Sheep Promotion, Research, and Information Program: Rules and Regulations

SUMMARY: This proposed rule would implement provisions of a proposed

Sheep and Wool Promotion, Research, Education, and Information Order

(Order), which would establish a national and industry-funded sheep and

wool promotion, research, and information program if an Order is

approved by producers, feeders, and importers voting in the initial

referendum. A full proposal and four partial proposals were published

previously in the Federal Register (60 FR 2874). This proposed rule

establishes the collection and remittance process, puts into effect the

reporting requirements, identifies and establishes the Harmonized

Tariff Schedule (HTS) classification numbers, conversion factors, and

assessment rates for imported sheep, sheep meat, wool, and wool

products subject to assessment, establishes procedures for calculating,

collecting, and remitting assessments on imported sheep, sheep meat,

wool, and wool products and establishes the basis for exempting certain

imported sheep and sheep products from assessment. Because the Sheep

Promotion, Research, and Information Act of 1994 (Act) provides that

raw wool will be exempted from the collecting provisions, raw wool is

not subject to assessment.

DATES: Written comments must be received by November 2, 1995.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;

Marketing Programs Branch; Livestock and Seed Division; Agricultural

Marketing Service (AMS), USDA, Room 2606-S; PO Box 96456; Washington,

DC 20090-6456. Comments will be available for public inspection during

regular business hours in Room 2606, South Building, 14th and

Independence Avenue, SW., Washington, DC 20250. All comments should

reference the docket number and the date and page number of the issue

of the Federal Register. Comments concerning the information collection

requirements contained in this action should also be sent to the Office

of Information and Regulatory Affairs; Office of Management and Budget

(OMB); Washington, DC 20503. Attention: Desk Officer for Agricultural

Marketing Service, USDA.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding:

Invitation to submit proposals--60 FR 381 (January 4, 1995); Sheep and

Wool Promotion, Research, Education, and Information Order--60 FR 28747

(June 2, 1995); and Procedures for the Conduct of Referendum--60 FR

40313 (August 8, 1995).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

This proposed rule has been determined to be not significant for

purposes of Executive Order 12866 and therefore has not been reviewed

by OMB.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. It is not intended to have a 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 Act provides that any person subject to the Order may file with

the Secretary a petition stating that the Order, any provision of the

Order, or any obligation imposed in connection with the Order is not in

accordance with the law, and requesting a modification of the Order or

an exemption from certain provisions or obligations of the Order. The

petitioner will have the opportunity for a hearing on the petition.

Thereafter the Secretary will issue a decision on the petition. The Act

provides that the district court of the United States in any district

in which the petitioner resides or carries on business has jurisdiction

to review the Secretary's decision, if the petitioner files a complaint

for that purpose not later than 20 days after the date of the entry of

the Secretary's decision.

The petitioner must exhaust his or her administrative remedies

before he or she can initiate any such proceeding in the district

court.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA) (5 U.S.C. 601 et seq.), the Administrator of AMS has

considered the economic impact of this proposed action on small

entities.

The purpose of RFA is to fit regulatory actions to the scale of

businesses subject to such actions in order that small businesses will

not be unduly burdened.

The Administrator of AMS has considered the economic impact of this

action on small entities to RFA.

There are an estimated 87,350 domestic sheep producers and feeders

and an estimated 700 remittance persons who would be subject to the

rules and regulations issued pursuant to the Order. There are also an

estimated 9,000 importers who would become subject to the rules and

regulations. Nearly every sheep producer, feeder, and importer would be

classified as a small business under the criteria established by the

Small Business Administration (13 CFR 121.601).

The Act provides for the establishment of a coordinated program of

promotion and research designed to strengthen the sheep industry's

position in the marketplace and to maintain and expand foreign and

domestic markets and uses for sheep and sheep products. This program

would be financed by assessments on domestic and imported sheep and

sheep products which includes wool and products containing wool fibers.

Pursuant to the Act, a proposed rule was published on June 2, 1995 (60

FR 28747). That action proposed a full proposal and four partial

proposals.

This proposed rule establishes the collection and remittance

process, puts into effect the reporting requirements of an Order,

identifies and establishes HTS classification numbers, conversion

factors, and assessment rates for imported sheep and sheep products

[[Page 51738]]

(sheep meat, wool, and wool products) subject to the assessment and

establishes procedures for calculating, collecting, and remitting

assessments on imported sheep, sheep meat, wool, and wool products and

establishes the basis for exempting certain imported sheep and sheep

products from assessment. Because the Act exempts raw wool from the

collecting provisions, raw wool is not subject to assessment.

This rule will implement applicable Order provisions in the manner

provided therein, if an Order is passed in referendum. Accordingly, the

Administrator of AMS has determined that this rule will not have a

significant economic impact on a substantial number of small entities.

Paperwork Reduction

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

Chapter 35), the information collection and recordkeeping requirements

for domestic producers, feeders, handlers, and processors of sheep and

wool contained in part 1280 have been approved by OMB and assigned

control number 0581-0093.

Based on comparable research and promotion programs, it would

require approximately 0.5 hours per response for producers, feeders,

handlers, and any persons other than the person making payment to the

producer, feeder, or handler, to complete a reporting form on a monthly

basis and file a request for reimbursement if necessary.

For importers, the Department of Agriculture (Department) intends

to rely to a great extent on records maintained by the U.S. Customs

Service (Customs) and records maintained by importers under Custom's

requirements for its administration and enforcement of the provision of

the proposed regulations. The Department anticipates that importers

only would be required to provide additional information if needed as

evidence of reimbursement of assessments.

Any person subject to the assessment, collection, and remittance

provisions of the Act and the Order would be expected to maintain and

make available to the Secretary such books and records as necessary to

carry out the provisions of the Order and these regulations. Such books

and records should be maintained for at least 2 years beyond the fiscal

period of their applicability. Reporting forms would be submitted

monthly.

