Sheep Promotion Research, and Information Program: Rules and Regulations
Federal RegisterMay 9, 1996
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1280
[No. LS-95-010]
Sheep Promotion Research, and Information Program: Rules and
Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements provisions of a Sheep and Wool
Promotion, Research, Education, and Information Order (Order), which
will establish a national, industry-funded sheep and wool promotion,
research, and information program. This final 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 excluding certain imported sheep
and sheep products from assessment. Because the
[[Page 21054]]
Sheep Promotion, Research, and Information Act of 1994 (Act) provides
that imported raw wool will be exempted from the collecting provisions,
imported raw wool is not subject to assessment.
EFFECTIVE DATE: This final rule will become effective July 1, 1996.
FOR FURTHER INFORMATION CONTACT:
Ralph L. Tapp, Chief; Marketing Programs Branch; Livestock and Seed
Division; Agricultural Marketing Service (AMS), USDA, Room 2606-S; P.O.
Box 96456; Washington, DC 20090-6456, telephone number 202/720-1115.
SUPPLEMENTARY INFORMATION: Prior document in this proceeding: Proposed
Rule--Sheep Promotion and Research Program: Rules and Regulations--60
Federal Register (FR) 51737 (October 3, 1995).
Regulatory Impact Analysis
Executive Orders 12866 and 12778 and the Regulatory Flexibility Act
This final rule has been determined to be not significant for
purposes of Executive Order 12866 and therefore has not been reviewed
by the Office of Management and Budget (OMB).
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. It is not intended to have a retroactive effect.
This rule will 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.), AMS has considered the economic
impact of this final 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.
There are an estimated 87,350 domestic sheep producers and feeders
and an estimated 700 remittance persons who will be subject to the
rules and regulations issued pursuant to the Order. There are also an
estimated 9,000 importers who will become subject to these rules and
regulations. Nearly every sheep producer, feeder, and importer will be
classified as a small business under the criteria established by the
Small Business Administration (13 CFR Sec. 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
will be financed by assessments on domestic and imported sheep and
sheep products which includes wool and wool products. Pursuant to the
Act, an Order approved in referendum was published on May 2, 1996, in
the Federal Register (XX FR XXXXX). The final Order became effective on
May 3, 1996, except for provisions concerning assessments. Those Order
provisions become effective July 1, 1996.
This final 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 (sheep meat,
wool, and wood products) subject to the assessment, establishes
procedures for calculating, collecting, and remitting assessments on
imported sheep, sheep meat, wool, and wool products and establishes the
basis for excluding certain imported sheep and sheep products from
assessment. Because the Act exempts imported raw wool from the
collecting provisions, imported raw wool is not a subject to
assessment.
This final rule will implement applicable Order provisions in the
manner provided therein. 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), OMB has approved the information collection and
recordkeeping requirements contained in Part 1280 for domestic
producers, feeders, handlers, and processors of sheep and wool, and
assigned control number 0581-0093.
Based on comparable research and promotion programs, it should
require approximately 0.5 hours per response for producers, feeders,
handlers, and persons other than the person making payment to the
producer, feeder, or handler, to complete a reporting form on a monthly
basis.
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 by importers under Customs's requirements for its
administration and enforcement of the provisions of the final
regulations.
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 must be maintained for at least 2 years beyond the fiscal
period of their applicability.
Background
The Act (7 U.S.C. 7101-7111) enacted on 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. The program will 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 will 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 will 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 will 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.
[[Page 21055]]
The Order requires 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 passes 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 it to the
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 is
required to pay an assessment and to remit that assessment to the
Board. Any person who exports live sheep or greasy wool is required to
pay an assessment and to remit it to the Board at the time of export.
Finally, each person who imports sheep and sheep products, other than
imported raw wool, is required to pay an assessment. Customs will
collect the assessments on imported sheep and sheep products upon
importation and forward them to AMS for disbursement to the Board.
