Cotton research and promotion order: Imported cotton and cotton content of imported products; supplemental assessment calculation,
[Federal Register: June 7, 1999 (Volume 64, Number 108)]
[Rules and Regulations]
[Page 30236-30241]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jn99-5]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[CN-99-002]
1999 Amendment to Cotton Board Rules and Regulations Adjusting Supplemental Assessment on Imports
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
SUMMARY: The Agricultural Marketing Service (AMS) is amending the Cotton Board Rules and Regulations by lowering the value assigned to imported cotton for the purpose of calculating supplemental assessments collected for use by the Cotton Research and Promotion Program. This action is required by this regulation on an annual basis to ensure that the assessments collected on imported cotton and the cotton content of imported products remain similar to those paid on domestically produced cotton.
EFFECTIVE DATE: July 7, 1999.
FOR FURTHER INFORMATION CONTACT: Whitney Rick, (202) 720-2259.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This 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.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This rule would not preempt any state or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.
The Cotton Research and Promotion Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under Section 12 of the Act, any person subject to an order may file with the Secretary a petition stating that the order, any provision of the plan, or any obligation imposed in connection with the order is not in accordance with law and requesting a modification of the order or to be exempted therefrom. Such person is afforded the opportunity for a hearing on the petition. After the hearing, the Secretary would rule on the petition. The Act provides that the District Court of the United States in any district in which the person is an inhabitant, or has his principal place of business, has jurisdiction to review the Secretary's ruling, provided a complaint is filedwithin 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 16,000 importers who are presently subject to rules and regulations issued pursuant to the Cotton Research and Promotion Order. This rule will affect importers of cotton and cotton- containing products. The majority of these importers are small businesses under the criteria established by the Small Business Administration. This rule will lower the assessments paid by the importers under the Cotton Research and Promotion Order. Even though the assessment will be lowered, the decrease is small and will not significantly affect small businesses.
The current assessment on imported cotton is $0.011850 per kilogram of imported cotton. The amended assessment is $0.011397, a decrease of $0.000453 or a 3.8 percent decrease from the current assessment. From January through December 1998 approximately $20.9 million was collected at the $0.011850 per kilogram rate. Should the volume of cotton
[[Page 30237]]
products imported into the U.S. remain at the same level in 1999, one could expect the decreased assessment to generate $20.1 million or a 3.8 percent decrease from 1998.
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). Proposed rules implementing the amended Order were published in the Federal Register on December 17, 1991, (56 FR 65450). Implementing rules were published on July 1 and 2, 1992, (57 FR 29181) and (57 FR 29431), respectively.
This rule will decrease the value assigned to imported cotton in the Cotton Board Rules and Regulations (7 CFR 1205.510 (b) (2)). This value is used to calculate supplemental assessments on imported cotton and the cotton content of imported products. Supplemental assessments are the second part of a two-part assessment. The first part of the assessment is levied on the weight of cotton produced or imported at a rate of $1 per bale of cotton which is equivalent to 500 pounds or $1 per 226.8 kilograms of cotton.
Supplemental assessments are levied at a rate of five-tenths of one percent of the value of domestically produced cotton, imported cotton, and the cotton content of imported products. The agency has adopted the practice of assigning the calendar year weighted average price received by U.S. farmers for Upland cotton to represent the value of imported cotton. This is done so that the assessment on domestically produced cotton and the assessment on imported cotton and the cotton content of imported products remain similar. The source for the average price statistic is ``Agricultural Prices'', a publication of the National Agricultural Statistics Service (NASS) of the Department of Agriculture. Use of the weighted average price figure in the calculation of supplemental assessments on imported cotton and the cotton content of imported products yields an assessment that approximates assessments paid on domestically produced cotton in the prior calendar year.
The current value of imported cotton as published in the Federal Register (63 FR 27818) on May 21, 1998, for the purpose of calculating supplemental assessments on imported cotton is $1.4881 per kilogram. This number was calculated using the annual weighted average price received by farmers for Upland cotton during the calendar year 1997 which was $0.675 per pound and multiplying by the conversation factor 2.2046. Using the Average Weighted Price Received by U.S. farmers for Upland cotton for the calendar year 1998, which is $0.634 per pound, the new value of imported cotton is $1.3977 per kilogram. The amended value is $0.0904 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 ‹divide› 500) or $0.004409 per kg. (1 ‹divide› 226.8).