Comments concerning the information collection requirements

contained in this action should also be sent to the Office of

Information and Regulatory Affairs; Office of Management and Budget;

Washington, DC 20503. Attention: Desk Officer for the Agricultural

Marketing Service, USDA.

Background

The Act (7 U.S.C. 7101-7111) approved October 22, 1994, authorizes

the Secretary to establish a national sheep and wool promotion,

research, education, and information program, designed to strengthen

the sheep industry's position in the marketplace, to maintain and

expand existing domestic and foreign markets and uses for sheep and

sheep products and to develop new markets and uses for sheep and sheep

products. This program would be funded by assessments on domestic sheep

producers, sheep feeders, and exporters of live sheep and greasy wool

of 1-cent-per-pound on live sheep sold and 2-cents-per-pound on greasy

wool sold. Importers would be assessed 1-cent-per-pound on live sheep

imported and the equivalent of 1-cent-per-pound of live sheep for sheep

products imported as well as 2-cents-per-pound of degreased wool or the

equivalent of degreased wool for wool and wool products imported.

Imported raw wool would be exempt from assessments. Each person who

processes or causes to be processed sheep or sheep products of that

person's own production and markets the processed products would be

assessed the equivalent of 1-cent-per-pound of live sheep sold or 2-

cents-per-pound of greasy wool sold. All assessment rates may be

adjusted in accordance with applicable provisions of the Act.

Pursuant to the Act, a proposed rule was published in the June 2,

1995, Federal Register (60 FR 28747). That action proposed a full

proposal and four partial proposals. If approved in referendum, a final

Order would require that each person who makes payment to a sheep

producer, feeder, or handler of sheep or sheep products be a collecting

person who collects the assessment from the producer, feeder, or

handler of sheep or sheep products and pass the collected assessment on

to the subsequent purchaser pursuant to the Act. Any person who buys

domestic live sheep or greasy wool for processing must collect the

assessment from the producer, feeder, or handler and remit the

assessment to the proposed National Sheep Promotion, Research, and

Information Board (Board). Any person who processes or causes to be

processed sheep or sheep products of the person's own production and

markets the processed products would be required to pay an assessment

and remit the assessment to the Board. Any person who exports live

sheep or greasy wool would be required to pay an assessment and remit

the assessment to the Board at the time of export. Finally, each person

who imports sheep and sheep products--excluding raw wool--would be

required to pay an assessment. Customs will collect the assessments on

imported sheep and sheep products upon importation and will forward the

assessments to AMS for disbursement to the Board.

The proposed Order further would define a collecting person as any

person who is responsible for collecting an assessment pursuant to the

Act, this subpart and these regulations, including processors and any

other persons who are required to remit assessments to the Board,

except that a collecting person who is a market agency; i.e.,

commission merchant, auction market, or livestock market in the

business of receiving such sheep or sheep products for sale on

commission for or on behalf of a producer or feeder, shall pass the

collected assessment on to the subsequent purchaser pursuant to the

Act, this subpart and the regulations prescribed by the Board and

approved by the Secretary.

For the purposes of the collection of assessments on imported wool

and wool products by Customs, the Department proposes that the

Harmonized Tariff Schedule (HTS) classification numbers published by

the International Trade Commission be used to identify imported sheep

and sheep products that would be subject to the assessment if the

proposed Order becomes effective. The HTS classification system

identifies each category of imported sheep, sheep meat, wool, and

products that contains wool fiber by a 10-digit classification number

and provides a brief description of the imported product that

corresponds to the various classification numbers. Additionally, the

HTS classification number may be further divided into multiple fiber

categories for products that contain a blend of fibers.

In determining which HTS classification numbers would be assessed

under this proposal, the primary objectives were to meet the intent of

the Act by maximizing participation of imported sheep, sheep meat,

wool, and wool products in the assessment collection provisions of the

Act and minimizing the burden of administering those provisions. To

make certain these objectives would be met, the Department reviewed 5

years--1989-93--of historical import data of sheep, sheep meat, wool,

and products containing wool fibers from the Bureau of Census of the

U.S. Department of Commerce. These data are available on

[[Page 51739]]

CD-ROM, entitled International Harmonized System Commodity

Classification by Country by Customs District. The Department analyzed

the total volume of imported sheep, sheep meat, wool, and wool products

subject to the assessment by identifying the HTS classification numbers

and corresponding conversion factors.

The Department identified over 700 HTS classification numbers

during a review of the import library published by the Department's

Economic Research Service (ERS). The Department has determined that of

the approximately 700 HTS classification numbers, slightly more than

600 are considered active or potentially subject to assessment. These

numbers are continually updated, deleted, or expanded, thereby

eliminating existing HTS categories or creating new ones. Based on the

projected revenue for imported sheep and sheep products, of the nearly

600 active HTS classification numbers for sheep and sheep products, the

Department has identified 340 HTS classification numbers that would

account for over 99 percent of the total projected import revenues.

Accordingly, the Department proposes to limit the collection of

assessments to this lower number, thereby exempting a significant

number of low volume HTS categories.

Limiting the number of imported sheep and sheep products that would

be subject to assessments would reduce the administrative cost and

burden on Customs and importers, and would reduce administrative costs

to the Board, while allowing the Board to collect the vast majority of

potential import assessments.

Some of the sheep and sheep products identified by the 340 HTS

classification numbers may be permitted to enter into the United States

duty-free pursuant to applicable rules and regulations issued by

Customs and as a result, Customs would not collect an assessment on

those products. However, if an otherwise duty-free imported sheep or

sheep product were to be assessed, an importer would be entitled to

reimbursement if the importer provides to the Board proper

documentation that the product was exempt from import duties under

Customs regulations and that an assessment had been paid.