The Order further defines a collecting person as any person who is
responsible for collecting an assessment pursuant to the Act, the
Order, 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, the Order and these
regulations.
For the purposes of the collection of assessments on imported sheep
and sheep products by Customs, the Harmonized Tariff Schedule (HTS)
classification numbers published by the United States International
Trade Commission (USITC) will be used to identify imported sheep and
sheep products that are subject to the assessment. The HTS
classification system identifies each category of imported sheep, sheep
meat, wool, and products that contain 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 are assessed under
this final rule, the Department's 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 to minimize the burden of administering those
provisions. To make certain these objectives would be met, the
Department reviewed 5 years, 1989-1993, of historical import data for
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 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, from the
slightly more than 600 active HTS classification numbers for sheep and
sheep products, the Department identified in the October 3, 1995,
Federal Register (60 FR 51737) 340 HTS classification numbers that
account for over 99 percent of the total projected import revenues.
Accordingly, the Department has limited the collection of assessments
to this lower level, thereby not including 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 consistent with the Act.
The USITC recently published an updated list of all of the HTS
classification numbers. Some HTS classification numbers published in
the October 3, 1995, proposed rule have been changed and one has been
divided into two numbers. In light of the recent update, the Department
has expanded the HTS classification numbers that will be subject to the
assessment from 340, as initially proposed, to 341. Therefore, the
following revisions to Table I, Imported Sheep and Sheep Products
Assessment Table, used in the sheep and wool promotion, research and
information program were necessary:
----------------------------------------------------------------------------------------------------------------
Old number New number Comment
----------------------------------------------------------------------------------------------------------------
5703100000.............................. 5703100020 Use same conversion factor.
5703100080 Do.
5705002010.............................. 5705002005 Do.
6104591000.............................. 6104591005 Do.
6115199020.............................. 6115198020 Do.
6115932910.............................. 6115939010 Do.
6204693020.............................. 6204696020 Do.
----------------------------------------------------------------------------------------------------------------
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 has decided 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 over 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
[[Page 21056]]
containing wool fibers, these conversion factors take into account
fiber loss during processing, fabric trim loss, and cutting loss for
wool, and other non-sheep components of wool and wool products. The
Department has decided 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, 1980-1989, 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
Live Sheep
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
Sheep Meat
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 per 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............. <di 50.2
v
---------------------------
Live weight equivalent............... = 1,992.03 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............. <di 50.2
v
---------------------------
Live weight equivalent............... = 3,027.89 lbs
Assessment rate...................... x $0.01/lb.
===========================
Assessment....................... $30.28
Example IV
Wool Products
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 1.0199
--------------------------
Clean wool content.................... = 2,039.8 lbs
Assessment rate....................... x $0.02/lb
--------------------------
Assessment........................ $40.80
A table in this regulation lists 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 imported raw wool, which is
exempt from assessment.
This final rule sets forth 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 that basis for
excluding certain imported sheep and sheep products from assessment.
The proposed rule was published in the October 3, 1995, Federal
Register (60 FR 51737) with a request for comments to be submitted by
November 2, 1995. The Department received five written comments
concerning the proposed rules and regulations from individual sheep
producers and feeders, and producer and importer organizations. All
comments were filed on time. The commenters generally supported the
proposed rule with certain qualifications.
The substantive changes suggested by commenters are discussed
below, together with a description of further changes made by the
Department. Also, the Department has made other minor changes of a non-
substantive nature for purposes of clarity and accuracy. For the
reader's convenience, the discussion is organized by topic heading of
the proposed rule.
Sec. 1280.312 Assessments on imported sheep and sheep products.
One commenter suggested that the term ``raw wool'' is too
generalized and questioned why imported raw wool is exempt from
assessment. The Act defines ``raw wool'' as greasy wool, pulled wool,
degreased wool, or carbonized wool. Thus, the definition of raw wool in
this final rule is consistent with the definition in the Act.
Additionally, the Act specifically exempts imported raw wood from
assessment.
