Cotton research and promotion order: Cotton Board rules and regulations; amendments,
[Federal Register: March 14, 2003 (Volume 68, Number 50)]
[Proposed Rules]
[Page 12310-12315]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14mr03-11]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[Doc. No. CN-03-002]
Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports, (2003 Amendments)
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
SUMMARY: The Agricultural Marketing Service (AMS) is proposing to amend the Cotton Board Rules and Regulations by lowering the value assigned to imported cotton for the purpose of calculating supplemental assessments collected for use by the Cotton Research and Promotion Program. An adjustment is required on an annual basis to ensure that the assessments collected on imported cotton and the cotton content of imported products remain similar to those paid on domestically produced cotton.
DATES: Comments must be received on or before April 14, 2003.
ADDRESSES: Interested persons are invited to submit written comments
[[Page 12311]]
concerning this proposed rule to Whitney Rick, Chief, Research and Promotion Staff, Cotton Program, Agricultural Marketing Service, USDA, STOP 0224, Washington, DC 20250-0224. Comments should be submitted in triplicate. Comments may also be submitted electronically to: cottoncomments@usda.gov. All comments should reference the docket
number and the date and page number of this issue of the Federal Register. All comments received will be made available for public inspection at Cotton Program, AMS, USDA, Room 2641-S, 1400 Independence Ave., SW., Washington, DC 20250 during regular business hours. A copy of this notice may be found at: http://www.ams.usda.gov/cotton/rulemaking.htm .
FOR FURTHER INFORMATION CONTACT: Whitney Rick, Chief, Research and Promotion Staff, Cotton Program, AMS, USDA, STOP 0224, 1400 Independence Ave., SW., Washington, DC 20250-0224, telephone (202) 720- 2259, facsimile (202) 690-1718, or e-mail at whitney.rick@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget has waived the review process required by Executive Order 12866 for this action.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This proposed rule would not preempt any state or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.
The Cotton Research and Promotion Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 12 of the Act, any person subject to an order may file with the Secretary a petition stating that the order, any provision of the plan, or any obligation imposed in connection with the order is not in accordance with law and requesting a modification of the order or to be exempted therefrom. Such person is afforded the opportunity for a hearing on the petition. After the hearing, the Secretary would rule on the petition. The Act provides that the District Court of the United States in any district in which the person is an inhabitant, or has his principal place of business, has jurisdiction to review the Secretary's ruling, provided a complaint is filed within 20 days from the date of the entry of ruling.
Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) AMS has considered the economic impact of this action on small entities and has determined that its implementation will not have a significant economic impact on a substantial number of small businesses.
There are an estimated 10,000 importers who are presently subject to rules and regulations issued pursuant to the Cotton Research and Promotion Order. This proposed rule would affect importers of cotton and cotton-containing products. The majority of these importers are small businesses under the criteria established by the Small Business Administration. This proposed rule would lower the assessments paid by the importers under the Cotton Research and Promotion Order. Even though the assessment would be lowered, the decrease is small and will not significantly affect small businesses. The current assessment on imported cotton is $0.00862 per kilogram of imported cotton. The proposed assessment is $0.008267, a decrease of $0.000353 or a 4.1 percent decrease. From January through December 2002 approximately $24 million was collected. Should the volume of cotton products imported into the U.S. remain at the same level in 2003, one could expect the decreased assessment to generate approximately $23 million or a 4.1 percent decrease from 2002.
Paperwork Reduction
In compliance with Office of Management and Budget (OMB) regulations (5 CFR part 1320) which implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.) the information collection requirements contained in the regulation to be amended have been previously approved by OMB and were assigned control number 0581-0093.
Background
The Cotton Research and Promotion Act Amendments of 1990 enacted by Congress under Subtitle G of Title XIX of the Food, Agriculture, Conservation and Trade Act of 1990 on November 28, 1990, contained two provisions that authorized changes in the funding procedures for the Cotton Research and Promotion Program.
