[Federal Register Volume 62, Number 81 (Monday, April 28, 1997)]
[Rules and Regulations]
[Pages 22877-22879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10892]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[CN-96-007]
Amendment to Cotton Board Rules and Regulations Regarding Import
Assessment Exemptions
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service is amending the regulations
regarding import assessment exemptions by adjusting the provisions for
automatic assessment exemptions on certain imports of textile and
apparel products. The purpose of this automatic exemption is to avoid
multiple assessment of U.S. produced cotton that has been exported and
then imported back into the U.S. in the form of textile and apparel
products. Also, this final rule will lengthen the amount of time a
person has to request an import reimbursement from 90 days from the
date the assessment was paid to 180 days from the date the assessment
was paid. This rule is consistent with the
[[Page 22878]]
business practices of importers and would make it easier for importers
to comply with the regulations.
EFFECTIVE DATE: May 28, 1997.
FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Chief, Cotton
Research and Promotion Staff, telephone number (202) 720-2259 facsimile
(202) 690-1718.
SUPPLEMENTARY INFORMATION:
Regulatory Impact Analysis
Executive Orders 12866 and 12988; the Regulatory Flexibility Act
and the Paperwork Reduction Act.
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.
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, 7 U.S.C. Secs. 2101-2118
(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 the
ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601 et seq.), the Administrator, Agricultural
Marketing Service (AMS) has considered the economic impact of this
action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
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 (13 CFR 121.601).
This rule will neither raise nor lower assessments paid by
importers subject to the Cotton Research and Promotion Order and
therefore presents minimal economic impact. This action will improve
the agency's ability to prevent double assessment of U.S. produced
cotton reentering the U.S. in the form of textile and apparel products.
In addition, this rule will lengthen the amount of time a person has to
request an import reimbursement from 90 days from the date the
assessment was paid to 180 days from the date the assessment was paid.
This rule is consistent with the business practices of importers and
would make it easier for importers to comply with the regulations.
Under these circumstances AMS has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
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 the Cotton Research and Promotion Order was approved by
producers and importers voting in a referendum held July 17-26, 1991.
Proposed rules implementing the amended Order were published in the
Federal Register on December 17, 1991, (56 FR 65450). The final
implementing rules were published on July 1 and 2, 1992, (57 FR 29181)
and (57 FR 29431), respectively.
Section 1205.335 (c)(1) of the Cotton Research and Promotion Order
provides for exemptions from assessments for certain imported goods
when they contain U.S. produced cotton in order to minimize the
occurrence of double assessments on U.S. cotton. All U.S. produced
cotton is assessed at the time it is first sold. A significant amount
of U.S. produced cotton is converted into fabric in the U.S. and then
exported. This U.S. cotton containing fabric often returns to the U.S.
in the form of apparel products.
Section 1205.510 (b)(5) of the Cotton Board Rules and Regulations
identifies the specific Harmonized Tariff Schedule (HTS) numbers that
are exempted to avoid a second unnecessary assessment of this U.S.
produced cotton. The numbers currently identified in this section have
become out dated because of changes in the HTS. The revision of this
section will update the exempted HTS numbers to 9802.00.8015, and
9802.00.9000 which are currently in the HTS.
This rule also lengthens the period of time a person has to request
an import assessment reimbursement from 90 to 180 days from the date
the assessment was paid. In the past the Cotton Board has received
requests for reimbursements beyond the 90 day limit. In responding to
these request, importers have informed the Cotton Board that the 90 day
period is too restrictive. The Cotton Board has recognized that
importer concern over the time period has merit. Therefore, the Cotton
Board has requested that the Department extend the period to 180 days.
The Cotton Board believes that this will be consistent with the
business practices of importers, and make it easier for importers to
comply with the regulations.
A proposed rule with a request for comments was published in the
Federal Register (62 FR 4666) on January 31, 1997. No comments were
received during the comment period (January 31, through March 3, 1997).
List of Subjects in 7 CFR Part 1205
Advertising, Agricultural research, Cotton, Marketing agreements,
Reporting and record keeping 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)(5) is revised read as follows:
Sec. 1205.510 Levy of assessments.
* * * * *
[[Page 22879]]
(b) * * *
(5) Imported textile and apparel articles assembled of components
formed from cotton produced in the United States and identified by HTS
numbers 9802.00.8015 or 9802.00.9000 shall be exempt from assessments
under this subpart.
* * * * *
3. In Sec. 1205.520, paragraph (b) introductory text is revised to
read as follows:
Sec. 1205.520 Procedure for obtaining reimbursement.
* * * * *
(b) Submission of Reimbursement Application to Cotton Board. Any
importer requesting a reimbursement shall mail the application on the
prescribed form to the Cotton Board. The application shall be
postmarked within 180 days from the date the assessments were paid on
the cotton by such importer. The reimbursement application shall show:
* * * * *
Dated: April 22, 1997.
Lon Hatamiya,
Administrator.
[FR Doc. 97-10892 Filed 4-25-97; 8:45 am]
BILLING CODE 3410-02-P