One commenter questioned the proposed rule's exemption from
assessment of over 300 HTS classification numbers that account for less
than 1 percent of total imports. The commenter believes that all
imports should be assessed and that the low volume of imports and the
high cost of administering the collecting program are not sufficient
reasons to exempt HTS classification numbers from assessment. This
final rule identifies 341 HTS classification numbers for sheep and
sheep products subject to assessments collected by Customs. The Act
provides that the Secretary may issue regulations
[[Page 21057]]
that exclude certain de minimis content levels of sheep and sheep
products and waive assessments. Consistent with this provision, the
Department has determined that the annual volume of sheep and sheep
products represented by each of the 360 HTS classification numbers that
are not subject to assessment are likely to be insufficient to fully
cover the collection, compliance, and administrative costs associated
with these HTS classification numbers. However, the Department plans to
review periodically the volume of sheep and sheep products imported
under all HTS classification numbers, including those not subject to
assessment, to determine which HTS classification numbers should be
subject to assessment as identified in Table I in Sec. 1280.312.
Accordingly, we have not adopted this suggestion.
Two commenters suggested that Sec. 1280.312(d) of this section be
deleted because the language in the Act does not authorize an exemption
from assessments for imported sheep or sheep products that are not
subject to an import duty. Furthermore, the commenters believe that the
Act does not provide for reimbursement of assessments collected on
imports that are not subject to an import duty. Additionally, the
commenters feel that Customs is directed by the Congress to collect the
assessment whether or not there is an import duty. The intent of the
language proposed by the Department in Sec. 1280.312(d) was to provide
for reimbursement of assessments on imported sheep and sheep products
because of collection errors and in cases where assessments were
collected on imported sheep and sheep products that were denied entry
or were determined to be a pass-through because the imported products
did not enter the stream of commerce of the United States. Upon further
review of this matter, including the comments received and review of
similar research and promotion programs, the Department now believes
that reimbursement in such cases should be determined by the Board on a
case-by-case basis. Accordingly, the Department has deleted that
portion of Sec. 1280.312(d) in this final rule, which provided for
reimbursement of a assessments for duty-free products.
During the comment period on the proposed Order (60 FR 28747), some
commenters expressed concern about the collection of multiple
assessments on wool or wool products imported into the United States
that had been previously exported to other countries for further
processing (i.e., weaving, cutting and/or assembly). The commenters
suggested that a drawback or refund of the assessment should be
authorized if multiple assessments are collected. The Department noted
in the proposed Order that it would address these concerns in this
action. As previously explained, the Act requires that Customs collect
an assessment on all imported sheep and sheep products. The only
provisions in the Act for the exclusion of imported sheep and sheep
products from assessments are (1) the provision for waiving assessments
on imported sheep and sheep products that contain de minimis amounts of
sheep and sheep products, and (2) the provision exempting imported raw
wool. Accordingly, this suggestion is not adopted.
One commenter identified nine sets of HTS classification numbers
and corresponding conversion factors that should be reviewed by the
agency for accuracy and correction:
1. The conversion factor corresponding to HTS classification number
5703100000 was incorrect and should read 0.7933. We agree and we have
determined that conversion factor 0.7993 should read 0.7933.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
2. The HTS classification number 5810991000 was incorrect and
should read 5810990010. We reviewed the ERS import library and USITC
1995 HTS publication and determined that the HTS classification number
5810991000 was correct as published in the proposed rule. Accordingly,
we have not adopted this suggestion.
3. The HTS classification number 6104591000 was incorrect and
should read 6104591005. We agree and we have determined that HTS
classification number 6104591000 should read 6104591005. Accordingly,
we have adopted this change and it is reflected in Table I under
Sec. 1280.312.
4. The conversion factor corresponding to HTS classification number
6110909028 was incorrect and should read 0.6433. We agree and we have
determined that conversion factor 0.5790 should read 0.6433.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
5. The HTS classification number 6115199020 was incorrect and
should read 6115190020. We reviewed the ERS import library and USITC
1995 HTS publication and determined HTS classification number
6115199020 was correct as published in the proposed rule. Accordingly,
we have not adopted this suggestion.