Because import assessments are based on a live-weight equivalent

for imported sheep meat and degreased wool, or its equivalent for wool

and wool products, the Department proposes to use conversion factors

developed and published by ERS to convert imported sheep products to

the required live-weight equivalents, degreased wool, or degreased wool

equivalents to determine the amount of assessment due on each HTS

category upon importation. These conversion factors are available for

the 700 HTS classification numbers and are updated and maintained as an

import library. For sheep meat, these conversion factors take into

account removal of bone, weight lost in processing or cooking, and the

nonsheep components of the sheep products. For wool and products

containing wool fibers, these conversion factors take into account

fiber loss during processing, fabric trim loss, and cutting loss for

wool, and other nonsheep components of wool and wool products. The

Department proposes to use these conversion factors for calculating the

assessment because calculating carcass equivalents and wool content for

each individual product before entry would be both costly and

impractical.

The factors for calculating the assessment on imported sheep, sheep

meat, wool, and products containing wool fiber include the (1) HTS

classification number, (2) conversion factor, (3) assessment rate as

established under the Act, and (4) dressing percentage. Based on a 9

year average--1980-89--the average dressing percentage for sheep in the

United States is 50.2 percent as published by ERS in the 1992 edition

of Conversion Factors, Weights and Measures of Agricultural Commodities

and Their Products.

Imported live sheep require no conversion because each animal will

be assessed based on its live weight.

Examples of calculating the assessment on sheep, sheep meat, wool,

and products containing wool fibers are as follows:

Example I

To calculate the assessment for live sheep, an importer would

multiply the total weight of imported live sheep by 1-cent-per-pound.

The following example illustrates a typical calculation for imported

live sheep:

HTS 0104100000, Live sheep:

Live Weight......................................... 125 lbs.

Assessment rate..................................... x $0.01/lb.

-----------------

Assessment.......................................... $1.25

Examples II and III

To calculate the assessment for imported sheep meat, an importer

would (1) Multiply the total weight of imported sheep meat by the

conversion to determine the total carcass weight equivalent, then (2)

divide the total carcass weight equivalent by 50.2 percent to calculate

the live animal equivalent, and (3) multiply the live animal equivalent

by 1-cent-pound. The following examples illustrate two typical sheep

meat calculations:

1. Sheep Meat (Bone-in):

HTS 0204100000, Carcasses and half carcasses of

lamb, fresh or chilled:

Net Weight...................................... 1,000 lbs.

Conversion factor............................... x 1.00

-------------------

Carcass weight equivalent....................... =1,000 lbs.

Average dressing percent........................ 50.2%.

-------------------

Live weight equivalent.......................... =1992.03 lbs.

Assessment rate................................. x $0.01/lb.

-------------------

Assessment...................................... $19.92

2. Sheep Meat (Boneless):

HTS 0204232000, Boneless lamb:

Net Weight...................................... 1,000 lbs.

Conversion factor............................... x 1.52

-------------------

Carcass weight equivalent....................... =1,520 lbs.

Average dressing percent........................ 50.2%

-------------------

Live weight equivalent.......................... =3,027.89 lbs.

Assessment rate................................. x $0.01/lb.

-------------------

Assessment...................................... $30.28

Example IV

To calculate the assessment for imported wool and wool products, an

importer would (1) Multiply the total weight of wool or wool products

imported under each HTS number by the corresponding conversion factor,

and (2) multiply the raw clean wool content by the assessment rate. The

following example illustrates a typical calculation:

HTS 6201110010, Mens or boys overcoats of wool or

fine animal hair:

Net Weight........................................ 2,000 lbs.

Conversion factor................................. x 0.9774rn,s

Clean wool content................................ =1,954.8 lbs.

Assessment rate................................... x $0.02/lb.

-------------------

Assessment........................................ $39.10

A table in the regulation would list the applicable HTS

classification numbers representing imported sheep, sheep meat, wool,

and products containing wool fibers subject to assessment, the

corresponding conversion factors and the assessment rate per pound and

per kilogram for each product, except in the case of raw wool which is

exempt from assessment.

[[Page 51740]]

List of Subjects in 7 CFR part 1280

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreements, Sheep and sheep products, Reporting and

recordkeeping requirements.

For the reason set forth in the preamble, it is proposed that Title

7 of the CFR, part 1280 be amended as follows:

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

1. The authority citation for 7 CFR Part 1280 continues to read as

follows:

Authority: 7 U.S.C. 7101-7111.

2. In Part 1280, Subpart B is added to read as follows:

Subpart B--Rules and Regulations

Definitions

Sec.

1280.301 Terms defined.

Assessments

1280.310 Assessments on domestic sheep and sheep products.

1280.311 Late payment charges.

1280.312 Assessments on imported sheep and sheep products.

1280.313 Collecting persons for purposes of collection of

assessments.

1280.314 Remittance persons for purposes of remitting assessments.

1280.315 Remittance of assessments and submission of reports to the

National Sheep Promotion, Research, and Information Board.

1280.316 Evidence of payment of assessments.

1280.317 Books and records.

1280.318 OMB control numbers.

Subpart B--Rules and Regulations

Definitions

Sec. 1280.301 Terms defined.

As used throughout this subpart, unless the context otherwise

requires, terms shall have the same meaning as the definition of such

terms in subpart A of this part.

Assessments

Sec. 1280.310 Assessments on domestic sheep and sheep products.

(a) Domestic sheep producers, sheep feeders, and exporters of live

sheep and greasy wool will be assessed 1-cent-per-pound on live sheep

sold and 2-cents-per-pound on greasy wool sold.

(b) Each person who processes or causes to be processed sheep or

sheep products of that person's own production and markets the

processed products will be assessed the equivalent of 1-cent-per-pound

of live sheep sold or 2-cents-per-pound of greasy wool sold.