Supplemental Assessment of 5/10 of One Percent of the Value of the Cotton Converted to Kilograms.
The 1998 calendar year weigthed average price received by producers for Upland cotton is $0.634 per pound or $1.3977 per kg. (0.634 x 2.2046) = 1.3977.
Five tenths of one percent of the average price in kg. equals $0.006988 per kg. (1.3977 x .005).
Total Assessment
The total assessment per kilogram of raw cotton in obtained by adding the $1 per bale equivalent assessment of $0.004409 per kg. and the supplemental assessment $0.006988 per kg. which equals $0.011397 per kg.
The current assessment on imported cotton is $0.011850 per kilogram of imported cotton. The amended assessment is $0.011397, a decrease of $0.000453 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 1998.
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.
One HTS number subject to assessment pursuant to this regulation and found in the assessment table has been changed. In order to maintain consistency between the HTS and the assessment table, the changes to this one number have been incorporated into the assessment table. The last two digits of this number were changed to provide for statistical reporting purposes and involve no physical change to the products they represent. Therefore, the assessment rate is not affected by the change. The assessment rate for the one number has been applied to each of the new replacement numbers in the assessment table. The following table represents the changes:
Conversion Assessment Old No.
New No.
factor
cents/kg.
6302100010...................................................... 6302100005
1.1689
1.3322 6302100008
1.1689
1.3322 6302100015
1.1689
1.3322
[[Page 30238]]
A proposed rule with a request for comments was published in the Federal Register (64 FR 19072) on April 19, 1999. No comments were received during the comment period (April 19 through May 19, 1999).
List of Subjects in 7 CFR Part 1205
Advertising, Agricultural research, Cotton, Marketing agreements, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1205 is amended as follows:
PART 1205--COTTON RESEARCH AND PROMOTION
1. The authority citation for part 1205 continues to read as follows:
Authority: 7 U.S.C. 2101-2118.
2. In 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) * * *
(1) * * *
(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 $1.3977 per kilogram.
(3) * * *
(i) * * *
(ii) * * *
Import Assessment Table [Raw Cotton Fiber]
HTS No.
Conv. fact. Cents/kg.
5201000500..................................
0
1.1397 5201001200..................................
0
1.1397 5201001400..................................
0
1.1397 5201001800..................................
0
1.1397 5201002200..................................
0
1.1397 5201002400..................................
0
1.1397 5201002800..................................
0
1.1397 5201003400..................................
0
1.1397 5201003800..................................
0
1.1397 5204110000..................................
1.1111
1.2663 5204200000..................................
1.1111
1.2663 5205111000..................................
1.1111
1.2663 5205112000..................................
1.1111
1.2663 5205121000..................................
1.1111
1.2663 5205122000..................................
1.1111
1.2663 5205131000..................................
1.1111
1.2663 5205132000..................................
1.1111
1.2663 5205141000..................................
1.1111
1.2663 5205210020..................................
1.1111
1.2663 5205210090..................................
1.1111
1.2663 5205220020..................................
1.1111
1.2663 5205220090..................................
1.1111
1.2663 5205230020..................................
1.1111
1.2663 5205230090..................................
1.1111
1.2663 5205240020..................................
1.1111
1.2663 5205240090..................................
1.1111
1.2663 5205310000..................................
1.1111
1.2663 5205320000..................................
1.1111
1.2663 5205330000..................................
1.1111
1.2663 5205340000..................................
1.1111
1.2663 5205410020..................................
1.1111
1.2663 5205410090..................................
1.1111
1.2663 5205420020..................................
1.1111
1.2663 5205420090..................................
1.1111
1.2663 5205440020..................................
1.1111
1.2663 5205440090..................................
1.1111
1.2663 5206120000..................................
0.5556
0.6332 5206130000..................................
0.5556
0.6332 5206140000..................................
0.5556
0.6332 5206220000..................................
0.5556
0.6332 5206230000..................................
0.5556
0.6332 5206240000..................................