These provisions are: (1) The assessment of imported cotton and cotton products; and (2) termination of the right of cotton producers to demand a refund of assessments.
An amended Cotton Research and Promotion Order was approved by producers and importers voting in a referendum held July 17-26, 1991, and the amended Order was published in the Federal Register on December 10, 1991, (56 FR 64470). A proposed rule implementing the amended Order was published in the Federal Register on December 17, 1991, (56 FR 65450). Implementing rules were published on July 1 and 2, 1992, (57 FR 29181) and (57 FR 29431), respectively.
This proposed rule would decrease the value assigned to imported cotton in the Cotton Board Rules and Regulations (7 CFR 1205.510(b)(2)). This value is used to calculate supplemental assessments on imported cotton and the cotton content of imported products. Supplemental assessments are the second part of a two-part assessment. The first part of the assessment is levied on the weight of cotton produced or imported at a rate of $1 per bale of cotton which is equivalent to 500 pounds or $1 per 226.8 kilograms of cotton.
Supplemental assessments are levied at a rate of five-tenths of one percent of the value of domestically produced cotton, imported cotton, and the cotton content of imported products. The agency has adopted the practice of assigning the calendar year weighted average price received by U.S. farmers for Upland cotton to represent the value of imported cotton. This is done so that the assessment on domestically produced cotton and the assessment on imported cotton and the cotton content of imported products remain similar. The source for the average price statistic is ``Agricultural Prices'', a publication of the National Agricultural Statistics Service (NASS) of the Department of Agriculture. Use of the weighted average price figure in the calculation of supplemental assessments on imported cotton and the cotton content of imported products yields an assessment that approximates assessments paid on domestically produced cotton in the prior calendar year.
The current value of imported cotton as published in the Federal Register (67 FR 36793) on May 28, 2002, for the purpose of calculating supplemental assessments on imported cotton is $.8422 per kilogram. This number was calculated using the annual weighted average price received by farmers for Upland cotton during the calendar year 2001 which was $0.382 per pound and multiplying by the conversion factor 2.2046. Using the Average Weighted Price received by U.S. farmers for Upland cotton for the calendar year 2002, which is $0.35 per pound, the new value of imported cotton is $0.7716 per kilogram. The proposed value is
[[Page 12312]]
$.0706 per kilogram less than the previous value.
An example of the complete assessment formula and how the various figures are obtained is as follows:
One bale is equal to 500 pounds.
One kilogram equals 2.2046 pounds.
One pound equals 0.453597 kilograms.
One Dollar Per Bale Assessment Converted to Kilograms
A 500 pound bale equals 226.8 kg. (500 x .453597).
$1 per bale assessment equals $0.002000 per pound (1/500) or $0.004409 per kg. (1/226.8).
Supplemental Assessment of 5/10 of One Percent of the Value of the Cotton Converted to Kilograms.
The 2002 calendar year weighted average price received by producers for Upland cotton is $0.35 per pound or $0.7716 per kg. (0.35 x 2.2046).
Five tenths of one percent of the average price in kg. equals $0.003858 per kg. (0.7716 x .005).
Total Assessment
The total assessment per kilogram of raw cotton is obtained by adding the $1 per bale equivalent assessment of $0.004409 per kg. and the supplemental assessment $0.003858 per kg. which equals $0.008267 per kg.
The current assessment on imported cotton is $0.008620 per kilogram of imported cotton. The proposed assessment is $0.008267, a decrease of $0.000353 per kilogram. This decrease reflects the decrease in the Average Weighted Price of Upland Cotton received by U.S. Farmers during the period January through December 2002.
Since the value of cotton is the basis of the supplemental assessment calculation and the figures shown in the right hand column of the Import Assessment Table 1205.510(b)(3) are a result of such a calculation, the figures in this table have been revised. These figures indicate the total assessment per kilogram due for each Harmonized Tariff Schedule (HTS) number subject to assessment.
