99-9634. 1999 Proposed Amendment to Cotton Board Rules and Regulations Adjusting Supplemental Assessment on Imports  

  • [Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
    [Proposed Rules]
    [Pages 19072-19084]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-9634]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1205
    
    [CN-99-002]
    
    
    1999 Proposed Amendment to Cotton Board Rules and Regulations 
    Adjusting Supplemental Assessment on Imports
    
    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. This adjustment 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.
    
    DATES: Comments must be received on or before May 19, 1999.
    
    ADDRESSES: Comments may be mailed to USDA, AMS Cotton Program, STOP 
    0224, 1400 Independence Avenue, SW, Washington, DC 20250-0224. All 
    comments received will be available for public inspection at this 
    address during the hours 8:00 a.m. to 4:00 p.m. Monday through Friday.
    
    FOR FURTHER INFORMATION CONTACT: Whitney Rick, (202) 720-2259.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This proposed 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 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 16,000 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 $0.011850 per kilogram 
    of imported cotton. The proposed 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
    
    [[Page 19073]]
    
    rate. Should the volume of cotton 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 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 contend 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 (1500) or 
    $0.004409 per kg. (1226.8)
    
    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 proposed 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 number                               New number        factor         cents/kg.
    ----------------------------------------------------------------------------------------------------------------
    6302100010......................................................      6302100005          1.1689          1.3322
                                                                          6302100008          1.1689          1.3322
                                                                          6302100015          1.1689          1.3322
    ----------------------------------------------------------------------------------------------------------------
    
    
    [[Page 19074]]
    
        A thirty day 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 $1.3977 per kilogram.
        (3) * * *
        (ii) * * *
    
                             Import Assessment Table
                               [Raw Cotton Fiber]
    ------------------------------------------------------------------------
                                                 Conventional
                      HTS No.                      factors       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
    
    [[Page 19075]]
    
     
    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
    
    [[Page 19076]]
    
     
    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
    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
    
    [[Page 19077]]
    
     
    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
    
    [[Page 19078]]
    
     
    6001910020................................         0.8591         0.9791
    6001920020................................         0.2864         0.3264
    6001920030................................         0.2864         0.3264
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    [[Page 19079]]
    
     
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    [[Page 19080]]
    
     
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    [[Page 19081]]
    
     
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    [[Page 19082]]
    
     
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    [[Page 19083]]
    
     
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    ------------------------------------------------------------------------
    
    
    [[Page 19084]]
    
    * * * * *
        Dated: April 13, 1999.
    Enrique E. Figueroa,
    Administrator, Agricultural Marketing Service.
    [FR Doc. 99-9634 Filed 4-16-99; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Published:
04/19/1999
Department:
Agricultural Marketing Service
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
99-9634
Dates:
Comments must be received on or before May 19, 1999.
Pages:
19072-19084 (13 pages)
Docket Numbers:
CN-99-002
PDF File:
99-9634.pdf
CFR: (1)
7 CFR 1205.510