0.5556
0.6332 5206310000..................................
0.5556
0.6332 5207100000..................................
1.1111
1.2663 5207900000..................................
0.5556
0.6332 5208112020..................................
1.1455
1.3055 5208112040..................................
1.1455
1.3055 5208112090..................................
1.1455
1.3055 5208114020..................................
1.1455
1.3055 5208114060..................................
1.1455
1.3055 5208114090..................................
1.1455
1.3055 5208118090..................................
1.1455
1.3055 5208124020..................................
1.1455
1.3055 5208124040..................................
1.1455
1.3055 5208124090..................................
1.1455
1.3055 5208126020..................................
1.1455
1.3055 5208126040..................................
1.1455
1.3055 5208126060..................................
1.1455
1.3055 5208126090..................................
1.1455
1.3055 5208128020..................................
1.1455
1.3055 5208128090..................................
1.1455
1.3055 5208130000..................................
1.1455
1.3055 5208192020..................................
1.1455
1.3055 5208192090..................................
1.1455
1.3055 5208194020..................................
1.1455
1.3055 5208194090..................................
1.1455
1.3055 5208196020..................................
1.1455
1.3055 5208196090..................................
1.1455
1.3055 5208224040..................................
1.1455
1.3055 5208224090..................................
1.1455
1.3055 5208226020..................................
1.1455
1.3055 5208226060..................................
1.1455
1.3055 5208228020..................................
1.1455
1.3055 5208230000..................................
1.1455
1.3055 5208292020..................................
1.1455
1.3055 5208292090..................................
1.1455
1.3055 5208294090..................................
1.1455
1.3055 5208296090..................................
1.1455
1.3055 5208298020..................................
1.1455
1.3055 5208312000..................................
1.1455
1.3055 5208321000..................................
1.1455
1.3055 5208323020..................................
1.1455
1.3055 5208323040..................................
1.1455
1.3055 5208323090..................................
1.1455
1.3055 5208324020..................................
1.1455
1.3055 5208324040..................................
1.1455
1.3055 5208325020..................................
1.1455
1.3055 5208330000..................................
1.1455
1.3055 5208392020..................................
1.1455
1.3055 5208392090..................................
1.1455
1.3055 5208394090..................................
1.1455
1.3055 5208396090..................................
1.1455
1.3055 5208398020..................................
1.1455
1.3055 5208412000..................................
1.1455
1.3055 5208416000..................................
1.1455
1.3055 5208418000..................................
1.1455
1.3055 5208421000..................................
1.1455
1.3055 5208423000..................................
1.1455
1.3055 5208424000..................................
1.1455
1.3055 5208425000..................................
1.1455
1.3055 5208430000..................................
1.1455
1.3055 5208492000..................................
1.1455
1.3055 5208494020..................................
1.1455
1.3055 5208494090..................................
1.1455
1.3055 5208496010..................................
1.1455
1.3055 5208496090..................................
1.1455
1.3055 5208498090..................................
1.1455
1.3055 5208512000..................................
1.1455
1.3055 5208516060..................................
1.1455
1.3055 5208518090..................................
1.1455
1.3055 5208523020..................................
1.1455
1.3055 5208523045..................................
1.1455
1.3055 5208523090..................................
1.1455
1.3055 5208524020..................................
1.1455
1.3055 5208524045..................................
1.1455
1.3055 5208524065..................................
1.1455
1.3055 5208525020..................................
1.1455
1.3055 5208530000..................................
1.1455
1.3055 5208592025..................................
1.1455
1.3055 5208592095..................................
1.1455
1.3055 5208594090..................................
1.1455
1.3055 5208596090..................................
1.1455
1.3055 5209110020..................................
1.1455
1.3055 5209110035..................................
1.1455
1.3055 5209110090..................................
1.1455
1.3055 5209120020..................................
1.1455
1.3055 5209120040..................................
1.1455
1.3055 5209190020..................................
1.1455
1.3055 5209190040..................................
1.1455
1.3055 5209190060..................................
1.1455
1.3055 5209190090..................................
1.1455
1.3055 5209210090..................................
1.1455
1.3055 5209220020..................................
1.1455
1.3055 5209220040..................................
