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Home » 2023 Issues » 88 FR (03/09/2023) » 2023-04610. Harmonized Tariff Schedule Numbers for the Paper and Paper-Based Packaging Products

  2023-04610. Harmonized Tariff Schedule Numbers for the Paper and Paper-Based Packaging Products  

  • Start Preamble

    AGENCY:

    Agricultural Marketing Service, Department of Agriculture (USDA).

    ACTION:

    Final rule.

    SUMMARY:

    This final rule updates the Harmonized Tariff Schedule (HTS) numbers for paper and paper-based packaging products in the Paper and Paper-Based Packaging Promotion, Research, and Information Order (Order). In addition, this action adds new language that allows assessment collection to continue even if HTS numbers change in the future. The Paper and Packaging Board (Board) administers the Order with oversight by the Agricultural Marketing Service (AMS).

    DATES:

    Effective March 10, 2023.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Marlene Betts, Marketing Specialist, or Alexandra Caryl, Branch Chief, Mid-Atlantic Region Branch, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-0244; Telephone: (202) 720-5057; or Email: Marlene.Betts@usda.gov or Alexandra.Caryl@usda.gov.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    This final rule is issued under the Order (7 CFR part 1222). The Order is authorized under the Commodity Promotion, Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).

    Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This action falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review.

    Executive Order 13175

    This action has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. AMS has assessed the impact of this final rule on Indian Tribes and determined that this rulemaking would not have Tribal implications that require consultation under Executive Order 13175. AMS hosts a quarterly teleconference with Tribal leaders where matters of mutual interest regarding the marketing of agricultural products are discussed. Information about the changes to the regulations will be shared during an upcoming quarterly call, and Tribal leaders will be informed about the revisions to the regulation. AMS will work with the Office of Tribal Relations to ensure meaningful consultation is provided as needed with regards to this change to the Order.

    Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect or preempt any other Federal or State law authorizing promotion or research relating to an agricultural commodity.

    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject to an order may file a written petition with U.S. Department of Agriculture (USDA) stating that an order, any provision of an order, or any obligation imposed in connection with an order, is not established in accordance with the law, and request a modification of an order or an exemption from an order. Any petition filed challenging an order, any provision of an order, or any obligation imposed in connection with an order, shall be filed within two years after the effective date of an order, provision, or obligation subject to challenge in the petition. The petitioner will have the opportunity for a hearing on the petition. Thereafter, USDA will issue a ruling on the petition. The 1996 Act provides that the district court of the United States for any district in which Start Printed Page 14485 the petitioner resides or conducts business shall have the jurisdiction to review a final ruling on the petition if the petitioner files a complaint for that purpose not later than 20 days after the date of the entry of USDA's final ruling.

    Background

    The Paper and Paper-Based Packaging Promotion, Research, and Information Order (Order) took effect in January 2014 (79 FR 3696), and assessment collection began in March 2014 for paper and paper-based packaging. The program is funded by assessments on manufacturers and importers of 100,000 short tons or more of paper and paper-based packaging per year. The assessments are used for projects to promote paper and paper-based packaging. This final rule updates the Harmonized Tariff Schedule (HTS) numbers for paper and paper-based packaging products. This action also adds verbiage that allows the collection of assessments to continue even if HTS numbers change in the future. Updates to the HTS numbers and the additional verbiage are necessary to ensure that importers are being assessed appropriately.

    These changes ensure that importers are being assessed on the same products as domestic manufacturers. These changes were recommended by the Board at its meeting on June 21, 2022. The Board was unanimously in favor of these recommendations. AMS agrees to update the HTS numbers.

    Update HTS Numbers

    Sections 1222.46(p) of the Order allows for the Board to recommend amendments to the Order as the Board considers appropriate. The Board reviewed the current HTS numbers after noting that several changes made by the U.S. International Trade Commission (USITC) are not reflected in the Order's current HTS numbers. Therefore, this action updates the Order's HTS numbers, bringing them in-line with the most current HTS numbers as provided by the USITC.[1] In addition, this action adds verbiage that allows the collection of assessments to continue even if HTS numbers change in the future.

    Section 1222.52(e) is updated to include language that allows the Board to continue to collect assessments in the event the USITC makes future changes to any HTS number by merely replacing a previous number. In addition, the list of HTS numbers in the table for assessments on importers of paper and paper-based packaging are all updated in the Order to coincide with the most current HTS numbers as provided by USITC.

    Final Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), AMS is required to examine the impact of the final rule on small entities. Accordingly, AMS has considered the economic impact of this action on such entities.

