0.9874
5208194020
1.1455
0.9874
5208194090
1.1455
0.9874
5208196020
1.1455
0.9874
5208196090
1.1455
0.9874
5208224040
1.1455
0.9874
5208224090
1.1455
0.9874
5208226020
1.1455
0.9874
5208226060
1.1455
0.9874
5208228020
1.1455
0.9874
5208230000
1.1455
0.9874
5208292020
1.1455
0.9874
5208292090
1.1455
0.9874
5208294090
1.1455
0.9874
5208296090
1.1455
0.9874
5208298020
1.1455
0.9874
5208312000
1.1455
0.9874
5208321000
1.1455
0.9874
5208323020
1.1455
0.9874
5208323040
1.1455
0.9874
5208323090
1.1455
0.9874
5208324020
1.1455
0.9874
5208324040
1.1455
0.9874
5208325020
1.1455
0.9874
5208330000
1.1455
0.9874
5208392020
1.1455
0.9874
5208392090
1.1455
0.9874
5208394090
1.1455
0.9874
5208396090
1.1455
0.9874
5208398020
1.1455
0.9874
5208412000
1.1455
0.9874
5208416000
1.1455
0.9874
5208418000
1.1455
0.9874
5208421000
1.1455
0.9874
5208423000
1.1455
0.9874
5208424000
1.1455
0.9874
5208425000
1.1455
0.9874
5208430000
1.1455
0.9874
5208492000
1.1455
0.9874
5208494020
1.1455
0.9874
5208494090
1.1455
0.9874
5208496010
1.1455
0.9874
5208496090
1.1455
0.9874
5208498090
1.1455
0.9874
5208512000
1.1455
0.9874
5208516060
1.1455
0.9874
5208518090
1.1455
0.9874
5208523020
1.1455
0.9874
5208523045
1.1455
0.9874
5208523090
1.1455
0.9874
5208524020
1.1455
0.9874
5208524045
1.1455
0.9874
5208524065
1.1455
0.9874
5208525020
1.1455
0.9874
5208530000
1.1455
0.9874
5208592025
1.1455
0.9874
5208592095
1.1455
0.9874
5208594090
1.1455
0.9874
5208596090
1.1455
0.9874
5209110020
1.1455
0.9874
5209110035
1.1455
0.9874
5209110090
1.1455
0.9874
5209120020
1.1455
0.9874
5209120040
1.1455
0.9874
5209190020
1.1455
0.9874
5209190040
1.1455
0.9874
5209190060
1.1455
0.9874
5209190090
1.1455
0.9874
5209210090
1.1455
0.9874
5209220020
1.1455
0.9874
5209220040
1.1455
0.9874
5209290040
1.1455
0.9874
5209290090
1.1455
0.9874
5209313000
1.1455
0.9874
5209316020
1.1455
0.9874
5209316035
1.1455
0.9874
5209316050
1.1455
0.9874
5209316090
1.1455
0.9874
5209320020
1.1455
0.9874
5209320040
1.1455
0.9874
5209390020
1.1455
0.9874
5209390040
1.1455
0.9874
5209390060
1.1455
0.9874
5209390080
1.1455
0.9874
5209390090
1.1455
0.9874
5209413000
1.1455
0.9874
5209416020
1.1455
0.9874
5209416040
1.1455
0.9874
5209420020
1.0309
0.8886
5209420040
1.0309
0.8886
5209430030
1.1455
0.9874
5209430050
1.1455
0.9874
5209490020
1.1455
0.9874
5209490090
1.1455
0.9874
5209516035
1.1455
0.9874
5209516050
1.1455
0.9874
5209520020
1.1455
0.9874
5209590025
1.1455
0.9874
5209590040
1.1455
0.9874
5209590090
1.1455
0.9874
5210114020
0.6873
0.5925
5210114040
0.6873
0.5925
5210116020
0.6873
0.5925
5210116040
0.6873
0.5925
5210116060
0.6873
0.5925
5210118020
0.6873
0.5925
5210120000
0.6873
0.5925
5210192090
0.6873
0.5925
5210214040
0.6873
0.5925
5210216020
0.6873
0.5925
5210216060
0.6873
0.5925
5210218020
0.6873
0.5925
5210314020
0.6873
0.5925
5210314040
0.6873
0.5925
5210316020
0.6873
0.5925
5210318020
0.6873
0.5925
5210414000
0.6873
0.5925
5210416000
0.6873
0.5925
5210418000
0.6873
0.5925
5210498090
0.6873
0.5925
5210514040
0.6873
0.5925
5210516020
0.6873