A thirty day comment period is provided to comment on the changes to the Cotton Board Rules and Regulations proposed herein. This period is deemed appropriate because this proposal would lower the assessments paid by importers under the Cotton Research and Promotion Order. Accordingly, the change proposed in this rule, if adopted, should be implemented as soon as possible.
List of Subjects in 7 CFR Part 1205
Advertising, Agricultural research, Cotton, Marketing agreements, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble 7 CFR part 1205 is proposed to be amended as follows:
PART 1205--COTTON RESEARCH AND PROMOTION
1. The authority citation for part 1205 continues to read as follows:
Authority: 7 U.S.C. 2101-2118.
2. In Sec. 1205.510, paragraph (b)(2) and the table in paragraph (b)(3)(ii) are revised to read as follows:
Sec. 1205.510 Levy of assessments.
* * * * *
(b) * * *
(2) The 12-month average of monthly weighted average prices received by U.S. farmers will be calculated annually. Such weighted average will be used as the value of imported cotton for the purpose of levying the supplemental assessment on imported cotton and will be expressed in kilograms. The value of imported cotton for the purpose of levying this supplemental assessment is $0.8267 per kilogram.
(3) * * *
(ii) * * *
Import Assessment Table [Raw Cotton Fiber]
HTS No.
Conv. fact. Cents/kg.
5201000500..................................
0
0.8267 5201001200..................................
0
0.8267 5201001400..................................
0
0.8267 5201001800..................................
0
0.8267 5201002200..................................
0
0.8267 5201002400..................................
0
0.8267 5201002800..................................
0
0.8267 5201003400..................................
0
0.8267 5201003800..................................
0
0.8267 5204110000..................................
1.1111
0.9185 5204200000..................................
1.1111
0.9185 5205111000..................................
1.1111
0.9185 5205112000..................................
1.1111
0.9185 5205121000..................................
1.1111
0.9185 5205122000..................................
1.1111
0.9185 5205131000..................................
1.1111
0.9185 5205132000..................................
1.1111
0.9185 5205141000..................................
1.1111
0.9185 5205210020..................................
1.1111
0.9185 5205210090..................................
1.1111
0.9185 5205220020..................................
1.1111
0.9185 5205220090..................................
1.1111
0.9185 5205230020..................................
1.1111
0.9185 5205230090..................................
1.1111
0.9185 5205240020..................................
1.1111
0.9185 5205240090..................................
1.1111
0.9185 5205310000..................................
1.1111
0.9185 5205320000..................................
1.1111
0.9185 5205330000..................................
1.1111
0.9185 5205340000..................................
1.1111
0.9185 5205410020..................................
1.1111
0.9185 5205410090..................................
1.1111
0.9185 5205420020..................................
1.1111
0.9185 5205420090..................................
1.1111
0.9185 5205440020..................................
1.1111
0.9185 5205440090..................................
1.1111
0.9185 5206120000..................................
0.5556
0.4593 5206130000..................................
0.5556
0.4593 5206140000..................................
0.5556
0.4593 5206220000..................................
0.5556
0.4593 5206230000..................................
0.5556
0.4593 5206240000..................................
0.5556
0.4593 5206310000..................................
0.5556
0.4593 5207100000..................................
1.1111
0.9185 5207900000..................................
0.5556
0.4593 5208112020..................................
1.1455
0.9470 5208112040..................................
1.1455
0.9470 5208112090..................................
1.1455
0.9470 5208114020..................................
1.1455
0.9470 5208114060..................................
1.1455
0.9470 5208114090..................................
1.1455
0.9470 5208118090..................................
1.1455
0.9470 5208124020..................................
1.1455
0.9470 5208124040..................................
1.1455
0.9470 5208124090..................................
1.1455
0.9470 5208126020..................................
1.1455
0.9470 5208126040..................................
1.1455
0.9470 5208126060..................................
1.1455
0.9470 5208126090..................................