    The purpose of the RFA is to fit regulatory action to scale of businesses subject to such action so that small businesses will not be disproportionately burdened. The Small Business Administration defines small agricultural service firms as those having annual receipts of no more than $30 million (13 CFR part 121). Manufacturers and importers would be considered agricultural service firms.

    According to the Board, there are approximately 50 manufacturers in the United States that produce the types of paper and paper-based packaging covered under the Order. Using an average price of $1,165 per short ton,[2] a manufacturer who produces less than about 25,760 short tons of paper and paper-based packaging per year would be considered a small entity. The Board estimates that no manufacturers produced less than 25,760 short tons in 2021; thus, no domestic manufacturers would be considered small businesses.

    Based on U.S. Customs and Border Protection (Customs) data, there were 3,020 importers of paper and paper-based packaging in 2021. Of these, 34 importers, or 1 percent, had annual receipts of more than $30 million of paper and paper-based packaging. Thus, most importers would be considered small entities.

    The final rule updates the Order's HTS numbers, bringing them in-line with the most current HTS numbers as provided by the USITC. In addition, this action adds verbiage that allows the Board to continue to collect assessments even if HTS numbers change in the future.

    This rulemaking does not impose additional recordkeeping requirements on manufacturers and importers of paper and paper-based packaging. There are no Federal rules that duplicate, overlap, or conflict with this final rule. In accordance with OMB regulations (5 CFR part 1320) that implements the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the information collection and recordkeeping requirements that are imposed by the Order have been previously approved under OMB control number 0581-0093. This rulemaking does not result in a change to the information collection and recordkeeping requirements previously approved.

    Regarding outreach efforts, the Board discussed this action during Board meetings in 2022. The Board members unanimously approved the changes to the HTS numbers to bring them in accordance with the USITC numbers and ensure that assessments on domestic manufacturers are the same as assessments on imports. In addition, all of the Board's meetings are open to the public and interested persons are invited to participate and express their views.

    AMS is committed to complying with the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities or citizen access to Government information and services, and for other purposes.

    AMS has determined that this final rule is consistent with and would effectuate the purpose of the 1996 Act.

    A proposed rule concerning this action was published in the Federal Register on November 7, 2022 (87 FR 66960). A 30-day comment period ending December 7, 2022, was provided to allow interested person to respond to the proposal. The proposal was made available through the internet by AMS and the Office of the Federal Register. No comments were received. Accordingly, no changes were made to the rule as proposed.

    Start List of Subjects

    List of Subjects in 7 CFR Part 1222

    • Administrative practice and procedure
    • Advertising
    • Labeling
    • Marketing agreements
    • Reporting and recordkeeping requirements
    End List of Subjects

    For the reasons set forth in the preamble, the Agricultural Marketing Service amends 7 CFR part 1222 as follows:

    Start Part

    PART 1222—PAPER AND PAPER-BASED PACKAGING PROMOTION, RESEARCH, AND INFORMATION ORDER

    End Part Start Amendment Part

    1. The authority citation for part 1222 continues to read as follows:

    End Amendment Part Start Authority

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.

    End Authority Start Amendment Part

    2. In § 1222.52, revise paragraph (e) to read as follows:

    End Amendment Part
    Assessment.
    * * * * *
    Start Printed Page 14486

    (e) Each importer of paper and paper-based packaging shall pay through Customs to the Board an assessment on the paper and paper-based packaging imported into the United States identified in the Harmonized Tariff Schedule of the United States (HTSUS) number listed in the following table. In the event that any HTSUS number subject to assessment is changed and such change is merely a replacement of a previous number and has no impact on the description of the paper and paper-based packaging involved, assessments will continue to be collected based on the new number.

    Table 1 to § 1222.52( e )