0.5925
5210516040
0.6873
0.5925
5210516060
0.6873
0.5925
5211110090
0.6873
0.5925
5211120020
0.6873
0.5925
5211190020
0.6873
0.5925
5211190060
0.6873
0.5925
5211210025
0.6873
0.5925
5211210035
0.4165
0.3590
5211210050
0.6873
0.5925
5211290090
0.6873
0.5925
5211320020
0.6873
0.5925
5211390040
0.6873
0.5925
5211390060
0.6873
0.5925
5211490020
0.6873
0.5925
5211490090
0.6873
0.5925
5211590025
0.6873
0.5925
5212146090
0.9164
0.7899
5212156020
0.9164
0.7899
5212216090
0.9164
0.7899
5509530030
0.5556
0.4789
5509530060
0.5556
0.4789
5513110020
0.4009
0.3456
5513110040
0.4009
0.3456
5513110060
0.4009
0.3456
5513110090
0.4009
0.3456
5513120000
0.4009
0.3456
5513130020
0.4009
0.3456
5513210020
0.4009
0.3456
5513310000
0.4009
0.3456
5514120020
0.4009
0.3456
5516420060
0.4009
0.3456
5516910060
0.4009
0.3456
5516930090
0.4009
0.3456
5601210010
1.1455
0.9874
5601210090
1.1455
0.9874
5601300000
1.1455
0.9874
5602109090
0.5727
0.4937
5602290000
1.1455
0.9874
5602906000
0.526
0.4534
5604900000
0.5556
0.4789
5607909000
0.8889
0.7662
5608901000
1.1111
0.9578
5608902300
1.1111
0.9578
5609001000
1.1111
0.9578
5609004000
0.5556
0.4789
5701104000
0.0556
0.0479
5701109000
0.1111
0.0958
5701901010
1.0444
0.9003
5702109020
1.1
0.9482
5702312000
0.0778
0.0671
5702411000
0.0722
0.0622
5702412000
0.0778
0.0671
5702421000
0.0778
0.0671
5702913000
0.0889
0.0766
5702991010
1.1111
0.9578
5702991090
1.1111
0.9578
5703900000
0.4489
0.3870
5801210000
1.1455
0.9874
5801230000
1.1455
0.9874
5801250010
1.1455
0.9874
5801250020
1.1455
0.9874
5801260020
1.1455
0.9874
5802190000
1.1455
0.9874
5802300030
0.5727
0.4937
5804291000
1.1455
0.9874
5806200010
0.3534
0.3046
5806200090
0.3534
0.3046
5806310000
1.1455
0.9874
5806400000
0.4296
0.3703
5808107000
0.5727
0.4937
5808900010
0.5727
0.4937
5811002000
1.1455
0.9874
6001106000
1.1455
0.9874
6001210000
0.8591
0.7405
6001220000
0.2864
0.2469
6001910010
0.8591
0.7405
6001910020
0.8591
0.7405
6001920020
0.2864
0.2469
6001920030
0.2864
0.2469
6001920040
0.2864
0.2469
6003203000
0.8681
0.7483
6003306000
0.2894
0.2495
6003406000
0.2894
0.2495
6005210000
0.8681
0.7483
6005220000
0.8681
0.7483
6005230000
0.8681
0.7483
6005240000
0.8681
0.7483
6005310010
0.2894
0.2495
6005320010
0.2894
0.2495
6005330010
0.2894
0.2495
6005340010
0.2894
0.2495
6005410010
0.2894
0.2495
6005420010
0.2894
0.2495
6005430010
0.2894
0.2495
6005440010
0.2894
0.2495
6005310080
0.2894
0.2495
6005320080
0.2894
0.2495
6005330080
0.2894
0.2495
6005340080
0.2894
0.2495
6005410080
0.2894
0.2495
6005420080
0.2894
0.2495
6005430080
0.2894
0.2495
6005440080
0.2894
0.2495
6006211000
1.1574
0.9977
6006221000
1.1574
0.9977
6006231000
1.1574
0.9977
6006241000
1.1574
0.9977
6006310040
0.1157
0.0997
6006320040
0.1157
0.0997
6006330040
0.1157
0.0997
6006340040
0.1157
0.0997
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0.5844
0.5038
Dated: May 21, 2002.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 02-13228 Filed 5-24-02; 8:45am]
BILLING CODE 3410-02-P
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.