6. The conversion factor corresponding to HTS classification number
6203331050 was incorrect and should read 0.5672. We agree and we have
determined that conversion factor 0.4767 should read 0.5672.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
7. The conversion factor corresponding to HTS classification number
6203410510 was incorrect and should read 1.0083. We agree and we have
determined that conversion factor 0.9859 should read 1.0083.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
8. The conversion factor corresponding to HTS classification number
6203410520 was incorrect and should read 1.0083. We agree and we have
determined that conversion factor 0.9859 should read 1.0083.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
9. The conversion factor corresponding to HTS classification number
6204693020 was incorrect and should read 0.5425. We agree and we have
determined that conversion factor 0.6029 should read 0.5425.
Accordingly, we have adopted this change and it is reflected in Table I
under Sec. 1280.312.
In addition, the Department found a typographical error in the
dollar-per-pound assessment rate for HTS classification number
0204434000 under the heading Sheep Meat. The correct assessment rate
should read 0.030279 dollars per pound, not 30.030279 dollars per
pound. Accordingly, we have amended Table I under Sec. 1280.312.
One commenter suggested that the layout of the chart is confusing
and could lead to misinterpretation by those responsible for collection
of the imported wool assessment. The commenter contends that the
inclusion of ``converted'' ``assessment rates'' or ``amounts'' on the
net weight of each HTS classification number implies that there is a
rate of assessment other than the flat 2 cents per pound of clean
weight. Additionally, the commenter suggests that the ``converted''
assessments be either deleted entirely from the chart or changed so as
to clarify that the corresponding assessment amounts are based on net
weight and are not intended as substitutes for the 2 cents per pound
assessment on clean weight equivalent (degreased wool). The Act
provides that importers importing sheep and wool products into the
United States pay an assessment in the manner prescribed by the Order
and that such assessment shall be collected by Customs. The information
in Table I is based on 1 cent per pound for sheep meat and 2 cents per
pound for wool and wool products. The explanation of the method of
[[Page 21058]]
calculation for the per-pound or per-kilogram assessment amounts are
described in the Supplementary Information section, which explains that
the assessment rates listed in Table I for each HTS classification
number for sheep meat are based on the equivalent of 1 cent per pound
of live sheep and 2 cents per pound of degreased wool, or the
equivalent of degreased wool for wool and wool products. Additionally,
the assessment amounts listed for each HTS classification number
subject to assessment will assist customs in developing its data
processing program that automatically collects and records the total
assessment due on imported sheep products subject to assessment.
Customs has had over 10 years of experience collecting such assessments
for a variety of similar commodity promotion and research programs, and
is prepared to use the information contained in Table I of this final
rule. Accordingly, no change is made to Table I.
One commenter suggested that the first fourteen wool and wool
products HTS classification numbers and corresponding conversion
factors be reviewed for accuracy. Each HTS classification number and
corresponding conversion factor corresponds with a stage of processing
prior to weaving. The commenter believes that the conversion factors do
not accurately reflect the losses that occur at each stage of
processing. Further, the commenter believes that (1) stage one,
carding, has a loss of about 2 percent, (2) stage two, top production,
has a loss of about 6 percent, and (3) stage three, spinning wool into
yarn, has a loss of about 8 percent. Additionally, the commenter
believes that the conversion factors indicate that yarn spinning losses
at stage three are less than top-making losses at stage two. The same
commenter also suggested that the conversion factors be reduced by 4.3
percent because the conversion factors that appear in these proposed
rules and regulations (60 FR 51737) are 4.3 percent higher than those
published in conjunction with the proposed referendum rule (60 FR
40313). The commenter recognizes that some of the conversion factors
may have needed adjustments. However, the commenter believes that a 4.3
percent adjustment for all wool and wool products cannot be justified.