(c) If more than one producer, feeder, handler, or exporter shares

the proceeds received for the sheep or sheep products sold, each such

producer, feeder, handler, or exporter is obligated to pay that portion

of the assessments that is equivalent to that producer's, feeder's,

handler's, or exporter's proportionate share of the proceeds.

(d) Failure of the purchaser or collecting person to collect the

assessment and pass along the assessment to the next purchaser, if

necessary, and finally to the processor, as required in Sec. 1280.313,

shall not relieve the producer, feeder, or the collecting person of

their obligation to pay the assessment to the feeder, collecting

person, or processor and to remit the assessment to Board.

Sec. 1280.311 Late payment charges.

(a) Assessments shall be remitted to the address designated by the

Board by the 15th day of the month following the month in which

domestic sheep or wool was purchased for processing.

(b) Any unpaid assessments due to the Board from any person

responsible for remitting the assessment shall be increased 2 percent

the day following the date such assessments were due. Any remaining

amount due, which shall include any unpaid assessments and late payment

charges previously owed pursuant to this paragraph, shall be increased

at the same rate on the corresponding day of each month thereafter

until paid. For the purposes of this paragraph, any assessment

calculated after the date prescribed by this subpart because of a

person's failure to submit a timely report to the Board shall be

considered to have been payable by the date it would have been due if

the report had been timely filed. The date of payment is determined by

the postmark date on the envelope or the date of receipt by the Board,

whichever is earlier. If the 15th day falls on a Sunday or a holiday,

then the assessment will be due the following day.

Sec. 1280.312 Assessments on imported sheep and sheep products.

(a) Importers will be assessed 1-cent-per-pound on live sheep

imported, the equivalent of 1-cent-per-pound of live sheep for imported

sheep products, and 2-cents-per-pound of imported degreased wool or the

equivalent of imported degreased wool for wool and wool products.

Imported raw wool will be exempt from assessments.

(b) Table I, Imported Sheep and Sheep Products Assessment Table,

contains the applicable HTS classification numbers of sheep, sheep

meat, wool, and wool products, conversion factors and assessment rates

in dollars per pound and dollars per kilograms for imported sheep,

sheep products, wool, and wool products subject to the assessment.

Because raw wool is exempt from the assessment collection provisions,

HTS classification numbers for imported raw wool are not included in

the table.

(c) In the event that any HTS classification number is changed,

replaced by another number and has no impact on the physical properties

or description of sheep meat, or wool and wool products, assessments

will continue to be collected based on the HTS classification number.

(d) All imported sheep and sheep products identified by the HTS

classification numbers listed in Table I, are subject to assessment,

except that assessments will not be collected on those sheep and sheep

products on which an import duty is not due pursuant to regulations

issued by Customs. Importers shall be entitled to reimbursement from

the Board on all sheep and sheep products on which assessments were

collected by Customs but on which import duties were not due. To obtain

a reimbursement when such reimbursement is due, an importer must submit

to the Board a written request together with copies of Custom documents

that prove import duties were not due.

Table I.--Imported Sheep and Sheep Products Assessment Table

[Live Sheep]

------------------------------------------------------------------------

Assessment

HTS -------------------------

$/lb $/kg

------------------------------------------------------------------------

0104100000.................................... 0.010000 0.022046

------------------------------------------------------------------------

[[Page 51741]]

[Sheep Meat]

------------------------------------------------------------------------

Assessment

HTS CF -------------------------

$/lb $/kg

------------------------------------------------------------------------

0204100000........................... 1.00 0.019920 0.043916

0204210000........................... 1.00 0.019920 0.043916

0204222000........................... 1.00 0.019920 0.043916

0204224000........................... 1.00 0.019920 0.043916

0204232000........................... 1.52 0.030279 0.066753

0204234000........................... 1.52 0.030279 0.066753

0204300000........................... 1.00 0.019920 0.043916

0204410000........................... 1.00 0.019920 0.043916

0204422000........................... 1.00 0.019920 0.043916

0204424000........................... 1.00 0.019920 0.043916

0204432000........................... 1.52 0.030279 0.066753

0204434000........................... 1.52 30.030279 0.066753

------------------------------------------------------------------------

[Wool and Products Containing Wool Fiber]