1.1455
1.3055 5209290040..................................
1.1455
1.3055 5209290090..................................
1.1455
1.3055 5209313000..................................
1.1455
1.3055 5209316020..................................
1.1455
1.3055 5209316035..................................
1.1455
1.3055 5209316050..................................
1.1455
1.3055 5209316090..................................
1.1455
1.3055 5209320020..................................
1.1455
1.3055 5209320040..................................
1.1455
1.3055 5209390020..................................
1.1455
1.3055 5209390040..................................
1.1455
1.3055 5209390060..................................
1.1455
1.3055 5209390080..................................
1.1455
1.3055 5209390090..................................
1.1455
1.3055 5209413000..................................
1.1455
1.3055 5209416020..................................
1.1455
1.3055 5209416040..................................
1.1455
1.3055 5209420020..................................
1.0309
1.1749 5209420040..................................
1.0309
1.1749 5209430030..................................
1.1455
1.3055 5209430050..................................
1.1455
1.3055 5209490020..................................
1.1455
1.3055 5209490090..................................
1.1455
1.3055 5209516035..................................
1.1455
1.3055 5209516050..................................
1.1455
1.3055
[[Page 30239]]
5209520020..................................
1.1455
1.3055 5209590025..................................
1.1455
1.3055 5209590040..................................
1.1455
1.3055 5209590090..................................
1.1455
1.3055 5210114020..................................
0.6873
0.7833 5210114040..................................
0.6873
0.7833 5210116020..................................
0.6873
0.7833 5210116040..................................
0.6873
0.7833 5210116060..................................
0.6873
0.7833 5210118020..................................
0.6873
0.7833 5210120000..................................
0.6873
0.7833 5210192090..................................
0.6873
0.7833 5210214040..................................
0.6873
0.7833 5210216020..................................
0.6873
0.7833 5210216060..................................
0.6873
0.7833 5210218020..................................
0.6873
0.7833 5210314020..................................
0.6873
0.7833 5210314040..................................
0.6873
0.7833 5210316020..................................
0.6873
0.7833 5210318020..................................
0.6873
0.7833 5210414000..................................
0.6873
0.7833 5210416000..................................
0.6873
0.7833 5210418000..................................
0.6873
0.7833 5210498090..................................
0.6873
0.7833 5210514040..................................
0.6873
0.7833 5210516020..................................
0.6873
0.7833 5210516040..................................
0.6873
0.7833 5210516060..................................
0.6873
0.7833 5211110090..................................
0.6873
0.7833 5211120020..................................
0.6873
0.7833 5211190020..................................
0.6873
0.7833 5211190060..................................
0.6873
0.7833 5211210025..................................
0.6873
0.7833 5211210035..................................
0.4165
0.4747 5211210050..................................
0.6873
0.7833 5211290090..................................
0.6873
0.7833 5211320020..................................
0.6873
0.7833 5211390040..................................
0.6873
0.7833 5211390060..................................
0.6873
0.7833 5211490020..................................
0.6873
0.7833 5211490090..................................
0.6873
0.7833 5211590025..................................
0.6873
0.7833 5212146090..................................
0.9164
1.0444 5212156020..................................
0.9164
1.0444 5212216090..................................
0.9164
1.0444 5509530030..................................
0.5556
0.6332 5509530060..................................
0.5556
0.6332 5513110020..................................
0.4009
0.4569 5513110040..................................
0.4009
0.4569 5513110060..................................
0.4009
0.4569 5513110090..................................
0.4009
0.4569 5513120000..................................
0.4009
0.4569 5513130020..................................
0.4009
0.4569 5513210020..................................
0.4009
0.4569 5513310000..................................
0.4009
0.4569 5514120020..................................
0.4009
0.4569 5516420060..................................
0.4009
0.4569 5516910060..................................
0.4009
0.4569 5516930090..................................
0.4009
0.4569 5601210010..................................
1.1455
1.3055 5601210090..................................
1.1455
1.3055 5601300000..................................
1.1455
1.3055 5602109090..................................
0.5727
0.6527 5602290000..................................
1.1455
1.3055 5602906000..................................
0.526
0.5995 5604900000..................................