Furthermore, the commenter states that there has not been an increase
in the amount of wool needed to produce wool products, and even if
there had been it would not be exactly 4.3 percent.
The conversion factors listed in Table I are based on information
provided to ERS by the largest wool top makers in the United States.
ERS used that data to make adjustments to the 1994 conversion factors
for HTS numbers listed in Table I. ERS has again reviewed the 14 HTS
classification numbers and corresponding conversion factors that the
commenter questioned. The Department has concluded that because these
14 conversion factors reflect data obtained from the largest wool top
makers in the United States, no changes will be made to them at this
time. In response to the commenter's question concerning the 4.3
percent increase from the conversion factors published in the proposed
referendum rules (60 FR 40313) to the conversion factors published in
the proposed rules and regulations (60 FR 51737), the conversion
factors in the proposed referendum rules were based on data obtained by
ERS as of 1994. The representative period to determine voter
eligibility and volume of production was 1994.
Sec. 1280.314 Remittance persons for the purposes of remitting
assessments.
One commenter believes that the language in Sec. 1280.314(b), which
says that ``each person processing sheep of that persons own production
will also pay an assessment,'' means that each ``person'' will be a
``remittance person.'' The commenter also questions the language on
page 51737 of the proposed rule that says ``there are an estimated
87,350 sheep operations and an estimated 700 remittance persons who
would be subject to the rules and regulations issued pursuant to the
Order.
The Act provides that any person who processes or causes to be
processed sheep or sheep products of that person's own production and
who markets such products must pay an assessment on the sheep and sheep
products at the time of sale at a rate equivalent to the rate provided
for in the Act, and must remit such assessment to the Board in a manner
prescribed by the Order. Although the number of producers and remitting
persons is estimated based on data available to the Department, the
Department estimates that the number of producers who process and
market their own products is relatively small. Several similar
commodity research and promotion programs have similar provisions for
persons who process and market products of their own production and,
based on the Department's experience with these other programs, such
persons represent only a small percentage of the total number of
remitting persons. Therefore, the Department has determined that of an
estimated 87,350 domestic producers and feeders, very few will be
remitting persons.
One commenter suggested that we clarify that packers and exporters
of lambs and/or sheep would be the only entities that would ever be
required to remit the assessment to the Board on sheep and lambs sold.
The Act provides that each processor who makes payment to a producer,
feeder, handler, or collecting person of domestic sheep and greasy wool
would collect the assessment and remit the assessment to the Board. The
Act also provides that each person who processes sheep or sheep
products of that person's own production and markets such processed
products would be required to remit an assessment to the Board.
Finally, the Act requires each person who exports live sheep or greasy
wool to remit the assessment at the time of export. Accordingly,
persons other than packers and exporters are remitting persons as
defined by the Act. Therefore, we have not adopted this suggestion.
Sec. 1280.315 Remittance of assessments and submission of reports to
the National Sheep Promotion, Research, and Information Board.
Two commenters suggested that the Department clarify this section
so that only those persons who are responsible for remitting the
assessments to the Board are also responsible for filing reports on a
monthly basis. The commenters further suggest that we clarify that the
collecting person is responsible for collecting the assessment to
another collecting person or remitting it and either paying it to the
Board. Finally, the commenter believes that producers who have paid the
assessment and have evidence of payment pursuant to Sec. 1260.316 would
not be subject to further assessments even if the assessment were not
finally remitted to the Board.
The Department has reviewed the Act's definitions of collecting and
remitting person and the language in sections 1280.315 and 1280.316 of
the proposal, and has concluded that the definitions of collecting
person and remitting person are consistent with the Act and correctly
identify those persons in this paragraph. However, Sec. 1280.315(a)
Reports has been changed to clarify that each person remitting the
assessment is to file a report of assessments to the Board.
Additionally, the Department believes that producers or feeders who
present evidence of payment described in Sec. 1280.316 should be
considered as having paid any assessment required absent evidence to
the contrary.