1.1455
0.9470 5208128020..................................
1.1455
0.9470 5208128090..................................
1.1455
0.9470 5208130000..................................
1.1455
0.9470 5208192020..................................
1.1455
0.9470 5208192090..................................
1.1455
0.9470 5208194020..................................
1.1455
0.9470 5208194090..................................
1.1455
0.9470 5208196020..................................
1.1455
0.9470 5208196090..................................
1.1455
0.9470 5208224040..................................
1.1455
0.9470 5208224090..................................
1.1455
0.9470 5208226020..................................
1.1455
0.9470 5208226060..................................
1.1455
0.9470 5208228020..................................
1.1455
0.9470 5208230000..................................
1.1455
0.9470 5208292020..................................
1.1455
0.9470 5208292090..................................
1.1455
0.9470 5208294090..................................
1.1455
0.9470 5208296090..................................
1.1455
0.9470 5208298020..................................
1.1455
0.9470 5208312000..................................
1.1455
0.9470 5208321000..................................
1.1455
0.9470 5208323020..................................
1.1455
0.9470 5208323040..................................
1.1455
0.9470 5208323090..................................
1.1455
0.9470 5208324020..................................
1.1455
0.9470 5208324040..................................
1.1455
0.9470 5208325020..................................
1.1455
0.9470 5208330000..................................
1.1455
0.9470 5208392020..................................
1.1455
0.9470 5208392090..................................
1.1455
0.9470 5208394090..................................
1.1455
0.9470 5208396090..................................
1.1455
0.9470 5208398020..................................
1.1455
0.9470 5208412000..................................
1.1455
0.9470 5208416000..................................
1.1455
0.9470 5208418000..................................
1.1455
0.9470 5208421000..................................
1.1455
0.9470 5208423000..................................
1.1455
0.9470 5208424000..................................
1.1455
0.9470
[[Page 12313]]
5208425000..................................
1.1455
0.9470 5208430000..................................
1.1455
0.9470 5208492000..................................
1.1455
0.9470 5208494020..................................
1.1455
0.9470 5208494090..................................
1.1455
0.9470 5208496010..................................
1.1455
0.9470 5208496090..................................
1.1455
0.9470 5208498090..................................
1.1455
0.9470 5208512000..................................
1.1455
0.9470 5208516060..................................
1.1455
0.9470 5208518090..................................
1.1455
0.9470 5208523020..................................
1.1455
0.9470 5208523045..................................
1.1455
0.9470 5208523090..................................
1.1455
0.9470 5208524020..................................
1.1455
0.9470 5208524045..................................
1.1455
0.9470 5208524065..................................
1.1455
0.9470 5208525020..................................
1.1455
0.9470 5208530000..................................
1.1455
0.9470 5208592025..................................
1.1455
0.9470 5208592095..................................
1.1455
0.9470 5208594090..................................
1.1455
0.9470 5208596090..................................
1.1455
0.9470 5209110020..................................
1.1455
0.9470 5209110035..................................
1.1455
0.9470 5209110090..................................
1.1455
0.9470 5209120020..................................
1.1455
0.9470 5209120040..................................
1.1455
0.9470 5209190020..................................
1.1455
0.9470 5209190040..................................
1.1455
0.9470 5209190060..................................
1.1455
0.9470 5209190090..................................
1.1455
0.9470 5209210090..................................
1.1455
0.9470 5209220020..................................
1.1455
0.9470 5209220040..................................
1.1455
0.9470 5209290040..................................
1.1455
0.9470 5209290090..................................
1.1455
0.9470 5209313000..................................
1.1455
0.9470 5209316020..................................
1.1455
0.9470 5209316035..................................
1.1455
0.9470 5209316050..................................
1.1455
0.9470 5209316090..................................
1.1455
0.9470 5209320020..................................
1.1455
0.9470 5209320040..................................
1.1455
0.9470 5209390020..................................
1.1455
0.9470 5209390040..................................