------------------------------------------------------------------------

Assessment

HTS CF -------------------------

$/lb $/kg

------------------------------------------------------------------------

5007106030........................... 0.5546 0.011092 0.024454

5007906030........................... 0.5546 0.011092 0.024454

5103100000........................... 1.0870 0.021740 0.047929

5103200000........................... 1.0870 0.021740 0.047929

5104000000........................... 1.0000 0.020000 0.044092

5105100000........................... 1.0309 0.020618 0.045454

5105210000........................... 1.1111 0.022220 0.048991

5105290000........................... 1.1111 0.022220 0.048991

5106100010........................... 1.0870 0.021740 0.047929

5106100090........................... 1.0870 0.021740 0.047929

5106200000........................... 0.5435 0.010869 0.023962

5107100000........................... 1.0870 0.021740 0.047929

5107200000........................... 0.5435 0.010869 0.023962

5109102000........................... 1.0870 0.021740 0.047929

5111113000........................... 1.1091 0.022183 0.048904

5111117030........................... 1.1091 0.022183 0.048904

5111117060........................... 1.1091 0.022183 0.048904

5111191000........................... 1.1091 0.022183 0.048904

5111192000........................... 1.1091 0.022183 0.048904

5111196020........................... 0.5546 0.011092 0.024454

5111196040........................... 0.5546 0.011092 0.024454

5111196060........................... 1.1091 0.022183 0.048904

5111196080........................... 1.1091 0.022183 0.048904

5111200500........................... 0.5546 0.011092 0.024454

5111209000........................... 0.5546 0.011092 0.024454

5111300500........................... 0.5546 0.011092 0.024454

5111309000........................... 0.5546 0.011092 0.024454

5111903000........................... 0.5546 0.011092 0.024454

5111909000........................... 0.8319 0.016638 0.036679

5112111000........................... 0.9982 0.019964 0.044013

5112112030........................... 1.1091 0.022183 0.048904

5112112060........................... 0.9982 0.019964 0.044013

5112192000........................... 1.1091 0.022183 0.048904

5112199010........................... 1.1091 0.022183 0.048904

5112199020........................... 1.1091 0.022183 0.048904

5112199030........................... 1.1091 0.022183 0.048904

5112199040........................... 1.1091 0.022183 0.048904

5112199050........................... 1.1091 0.022183 0.048904

5112199060........................... 1.1091 0.022183 0.048904

5112201000........................... 0.5546 0.011092 0.024454

5112203000........................... 0.5546 0.011092 0.024454

5112301000........................... 0.5546 0.011092 0.024454

5112303000........................... 0.5546 0.011092 0.024454

5112903000........................... 0.6655 0.013311 0.029345

5112904000........................... 0.8319 0.016638 0.036679

5112909010........................... 0.5546 0.011092 0.024454

5112909090........................... 0.5546 0.011092 0.024454

5212231020........................... 0.4991 0.009982 0.022007

5309292000........................... 0.5546 0.011092 0.024454

5407920520........................... 0.4991 0.009982 0.022007

5407921010........................... 0.2218 0.004437 0.009782

5407921020........................... 0.2218 0.004437 0.009782

[[Page 51742]]

5407931000........................... 0.2218 0.004437 0.009782

5408310520........................... 0.4991 0.009982 0.022007

5408321000........................... 0.2218 0.004437 0.009782

5408341000........................... 0.2218 0.004437 0.009782

5509520000........................... 0.3804 0.007608 0.016773

5509610000........................... 0.1630 0.003260 0.007187

5509910000........................... 0.3804 0.007608 0.016773

5510200000........................... 0.3804 0.007608 0.016773

5515130510........................... 0.4991 0.009982 0.022007

5515130520........................... 0.4991 0.009982 0.022007

5515131010........................... 0.2218 0.004437 0.009782

5515131020........................... 0.2218 0.004437 0.009782

5515220510........................... 0.4991 0.009982 0.022007

5515221000........................... 0.2218 0.004437 0.009782

5515920510........................... 0.4991 0.009982 0.022007

5515920520........................... 0.4991 0.009982 0.022007

5515921010........................... 0.2218 0.004437 0.009782

5515921020........................... 0.2218 0.004437 0.009782

5516311000........................... 0.2218 0.004437 0.009782

5516320520........................... 0.4991 0.009982 0.022007

5516321000........................... 0.2218 0.004437 0.009782

5516330510........................... 0.4991 0.009982 0.022007

5516330520........................... 0.4991 0.009982 0.022007

5516331000........................... 0.2218 0.004437 0.009782

5516341000........................... 0.2218 0.004437 0.009782

5601290020........................... 0.9428 0.018856 0.041570

5602109010........................... 1.1091 0.022183 0.048904

5602109090........................... 0.5546 0.011092 0.024454

5602210000........................... 1.1091 0.022183 0.048904

5701101300........................... 0.9783 0.019566 0.043135

5701101600........................... 0.9783 0.019566 0.043135

5701104000........................... 0.9783 0.019566 0.043135

5701109000........................... 0.9783 0.019566 0.043135

5702101000........................... 0.8315 0.016630 0.036662

5702109010........................... 0.8315 0.016630 0.036662

5702311000........................... 0.7853 0.015706 0.034625

5702312000........................... 0.6467 0.012934 0.028514

5702411000........................... 0.7853 0.015706 0.034625

5702412000........................... 0.6929 0.013859 0.030551

5702512000........................... 0.7853 0.015706 0.034625

5702514000........................... 0.7853 0.015706 0.034625

5702913000........................... 0.8315 0.016630 0.036662

5702914000........................... 0.7853 0.015706 0.034625

5703100000........................... 0.7993 0.015986 0.035243

5704100010........................... 0.7466 0.014932 0.032919

5704900010........................... 0.9332 0.018664 0.041147

5705002010........................... 0.7466 0.014932 0.032919

5801100000........................... 1.1091 0.022183 0.048904

5801902090........................... 1.1091 0.022183 0.048904

5805002000........................... 1.1091 0.022183 0.048904

5805002500........................... 1.1091 0.022183 0.048904

5810991000........................... 1.1091 0.022183 0.048904

5903903010........................... 0.5546 0.011092 0.024454

6001290000........................... 1.1322 0.022644 0.049921

6002410000........................... 1.1322 0.022644 0.049921

6002490000........................... 1.1322 0.022644 0.049921

6002910000........................... 1.1322 0.022644 0.049921

6101100000........................... 1.0533 0.021066 0.046442

6102100000........................... 1.0533 0.021066 0.046442

6102301000........................... 0.5266 0.010532 0.023219

6103110000........................... 0.8806 0.017612 0.038828

6103122000........................... 0.1887 0.003773 0.008319

6103310000........................... 1.0293 0.020586 0.045384

6103411010........................... 0.8615 0.017230 0.037986

6103412000........................... 0.8615 0.017230 0.037986

6103431020........................... 0.4923 0.009846 0.021708

6104110000........................... 0.9007 0.018014 0.039714

6104310000........................... 0.9007 0.018014 0.039714

6104331000........................... 0.5147 0.010293 0.022692

6104332000........................... 0.1287 0.002573 0.005673

6104391000........................... 0.1287 0.002573 0.005673

[[Page 51743]]