0.5556
0.6332 5607902000..................................
0.8889
1.0131 5608901000..................................
1.1111
1.2663 5608902300..................................
1.1111
1.2663 5609001000..................................
1.1111
1.2663 5609004000..................................
0.5556
0.6332 5701104000..................................
0.0556
0.0634 5701109000..................................
0.1111
0.1266 5701901010..................................
1.0444
1.1903 5702109020..................................
1.1
1.2537 5702312000..................................
0.0778
0.0887 5702411000..................................
0.0722
0.0823 5702412000..................................
0.0778
0.0887 5702421000..................................
0.0778
0.0887 5702913000..................................
0.0889
0.1013 5702991010..................................
1.1111
1.2663 5702991090..................................
1.1111
1.2663 5703900000..................................
0.4489
0.5116 5801210000..................................
1.1455
1.3055 5801230000..................................
1.1455
1.3055 5801250010..................................
1.1455
1.3055 5801250020..................................
1.1455
1.3055 5801260020..................................
1.1455
1.3055 5802190000..................................
1.1455
1.3055 5802300030..................................
0.5727
0.6527 5804291000..................................
1.1455
1.3055 5806200010..................................
0.3534
0.4028 5806200090..................................
0.3534
0.4028 5806310000..................................
1.1455
1.3055 5806400000..................................
0.4296
0.4896 5808107000..................................
0.5727
0.6527 5808900010..................................
0.5727
0.6527 5811002000..................................
1.1455
1.3055 6001106000..................................
1.1455
1.3055 6001210000..................................
0.8591
0.9791 6001220000..................................
0.2864
0.3264 6001910010..................................
0.8591
0.9791 6001910020..................................
0.8591
0.9791 6001920020..................................
0.2864
0.3264 6001920030..................................
0.2864
0.3264 6001920040..................................
0.2864
0.3264 6002203000..................................
0.8681
0.9894 6002206000..................................
0.2894
0.3298 6002420000..................................
0.8681
0.9894 6002430010..................................
0.2894
0.3298 6002430080..................................
0.2894
0.3298 6002921000..................................
1.1574
1.3191 6002930040..................................
0.1157
0.1319 6002930080..................................
0.1157
0.1319 6101200010..................................
1.0094
1.1504 6101200020..................................
1.0094
1.1504 6102200010..................................
1.0094
1.1504 6102200020..................................
1.0094
1.1504 6103421020..................................
0.8806
1.0036 6103421040..................................
0.8806
1.0036 6103421050..................................
0.8806
1.0036 6103421070..................................
0.8806
1.0036 6103431520..................................
0.2516
0.2867 6103431540..................................
0.2516
0.2867 6103431550..................................
0.2516
0.2867 6103431570..................................
0.2516
0.2867 6104220040..................................
0.9002
1.026 6104220060..................................
0.9002
1.026 6104320000..................................
0.9207
1.0493 6104420010..................................
0.9002
1.026 6104420020..................................
0.9002
1.026 6104520010..................................
0.9312
1.0613 6104520020..................................
0.9312
1.0613 6104622006..................................
0.8806
1.0036 6104622011..................................
0.8806
1.0036 6104622016..................................
0.8806
1.0036 6104622021..................................
0.8806
1.0036 6104622026..................................
0.8806
1.0036 6104622028..................................
0.8806
1.0036 6104622030..................................
0.8806
1.0036 6104622060..................................
0.8806
1.0036 6104632006..................................
0.3774
0.4301 6104632011..................................
0.3774
0.4301 6104632026..................................
0.3774
0.4301 6104632028..................................
0.3774
0.4301 6104632030..................................
0.3774
0.4301 6104632060..................................
0.3774
0.4301 6104692030..................................
0.3858
0.4397 6105100010..................................
0.985
1.1226 6105100020..................................
0.985
1.1226 6105100030..................................
0.985
1.1226 6105202010..................................
0.3078
0.3508 6105202030..................................
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* * * * *
Dated: May 27, 1999. Enrique E. Figueroa, Administrator, Agricultural Marketing Service.
[FR Doc. 99-14309Filed6-4-99; 8:45 am]
BILLING CODE 3410-02-P