[[Page 21059]]
Additional Comments
One commenter believes that the assessment rate as identified under
the Background section of the proposed rule is too high. The Act
establishes the initial assessment rate and provides the requirements
for changing the assessment rate. Thus, we have made no change in this
final rule as a result of this comment.
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, 7 CFR Part 1280 is
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 his
or her 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 by 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,
which is identified based on the net weight of the individual sheep
product, 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 original HTS classification
number.
(d) Assessments will be collected by Customs on all imported sheep
and sheep products identified by the HTS classification numbers listed
in Table I upon importation.
Table I.--Imported Sheep and Sheep Products Assessment Table
[Live sheep assessment]
------------------------------------------------------------------------
HTS $/lb $/kg
------------------------------------------------------------------------
0104100000.................................... 0.010000 0.022046
------------------------------------------------------------------------
------------------------------------------------------------------------
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 0.030279 0.066753
------------------------------------------------------------------------
[[Page 21060]]
------------------------------------------------------------------------
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 0.022454
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
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
[[Page 21061]]
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
5703100020............................. 0.7933 0.015886 0.035022
5703100080............................. 0.7933 0.015886 0.035022
5704100010............................. 0.7466 0.014932 0.032919
5704900010............................. 0.9332 0.018664 0.041147
5705002005............................. 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
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
6104591005............................. 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
[[Page 21062]]
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............................. 0.6433 0.012866 0.028364
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
6115198020............................. 1.1322 0.022644 0.049921
6115910000............................. 0.9058 0.018116 0.039939
6115939010............................. 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
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
[[Page 21063]]
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............................. 0.5672 0.011344 0.025009
6203399020............................. 0.6302 0.012604 0.027787
6203410510............................. 1.0083 0.020166 0.044458
6203410520............................. 1.0083 0.020166 0.044458
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
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
6204696020............................. 0.5425 0.010850 0.023921
6204699020............................. 0.5426 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
[[Page 21064]]
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.
(a) Any person who is responsible for collecting an assessment
pursuant to the Act and this subpart, including processors and any
other persons who are required to remit assessments to the Board
pursuant to this part, shall be a collecting person, 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 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.
(c) In cases 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) For the purposes of this section, in the event of a producer's,
feeder's, or importer's death, bankruptcy, receivership, or incapacity,
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.
Sec. 1280.314 Remittance persons for purposes of remitting
assessments.
(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
[[Page 21065]]
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), Sheep Purchases, of the Order, for live
sheep or Sec. 1280.225(d), Wool Purchases, for greasy wool, and shall
remit such assessment to 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 to Sec. 1280.224(d), Sheep
Purchases, of the Order, for live sheep or Sec. 1280.225(d), Wool
Purchases, 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 person who is responsible for remitting the
assessment shall make reports on forms made available or approved by
the Board. Such person shall prepare a separate report for each
reporting period. Each report shall be mailed together with the
applicable assessment amount 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
subject to the collection of assessment in any other manner, and the
dates of such transactions;
(ii) The number of live sheep exported;
(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 that is purchased, initially transferred or
subject to the collection of assessment in any other manner, and the
dates of such transaction;
(ii) The amount of greasy wool exported;
(iii) The amount of assessment remitted;
(iv) An explanation for the remittance of an assessment that is
less than the pounds of greasy 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.
Sec. 1280.316 Evidence of payment of assessments.
Each collecting person, except a producer or feeder who processes
sheep or sheep products of the producer's or feeder's own production
for sale, is required to give to 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, which shall serve as a receipt, must 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 requirements in Sec. 1280.233, Books and
Records, of 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.
Sec. 1280.318 OMB control numbers.
The control number assigned to the information collection
requirements in Part 1280 by OMB pursuant to the Paperwork Reduction
Act of 1980, (44 U.S.C. Chapter 35) is OMB number 0581-0093.
Dated: May 3, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-11602 Filed 5-8-96; 8:45 am]
BILLING CODE 3410-02-M
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.