6104410010........................... 1.0064 0.020128 0.044374

6104431010........................... 0.5032 0.010064 0.022187

6104432010........................... 0.1258 0.002517 0.005549

6104432020........................... 0.1258 0.002517 0.005549

6104441000........................... 0.5032 0.010064 0.022187

6104442010........................... 0.1258 0.002517 0.005549

6104442020........................... 0.1258 0.002517 0.005549

6104510000........................... 1.0411 0.020822 0.045904

6104531000........................... 0.5206 0.010412 0.022954

6104532010........................... 0.1301 0.002602 0.005737

6104532020........................... 0.1301 0.002602 0.005737

6104591000........................... 0.5206 0.010412 0.022954

6104591030........................... 0.1301 0.002602 0.005737

6104610010........................... 0.8256 0.016512 0.036402

6104631510........................... 0.4718 0.009436 0.020803

6105201000........................... 0.4617 0.009234 0.020357

6105901000........................... 0.8080 0.016160 0.035626

6105908020........................... 0.5420 0.010840 0.023898

6106201010........................... 0.4818 0.009636 0.021243

6106201020........................... 0.4818 0.009636 0.021243

6106901010........................... 0.8432 0.016864 0.037178

6107992000........................... 0.8256 0.016512 0.036402

6108992000........................... 0.8167 0.016334 0.036010

6109901530........................... 0.8432 0.016864 0.037178

6110101010........................... 1.2866 0.025733 0.056730

6110101020........................... 1.2866 0.025733 0.056730

6110101030........................... 1.2866 0.025733 0.056730

6110101040........................... 1.2866 0.025733 0.056730

6110101050........................... 1.2866 0.025733 0.056730

6110101060........................... 1.2866 0.025733 0.056730

6110102010........................... 0.9007 0.018014 0.039714

6110102020........................... 0.9007 0.018014 0.039714

6110102030........................... 0.9007 0.018014 0.039714

6110102040........................... 0.9007 0.018014 0.039714

6110102050........................... 0.9007 0.018014 0.039714

6110102060........................... 0.9007 0.018014 0.039714

6110102070........................... 0.9007 0.018014 0.039714

6110102080........................... 0.9007 0.018014 0.039714

6110301510........................... 0.5147 0.010293 0.022692

6110301520........................... 0.5147 0.010293 0.022692

6110301530........................... 0.5147 0.010293 0.022692

6110301540........................... 0.5147 0.010293 0.022692

6110301550........................... 0.5147 0.010293 0.022692

6110301560........................... 0.5147 0.010293 0.022692

6110303010........................... 0.1930 0.003861 0.008512

6110303015........................... 0.1930 0.003861 0.008512

6110303020........................... 0.1930 0.003861 0.008512

6110303025........................... 0.1930 0.003861 0.008512

6110303030........................... 0.1930 0.003861 0.008512

6110303035........................... 0.1930 0.003861 0.008512

6110303040........................... 0.1930 0.003861 0.008512

6110303045........................... 0.1930 0.003861 0.008512

6110303050........................... 0.1930 0.003861 0.008512

6110303055........................... 0.1930 0.003861 0.008512

6110909012........................... 0.5790 0.011581 0.025531

6110909028........................... 0.5790 0.011581 0.025531

6110909074........................... 0.5790 0.011581 0.025531

6111100010........................... 1.1076 0.022152 0.048836

6111100030........................... 1.1076 0.022152 0.048836

6114100040........................... 0.8806 0.017612 0.038828

6114100050........................... 0.8806 0.017612 0.038828

6114100070........................... 0.8806 0.017612 0.038828

6115199020........................... 1.1322 0.022644 0.049921

6115910000........................... 0.9058 0.018116 0.039939

6115932010........................... 0.4529 0.009058 0.019968

6116109500........................... 0.0834 0.001668 0.003677

6116910000........................... 0.9535 0.019070 0.042042

6116936400........................... 0.4767 0.009534 0.021019

6116937400........................... 0.4767 0.009534 0.021019

6116938800........................... 0.1788 0.003575 0.007882

6116939400........................... 0.1788 0.003575 0.007882

[[Page 51744]]