1.1455
0.9470 5209390060..................................
1.1455
0.9470 5209390080..................................
1.1455
0.9470 5209390090..................................
1.1455
0.9470 5209413000..................................
1.1455
0.9470 5209416020..................................
1.1455
0.9470 5209416040..................................
1.1455
0.9470 5209420020..................................
1.0309
0.8522 5209420040..................................
1.0309
0.8522 5209430030..................................
1.1455
0.9470 5209430050..................................
1.1455
0.9470 5209490020..................................
1.1455
0.9470 5209490090..................................
1.1455
0.9470 5209516035..................................
1.1455
0.9470 5209516050..................................
1.1455
0.9470 5209520020..................................
1.1455
0.9470 5209590025..................................
1.1455
0.9470 5209590040..................................
1.1455
0.9470 5209590090..................................
1.1455
0.9470 5210114020..................................
0.6873
0.5682 5210114040..................................
0.6873
0.5682 5210116020..................................
0.6873
0.5682 5210116040..................................
0.6873
0.5682 5210116060..................................
0.6873
0.5682 5210118020..................................
0.6873
0.5682 5210120000..................................
0.6873
0.5682 5210192090..................................
0.6873
0.5682 5210214040..................................
0.6873
0.5682 5210216020..................................
0.6873
0.5682 5210216060..................................
0.6873
0.5682 5210218020..................................
0.6873
0.5682 5210314020..................................
0.6873
0.5682 5210314040..................................
0.6873
0.5682 5210316020..................................
0.6873
0.5682 5210318020..................................
0.6873
0.5682 5210414000..................................
0.6873
0.5682 5210416000..................................
0.6873
0.5682 5210418000..................................
0.6873
0.5682 5210498090..................................
0.6873
0.5682 5210514040..................................
0.6873
0.5682 5210516020..................................
0.6873
0.5682 5210516040..................................
0.6873
0.5682 5210516060..................................
0.6873
0.5682 5211110090..................................
0.6873
0.5682 5211120020..................................
0.6873
0.5682 5211190020..................................
0.6873
0.5682 5211190060..................................
0.6873
0.5682 5211210025..................................
0.6873
0.5682 5211210035..................................
0.4165
0.3443 5211210050..................................
0.6873
0.5682 5211290090..................................
0.6873
0.5682 5211320020..................................
0.6873
0.5682 5211390040..................................
0.6873
0.5682 5211390060..................................
0.6873
0.5682 5211490020..................................
0.6873
0.5682 5211490090..................................
0.6873
0.5682 5211590025..................................
0.6873
0.5682 5212146090..................................
0.9164
0.7576 5212156020..................................
0.9164
0.7576 5212216090..................................
0.9164
0.7576 5509530030..................................
0.5556
0.4593 5509530060..................................
0.5556
0.4593 5513110020..................................
0.4009
0.3314 5513110040..................................
0.4009
0.3314 5513110060..................................
0.4009
0.3314 5513110090..................................
0.4009
0.3314 5513120000..................................
0.4009
0.3314 5513130020..................................
0.4009
0.3314 5513210020..................................
0.4009
0.3314 5513310000..................................
0.4009
0.3314 5514120020..................................
0.4009
0.3314 5516420060..................................
0.4009
0.3314 5516910060..................................
0.4009
0.3314 5516930090..................................
0.4009
0.3314 5601210010..................................
1.1455
0.9470 5601210090..................................
1.1455
0.9470 5601300000..................................
1.1455
0.9470 5602109090..................................
0.5727
0.4735 5602290000..................................
1.1455
0.9470 5602906000..................................
0.526
0.4348 5604900000..................................
0.5556
0.4593 5607909000..................................
0.8889
0.7349 5608901000..................................
1.1111
0.9185 5608902300..................................
1.1111
0.9185 5609001000..................................
1.1111
0.9185 5609004000..................................
0.5556
0.4593 5701104000..................................
