§ 870.9 - Payment.

§ 870.9 Payment.

(a) The payment rate for purposes of calculating payments as specified in this subpart part is 3 cents per pound.

(b) The payment rate is the rate in effect on the date of consumption.

(1) Baled eligible upland cotton consumption must take place in a building or collection of buildings where the cotton bale will be used in the continuous process of manufacturing the cotton into final cotton products in the United States, and as determined by AMS. Unbaled eligible upland cotton will be considered consumed by the domestic user on the date processed.

(2) The quantity of eligible upland cotton with respect to which a payment is made available shall be determined based upon the net weight of each bale of eligible upland cotton.

(c) Payments specified in this

subpart

part will be determined by multiplying the payment rate

, of 3 cents per pound, by

by one of the following:

(1) In the case of baled upland cotton, whether lint, loose samples, or

reginned

re-ginned motes, but not semi-processed motes, the net weight of the cotton

used (gross weight minus the weight of bagging and ties)

consumed;

(2) In the case of unbaled

reginned

re-ginned motes consumed, without

rebaling

re-baling, for an end use in a continuous manufacturing process, the weight of the

reginned

re-ginned motes after final cleaning;

and

or

(3) In the case of suitable semi-processed motes

which are of a quality suitable

,

without further processing, for spinning, papermaking, or manufacture of non-woven cotton fabric,

25 percent of the net weight

(gross weight minus the weight

of

bagging and ties, if baled) of

the semi-processed motes

; provided further, that with respect to semi-processed motes that are used prior to August 18, 2010, payment may be allowed by CCC in its sole discretion at 100 percent of the weight as determined appropriate for a transition of the program to the 25 percent factor.

(c

.

(d) In all cases, the payment will be determined based on the amount of eligible upland cotton that an eligible domestic user consumed during the immediately preceding calendar month.

For the purposes of this subpart, eligible upland cotton will be considered consumed by the domestic user on the date the bale is opened for consumption, or if not baled, the date consumed, without further processing, in a continuous manufacturing process. (d

(e) Payments specified in this

subpart

part will be made available upon application for payment and submission of supporting documentation, as required by the

CCC-issued

provisions of

the Upland Cotton Domestic User Agreement.

(e) All payments received by the eligible domestic user of upland cotton must be used for purposes specified in 7 U.S.C. 9037(c)(3), which include but are not limited to, acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery. Such capital expenditures must be directly attributable and certified as such by the user for the purpose of manufacturing upland cotton into eligible cotton products in the United States.

this part.