6116999530........................... 0.3576 0.007152 0.015768

6117101000........................... 1.0727 0.021454 0.047298

6117102010........................... 0.4767 0.009534 0.021019

6117809020........................... 0.9635 0.019270 0.042483

6117809030........................... 0.5959 0.011919 0.026276

6201110010........................... 1.0199 0.020398 0.044970

6201110020........................... 1.0199 0.020398 0.044970

6201122010........................... 0.0637 0.001274 0.002809

6201133010........................... 0.4590 0.009180 0.020238

6201134015........................... 0.0510 0.001021 0.002250

6201134030........................... 0.1020 0.002039 0.004495

6201134040........................... 0.1020 0.002039 0.004495

6201199020........................... 0.6374 0.012748 0.028104

6201911000........................... 0.9970 0.019939 0.043958

6201912011........................... 0.9970 0.019939 0.043958

6201912021........................... 0.9970 0.019939 0.043958

6201932511........................... 0.4985 0.009970 0.021980

6202110010........................... 0.8823 0.017646 0.038901

6202110020........................... 0.8823 0.017646 0.038901

6202122010........................... 0.0630 0.001261 0.002779

6202133010........................... 0.5804 0.011608 0.025591

6202134005........................... 0.0645 0.001290 0.002843

6202134030........................... 0.1290 0.002584 0.005697

6202911000........................... 1.0083 0.020167 0.044459

6202912011........................... 1.0083 0.020167 0.044459

6202912021........................... 1.0083 0.020167 0.044459

6202934011........................... 0.5672 0.011344 0.025009

6203111000........................... 0.6302 0.012603 0.027785

6203112000........................... 0.6302 0.012603 0.027785

6203121000........................... 0.5672 0.011344 0.025009

6203310010........................... 1.0713 0.021426 0.047236

6203310020........................... 1.0713 0.021426 0.047236

6203331030........................... 0.5672 0.011344 0.025009

6203331050........................... 0.4767 0.009534 0.021019

6203399020........................... 0.6302 0.012604 0.027787

6203410510........................... 0.9859 0.019718 0.043470

6203410520........................... 0.9859 0.019718 0.043470

6203433010........................... 0.5425 0.010850 0.023921

6203433020........................... 0.5425 0.010850 0.023921

6204110000........................... 0.9453 0.018906 0.041680

6204131000........................... 0.5672 0.011344 0.025009

6204132010........................... 0.1891 0.003782 0.008337

6204191000........................... 0.5672 0.011344 0.025009

6204192000........................... 0.1891 0.003782 0.008337

6204210010........................... 0.8823 0.017646 0.038901

6204210030........................... 0.8823 0.017646 0.038901

6204312010........................... 1.0713 0.021426 0.047236

6204312020........................... 1.0713 0.021426 0.047236

6204334010........................... 0.5042 0.010084 0.022231

6204335010........................... 0.0630 0.001261 0.002779

6204335020........................... 0.0630 0.001261 0.002779

6204392010........................... 0.5042 0.010084 0.022231

6204393010........................... 0.0630 0.001261 0.002779

6204398020........................... 0.5672 0.011344 0.025009

6204412010........................... 1.0475 0.020950 0.046186

6204412020........................... 1.0475 0.020950 0.046186

6204433010........................... 0.4930 0.009860 0.021737

6204434010........................... 0.4930 0.009860 0.021737

6204434020........................... 0.4930 0.009860 0.021737

6204434030........................... 0.3081 0.006163 0.013587

6204434040........................... 0.3081 0.006163 0.013587

6204443010........................... 0.5042 0.010084 0.022231

6204444010........................... 0.5042 0.010084 0.022231

6204444020........................... 0.5042 0.010084 0.022231

6204510010........................... 1.0318 0.020636 0.045495

6204510020........................... 1.0318 0.020636 0.045495

6204532010........................... 0.5159 0.010318 0.022747

6204592010........................... 0.5159 0.010318 0.022747

6204593010........................... 0.5159 0.010318 0.022747

6204593020........................... 0.5159 0.010318 0.022747

6204594020........................... 0.5804 0.011608 0.025591

[[Page 51745]]

6204611010........................... 0.9645 0.019290 0.042527

6204611020........................... 0.9645 0.019290 0.042527

6204619010........................... 0.9645 0.019290 0.042527

6204619020........................... 0.9645 0.019290 0.042527

6204619040........................... 0.9645 0.019290 0.042527

6204632510........................... 0.4822 0.009644 0.021261

6204692010........................... 0.4822 0.009644 0.021261

6204692030........................... 0.4822 0.009644 0.021261

6204693020........................... 0.6028 0.012056 0.026579

6204699020........................... 0.5425 0.010850 0.023921

6204699030........................... 0.1808 0.003617 0.007974

6204699050........................... 0.1808 0.003617 0.007974

6205102010........................... 0.9645 0.019290 0.042527

6205102020........................... 0.9645 0.019290 0.042527

6205301510........................... 0.4822 0.009644 0.021261

6205903050........................... 0.0603 0.001206 0.002659

6205904040........................... 0.1206 0.002412 0.005317

6206203010........................... 0.9645 0.019290 0.042527

6206203020........................... 0.9645 0.019290 0.042527

6206402510........................... 0.5425 0.010850 0.023921

6207992000........................... 0.8627 0.017253 0.038036

6208920010........................... 0.0616 0.001232 0.002716

6208920030........................... 0.0616 0.001232 0.002716

6209100000........................... 0.8260 0.016520 0.036420

6211310030........................... 0.9453 0.018906 0.041680

6211310040........................... 0.9453 0.018906 0.041680

6211310051........................... 0.9453 0.018906 0.041680

6211330052........................... 0.6302 0.012603 0.027785

6211410040........................... 0.9453 0.018906 0.041680

6211410050........................... 1.0083 0.020167 0.044459

6211410055........................... 1.0083 0.020167 0.044459

6211410061........................... 1.0083 0.020167 0.044459

6211430064........................... 0.6302 0.012603 0.027785

6211430074........................... 0.6302 0.012603 0.027785

6212900020........................... 0.7472 0.014944 0.032946

6214102000........................... 0.3503 0.007006 0.015446

6214200000........................... 0.9340 0.018681 0.041184

6214300000........................... 0.1168 0.002335 0.005149

6214400000........................... 0.1168 0.002335 0.005149

6214900010........................... 0.0584 0.001168 0.002575

6215900010........................... 1.1675 0.023350 0.051478

6216008000........................... 1.2056 0.024112 0.053157

6217109020........................... 0.8627 0.017253 0.038036

6217109030........................... 0.1232 0.002465 0.005434

6217909010........................... 0.1232 0.002465 0.005434

6217909030........................... 0.8627 0.017253 0.038036

6217909035........................... 0.1232 0.002465 0.005434

6217909085........................... 0.1232 0.002465 0.005434

6301200010........................... 0.9620 0.019240 0.042417

6301200020........................... 0.9620 0.019240 0.042417

6301900030........................... 0.1132 0.002264 0.004992

6302390010........................... 0.9620 0.019240 0.042417

6304193040........................... 0.9054 0.018109 0.039923

6304910050........................... 0.7922 0.015845 0.034931

6304991000........................... 1.1318 0.022636 0.049902

6304991500........................... 1.1318 0.022636 0.049902

6304996010........................... 1.1318 0.022636 0.049902

6501009000........................... 1.3864 0.027728 0.061129

6503009000........................... 1.3864 0.027728 0.061129

6505903090........................... 0.8838 0.017677 0.038970

6505904090........................... 0.8658 0.017316 0.038174

6505906040........................... 0.4621 0.009242 0.020375

------------------------------------------------------------------------

Sec. 1280.313 Collecting persons for purposes of collection of

assessments.