0.0556
0.0460 5701109000..................................
0.1111
0.0918 5701901010..................................
1.0444
0.8634 5702109020..................................
1.1
0.9094 5702312000..................................
0.0778
0.0643 5702411000..................................
0.0722
0.0597 5702412000..................................
0.0778
0.0643 5702421000..................................
0.0778
0.0643 5702913000..................................
0.0889
0.0735 5702991010..................................
1.1111
0.9185 5702991090..................................
1.1111
0.9185 5703900000..................................
0.4489
0.3711 5801210000..................................
1.1455
0.9470 5801230000..................................
1.1455
0.9470 5801250010..................................
1.1455
0.9470 5801250020..................................
1.1455
0.9470 5801260020..................................
1.1455
0.9470 5802190000..................................
1.1455
0.9470 5802300030..................................
0.5727
0.4735 5804291000..................................
1.1455
0.9470 5806200010..................................
0.3534
0.2922 5806200090..................................
0.3534
0.2922 5806310000..................................
1.1455
0.9470 5806400000..................................
0.4296
0.3552 5808107000..................................
0.5727
0.4735 5808900010..................................
0.5727
0.4735 5811002000..................................
1.1455
0.9470 6001106000..................................
1.1455
0.9470 6001210000..................................
0.8591
0.7102 6001220000..................................
0.2864
0.2368 6001910010..................................
0.8591
0.7102 6001910020..................................
0.8591
0.7102 6001920020..................................
0.2864
0.2368 6001920030..................................
0.2864
0.2368 6001920040..................................
0.2864
0.2368 6003203000..................................
0.8681
0.7177 6003306000..................................
0.2894
0.2392 6003406000..................................
0.2894
0.2392 6005210000..................................
0.8681
0.7177 6005220000..................................
0.8681
0.7177 6005230000..................................
0.8681
0.7177 6005240000..................................
0.8681
0.7177 6005310010..................................
0.2894
0.2392 6005320010..................................
0.2894
0.2392 6005330010..................................
0.2894
0.2392 6005340010..................................
0.2894
0.2392 6005410010..................................
0.2894
0.2392 6005420010..................................
0.2894
0.2392 6005430010..................................
0.2894
0.2392 6005440010..................................
0.2894
0.2392 6005310080..................................
0.2894
0.2392 6005320080..................................
0.2894
0.2392 6005330080..................................
0.2894
0.2392 6005340080..................................
0.2894
0.2392 6005410080..................................
0.2894
0.2392 6005420080..................................
0.2894
0.2392 6005430080..................................
0.2894
0.2392 6005440080..................................
0.2894
0.2392 6006211000..................................
1.1574
0.9568 6006221000..................................
1.1574
0.9568 6006231000..................................
1.1574
0.9568 6006241000..................................
1.1574
0.9568 6006310040..................................
0.1157
0.0956 6006320040..................................
0.1157
0.0956 6006330040..................................
0.1157
0.0956 6006340040..................................
0.1157
0.0956 6006310080..................................
0.1157
0.0956 6006320080..................................
0.1157
0.0956 6006330080..................................
0.1157
0.0956 6006340080..................................
0.1157
0.0956 6006410085..................................
0.1157
0.0956 6006420085..................................
0.1157
0.0956 6006430085..................................
0.1157
0.0956 6006440085..................................
0.1157
0.0956 6101200010..................................
1.0094
0.8345 6101200020..................................
1.0094
0.8345
[[Page 12314]]
6102200010..................................
1.0094
0.8345 6102200020..................................
1.0094
0.8345 6103421020..................................
0.8806
0.7280 6103421040..................................
0.8806
0.7280 6103421050..................................
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0.4831
* * * * *
Dated: March 11, 2003. Kenneth C. Clayton, Acting Administrator, Agricultural Marketing Service.
[FR Doc. 03-6164 Filed 3-13-03; 8:45 am]
BILLING CODE 3410-02-P