    Paper and paper-based packagingAssessment $/kg
    4802.54.1000$0.000386
    4802.54.31000.000386
    4802.54.50000.000386
    4802.54.61000.000386
    4802.55.10000.000386
    4802.55.20000.000386
    4802.55.40000.000386
    4802.55.60000.000386
    4802.55.70200.000386
    4802.55.70400.000386
    4802.56.10000.000386
    4802.56.20000.000386
    4802.56.40000.000386
    4802.56.60000.000386
    4802.56.70200.000386
    4802.56.70500.000386
    4802.56.70900.000386
    4802.57.10000.000386
    4802.57.20000.000386
    4802.57.40000.000386
    4802.57.40200.000386
    4802.57.40400.000386
    4802.57.40900.000386
    4802.58.10000.000386
    4802.58.20200.000386
    4802.58.20400.000386
    4802.58.20800.000386
    4802.58.50000.000386
    4802.58.60200.000386
    4802.58.60400.000386
    4802.61.10000.000386
    4802.61.20000.000386
    4802.61.31100.000386
    4802.61.31350.000386
    4802.61.31910.000386
    4802.61.50000.000386
    4802.61.60200.000386
    4802.61.60400.000386
    4802.62.10000.000386
    4802.62.20000.000386
    4802.62.30000.000386
    4802.62.50000.000386
    4802.62.61200.000386
    4802.62.61400.000386
    4802.69.10000.000386
    4802.69.20000.000386
    4802.69.30000.000386
    4804.11.00000.000386
    4804.19.00000.000386
    4804.21.00000.000386
    4804.29.00000.000386
    4804.31.40200.000386
    4804.31.40400.000386
    4804.31.60000.000386
    4804.39.40200.000386
    4804.39.40490.000386
    4804.39.60200.000386
    4804.39.60400.000386
    4804.41.20000.000386
    4804.41.40000.000386
    4804.42.00100.000386
    4804.42.00200.000386
    4804.42.00300.000386
    4804.42.00400.000386
    4804.42.00500.000386
    4804.49.00000.000386
    4804.51.00000.000386
    4804.52.00100.000386
    4804.52.00200.000386
    4804.52.00300.000386
    4804.52.00400.000386
    4804.52.00500.000386
    4804.59.00000.000386
    4805.11.00000.000386
    4805.12.10000.000386
    4805.12.20000.000386
    4805.19.10000.000386
    4805.19.20000.000386
    4805.24.50000.000386
    4805.24.70000.000386
    4805.24.90000.000386
    4805.25.00000.000386
    4805.91.10100.000386
    4805.91.90000.000386
    4805.92.40100.000386
    4805.92.40300.000386
    4805.93.40100.000386
    4805.93.40300.000386
    4805.93.40500.000386
    4805.93.40600.000386
    4807.00.91000.000386
    4807.00.94000.000386
    4810.13.11200.000386
    4810.13.11400.000386
    4810.13.19000.000386
    4810.13.20100.000386
    4810.13.20900.000386
    4810.13.50000.000386
    4810.13.60000.000386
    4810.13.70200.000386
    4810.13.70400.000386
    4810.14.11200.000386
    4810.14.11400.000386
    4810.14.19000.000386
    4810.14.20100.000386
    4810.14.20900.000386
    4810.14.50000.000386
    4810.14.60000.000386
    4810.14.70200.000386
    4810.14.70400.000386
    4810.19.11000.000386
    4810.19.19000.000386
    4810.19.20100.000386
    4810.19.20900.000386
    4810.22.10000.000386
    4810.22.50440.000386
    4810.22.50800.000386
    4810.22.60000.000386
    4810.22.70200.000386
    4810.22.70400.000386
    4810.29.10250.000386
    4810.29.10350.000386
    4810.29.50000.000386
    4810.29.60000.000386
    4810.29.70200.000386
    4810.29.70250.000386
    4810.29.70350.000386
    4810.31.10200.000386
    4810.31.10400.000386
    4810.31.30000.000386
    4810.31.65000.000386
    4810.32.10200.000386
    4810.32.10400.000386
    4810.32.10600.000386
    4810.32.30000.000386
    4810.32.65000.000386
    4810.39.12000.000386
    4810.39.14000.000386
    4810.39.30000.000386
    4810.39.65000.000386
    4810.92.12250.000386
    4810.92.12350.000386
    4810.92.65250.000386
    4810.92.65350.000386
    4810.99.10500.000386
    4810.99.65000.000386
    4811.51.20100.000386
    4811.51.20200.000386
    4811.51.20300.000386
    4811.59.40200.000386
    4811.90.80300.000386
    * * * * *
    Start Signature

    Erin Morris,

    Associate Administrator, Agricultural Marketing Service.

    End Signature End Supplemental Information

    Footnotes

    2.  No domestic market pricing information for paper and paper-based packaging was publicly available; instead, average prices were estimated using export data from the U.S. Census Bureau.

    Back to Citation

    [FR Doc. 2023-04610 Filed 3-8-23; 8:45 am]

    BILLING CODE 3410-02-P

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Document Information

Effective Date:
3/10/2023
Published:
03/09/2023
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
2023-04610
Dates:
Effective March 10, 2023.
Pages:
14484-14486 (3 pages)
Docket Numbers:
Doc. No. AMS-SC-22-0050
Topics:
Administrative practice and procedure, Advertising, Labeling, Marketing agreements, Reporting and recordkeeping requirements
PDF File:
2023-04610.pdf
CFR: (1)
7 CFR 1222.52