Collecting person for the purposes of collecting the assessment

shall be:

(a) A collecting person shall be any person who is responsible for

collecting an assessment pursuant to the Act and this subpart,

including processors and any other persons that are required to remit

assessments to the Board pursuant to this part, except that a

collecting person who is a market agency; i.e., commission merchant,

auction market, or livestock market in the business of

[[Page 51746]]

receiving such sheep or sheep products for sale on commission for or on

behalf of a producer or feeder, shall pass the collected assessments on

to the subsequent purchaser pursuant to the Act and the Order.

(b) Customs will collect the assessment at the time of importation

from the importer or from any person acting as the principal agent,

broker, or consignee for sheep, sheep products, wool, and products

containing wool fiber identified by the HTS classification numbers in

Sec. 1280.312, except as provided in Sec. 1280.312(d).

(c) In a case where a producer or feeder sells sheep as part of a

custom slaughter operation, the producer or feeder shall be the

collecting person in the same manner as if the sheep were sold for

slaughter.

(d) In the event of a producer's, feeder's, or importer's death,

bankruptcy, receivership, or incapacity to act, the representative of

such producer, feeder, or importer or the producer's, feeder's, or

importer's estate, or the person acting on behalf of creditors, shall

be considered the producer, feeder, or importer for the purposes of

this section.

Sec. 1280.314 Remittance persons for purposes of remitting

assessments.

Remittance persons for the purposes of remitting assessments shall

be:

(a) Each processor who makes payment to a producer, feeder,

handler, or collecting person for sheep or wool purchased from the

producer, feeder, handler, or collecting person shall be a remitting

person and shall collect an assessment from the producer, feeder,

handler, or other collecting person on sheep or wool sold by the

producer, feeder, handler, or collecting person, and each such

producer, feeder, handler, or collecting person shall pay such

assessment to the processor and that processor shall remit the

assessment to the Board.

(b) Each person who processes or causes to be processed sheep or

sheep products of that person's own production, and markets such sheep

or sheep products, shall pay an assessment on such sheep or sheep

products at the time of sale at a rate equivalent to the rate

established pursuant to Sec. 1280.224(d) under the Order for live sheep

or Sec. 1280.225(d) for greasy wool under the Order, and shall remit

such assessment the Board.

(c) Each person who exports live sheep or greasy wool shall remit

the assessment to the Board on such sheep or greasy wool at the time of

export, at the rate established pursuant Sec. 1280.224(d) for live

sheep of the Order or Sec. 1280.225(d) for greasy wool.

Sec. 1280.315 Remittance of assessments and submission of reports to

the National Sheep Promotion, Research, and Information Board.

Each person responsible for remitting the assessment as described

in Sec. 1280.314 shall remit the assessments and a report of

assessments to the Board as follows:

(a) Reports. Each collecting person who is responsible for

remitting the assessment shall make reports on forms made available or

approved by the Board. Such collecting person shall prepare a separate

report for each reporting period. Each report shall be mailed together

with the applicable assessment amount and shall be mailed to the Board

pursuant to Sec. 1280.311(a). Each completed report shall contain the

following information as applicable including but not limited to:

(1) Live sheep sold.

(i) The number of sheep purchased, initially transferred, or that

is subject to the collection of assessment in any other manner, and the

dates of such transactions;

(ii) The number of sheep exported, or the equivalent thereof of

sheep products imported;

(iii) The amount of assessment remitted;

(iv) An explanation for the remittance of any assessment that is

less than the pounds of sheep multiplied by the assessment rate; and

(v) The date an assessment was paid.

(2) Greasy wool sold.

(i) The amount of wool purchased, initially transferred or which,

in an other manner, is subject to the collection of assessment, and the

dates of such transaction;

(ii) The amount of wool exported or the equivalent thereof of wool

products;

(iii) The amount of assessment remitted;

(iv) An explanation for the remittance of an assessment that is

less than the pounds of wool multiplied by the assessment rate; and

(v) The date an assessment was paid.

(b) Customs will transmit reports and assessments collected on

imported sheep and sheep products to AMS according to an agreement

between Customs and AMS.

(c) If the Board is not established by the date the first

assessments are due, remitters shall remit assessments to the address

specified by the Secretary pursuant to Sec. 1280.230(d) of the Order.

The Secretary shall have the authority to receive assessments and

invest them on behalf of the Board, and shall transfer such assessments

and any interest earned to the Board when it is formed.

Sec. 1280.316 Evidence of payment of assessments.

Each collecting person responsible for remitting an assessment to

the Board, except a producer or feeder processing sheep or sheep

products of the producer's or feeder's own production for sale is

required to give the producer, feeder, handler, or collecting person

from whom the collecting person collected an assessment written

evidence of payment of the assessments. Such written evidence serving

as a receipt shall contain the following information:

(a) Name and address of the collecting person;

(b) Name of producer or feeder who paid the assessment;

(c) Number of head of sheep sold;

(d) Total pounds of sheep or greasy wool sold;

(e) Total assessments paid by the producer or feeder; and

(f) Date an assessment was paid.

Sec. 1280.317 Books and records.

Any person subject to the collection and remittance provisions of

the Act and the Order shall maintain and make available to the

Secretary for at least 2 years beyond the fiscal period of their

applicability such books and records as necessary to carry out the

provision of the Order and these regulations. Reporting forms shall be

submitted monthly. Domestic producers and feeders as well as importers

will be required to maintain and make available to the Secretary such

books and records as necessary to carry out the provisions of the

proposed Order and this proposed rule.

Sec. 1280.318 OMB control numbers.

The control number assigned to the information collection

requirements by OMB pursuant to the Paperwork Reduction Act of 1980,

Public Law 96-511 is OMB number 0581-0093.

Dated: September 28, 1995.

Lon Hatamiya,

Administrator.

[FR Doc. 95-24595 Filed 10-2-95; 8:45 am]

BILLING CODE 3410-02-P